Term Life Insurance Calculator

Introduction

A term life insurance policy covers you for a set number of years. If you pass away during that time, your family gets a payout called a death benefit. But how much coverage do you actually need? That depends on things like your income, your debts, and how many people rely on you for money. Our Term Life Insurance Calculator helps you figure out the right amount of coverage so your loved ones are taken care of. Just enter a few basic details about your finances, and the calculator will show you how much term life insurance you should consider buying. Getting the right amount means your family won't struggle with bills, loans, or everyday expenses if something happens to you. For a broader look at different policy types, including whole and universal life, see our Life Insurance Calculator.

How to use our Term Life Insurance Calculator

Enter details about your personal profile, income, debts, and existing resources. The calculator will tell you how much life insurance coverage you need and show estimated monthly premiums for different term lengths.

Age: Enter your age at your nearest birthday, from 18 to 65. The mortality tables behind the premium estimate are set out by age nearest birthday, so someone who is 40 years and 7 months old enters 41.

Gender: Select whether you are male or female. The premium estimate uses separate mortality tables for men and women.

Smoker or Tobacco User: Choose yes if you smoke or use tobacco. The estimate then uses the smoker mortality tables instead of the nonsmoker tables, which raises the premium.

Risk Class: Pick the class you expect an insurer to place you in after underwriting: super preferred, preferred or standard. Super preferred is for nonsmokers only. If you are not sure, choose All classes, which uses the table for every class combined.

Annual Income (Pre-Tax): Enter how much money you earn per year before taxes. This is used to figure out how much income your family would need to replace.

Planned Retirement Age: Enter the age you plan to stop working, between 40 and 80. This helps the calculator suggest the best term length for your policy.

Mortgage Balance: Enter the total amount you still owe on your home loan. Your life insurance should be enough to pay off this debt so your family can keep the home.

Other Debts: Enter the total of all your other debts, such as car loans, student loans, and credit card balances.

Number of Children Needing Education Funding: Enter how many children you want to help pay for college or other schooling, from 0 to 10.

Education Cost Per Child: Enter how much you expect to spend on each child's education. Tuition, fees, housing and food at a public four-year college average $25,850 a year for in-state students in 2025-26.⁴ That comes to a little over $100,000 for four years.

Final Expenses: Enter how much you want set aside for funeral costs, legal fees, and other end-of-life expenses. The national median cost of a funeral with a viewing and burial in 2023 was $8,300.⁵

Years of Income Replacement Desired: Enter how many years your family would need your income replaced, typically 10 to 20 years. Think about how long it would take until your youngest child can support themselves.

Savings & Investments: Enter the total value of your savings accounts, investment accounts, and retirement funds your family could access. These reduce the amount of new coverage you need.

Existing Life Insurance Coverage: Enter the total death benefit from any life insurance you already have, including policies from your employer and any personal policies.

Spouse/Partner Annual Income: Enter your spouse or partner's yearly income. If they earn money, your family needs less income replacement from your policy.

What Is Term Life Insurance?

Term life insurance is a type of life insurance that covers you for a set number of years, called the "term." Common terms are 10, 15, 20, or 30 years. If you pass away during that term, the insurance company pays a lump sum of money (called a death benefit) to the people you choose, like your spouse or children. If the term ends and you're still alive, the policy simply expires and no money is paid out.¹

Term life insurance generally costs less than permanent life insurance.¹ Unlike whole life or universal life insurance, it does not build cash value over time.² You're paying only for the death benefit protection, which keeps monthly costs low. This makes it a popular choice for families who need large amounts of coverage during their working years.

How Much Term Life Insurance Do You Need?

The right amount of coverage depends on your specific situation. The most common approach is called a needs-based analysis, which adds up everything your family would need financially if you were no longer around, then subtracts the resources they already have. The main factors include:

Income replacement: How many years of your salary your family would need to maintain their lifestyle. A common choice is 10 to 20 years of income.
Debt payoff: Your mortgage balance, car loans, student loans, and credit card debt that your family would still owe.
Children's education: The cost of college or trade school for each child. Tuition, fees, housing and food at a U.S. public four-year college average $25,850 a year for in-state students in 2025-26.⁴
Final expenses: The National Funeral Directors Association puts the national median cost of a funeral with a viewing and burial in 2023 at $8,300.⁵ Legal and estate fees come on top.

From that total, you subtract savings, investments, existing life insurance (including employer-provided coverage), and any income your spouse or partner earns. The remaining amount is your coverage gap. That is the amount of new term life insurance you should consider buying. Building an emergency fund and growing your savings over time can also help reduce the size of that gap.

