Term Life Insurance Calculator
Jason Stolz CLTC, CRPC
Looking for the best term life insurance calculator and get the best rates? Use the calculator below to see live, side-by-side quotes from top carriers in minutes. Then, keep reading for a quick guide to term lengths, coverage amounts, health classes, and smart ways to structure coverage for your family or business.
Instant Term Life Quotes
No pressure. See prices, carriers, and policy options in real time.
What the Term Life Insurance Calculator Does
Our calculator pulls current rates from multiple highly rated insurers based on your age, gender, state, nicotine use, and desired coverage. You can compare annual renewable term against short multi-year options, toggle term lengths (10, 15, 20, 25, 30 years), and adjust coverage amounts to see how premiums change.
- Coverage amounts: From modest protection to multi-million needs.
- Term lengths: Choose the period you need guaranteed premiums.
- Health classes: Preferred Plus, Preferred, Standard, and nicotine categories.
- Policy riders: Add features like living benefits or child riders when available.
How Much Term Life Do You Need?
A quick rule of thumb is 10–12× annual income, plus major debts and future goals (mortgage balance, college funding). For business owners, include buy-sell obligations or key-person exposure. If you’re layering policies, you might use a larger policy for the most expensive years (e.g., while kids are young) and a smaller policy for long-tail needs.
Picking the Right Term Length
- 10–15 years: Budget-friendly coverage for short-term obligations or late-career income protection.
- 20–25 years: Popular for families—often covers the full child-rearing window and most of a mortgage.
- 30 years: Longest level-term for those wanting maximum stability through retirement transition.
Not sure which to choose? Many households use a ladder strategy—for example, one 20-year policy and one 10-year policy—so coverage steps down as obligations shrink.
Underwriting: With or Without an Exam
Carriers price policies using your medical profile, driving history, and prescription records. Healthy applicants may qualify for the top “Preferred Plus” rates. Some applicants can be approved through accelerated/no-exam underwriting. If you’re scheduled for a paramedical visit, here’s what to expect:
- Vitals and samples; sometimes an EKG for large face amounts.
- Bring a list of prescriptions and physicians.
- Avoid heavy exercise, excess caffeine, and dehydration beforehand.
Want the full checklist? See: What Is a Life Insurance Exam?
How Payouts Work & Taxes
Term life is designed to pay your beneficiary a tax-advantaged death benefit if you pass during the term. In most cases, individual beneficiaries receive proceeds income-tax free (consult your advisor for estate or business scenarios). Read more: Is Life Insurance Death Benefit Taxable?
Common Riders & Options
- Conversion privilege: Switch to permanent coverage (no new medical exam) within the allowed window.
- Living benefits (accelerated death benefit): Access a portion of the benefit upon qualifying illness.
- Child rider: Affordable coverage for dependents—converts later to their own policy.
- Waiver of premium: Premiums waived in the event of qualifying disability.
What Drives Your Premium
- Age: The biggest driver—apply sooner for better pricing.
- Health class: Blood pressure, cholesterol, build, family history, and nicotine status matter.
- Face amount & term length: More coverage and longer terms cost more.
- Lifestyle factors: Occupation, avocations (e.g., scuba, aviation), and driving record can impact rates.
Term Life Insurance Calculator
Use the live quoter below to compare carriers and rates.
See Real-Term Rates Side by Side
Compare annual renewable term against short multi-year options using our live calculator.
Life Insurance Quoter
From Quote to Coverage: What to Expect
- Submit your preferred quote: We confirm eligibility and carrier fit.
- Application & disclosures: Simple e-app, with options for accelerated underwriting when available.
- Underwriting & decision: No-exam or exam (if needed), then final approval and rate class.
- Policy delivery: E-delivery in most states; first premium starts coverage.
Ways to Lower Your Term Life Cost
- Choose the shortest term that fully covers your obligations.
- Ladder multiple policies instead of buying one large 30-year term.
- Improve health factors—weight, blood pressure, and tobacco cessation can meaningfully reduce premiums over time.
- Use the conversion privilege (if needed) rather than overbuying permanent coverage today.
Need Help Picking the Right Term & Amount?
We’ll compare carriers side-by-side and build a simple, affordable plan that fits your goals.
Related Pages
Talk With an Advisor Today
Choose how you’d like to connect—call or message us, then book a time that works for you.
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calendly.com/jason-dibcompanies/diversified-quotes
Licensed in all 50 states • Fiduciary, family-owned since 1980
FAQs: Term Life Insurance Calculator
Do I have to take a medical exam to get coverage?
Not always. Many applicants qualify for accelerated/no-exam underwriting. If an exam is required, it’s brief and paid for by the insurer.
What information do I need to run a quote?
Your age, gender, state, nicotine status, desired coverage amount, and term length. Adding basic health info helps estimate your likely rate class.
How do health classes affect my premium?
Better health classes (e.g., Preferred Plus) get lower rates. Factors include build, blood pressure, cholesterol, family history, and driving record.
Can I own multiple term policies?
Yes—laddering is common. For example, a 20-year policy for the mortgage and a 10-year policy for short-term needs.
Are term life death benefits taxable?
They are generally income-tax free to individual beneficiaries. Complex estates or business cases can differ—review with your tax advisor.
What if I want permanent coverage later?
Look for a policy with a conversion privilege. You can convert to permanent insurance—often without a new medical exam—during the conversion period.
