Universal Life Insurance Calculator: Account Value Stress Test
Model universal life account values with assumed charges and interest. Compare funding scenarios and the monthly premium the simplified model needs.
Stress-test a hypothetical universal life account using your assumed charges and interest. The calculator projects monthly funding and finds a level premium that supports the account to a target age. It cannot determine a contract lapse date or replace an insurer’s in-force illustration.
How to use this tool
- Enter age, face amount, death-benefit option and current account value.
- Enter monthly premium, premium load and policy fee.
- Supply the latest monthly insurance charge and an assumed annual increase in its rate.
- Choose credited interest and a target age, then review account values and the required model premium.
Formula
Monthly account = opening account + premium × (1 − load) − fee − insurance charge
Insurance charge = rate per $1,000 × modeled net amount at risk ÷ 1,000
Closing account = monthly account × (1 + annual credited rate)^(1/12)
The starting insurance rate is the entered charge divided by the current net amount at risk. It increases at each modeled anniversary. Option A uses max(0, face amount − account after net premium and fee); Option B uses the face amount. Failure occurs when monthly deductions exceed available funds. A premium search finds the smallest cent amount funding the target period.
Example
Start at age 50 with an Option B face amount of $100,000, no account value, $100 monthly premium, no load, a $5 fee and $10 insurance charge. With zero interest and zero insurance-rate growth, the account gains $100 − $5 − $10 = $85 monthly, or $1,020 by age 51. The model needs $15 monthly to fund these charges for that year with zero ending account.
Frequently asked questions
Why can account value fall?
Deductions can exceed premiums and credited interest. Actual insurance rates and charges depend on the contract; the entered growth rate is a scenario assumption.
What is the difference between Options A and B?
Option A generally targets a level death benefit; Option B adds account value to face amount. Actual contracts may require higher death benefits under a tax-law corridor, which this model omits.
What can prevent an actual lapse?
Contractual guarantees, grace periods and payment rules can matter even when this simplified account fails. Loans, riders and surrender charges also require contract-specific treatment.
How should I assess a funding change?
Request an in-force illustration using the insurer’s actual charge schedule and both guaranteed and current assumptions. A model premium here is not a contractual premium requirement.
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