What Affects Term Life Insurance Premiums?

Several factors determine how much you'll pay each month for term life insurance:

Age: From your early thirties on, the older you are when you buy a policy, the more it costs, and rates rise significantly after age 50. Between 18 and the late twenties the tables' death rates for new policies fall slightly with age, so the estimate does too.
Gender: Women generally pay less than men because they tend to live longer on average.
Smoking status: Smokers pay more than nonsmokers because the smoker mortality tables carry higher death rates.
Risk class: Insurers place you in a risk class based on medical exams, your health history, and family medical background. A better class means lower rates.
Term length: A 10-year policy costs less per month than a 30-year policy because the insurer is covering you for a shorter period.
Coverage amount: Higher death benefits cost more. This calculator's estimate is proportional to the coverage amount.

How to Choose the Right Term Length

A good rule of thumb is to match your term length to your longest-lasting financial obligation. If you're 35 and plan to retire at 65, a 30-year term covers you until retirement. If your youngest child is 8 and you want coverage until they finish college, a 15-year term might be enough. Many people choose a 20-year term as a balanced option that covers most of their working years at a reasonable cost.

How the Premium Estimate Is Calculated

Each premium is a net level premium: the same amount every year of the term, set so that its present value equals the present value of the expected death claims. It covers mortality and interest only, with no allowance for the insurer's expenses, commissions or profit.

The death rates come from the 2017 Commissioners Standard Ordinary (CSO) select and ultimate tables, on an age nearest birthday basis, with separate tables for men and women and for smokers and nonsmokers.⁶ The nonsmoker tables are also split into super preferred, preferred and residual standard classes, and the smoker tables into preferred and residual standard.⁶ The 2015 Valuation Basic Table (VBT) is the industry's table of expected mortality for fully underwritten individual life insurance, covering both standard and preferred risks.⁷ The 2017 CSO tables are the 2015 VBT brought forward to 2017 plus a margin of 23% of the death rate below age 20, grading down to 16.85% at age 80, so that they cover the mortality of at least 70.6% of the companies that contributed data.⁶ That margin is the only loading in the estimate.

The interest rates are the New York State Department of Financial Services maximum reserve valuation rates for ordinary life insurance issued in 2026: 4.25% for a guarantee of 10 years or less, 3.75% for more than 10 years up to 20, and 3.50% for more than 20 years.⁸ The calculator treats the term as the guarantee period, so the 10-year term uses 4.25%, the 15-year and 20-year terms 3.75%, and the 30-year term 3.50%. Premiums are paid at the start of each year, the death benefit is paid at the end of the year of death, and the monthly figure is the yearly premium divided by 12.

Important Things to Keep in Mind

The estimates from this calculator are for planning purposes only. Actual premiums depend on a full medical underwriting process conducted by the insurance company, and rates vary between insurers and states. It's always a good idea to get quotes from multiple companies. Also remember that employer-provided life insurance usually only covers one to two times your salary, which is rarely enough for a family with a mortgage and children.³ A personal term life policy helps fill that gap and stays with you even if you change jobs.

Formulas used

Income Replacement Need

N_{\text{income}} = \text{Annual Income} \times \text{Years of Replacement}

Total Needs

N_{\text{total}} = N_{\text{income}} + \text{Mortgage} + \text{Other Debts} + (n_{\text{children}} \times C_{\text{ed}}) + \text{Final Expenses}

Total Existing Resources

R_{\text{total}} = \text{Savings} + \text{Existing Coverage} + (\text{Spouse Income} \times \text{Years} \times 0.5)

Coverage Gap

\text{Gap} = \max\!\left(0,\; N_{\text{total}} - R_{\text{total}}\right)

Recommended Coverage (rounded)

\text{Recommended} = \left\lceil \frac{N_{\text{total}}}{25000} \right\rceil \times 25000

Net Level Annual Premium

P = \text{Coverage} \times \frac{\sum_{t=0}^{n-1} v^{t+1}\, {}_{t}p_x\, q_{x+t}}{\sum_{t=0}^{n-1} v^{t}\, {}_{t}p_x}, \quad v = \frac{1}{1+i}

Frequently asked questions

What is a coverage gap in term life insurance?

A coverage gap is the difference between how much money your family would need and what you already have. The calculator adds up your income replacement needs, debts, education costs, and final expenses. Then it subtracts your savings, existing life insurance, and spouse income. The amount left over is your coverage gap. That is the new insurance you should buy.

