Life Insurance Calculator – how much Life Insurance cover you need in 3 steps

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What is a Life Insurance calculator?

This tool will help you calculate how much Life Insurance cover you might need. By asking questions about your current financial situation, we can help you estimate what cover value will be best suited to you.

What our calculator can do

Things it can’t do

  • Provide the exact life cover amount. There could be other factors, perhaps non-financial, you need to consider too
  • Help you decide how much life cover you might need based on your future decisions
  • Indicate other decisions such as how long you need cover for or what type of policy you need
  • Provide the exact cover amount. This is up to you
  • Calculate your monthly premium cost

How do we calculate the cover amount you need?

Working out how much cover you need is based on your personal situation, so the indicated amount of life cover shown from the calculator will differ for everyone. Everyone has different responsibilities to financially secure.

Our Life Insurance calculator will ask you a few questions about your current level of debt and responsibility, such as the number of children you have or your mortgage debt for example, and weigh this up against your savings and company life plan. This will give a rough guide to the level of cover that is right for you.

Maximum cover limits

Life Insurance

AgeUp to 4041-5051-5556-6061-65
Minimum Cover£40,000£20,000£10,000£10,000£10,000
Maximum Cover£750,000£500,000£300,000£125,000£75,000

Critical Illness Cover

AgeUp to 4041-5051-5556-6061-65
Minimum Cover£5,000£5,000£5,000£5,000£5,000
Maximum Cover£750,000£500,000£300,000£125,000£75,000

Life Insurance

AgeMinimum CoverMaximum Cover
Up to 40£40,000£750,000
41-50£20,000£500,000
51-55£10,000£300,000
56-60£10,000£125,000
61-65£10,000£75,000

Critical Illness cover

AgeMinimum CoverMaximum Cover
Up to 40£5,000£750,000
41-50£5,000£500,000
51-55£5,000£300,000
56-60£5,000£125,000
61-65£5,000£75,000

How Life Insurance premiums are calculated

What are Life Insurance premiums?

A Life Insurance premium refers to the monthly payment which is paid by an individual (or a business) to an insurance provider. The amount of this monthly payment will depend on the health and lifestyle of the individual, type of insurance policy, amount covered for and length of the policy.

At Beagle Street we believe in making Life Insurance accessible for everyone, and so we try to be as transparent as we can about what we sell by using simple, non-industry standard language, to help give you the confidence to buy your Life Insurance online.

Below is further detail outlining how Life Insurance works, and how your premium, or monthly payments, are typically calculated across the industry.

How does Life Insurance work?

A Life Insurance policy will pay-out what is known as a ‘lump sum’ to your loved ones if you were to die during the term of the policy. In exchange for this cover you will make a monthly payment to your insurance provider known as a premium.

Term Life Insurance premiums

For a Term Life Insurance policy, your monthly payments, or premiums, will be paid for a fixed number of years known as your policy term. The length of your policy term is completely up to you.

How is a Life Insurance premium calculated?

A Life Insurance premium will depend on a number of personal factors such as your age and health. It will also be influenced by the type of Life Insurance product chosen; including any extra benefits added that are available to you. The amount of cover you select, and the term of the policy will also be factored into your insurance provider’s calculation.

With a Beagle Street policy, unlike with some other insurance providers, lifestyle choices such as hobbies, won’t affect your Life Insurance premium no matter how extreme they may be; so there’s no need to cancel that Skydiving trip!

We’ve put together some of the individual factors that will influence your policy’s premium, and an overview of the types of Life Insurance below.

How is a Life Insurance premium calculated?

Factors that affect Life Insurance premiums

The factors that will influence your premium are: your age, smoker status, current health i.e BMI, any existing or previous medical conditions you or a family member may have had, your current occupation, and lifestyle factors such as drinking. It is a common misconception your gender will affect your premium; which since 2012 this is no longer the case.

How age affects Life Insurance premiums

The older you are the more expensive you will find your premiums become, as you become more of a risk to your insurance provider, which is why it’s a great idea to get Life Insurance when you are younger. For example if you are in your 20’s when you take out a policy you could get Life Insurance cover until you are in your 60’s.

