Whole Life Insurance Calculator

Type in the premium and cash value from your quote to see the real net cost of a whole life policy, the return on your premiums, and what buying term and investing the difference could look like.

How this whole life insurance calculator works

Whole life pays a death benefit and builds cash value. Insurers show both in a policy illustration. This calculator takes your annual premium, the cash value shown for a chosen year, and your death benefit, then works out what you actually paid for the coverage after the cash value is counted.

What the results mean

Net cost is total premiums minus the cash value at that year. It is the price of the coverage if you cashed out then.
Return on your premiums is the yearly rate that would turn your premiums into that cash value.
Term plus invest assumes you buy cheaper term cover and invest the premium difference at the return you enter.

Where to get the inputs

Ask the agent or insurer for a full illustration. Use the guaranteed cash value column for a cautious view, and the projected column to see the upside. Compare several years, such as 10, 20 and 30. For the coverage need itself, use our life insurance calculator.

This tool is for education only and is not insurance, tax or financial advice. Policy features such as loans, dividends and riders are not modeled.

Frequently asked questions

How do I calculate the net cost of whole life insurance?

Add up the premiums you pay over the years, then subtract the cash value at that point. The result is the net cost of coverage for that period, before counting the death benefit.

Is whole life insurance a good investment?

It depends on your quote. Compare the return earned on your premiums with what term insurance plus investing the difference could do, and weigh the permanent coverage and guarantees. Use your own illustration numbers.

Which cash value should I enter?

Use the cash value for your chosen year from the insurer illustration. The guaranteed column is the cautious choice; the projected column depends on dividends that are not guaranteed.

Does this calculator include the death benefit?

No. The net cost shows what the coverage cost after cash value, and the death benefit is used only to show the cost per $1,000 of coverage.

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