Why are premiums so much higher for smokers?

Smokers have a higher risk of serious health problems like heart disease and cancer. Insurance companies charge more because there is a greater chance they will have to pay out the death benefit. The 2017 CSO mortality tables come in separate versions for smokers and nonsmokers.⁶ This calculator uses the smoker table when you answer yes, which gives a higher premium for the same coverage.

What does the spouse income offset mean?

If your spouse or partner earns money, your family would not need to replace 100% of your income. The calculator takes 50% of your spouse's income over the replacement years and subtracts it from your total needs. This is because your spouse still uses part of their own income for their personal living costs.

Why is my recommended coverage rounded to the nearest $25,000?

Insurance companies sell policies in round numbers. You cannot buy a policy for $487,312, for example. The calculator rounds up to the nearest $25,000 to give you a realistic number that matches how policies are actually sold.

What if I have no debts or children?

Enter zero for mortgage, other debts, number of children, and education costs. The calculator will still figure out your needs based on income replacement, final expenses, and any other amounts you enter. People without debts or kids usually need less coverage.

Are these premium estimates the actual price I will pay?

No. Each figure is a net premium worked out from the 2017 CSO mortality tables at a regulator's valuation interest rate, so it covers expected death claims only, with no insurer expenses, commissions or profit. Real premiums depend on a full medical exam, your detailed health history, the insurance company you choose, and the state you live in. Always get actual quotes from insurers before buying a policy.

Should I include my 401(k) or retirement accounts in savings?

You can if your family would be able to access those funds. Keep in mind that withdrawing from retirement accounts early may come with taxes and penalties. Include only the amount your family could realistically use, not the full balance.

What counts as existing life insurance coverage?

Include any life insurance that would pay out if you passed away. This means employer-provided group life insurance, any personal term or whole life policies you own, and any other policies where your family is the beneficiary. Add up all the death benefits and enter the total.

What happens when a term life insurance policy expires?

When the term ends and you are still alive, the policy simply stops.¹ There is no payout and no cash value. Some policies let you renew at a higher rate or convert to a permanent policy, but those options depend on your specific contract.¹

How many years of income replacement should I choose?

A common choice is 10 to 20 years. Think about how long your family would need financial support. A good guideline is to pick enough years until your youngest child can support themselves, or until your spouse reaches retirement age.

Why does the risk class affect my premium estimate?

Insurance companies charge less for people who are healthier because they are less likely to pass away during the policy term. After underwriting, an insurer places you in a risk class. The 2017 CSO preferred structure tables split nonsmokers into super preferred, preferred and residual standard classes, and smokers into preferred and residual standard.⁶ Choosing super preferred gives the lowest estimate and standard the highest. All classes uses the table for every class combined.

What are final expenses and how much should I enter?

Final expenses cover funeral costs, burial or cremation, legal fees, and estate settlement costs. The national median cost of a funeral with a viewing and burial in 2023 was $8,300, and with cremation $6,280.⁵ Most people enter between $10,000 and $20,000 to cover the funeral plus any legal and administrative costs.

Sources

Life Insurance. National Association of Insurance Commissioners. 2025;Term Life Insurance. Accessed September 27, 2026.

Life Insurance Buyer's Guide. National Association of Insurance Commissioners. Accessed September 27, 2026.

Life Insurance Roadmap. National Association of Insurance Commissioners. 2016;Young Adults. Accessed September 27, 2026.

Ma J, Pender M, Hu X. Trends in College Pricing and Student Aid 2025. College Board. 2025;p. 10. Accessed September 27, 2026.

Statistics. National Funeral Directors Association. 2026. Accessed November 2, 2026.

Joint American Academy of Actuaries' Life Experience Committee and Society of Actuaries Preferred Mortality Oversight Group CSO Development Subgroup. Report on the 2017 CSO and 2017 CSO Preferred Structure Table Development. Society of Actuaries. 2015;pp. 3-8; Appendices A, C and D. Accessed November 2, 2026.

Joint American Academy of Actuaries' Life Experience Committee and Society of Actuaries' Preferred Mortality Oversight Group Valuation Basic Table Team. 2015 Valuation Basic Table Report. Society of Actuaries. 2018;pp. 6-7. Accessed November 2, 2026.

Maximum Reserve Valuation and Maximum Life Policy Nonforfeiture Interest Rates. New York State Department of Financial Services. 2026;Table A, Ordinary Life Insurance, p. 2. Accessed November 2, 2026.