Insurance
Cost over the same period
Multiplies each monthly premium by the months in the comparison period.
The Formula
Term total = term premium x 12 x years; Whole total = whole premium x 12 x years
Multiplies each monthly premium by the months in the comparison period.
| Symbol | Meaning | Unit | Notes |
|---|---|---|---|
| P_t | Term premium | currency | Monthly premium for the term policy. |
| P_w | Whole premium | currency | Monthly premium for the whole life policy. |
| y | Years | years | Length of the comparison period. |
What Each Symbol Means
P_tcurrency
Term premium
Monthly premium for the term policy.
P_wcurrency
Whole premium
Monthly premium for the whole life policy.
yyears
Years
Length of the comparison period.
See It Worked With Real Numbers
A formula on its own does not tell you which number goes where. The how to calculate term vs whole life insurance page applies this equation to a concrete case, shows every intermediate step, and names the mistakes that produce a wrong answer even when the algebra is right.
Where This Formula Appears
This equation is the working core of How To Calculate Term Vs Whole Life Insurance, filed under Finance. Every number the guide produces comes from substituting into this one line.