Life Insurance Premium Calculator

Work out life insurance premium instantly with clear inputs, formula shown and shareable results.

About Life Insurance Premium Calculator

Term life premiums are quoted per thousand of sum assured, with the rate driven by age at entry, term and gender, then loaded for smoking, occupation or medical history. Because the rate is per mille, doubling the sum assured roughly doubles the premium — cover is close to linear in price.

Formulas

Base premium

Base = Sum assured x Rate per 1,000 / 1,000

Annual premium

Premium = Base x (1 + Health and lifestyle loading %)

Worked example

With the default values below, Life Insurance Premium Calculator returns Annual premium of $22,400.00. Change any input above and every figure here is recalculated in your browser.

Inputs used

Sum assured: 10,000,000
Annual mortality rate per 1,000 sum assured: 1.6
Policy term: 25 years
Loading for smoking or health: 40

Results

Annual premium: $22,400.00
Monthly equivalent: $1,866.67
Premium before loading: $16,000.00
Total premiums over the term: $560,000.00

Step by step

1Values used
2Base premium
3Annual premium
4Annual premium= 22,400.00
5Monthly equivalent= 1,866.67
6Premium before loading= 16,000.00
7Total premiums over the term= 560,000.00

Assumptions and limits

The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
In particular, this calculator does not take inflation or tax into account.
Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
Indicative premium illustration only. Actual pricing depends on underwriting, age, medical evidence, term, jurisdiction and product features. Not insurance advice — obtain a quotation from an authorised insurer.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Indicative premium illustration only. Actual pricing depends on underwriting, age, medical evidence, term, jurisdiction and product features. Not insurance advice — obtain a quotation from an authorised insurer.

Frequently Asked Questions

Why does smoking increase the premium so much?

Because smoker mortality is materially higher at every age. Loadings of 40-80% are typical and often more at older ages.

Is a level or increasing premium better?

Level premiums cost more early and less later, and are the norm for term cover because they remove reprice risk.