Professional services
Term Life Insurance Calculator
Estimates term cover, where the term length is chosen against when the need ends.
Result
An estimating tool, not insurance advice and not a quote. Actual premiums are set by underwriting on factors no calculator sees: claims history, credit and loss data, exact location, construction, contract requirements and the insurer's own appetite. What cover you need is a question for a licensed broker who has looked at your situation. A term shorter than the need leaves a gap at exactly the age when replacing cover is most expensive and medical underwriting is least forgiving. Laddering, holding several policies of different lengths, is a common way to match falling need without overpaying.
Get a Free Business AuditHow the calculation works
The need estimated from obligations, with the term set to the period over which those obligations exist. Term cover pays only if death occurs within the term, which is why it costs a fraction of permanent cover for the same amount, and the design question is matching the term to when the obligations end rather than minimising the premium.
What moves the number
- The period over which obligations actually run.
- Amount needed, which may decline over time.
- Age at purchase, which drives the premium heavily.
- Whether the policy can be converted or renewed.
Where this one goes wrong
A term that ends before the obligation does leaves the household uncovered at an age when new cover is far more expensive or unavailable, which is the failure mode worth avoiding: matching the term to a mortgage or to children reaching independence is the usual reasoning. Renewability and convertibility terms matter for the same reason, since circumstances change. This is a needs estimate rather than advice, and the policy decision belongs with a licensed professional.
Before you quote
- Match the term to when the obligation actually ends.
- Check renewal and conversion terms before buying.
- Reassess as obligations change rather than setting and forgetting.
Where the rules come from
Questions
About this calculator
How long a term should I choose?
Long enough to cover the obligation, which usually means a mortgage term or children reaching independence. A term that ends first leaves the household uncovered at an age when new cover is far more expensive or unavailable, which is the failure worth avoiding.
Why is term cover so much cheaper?
Because it pays only if death occurs within the term, where permanent cover pays whenever it happens. That makes term a way to cover a defined period of obligation rather than a lifetime, which is a different purpose rather than a cheaper version of the same thing.
What is convertibility?
A provision allowing a term policy to be converted to permanent cover without new medical evidence. It matters because health changes, and a conversion right preserves the option when buying new cover might no longer be possible. The terms vary and are worth reading.
The formula
premium per term, from cover amount and a rate that rises with age and lengthens with term
Put this calculator on your site
Free to embed. Paste this where you want it to appear. It stays up to date automatically because it loads from BDEVY.
Please keep the attribution line. It is the only thing we ask in return.
How to use this calculator
- Cover amount ($). Enter your own figure; the page starts at $500,000.
- Current age. Enter your own figure; the page starts at 38.
- Health class. Enter your own figure; the page starts at Standard.
- Years you actually need cover. Enter your own figure; the page starts at 22.
The result updates as you type, so you can try a figure, see what it does to term that matches the need, and change it back. Nothing you enter is sent anywhere or saved.
A worked example
These are the figures the calculator opens with. Every number in the results column below is produced by the same calculation the page runs, so you can follow it through before putting your own figures in.
What goes in
| Input | Value |
|---|---|
| Cover amount | $500,000 |
| Current age | 38 |
| Health class | Standard |
| Years you actually need cover | 22 |
What comes out
| Result | Value |
|---|---|
| Term that matches the need main result | 30 |
| 10 year, monthly | $33.09 |
| 20 year, monthly | $42.42 |
| 30 year, monthly | $51.75 |
| Years uncovered if you take 20 | 2 |
You need cover for 22 years, so a 30 year term fits. Monthly costs are $33.09, $42.42 and $51.75 for 10, 20 and 30 years, and a 20 year policy would leave 2 years uncovered at the end.
How sensitive the answer is
Holding everything else steady and changing only cover amount, this is what happens to term that matches the need. It is worth knowing which of your inputs the answer actually hinges on, and which barely move it.
| Cover amount ($) | Term that matches the need |
|---|---|
| $250,000 | 30 |
| $375,000 | 30 |
| $500,000 example above | 30 |
| $750,000 | 30 |
| $1,000,000 | 30 |
Every other input is held at the example value while this one changes, which is not how a real job behaves. Treat it as a guide to which number matters most, not as five separate quotes.
What each figure means
- Cover amount ($)
- A money amount, starting at $500,000.
- Current age
- A number, between 18 and 75, starting at 38.
- Health class
- Choose from Preferred plus, Preferred, Standard, Substandard.
- Years you actually need cover
- A number, between 0 and 50, starting at 22.
What the results tell you
| Result | What it is |
|---|---|
| Term that matches the need | The headline result. A number. |
| 10 year, monthly | A money figure. |
| 20 year, monthly | A money figure. |
| 30 year, monthly | A money figure. |
| Years uncovered if you take 20 | A number. |
Keep going
Related calculators
Estimating is the easy part
The jobs you never hear about cost more than the ones you mis-measure. BDEVY builds the marketing, systems and automation that bring them in.