Term Life Premium Estimator Calculator

A simple actuarial estimate is the pure premium, coverage times the annual probability of death, plus a loading for the insurer's expenses and profit. Pure premium is the expected claim cost. Dividing by 1 minus the loading fraction grosses it up to the charged premium. This calculator follows that structure with your inputs.

Mortality rates by age and sex come from published actuarial tables, such as the Society of Actuaries valuation tables and the Social Security Administration actuarial life table. Because the right figure depends on your exact age, sex, and health class, the mortality rate per 1,000 is a user input you take from an official table.

Insurers add a loading to the pure premium to cover commissions, administration, taxes, reserves, and profit. It is commonly expressed as a percentage of the gross premium. A 30 percent loading means expenses and profit are 30 percent of what you pay, and the pure premium is the other 70 percent. Enter the insurer's assumed loading.

Real term life pricing uses select and ultimate mortality, underwriting health classes, policy fees, lapse assumptions, and interest. This tool gives a transparent first approximation from a single-year mortality rate and a flat loading. It is educational, not a quote. Always compare actual carrier quotes.

Yes. The pure premium is coverage times the mortality rate, so a higher annual probability of death raises the expected claim cost and therefore the premium. Older ages, smoking, and adverse health classes carry higher mortality rates and higher premiums.