Life Insurance Calculator

Term life insurance provides coverage for a specific period (10–30 years). If you die during the term, the insurer pays the coverage amount to your beneficiaries. It's the most affordable type of life insurance and has no savings or investment component.

A common rule of thumb is 10–12× your annual income. Consider your outstanding debts (mortgage, loans), dependants' living needs, children's education costs, and how many years your family would need financial support without your income. A person earning £40,000/year with a mortgage and two children might need £400,000–£500,000 of cover.

Premiums depend on your age, gender, health status, smoking habits, coverage amount and policy term. Actuarial mortality tables translate these factors into a monthly cost. Our calculator applies typical market multipliers: age doubles the rate from the 30s to 40s, and doubles again from 40s to 50s.

Life insurance premiums are based on mortality risk. As you age, the statistical probability of dying during the policy term increases significantly, especially after 40. Buying term life insurance when young and healthy locks in the lowest available rates for the full policy term.

Yes — smokers typically pay 2 to 3× more than non-smokers for the same coverage. This reflects the significantly higher mortality risk associated with smoking. Many insurers offer standard non-smoker rates after 12 months of being completely smoke-free (including vaping).

Term life insurance covers a fixed period and pays out only if you die during that term — it's pure protection with no cash value. Whole-of-life insurance (permanent insurance) covers you for life and builds a cash value over time, but premiums are typically 5–10× higher for the same death benefit.

A useful formula: coverage = (annual income × 10) + outstanding mortgage + other debts + estimated education costs for children. For a 35-year-old earning $80,000 with a $200,000 mortgage, a $1,000,000 policy for 25 years is a common recommendation.

Yes, most insurers will still offer cover, but premiums will be higher and some conditions may be excluded. Common conditions like controlled diabetes, high blood pressure or a history of depression are typically covered at a loading (extra cost). Severe conditions may require specialist insurers.

For term life insurance, missing premium payments usually results in a grace period (typically 30 days). If premiums remain unpaid, the policy lapses and coverage ends. There is no cash surrender value with a term policy — unlike whole-of-life insurance.

Absolutely — the best time to buy life insurance is when you are young and healthy, as you will lock in the lowest premiums for the entire term. A 25-year-old non-smoker can often get £500,000 of 25-year term cover for under £20/month in the UK, or under $30/month in the US.

This tool gives an approximate estimate based on typical market averages. Actual premiums depend on your full medical history, occupation, lifestyle and the insurer's own underwriting criteria. Use this calculator to get a ballpark figure before requesting a formal quote from an insurer or broker.