Life Insurance Cost Calculator: Compare Two Quotes
Compare two supplied life insurance quotes by annual cost, billing frequency, fees and total premiums for the same coverage and comparison period.
Compare the cost of two life insurance quotes you already have. This calculator converts each billing schedule to an annual cost, adds separately quoted fees and totals a chosen period of level premiums. It does not predict the price an insurer will offer from your age or health.
How to use this tool
- Obtain two quotes for the same insured person, death benefit, term and riders.
- Enter the common coverage amount and number of years with guaranteed level premiums.
- Enter each premium, billing frequency and any fees outside that premium.
- Compare total cost and the annual cost per $1,000 of cover.
Formula
Annual cost = premium per payment × payments per year + annual fees
Total cost = annual cost × comparison years + upfront fee
Annual cost per $1,000 = annual cost ÷ (death benefit ÷ 1,000)
Monthly, quarterly, twice-yearly and annual billing use 12, 4, 2 and 1 payments. Upfront fees occur once. Monthly equivalents are budget averages, not offered installment prices. All amounts remain nominal, without investment returns or cash surrender values.
Example
For identical $500,000 coverage over 20 years, Quote A charges $30 monthly and Quote B charges $330 yearly, with no extra fees. Annual costs are $360 and $330. Total costs are $7,200 and $6,600, so Quote B costs $600 less over the period.
Frequently asked questions
Can this estimate a new premium?
No. Insurers price underwriting, product terms and risk differently. Enter actual quotes and confirm whether they are final or provisional.
Can I compare term and permanent insurance?
Their coverage duration, guarantees and cash values differ. This cost-only comparison does not value those differences; compare matching policies for a straightforward cost comparison.
What if premiums rise later?
Use only the period over which the entered price is level. A renewal schedule requires separate calculations for each price period.
Sources
This tool gives an estimate for general information only. It is not financial, tax, legal or medical advice — check with a qualified professional before you rely on the result.
Last updated: 2026-10-30