Insurance
Estimated premium
Applies a market-average rate for your age band to the cover amount.
The Formula
Monthly premium = cover / 100,000 x rate per 100,000
Applies a market-average rate for your age band to the cover amount.
| Symbol | Meaning | Unit | Notes |
|---|---|---|---|
| C | Cover amount | currency | The coverage need from the first formula. |
| r | Rate per 100,000 | currency | Monthly premium for each 100,000 of cover. |
What Each Symbol Means
Ccurrency
Cover amount
The coverage need from the first formula.
rcurrency
Rate per 100,000
Monthly premium for each 100,000 of cover.
See It Worked With Real Numbers
A formula on its own does not tell you which number goes where. The how to calculate term life insurance needs 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 Life Insurance Needs, filed under Finance. Every number the guide produces comes from substituting into this one line.