Whole Life Premium Calculator

Calculator Inputs

Face Amount ($)

Issue Age

Premium Pay Term (Years)

Interest Rate (%)

Starting Mortality Rate (%)

Mortality Growth Per Year (%)

Expense Loading on Premium (%)

Annual Policy Fee ($)

Annual Dividend Offset ($)

Policy Value Growth (%)

Premium Payment Mode

Example Data Table

Scenario	Face Amount	Issue Age	Pay Term	Interest Rate	Start Mortality	Mortality Growth	Expense Loading	Policy Fee	Dividend Offset	Value Growth	Mode
Sample A	$250,000	35	30 years	4.50%	0.12%	6.00%	8.00%	$120	$50	4.00%	Annual
Sample B	$500,000	42	20 years	5.00%	0.18%	5.50%	7.50%	$150	$80	4.25%	Monthly
Sample C	$100,000	28	40 years	4.00%	0.08%	6.50%	9.00%	$90	$25	3.75%	Quarterly

Formula Used

1) Mortality progression:
q_t = min(1, q₀ × (1 + g)^t)

2) Present value of expected death benefit:
EPV(Benefit) = Σ [Face Amount × S_t × q_t / (1 + i)^t+1]

3) Premium annuity factor:
ä = Σ [S_t / (1 + i)^t] for premium-paying years

4) Gross annual premium:
Gross Premium = [EPV(Benefit) + EPV(Fixed Fees) − EPV(Dividends)] / [(1 − Loading) × ä]

5) Policy value proxy:
Next Value = [(Current Value + Net Contribution) × (1 + Growth)] − Mortality Charge Proxy

Here, S_t is survival to the start of year t, i is the discount rate, q₀ is the starting mortality rate, and g is yearly mortality growth. This method helps estimate a level premium under simplified actuarial assumptions.

How to Use This Calculator

Enter the policy face amount and the insured’s issue age.
Choose how many years premiums will be paid.
Set the discount rate used for present value work.
Enter the starting mortality rate and yearly mortality growth.
Add expense loading, annual fee, and any dividend offset.
Choose the payment mode: annual, semiannual, quarterly, or monthly.
Set the policy value growth assumption for long-term projection.
Press the calculate button to show results above the form.
Review premium results, survival estimates, and the projection graph.
Use the CSV or PDF buttons to export your results.

Frequently Asked Questions

1) What does this calculator estimate?

It estimates whole life premium levels using mortality, discounting, expense loading, fees, dividend offsets, and a long-term value projection. It is designed for planning, comparison, and educational review.

2) Is this an insurer quote?

No. It is a modeled estimate using simplified assumptions. Actual insurer pricing depends on underwriting, product design, dividend scale, riders, expenses, and company-specific mortality tables.

3) What is the starting mortality rate?

It is the initial annual probability of death used at issue age. Lower values reduce expected benefit cost and usually lower the calculated premium.

4) Why does payment mode change yearly cost?

Modes like monthly or quarterly often include modal load. That means each installment is smaller, but the total paid across the year can exceed the annual mode total.

5) What is the policy value proxy?

It is an illustrative accumulation estimate. It is not a guaranteed cash value, surrender value, or reserve statement from an insurer. Use it as a planning guide only.

6) How should I choose the discount rate?

Use a realistic long-term rate consistent with your pricing or valuation view. Higher discount rates reduce present values and can lower modeled premiums.

7) What does dividend offset do here?

It reduces the modeled out-of-pocket premium requirement. In real products, dividends are not guaranteed and can vary by insurer experience and policy class.

8) Can I use this for limited-pay whole life?

Yes. Enter the number of years premiums are paid, such as 10, 20, or 30. The model then prices benefits over life while collecting premiums for the chosen term.