Term Life Premium Estimate Calculator
This calculator estimates the annual cost of a level-term life insurance policy using actuarial benchmark rates per $1,000 of coverage. Term life insurance pays a death benefit if the insured dies during the policy term and has no cash value. Premiums depend primarily on age, sex, health class, coverage amount, and policy term. This tool uses standard-health-class benchmark rates derived from published actuarial studies. The estimate is a planning guide; actual quotes from a licensed insurer will reflect your individual health profile and underwriting decisions. Enter your age, sex, coverage amount, and term length to see an estimated annual premium.
Term life premium formula
Annual premium = (Coverage / 1,000) x Rate per $1,000
The rate per $1,000 varies by age, sex, and term. Rates in this estimator represent standard health class benchmarks. Monthly premium is the annual premium divided by 12.
About term life insurance premiums
- Premiums rise significantly at older issue ages because mortality rates increase exponentially with age.
- Longer terms (30 years) cost more per year than shorter terms (10 years) at the same age because they lock in coverage through higher-risk ages.
- Females pay roughly 20 to 30 percent less than males at the same age due to lower mortality rates.
- A preferred health class (excellent health, no tobacco) can reduce premiums by 20 to 40 percent below the standard rate shown here.
- Total cost of coverage over the term equals the annual premium multiplied by the number of years.
Term life premiums: frequently asked questions
How are term life premiums determined?
Insurers apply a rate per $1,000 of coverage based on the insured's age, sex, health class, and policy term. The annual premium equals (coverage / 1,000) multiplied by the rate per $1,000. Rates are derived from mortality tables and competitive market data, not from a single government table.
Why do premiums increase with age?
Older ages carry higher mortality rates (q-x in actuarial tables), so the insurer expects a higher probability of paying a death benefit. Each age increment raises the expected cost, which is passed through as a higher rate per $1,000 of coverage.
What health class is assumed here?
This estimator uses approximate benchmark rates for a standard (average) health class. Preferred-plus or preferred health classes typically receive 20 to 40 percent lower rates; substandard classes pay more. Get a personalised quote from a licensed insurer for an accurate figure.
Does the premium change during the term?
Level-term life insurance has a fixed premium for the entire term, for example 10, 20, or 30 years. After the term expires, the policy lapses or converts at a much higher rate. This calculator estimates the level annual premium for the initial term.
Are women's premiums lower than men's?
Yes, because females have lower mortality rates at every age according to the SSA and SOA mortality tables. A 40-year-old female typically pays roughly 20 to 30 percent less than a male of the same age for the same coverage.
Official sources
- Society of Actuaries: SOA Mortality Table Research.
- NAIC (National Association of Insurance Commissioners): Consumer Insurance Resources.
Reviewed by the CalculatorHub team, edited by James Graham, 15 June 2026. See our methodology.