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By using a whole life insurance calculator, you can take steps to secure your family’s financial future. A whole life insurance policy builds equity, known as cash value, and is guaranteed for the rest of your life once in place. A licensed agent can assist you in finding the right whole life insurance policy for you.

Whole life insurance policies help address a variety of financial needs. With a little preparation, you can learn about factors to consider when preparing to shop for the right whole life insurance policy. So, before you get the calculations going, let’s discuss what this type of policy is.

What Is Whole Life Insurance?

People purchase life insurance policies for many reasons, including covering funeral costs, transferring wealth, and supplementing retirement income. Whole life insurance offers coverage for an open-ended period of time as long you continue to pay the premiums. Certain policies also accumulate a cash value the certificate holder can borrow against or receive upon surrendering the certificate.

Though premiums can be higher than for a term life insurance policy, you'll be allowed to build equity (cash value) with whole life insurance, which you cannot do with a term policy.

How Do I Calculate the Amount of Whole Life Insurance I Need?

Unfortunately, there isn't an easy formula for you to plug in your life expenses to figure out how much insurance you'll need. However, there are life insurance calculators available online that can help you estimate the amount you'll need to invest in a policy.

In order to get the most out of a whole life insurance calculator, it is helpful to reflect on your debts, expenses, and financial needs. This will help you estimate the amount of coverage you'll need. Here are five factors you can consider before utilizing a whole life insurance calculator:

  1. Calculate your final expenses: funeral, medical, and estate settlement fees.
  2. Add up your debts: credit card balances, car loans, and mortgage.
  3. Estimate on-going expenses: clothes, food, utilities, transportation, and school tuition.
  4. Account for long-term financial needs: tuition for years prior to and during college.
  5. Subtract financial resources: other life insurance coverage, savings, and investments.

At HealthMarkets, our licensed agents are trained to help walk you through whole life insurance policies that fit your unique life story. Find a local, licensed agent today to see how we can help protect your family.


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