Term vs. Whole Life Insurance Cost Calculator

See a side-by-side comparison of monthly premiums and 20-year total cost for term life vs. whole life insurance for the same coverage amount.

Your Details

Term Life

Level Term Policy

$—
per month
Annual Premium—
Total Cost—
Cash ValueNone
Death Benefit—
Best ForMost families
Whole Life

Permanent Whole Life

$—
per month
Annual Premium—
Total Cost—
Cash ValueBuilds over time
Death Benefit—
Best ForEstate planning

Premium estimates are based on typical market rates for healthy applicants. Actual quotes will vary by insurer, state, and your full underwriting profile. Get a licensed quote for your actual premium.

What's Actually Driving the Price Difference

Term life insurance covers you for a fixed period — 10, 15, 20, or 30 years — and pays a death benefit only if you die during that window. There's no cash value component, which is exactly why it's so much cheaper: the insurer is pricing pure mortality risk over a defined term, not building an investment account alongside it.

Whole life (and other forms of permanent insurance) covers you for your entire life and builds a cash value component you can borrow against or, in some cases, withdraw from. That permanence and cash-value feature is what drives the dramatically higher premium — you're paying for lifetime coverage plus a savings vehicle, bundled into one product, instead of paying only for the years you actually need the death benefit.

Frequently Asked Questions

Why do premiums increase so much with health class?
Insurers use health class to price mortality risk — the actuarial likelihood you'll die during the policy term. Preferred Plus applicants (excellent health, no major risk factors) represent the lowest statistical risk to the insurer, so they get the lowest rates; Standard applicants represent higher risk and pay accordingly.
Can I convert a term policy to whole life later?
Many term policies include a conversion rider that lets you convert some or all of the coverage to a permanent policy without new medical underwriting, typically within a set window (often the first 10-20 years of the term). This can be valuable if your health changes and you later decide you want permanent coverage.
Is "buy term and invest the difference" always the right advice?
It's the right approach for most people covering an income-replacement need, since the cost gap between term and whole life is large enough that investing the difference in a retirement account typically outperforms whole life's cash value growth. It's not universal advice, though — whole life has legitimate uses in estate planning, business succession agreements, and for individuals with specific tax or legacy goals a financial advisor can help evaluate.