Use this life insurance calculator to compare rates and find the right policy.
What is term life insurance?
Term life insurance provides financial protection for your family over a set time — typically 10, 20, or 30 years. It’s best for people who want coverage while paying off a mortgage, raising children, or building savings. If you pass away during the term, your beneficiaries receive an income tax-free death benefit.
Some people use both types — starting with term coverage and converting to permanent life as finances evolve. Conversion privileges vary across carriers and term life products.
What is a whole life insurance policy?
Whole life insurance definition: A type of permanent coverage that never expires and is guaranteed to endow or mature. Like all life insurance, it pays out a death benefit when you pass away — but it also builds cash value over time. As an endowment contract, the cash value earns interest at a fixed rate and is scheduled to equal the death benefit at a predetermined, guaranteed age. This cash value can be used while you're alive. You can borrow against it or, in some cases, use it to help pay premiums.
There are two distinct types of whole life contracts and each fulfills a particular life insurance need. Participating and nonparticipating. Nonparticipating whole life insurance coverage meets all of the aforementioned attributes. Participating whole life policy products are often offered by mutual companies, which may declare dividends when company performance allows. This is a return of excess premium to a policyholder. Dividends are not guaranteed, but policyholders may be able to take them as cash, use them to reduce premiums, leave them to earn interest or use them to buy additional paid-up insurance.
Life insurance can also play a role in multigenerational wealth transfer, legacy planning, or building predictable financial tools alongside other long-term assets.
Learn more about the benefits of whole life insurance.
Sample monthly premiums for a $500,000 policy on a 40 Year Old Male and Female
Male - $8,835 Annually - Non Guaranteed CV Age 65 - $342,143 - Non Guaranteed DB Age 85 - $1,502,166
Female - $7,160 Annually - Non Guaranteed CV Age 65 - $280,292 - Non Guaranteed DB Age 85 - $1,310,885
Rates are for non-smokers with a Standard NS health rating, based on MassMutual data as of 5/8/26. Your cost may vary.
How to choose the right type of life insurance
If your main concern is affordability, term life insurance is likely the better fit. If you want guaranteed coverage and tax advantaged cash value for the rest of your life, whole life insurance may be worth the investment — especially if you have long-term dependents or estate planning needs.
Get life insurance quotes tailored to your goals and budget.
Whole life insurance policies differ mostly in how you pay your premiums and whether it’s a participating or nonparticipating policy
Level pay: You pay the same premium for life.
Limited pay: Pay higher premiums over a shorter time — e.g., 10-pay or 20-pay — or finish payments by a target age like 65.
Single premium: Pay the full cost up front.
What factors influence the cost of whole life insurance?
Age: Younger applicants usually pay lower premiums.
Health: Medical history, height/weight, prescriptions, and family health history can affect rates.
Gender, where legally permitted: Women often pay less as they generally have a longer life expectancy.
Tobacco or nicotine use: Smokers and nicotine users typically pay more, though the impact on premiums is generally less significant for whole life than term life insurance.
Coverage amount: Higher death benefits cost more.
Payment schedule: Limited-pay policies have higher annual premiums but shorter payment timelines. This is called limited pay life insurance.
Participating vs. nonparticipating policy: Participating policies may cost more but can offer potential dividends.
Riders: Add-ons like waiver of premium, chronic illness or long-term care riders may increase cost.
Insurer: Each company prices policies and evaluates risk differently.
Learn how health impacts your life insurance rate.
Find affordable whole life insurance that fits your needs
Whole life insurance is more expensive than term coverage, but you can still save money by shopping smart.
Buy early. The younger and healthier you are, the lower your rates — and they’ll stay locked in for life.
Compare quotes. Every insurer evaluates risk differently.
Use an independent broker. A marketplace like Policygenius offers expert advice and access to multiple insurers.
If you have loved ones who depend on you financially, whole life insurance can provide lifelong coverage and build cash value to support your long-term goals. Connect with an agent to get your free quote.
