Calculator Inputs
Example Data Table
Sample inputs and outputs to illustrate typical use cases.
| Age | Face Amount | Smoker | Payment Period | Mode | Estimated Payment | Projected CV (Year 20) |
|---|---|---|---|---|---|---|
| 30 | $250,000 | No | Pay to 65 | Monthly | $210 | $68,000 |
| 45 | $500,000 | Yes | 20-pay | Quarterly | $1,050 | $92,000 |
| 55 | $100,000 | No | 10-pay | Annual | $2,950 | $41,000 |
Formula Used
This tool estimates an annual premium using a rate-per-$1,000 approach:
- Base Annual Premium = (Face Amount / 1,000) × RatePer1k
- Annual Premium = Base Annual Premium + Rider Loads + Policy Fee
- Per-Payment Premium = Annual Premium × ModalFactor
Cash value is projected with a simplified accumulation model:
- NetPremium = Premium × (1 − ExpenseLoad)
- CashValue(t) = (CashValue(t−1) + NetPremium) × (1 + CreditingRate)
- Dividend(t) = CashValue(t) × DividendRate
Loans reduce cash value when taken and reduce net death benefit by the outstanding balance plus interest.
How to Use This Calculator
- Enter your age, gender, smoker status, and health class.
- Choose your face amount and premium payment period.
- Select your payment mode and adjust policy fee if needed.
- Optionally add riders and a loan scenario for comparisons.
- Click Calculate to view premiums, projections, and the graph.
- Use the export buttons to download CSV or PDF outputs.
Premium drivers and risk classes
Whole life premiums depend on age, underwriting class, and tobacco use, then scale with the chosen face amount. Payment mode and limited-pay schedules change cash-flow timing, but not the underlying insurance cost. Use the inputs to test realistic scenarios and keep riders consistent when comparing options. For example, moving from Standard to Preferred can lower the base rate, particularly at younger ages.
Understanding cash value accumulation
Cash value is modeled as net premium contributions growing at the selected crediting rate. The calculator applies an expense load and early-year dampening to reflect typical start-up costs. Over time, compounding dominates, so small rate changes can create large differences in year 20 or year 30 values. If you change projection years, watch how cash value crosses break-even relative to cumulative premiums paid.
Dividends and paid-up additions
Dividends are estimated as a percentage of current cash value and can be handled three ways. Paid-up additions reinvest dividends to increase cash value and create additional death benefit. Cash payout treats dividends as income. Premium reduction carries dividend credits forward to offset future premiums in the projection. When using paid-up additions, the model boosts death benefit through an additions factor, illustrating the compounding effect.
Loan modeling and net death benefit
Policy loans reduce cash value when taken and accrue interest each year. The tool optionally models annual repayments, then subtracts the outstanding loan balance from the gross death benefit to show a net benefit estimate. This helps quantify how borrowing can protect liquidity today while lowering benefits later. Keeping loan usage below the buffer reduces lapse risk and preserves more cash value for later years.
Interpreting projections for decisions
Interpret results as planning signals, not quotes overall. Compare per-payment premium, total premiums paid, and net benefit at the end of the horizon. Stress-test with lower crediting or dividend rates, and consider shorter payment periods if you prefer higher early funding. Export tables to document assumptions for advisors. Use the second chart to review premiums and dividends, and ensure your budget supports the pattern across decades.
FAQs
1) Is this an official quote?
No. It produces educational estimates using simplified assumptions. Real premiums depend on underwriting, policy design, riders, and carrier pricing in your jurisdiction. Use it to compare scenarios and document assumptions before requesting an illustration.
2) Why can early cash value look low?
Many policies have acquisition costs and early-year charges. The model applies an expense load and early-year dampening to reflect that pattern. Over longer horizons, compounding and dividends can improve cash value growth.
3) What does the dividend option change?
Paid-up additions reinvest dividends to grow cash value and increase death benefit. Cash payout treats dividends as income. Premium reduction carries credits to offset future premiums in the projection, which can lower out-of-pocket costs later.
4) How should I choose crediting and dividend rates?
Use conservative assumptions first. Try a lower crediting rate and dividend rate to stress-test. Then compare with a baseline scenario. The spread between scenarios helps you see how sensitive long-term outcomes are to performance changes.
5) How do loans affect results?
Loans reduce cash value when taken, accrue interest, and reduce net death benefit by the outstanding balance. Repayment can limit the long-term drag. Keeping borrowing modest relative to cash value helps preserve policy stability.
6) What is the best way to compare policies?
Hold coverage, riders, and payment period constant, then compare per-payment premium, total premiums paid, and cash value at common checkpoints like years 10, 20, and 30. Export the table to keep a clean record.