Whole life insurance calculation

Estimate whole life insurance costs and coverage and discover an insurance policy that fits your needs.

Whole life insurance is a powerful financial tool for you and your family. A whole life insurance cost calculator can help you figure out how much insurance you’ll need. A New York Life financial professional can also assist you in finding the right whole life insurance policy for you. Here are a few things to discuss with your financial professional when choosing your whole life policy:

Premiums 
Regular whole life premiums are set for the duration of your coverage. Your premiums are guaranteed to never increase, regardless of your health, the economy, or your age. 

Mix of death benefit and cash value 
While all whole life policies offer a guaranteed death benefit and cash value growth, the amount of cash value you accumulate can vary depending on the policy you choose. The guarantees of the policy are based on the claims-paying ability of the issuer.

Adding protection and cash value 
With certain New York Life whole life policies you can choose the Option to Purchase Paid-Up Additions Rider which allows you to purchase additional paid up coverage without further underwriting. This will increase both death benefit and the cash value of the policy. This rider includes an up-front expense charge on additional purchases. 

How much does whole life insurance cost?

The cost of life insurance is based on several factors: your age, gender, health, lifestyle, and occupation. Regardless of your budget, a financial professional should be able to find a solution that covers your needs at a price that suits your wallet. The following are just some of the factors that determine the cost of your policy:

• Age - Life insurance is less expensive when you’re younger. The younger you are, the lower your premiums, which is why it’s best to buy earlier. You can lock in low rates to protect your family later.
• Health - Pre-existing health conditions or habits like smoking can have an impact on the cost of insurance. 
• Coverage amount - The bigger the death benefit you select, the higher your premiums. Many financial professionals suggest buying coverage 10-15 times your income, if not more.¹
• Term - Your policy’s term length is how long your life insurance coverage lasts. Choose a term length that matches or exceeds your longest financial obligation (like your mortgage or seeing your children through college) so that your loved ones don’t end up liable for those costs.²
• Policy Type - Whole life insurance is a type of permanent life insurance, and it accumulates a cash value over time, but it’s usually more expensive than a term life insurance policy.

Types of whole life insurance

Whole life insurance is for those looking for lifetime protection with added benefits. In addition to providing a guaranteed life insurance benefit, it also offers an important way to save for the future, helping you to be prepared for whatever lies ahead. When it comes to whole life from New York Life Insurance Company, there are basically two options:

Whole life insurance:

With whole life insurance you get permanent coverage and cash value. For those looking to balance cash value accumulation and guaranteed life insurance coverage, this is a popular option. In your later years, you may find that your cash value offers a convenient way to supplement retirement income if your protection needs change in the future.*

Custom whole life insurance: 

If you want to pay premiums only for a specific period, which can be as little as five years, or if you want to maximize the cash value growth in your policy, this may be the best choice for you. If you choose to pay premiums over a shorter amount of time, they will be higher. You can schedule your payments to fit your budget while building cash value that can be used for retirement income, college tuition, or whatever else comes your way.*

Customize your whole life insurance policy with some available riders:

Disability Waiver of Premium:

Pays the premiums to help keep the policy in force if the insured becomes totally disabled. Benefits vary according to factors such as the age at which the disability occurs.

Option to Purchase Paid-Up Additions:

Allows you to contribute more to your plan when it’s convenient for you. It’s an economical way to increase your death benefit protection and build more cash value. Additional purchases under this rider involve an up-front expense charge. 

Living Benefits Option:

If you are terminally ill, you could use a portion of your death benefit to pay for treatment or care with this option. An administrative fee will be charged if the rider is exercised.

Accidental Death Benefit:

Offers an additional death benefit for your loved ones in case you pass as a result of an accident.

Riders typically come at an additional cost, so you should consider their needs and budget when deciding which riders to add to your life insurance policy. Riders also involve guidelines, eligibility requirements, and limitations. You can learn more about the details of a rider by asking a New York Life financial professional for a rider fact sheet. 

Related Articles

^1,2Katherine Murbach, “Life Insurance Calculator,” Policy Genius, April 4, 2024. PolicyGenius.com

Guarantees of the policy are based on the claims-paying ability of the issuer

*Accessing the cash value of the policy will reduce the available cash surrender value and total death benefit

In most jurisdictions the policy form number for the New York Life Whole Life Series of products is ICC18217-50P (4/18). State variations may apply.

SMRU: 5049921

New York Life Insurance Company (NY, NY)