Life Insurance Factors

Life Insurance for smokers

With the huge amount of press about the damages to your health smoking can cause to you, then it may be no surprise to know that non-smokers could save on their premiums. We classify a non-smoker as someone who has not used tobacco, or nicotine replacement products (such as an E-cigarette/Vape) in the last 12 months.

So if you have already taken out Life Insurance when you were a smoker but have given up for longer than a year (congratulations) then you may be paying too much for your policy . It may be worth you getting a new quote as a non-smoker.

It is important that you answer questions honestly throughout our online application; we won’t ask for medical records from your GP until a claim is made. If at the time you completed your application for the policy you fail to answer all our questions truthfully, accurately and completely to the best of your knowledge, this may invalidate your policy.

BMI and Life Insurance

Another highly influential factor in determining your Life Insurance premium is your Body Mass Index (BMI) which is calculated using your height in proportion to your weight. If you’re BMI is between 18.5 and 25 you are considered to be an ideal weight for your height, which means it is less likely that you will suffer from certain medical conditions.

Leading a healthy lifestyle will help reduce your BMI, and could also cut the cost of your Life Insurance premium; although this will not be taken into account once you have a policy set-up. If your circumstances change during the term of your Life Insurance policy then you could be paying too much and you may want to get a new quote to see if you could reduce your monthly premium.

Type of Life Insurance

The amount, length and type of Life Insurance policy you take out will also impact your premium. We also have our Life Insurance cover calculator to help you decide how much cover you might need, and a guide which outlines all the types of Life Insurance we provide.

Medical history and Life Insurance

If you have had a pre-existing medical condition you may find that this affects your monthly premium, but this will depend completely on the severity and recency of the condition. Your family’s medical history may also influence your premium depending on the conditions they may have/had, and what age the condition transpired.

We also provide Critical Illness cover in case you contract an insured medical condition , the pay-out could then be used to cover any additional costs you incur; such as attending appointments or equipment you may need.

Occupation

Normally your occupation will not influence your Life Insurance premium, and we won’t ask you about your job unless you are employed or involved in any of the following:

  • The armed forces
  • Non-military aviation
  • Commercial diving
  • Offshore gas or oil
  • Offshore fishing
  • Work above heights of 15 metres
  • Work involving explosives

What Life Insurance do I need?

There are a few different choices to make when it comes to Life Insurance, and each product suits different needs. That’s why it’s important to understand what options are available to you before deciding which type is best for you.

Level or Decreasing term Life Insurance?

With both types of Life Insurance your premiums are fixed over the policy term, and won’t change even if your circumstances do.

Level Term Life Insurance

Level term Life Insurance gives you the security of a set pay-out at any point during your policy, which is ideal if you need to cover a fixed cost; remember that inflation could mean that the amount you are covered for now is worth less in a decades time.

Level Term

Decreasing Term Life Insurance

The Life Insurance premiums for Decreasing Term will be less than those for an equivalent cover amount and length for a Level term policy as the amount you are covered for will reduce over time. This is typically used for covering debts which reduce and are paid off over time, such as a mortgage.

Decreasing Term

Critical Illness Cover

Beagle Street Critical Illness cover is an additional product on top of your Life Insurance policy, it cannot be bought separately. The amount of Critical Illness cover you choose will also increase your premium; this cover can be from 10% up to 100% so long as this fits into minimum and maximum cover limit of your Life Insurance policy. We have a comprehensive guide on the features and benefits of our Critical Illness cover.

Critical Illness
Joint Life Insurance

Joint Life Insurance

You can also get a Life Insurance policy which covers you and a loved one, typically this is the partner of the policyholder but this could be anyone. This will also affect your premium, as the policy is cancelled once one of the policyholders dies.

If you want to cover two people you may also want to consider two single policies; we have a dedicated joint Life Insurance guide to help decide which would be better for your situation.

Joint Life Insurance

How much does Life Insurance cost?

How much Life Insurance costs is dependent on your situation, which type of Life Insurance you choose, the length and the amount of cover.

To help you decide the amount of Life Insurance cover that’s right for your situation you can use our handy Life Insurance calculator. Or get a quick Life Insurance quote to see how much this could cost you, it takes less than 60 seconds and could be much less than you think.