Life Insurance Premium Calculator

Life insurers price cover per $1,000 of face amount. Once you have that rate from a quote, pricing a different amount of cover is straightforward arithmetic - and comparing two quotes written at different face amounts becomes possible.

This calculator applies the rate, adds the policy fee and any tax, and reports the effective rate you are actually paying once everything is included.

Result

Annual premium

$885

Monthly cost

$74

Before adjustments: $825
Rating surcharge: $0
Discount applied: $0
Policy fee: $60
Premium tax: $0
Effective rate per $1,000: $1.18
Cost per day: $2.42

This is an estimate based on the values you entered. Actual premiums, coverage, eligibility and pricing vary by provider and by individual circumstances.

The effective rate per $1,000 lets you compare quotes with different coverage amounts on the same basis.

How to use the life insurance premium calculator

Enter the face amount of cover you want.
Enter the rate per $1,000 from your quote, or divide a quoted premium by the cover in thousands to derive it.
Add the annual policy fee and any premium tax that applies where you live.
Compare the effective rate per $1,000 against any competing quote.

What people use this for

Pricing a different amount of cover from a quote you already have.
Comparing quotes written at different face amounts on the same basis.
Seeing how much a policy fee adds on a smaller face amount.
Estimating the cost of adding cover to close a gap.

Worked examples

Every figure below is produced by running this calculator against the example inputs, so the numbers always match the tool.

A term quote

$750,000 of cover at $1.10 per $1,000, with a $60 annual policy fee and no premium tax.

Annual premium: $885
Monthly cost: $74
Effective rate per $1,000: $1.18

A rated policy

The same cover with a 50% rating applied following underwriting.

Annual premium: $1,298
Rating surcharge: $413

The policy fee matters more on small policies

A flat annual policy fee does not scale with cover. On $750,000 of cover a $60 fee is negligible; on $50,000 it is a meaningful share of the premium.

That is one reason very small policies look expensive per $1,000, and one reason the effective rate reported here - which includes the fee - is the honest number to compare.

What a calculator cannot tell you

The rate itself depends on age, health, medical history, tobacco use, occupation, hazardous activities and the term length. That is determined by underwriting, and no calculator has access to it.

What this tool does is take a rate you were actually quoted and let you apply it to different amounts. If your health has changed since the quote, the rate will change too.

Methodology and assumptions

What this calculator does, and what it deliberately does not do.

Premium = (cover ÷ 1,000) × rate, adjusted by any rating surcharge and discount, plus the policy fee, plus tax.
The effective rate divides the final annual premium back by the cover in thousands, so the fee and tax are included in it.
All figures are estimates produced from the values you enter. This site has no rate feed and no carrier data, so it cannot quote or price a policy.
Nothing you type is transmitted or stored - the calculation runs entirely inside your browser.

This calculator provides an estimate based on the information you enter. Actual insurance premiums, coverage, eligibility and pricing vary by provider and individual circumstances.

This website is not an insurance company, an insurance agency or a licensed broker. It does not sell insurance, does not provide insurance quotes, and is not authorised to give advice about which policy you should buy.

No result produced here is an offer of insurance or a guarantee of coverage. Only a licensed insurer or agent, working from your verified details, can quote or bind a policy.

Frequently asked questions

How do I find my rate per $1,000?

Divide the annual premium by the cover in thousands. An $885 premium on $750,000 of cover is $885 ÷ 750 = $1.18 per thousand.

Does the rate fall as cover rises?

Usually yes. Insurers apply band discounts at certain face amounts, which is why raising cover slightly can occasionally reduce the total premium.

What is a rating or table rating?

A percentage increase applied after underwriting for elevated risk. Enter it as the surcharge to see its effect.

Is level term premium guaranteed?

On a level term policy the premium is normally guaranteed for the term. After the term ends, renewal premiums typically rise steeply each year.

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