How Much Does Life Insurance Cost?

Life insurance calculator: estimate your coverage and cost

Enter a few details about your income, family, and debts. The calculator estimates how much coverage your family would need, then prices that amount as term life and as whole life so you can compare. It doesn’t ask for your name, email, or phone number.

This calculator provides estimates only. Get a personalized quote from 40+ A-rated carriers through AccuQuote.

How much does life insurance cost by age?

Age is the biggest single driver of your premium, because the older you are when you apply, the more likely the insurer is to pay a claim during the policy. Here’s how a $500,000 policy compares as term and whole life at different ages.

Two things stand out. Term coverage stays affordable well into your 40s, then climbs faster each year. And whole life costs many times more than term at every age, because it never expires and builds cash value.

The bigger surprise is how far off most people’s guesses are. In the 2026 Insurance Barometer Study, adults under 31 overestimated the cost of a $250,000, 20-year term policy by about five to six times. If cost is what’s kept you from buying coverage, the real number is worth checking. For a deeper look, see our guide to life insurance rates by age.

What affects the cost of life insurance?

Insurers set your price by estimating risk. Five factors do most of the work, and every carrier weighs them a little differently.

Your age

Premiums rise with each birthday. Locking in a rate sooner is one of the simplest ways to pay less over the life of a policy.

Your health and rate class

After underwriting, you’re placed in a rate class, such as preferred plus or standard. In our model, moving from excellent to average health raises term premiums by roughly 75%. Learn how life insurance rate classes work.

Tobacco use

Smokers pay about three times as much for term coverage in our model. Most carriers need you to be tobacco-free for at least 12 months to qualify for non-smoker rates.

Coverage amount and term length

More coverage costs more, but the price per $1,000 usually drops at higher amounts. Longer terms cost more, because the insurer covers you into older ages.

Policy type

Term life covers a set period. Permanent policies, like whole and universal life, last for life and cost more as a result.

What type of life insurance do you need?

The right policy depends on how long you need coverage and whether you want it to build value. Most families start with term, then add permanent coverage for lifelong goals.

Term life insurance

Term covers you for 10 to 30 years at a level premium. It’s built to protect your family while they depend on your income or while you carry a mortgage. Use the term life insurance calculator to compare term lengths.

Whole life insurance

Whole life lasts your entire life, with fixed premiums and guaranteed cash value growth. It suits estate planning and lifelong dependents. See our whole life insurance overview.

Universal life insurance

Universal life is permanent coverage with flexible premiums. Guaranteed universal life offers lifelong coverage at a lower cost than whole life, with little cash value.

Guaranteed issue life insurance

Guaranteed issue policies skip health questions entirely. Coverage is small, usually $5,000 to $25,000, and it’s designed for final expenses.

How to calculate your life insurance coverage

A quick rule of thumb is 10 to 15 times your income. That’s a useful sanity check, but it misses your debts, your savings, and how many people rely on you. Here’s the method our calculator uses:

1. Replace your income. Take 75% of your pre-tax income for each year your family needs support, then adjust for what the payout can earn once it’s invested.
2. Add your debts. Include your mortgage, car loans, student loans, and credit cards.
3. Add college costs. We use $65,000 per child, based on four years at the average net cost of about $16,200 a year at a public four-year college, according to the College Board’s 2025 Trends in College Pricing.
4. Add final expenses. The median funeral with viewing, burial, and a vault cost $9,995 in the NFDA’s most recent General Price List Study (2023).
5. Subtract what you already have. Count liquid savings and any existing life insurance.

This matters because most households have little cushion. Only 29% of consumers say they could stay financially secure for more than two years if their primary wage earner died, according to the 2026 Insurance Barometer Study. For more detail, read how much life insurance is enough.

What your policy pays and how long coverage lasts

When you pass away during the coverage period, your beneficiaries receive the death benefit, usually as a lump sum. They can use it for anything: the mortgage, daily bills, tuition, or long-term savings.

In most cases, that money isn’t taxed. According to the IRS, life insurance proceeds paid to a beneficiary because of the insured’s death generally aren’t included in gross income. Interest earned on the payout, such as from installment payments, is taxable.

How long you’re covered depends on the policy:

• Term life lasts 10, 15, 20, 25, or 30 years. Premiums stay level for the full term.
• Whole life and guaranteed universal life can last for your entire life as long as premiums are paid.
• Convertible term lets you switch to a permanent policy during a conversion window, often without a new medical exam. The NAIC notes that this option is usually built into the premium.

Naming the right people matters as much as the amount. Our guide to how life insurance beneficiaries work covers the details.

Why comparing life insurance quotes lowers your cost

Two people with the same age and health can get very different prices from different insurers. Each carrier has its own underwriting rules, and some are more forgiving of certain conditions, such as high blood pressure, diabetes, or a past smoking habit. The insurer that’s cheapest for your neighbor may not be cheapest for you.

That’s why working with an independent agency matters. AccuQuote has helped families compare life insurance since 1986, and our licensed agents shop 40+ A-rated carriers through one application. Here’s what that means for you:

• One application, many offers. You share your information once, and we show you options side by side.
• Health-aware shopping. Our agents know which carriers tend to offer better rate classes for common health conditions.
• Real savings. AccuQuote customers save up to 70% compared with taking the first quote they receive.
• No pressure. You get honest guidance and a clear comparison, with no obligation to buy.

Plenty of people still need coverage. About 92 million U.S. adults say they need life insurance or more of it, according to the 2026 Insurance Barometer Study. Getting a real quote takes minutes.

What if life insurance is over your budget?

If the estimate feels high, you have options that keep your family protected without straining your monthly budget.

• Choose term over permanent. For the same death benefit, term usually costs a small fraction of whole life.
• Shorten the term. A 20-year term costs noticeably less than a 30-year term, especially after age 40.
• Ladder your coverage. Pair a larger 20-year policy with a smaller 30-year policy, so your coverage steps down as your mortgage and expenses shrink.
• Right-size the amount. Dropping from $750,000 to $500,000 can lower your premium without leaving your family short.
• Compare carriers. AccuQuote customers save up to 70% by shopping 40+ A-rated insurers instead of taking the first quote.

Applying is also easier than it used to be. LIMRA’s Sean Grindall credited technology with “making the buying process faster and more accessible” in the 2025 sales report. Many applicants now qualify for no-medical-exam life insurance with a decision in minutes.