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how is the cost of insurance calculated in a whole life insurance policy?

Public Comments

1. Your premium would be determined by the size of the policy and taking your info,, age, health, family history and plugging that into the insurance companies algorithm and viola''!! You'll have your monthly or annual premium ...
2. Same as in a term life - based on your age, health, and coverage limit. The tables are all calculated by actuaries, though, and the insurance company hands the tables to the agents. So you don't have to worry about it.
3. Dear Jeffrey, Drive_55 is right about how you calculated it. But beware of whole life insurance, it is a ripoff. Those extremely high payments you make for whole life insurance? You are essentially giving the insurance company a low interest loan so that they can use your money to make themselves rich. You'd be much wiser to buy term life insurance and invest the money you save (by not buying whole life insurance) on your own.
4. The cost of insurance in a life insurance policy is what it is; it doesn't matter if it's term, whole, or universal life. The difference in premiums is a factor of the insured's age, gender, health, and the term or expected duration of the coverage. Whole life is more "expensive" because the cost of insurance is based on the insured's entire life expectancy. In other words, the risk to the insurer is not the slim probability that the insured will die within a particular number of years; it is the assumption that the policy will be in effect at the time of death and the policy will definitely pay a death benefit. ADDED: Ignore "magicbird" altogether. She has in the past proven that she knows nothing about life insurance, and this answer is a perfect example. For the reasons I've stated above, whole life is an insurer's LEAST profitable product. Carriers make their real money selling inexpensive term that almost never pays a death benefit. The only reason a company offers any type of permanent product is that there are too many situations where term is simply not appropriate.