How Much Does Whole Life Insurance Cost?

Whole life insurance calculator

Enter your details and the coverage amount you’re considering. The calculator estimates your monthly and yearly premium, shows it as a share of your income, and compares it with term coverage for the same amount. No contact information is required.

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

How much does whole life insurance cost by age?

Whole life premiums are set by your age, health, and gender when you apply, and they stay level for life. Here’s how $250,000 of traditional whole life compares with 20-year term.

Notice how much faster whole life rises at older ages. A policy bought at 40 costs roughly half as much each month as the same policy bought at 55, and that savings repeats every year for the rest of your life. The higher price pays for two things term doesn’t offer: coverage that can’t expire, and a cash value account that grows at a guaranteed rate.

Demand for that stability is rising. Whole life new premium hit a record $6.4 billion in 2025, or 37% of all U.S. individual life sales, according to LIMRA. LIMRA’s Karen Terry linked the trend to economic worries:

“…consumers are drawn to stable products, like whole life, when faced with economic instability.”

Karen Terry, head of LIMRA Insurance Research, LIMRA 2025 sales report

What type of whole life insurance do you need?

Whole life comes in several designs. They all last for life, but they differ in cost, flexibility, and how cash value grows.

Traditional (non-participating) whole life

Your premium, death benefit, and cash value schedule are fixed when the policy is issued. It’s the most predictable option.

Participating whole life

The policy may pay annual dividends based on the insurer’s results. You can use dividends to lower premiums, buy more coverage, or take cash. The NAIC notes these policies usually cost more, and dividends aren’t guaranteed.

Limited-pay whole life

You pay premiums for a shorter period, such as 10 or 20 years or until age 65, and coverage still lasts for life. Premiums are higher because they’re compressed.

Single-premium whole life

You pay for the policy with one lump sum and it’s fully paid up from day one. It’s often used to move savings into a tax-advantaged death benefit for heirs.

Final expense whole life

A small policy, usually $5,000 to $50,000, designed to cover a funeral and final bills. Underwriting is simplified, with a few health questions and no exam. See final expense life insurance.

For a full overview, visit our whole life insurance page.

How to calculate your whole life insurance coverage

Whole life is rarely the right tool for replacing decades of income. It’s best for needs that never go away. Size your policy around the goal it serves:

1. Final expenses. Cover the funeral and final bills. The median funeral with viewing and burial cost $8,300 in 2023, or $9,995 with a vault, according to the NFDA.
2. A lifelong dependent. If you support a child or adult with special needs, estimate the yearly cost of care and how long it will last.
3. Legacy gifts. Decide what you want to leave to heirs or a charity.
4. Estate liquidity. Life insurance can give heirs cash to settle an estate without selling a home or business. The federal estate tax exemption is $15 million per person in 2026, according to the IRS, so few families owe federal estate tax, but state taxes can apply at lower levels.

For example, say you want to cover a $10,000 funeral, leave $50,000 to each of your two children, and give $15,000 to your church. That’s $125,000 of lifelong need. In our model, a healthy 50-year-old man would pay about $258–$380 a month for that amount as traditional whole life. Covering a $300,000 mortgage on top of that with 20-year term would add about $46–$69 a month, instead of buying all $425,000 as whole life.

Then cover the years your family needs income replacement with term life, which costs far less. Use the life insurance calculator to estimate that piece.

Whole life vs. term life: what you pay over time

The monthly gap between whole life and term is large, but it helps to look at the full picture. Using the midpoints of our estimates, a healthy 40-year-old man buying $250,000 of coverage would pay roughly:

Term costs far less over those 20 years, which is why it’s usually the right fit when you mainly need to protect your family’s income. Whole life makes sense when you want coverage that’s guaranteed to be there whenever you pass away, plus a cash value account you can borrow against.

Many families use both. A smaller whole life policy handles permanent needs, while a term policy covers the years when the mortgage and kids are expensive. Our term vs. whole life insurance guide walks through more scenarios.

Whole life benefits: guarantees, cash value, and dividends

Whole life provides a guaranteed death benefit for your entire life, as long as premiums are paid. Your beneficiaries generally receive it free of federal income tax, according to the IRS.

While you’re living, the policy builds cash value you can use:

• Tax-deferred growth. Cash value grows without annual taxes.
• Policy loans. You can borrow against your cash value without a credit check. Unpaid loans and interest reduce the death benefit.
• Surrender. You can cancel the policy for its cash surrender value. Under IRS Publication 525, the amount above what you paid in premiums is taxable income.
• Dividends. On participating policies, dividends can reduce premiums or add paid-up coverage.

Cash value builds slowly in the first several years, so surrendering early often returns less than you paid. Before you buy, ask for a year-by-year illustration of guaranteed values. Our guide to hidden costs in life insurance covers what to look for.

How AccuQuote helps you compare whole life policies

Whole life policies can look alike on the surface and perform very differently over decades. Premiums, guaranteed cash values, and dividend histories vary from one insurer to the next, and the differences compound over time.

AccuQuote’s licensed agents compare whole life options from 40+ A-rated carriers, so you can see:

• Guaranteed premiums and death benefits side by side.
• Year-by-year guaranteed cash values, not just projected ones.
• Participating and non-participating options, and how dividends have been used.
• Limited-pay designs that let you finish paying before retirement.

We’ve helped 200,000+ families since 1986, with no pressure and no obligation.

What if whole life insurance is over your budget?

If the premium for the coverage you want feels too high, you can still get lifelong protection with a different structure.

• Blend term and whole life. Buy a smaller whole life policy for permanent needs, plus a larger term policy for the years your family depends on your income.
• Consider guaranteed universal life. It offers lifelong coverage at a lower premium by building little cash value. Price it with the universal life insurance calculator.
• Buy term now and convert later. Most term policies let you convert to permanent coverage without a new exam. Read term life conversion explained.
• Lower the face amount. A $100,000 policy may cover final expenses and a meaningful legacy at a fraction of the cost.
• Compare carriers. Whole life pricing and dividend histories vary widely, so AccuQuote compares 40+ A-rated carriers for you.