Term Insurance Calculator

The Term Insurance Calculator helps users estimate their insurance premiums based on factors such as age, gender, smoking status, coverage amount, policy term, and health status.

Use Our Term Insurance Calculator

How to Use the Term Insurance Calculator

This guide provides step-by-step instructions for using the Term Insurance Calculator effectively. Follow the steps below to calculate your potential insurance premiums based on the provided input fields.

Step 1: Input Personal Information

  • Your Age: Enter your current age in the ‘Your Age’ field. Please note that the age must be between 18 and 65, and only whole numbers are accepted (e.g., 25).
  • Gender: Select your gender from the dropdown menu. Options include ‘Male’ and ‘Female’. This selection is required.
  • Smoking Status: Choose your smoking status. The available options are ‘Non-Smoker’ and ‘Smoker’. Ensure this field is populated correctly as it impacts the premium calculation.

Step 2: Enter Insurance Coverage Details

  • Coverage Amount ($): Indicate the desired coverage amount in dollars. This value must be between $100,000 and $10,000,000 and should increase in increments of $100,000.
  • Policy Term (Years): Select the policy term duration from the dropdown. Options available range from 10 to 30 years. This selection is required to proceed.

Step 3: Specify Health Status

  • Health Status: Choose your health status from the available options: ‘Excellent’, ‘Good’, or ‘Fair’. This selection is necessary to determine the health risk multiplier.

Step 4: Review Your Premium Calculations

Once all input fields have been completed, the calculator will compute the following:

  • Base Premium Rate: Calculated using the formula: (coverageAmount * 0.001) * (1 + (age * 0.02)) * (policyTerm * 0.015).
  • Health Risk Multiplier: Determined by your health status as follows:
    • Excellent: 1.00
    • Good: 1.25
    • Fair: 1.50
  • Smoker Risk Multiplier: If ‘Smoker’, multiplier is 2; if ‘Non-Smoker’, multiplier is 1.
  • Gender Risk Multiplier: For ‘Male’, multiplier is 1.1; for ‘Female’, multiplier is 1.0.

Step 5: Analyze Your Premiums

The final calculations displayed include:

  • Monthly Premium: Determined by dividing the total cost by 12 months.
  • Annual Premium: Annual cost calculated as the monthly premium multiplied by 12.
  • Total Premium Over Policy Term: Calculated as the annual premium multiplied by the policy term in years.

Ensure you review each calculated premium to understand the financial commitment based on your selections. Adjust any inputs as needed to explore different premium scenarios.