Swift Accounting & Business Solutions Ltd.
2440 Kensington Rd NW, Calgary, AB T2N 3S1
(403) 999-2295 · mailbox@swiftltd.ca
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Term vs Permanent Life Insurance Calculator (2026)
Pick what you are protecting, your age and the cover you want. See the best fit, a 40-year premium chart and the tax effect of corporate ownership.
Enter your age to see the best fit.
This is a deferral. The premium is not deductible, and cash taken out of the corporation later is taxed again. Joint last-to-die uses the single-life whole life price as a stand-in.
Premiums are illustrative, not quotes. We are accountants, not insurance brokers, so get quotes from a licensed advisor.
Estimate based on 2026 rules. Not tax advice.
How it's calculated
- Monthly premiums come from an illustrative table of cost per $500,000 of cover for a healthy non-smoker, priced by age. They are not quotes.
- Between the table's ages (30, 40, 50, 60, 70 and 80) the premium is interpolated. Below 30, the age 30 price is used.
- Term 10 and Term 20 are re-priced at each renewal at your age then. Term premiums stop at age 85. Whole life stays level and runs to age 100.
- The chart adds up premiums for up to 40 years, ending no later than age 100.
- The corporate box compares the pre-tax income needed to pay the premium personally, at your marginal rate from the tax engine, with the corporation's small-business rate. It is a deferral, not a permanent saving.
Frequently asked questions
What is the difference between term and permanent life insurance?
Term covers a set period, such as 10, 20 or 30 years, for a low premium that jumps at each renewal, and it pays only if you die during the term. Permanent insurance, whole life or universal life, costs more, but the premium can stay level and the benefit is paid whenever you die. It can also build tax-sheltered cash value. Use term for a temporary need such as a mortgage, and permanent cover for a certain one such as final taxes.
What is joint last-to-die life insurance?
It insures a couple and pays on the second death. The spousal rollover usually defers most of the tax until that second death, so the payout arrives when the estate's tax bill comes due. It usually costs less than two separate policies.
Should my corporation own my life insurance?
Often, for business owners. Corporate dollars are taxed at the small-business rate, 11% in Alberta, while personal dollars can be taxed up to 48% there. On death the benefit, less the policy's adjusted cost basis, credits the Capital Dividend Account, so the corporation can pay a tax-free capital dividend to the estate. The gap is a deferral, because the premium is not deductible and taking the cash out is taxed again. Have the ownership and beneficiary reviewed before you sign.
How long does term insurance last?
Most term policies can be renewed to about age 85, at a much higher price each time. This calculator stops term premiums at age 85 and runs whole life to age 100.
Are the premiums on this page real quotes?
No. They come from an illustrative table of monthly cost per $500,000 of cover for a healthy non-smoker. Real prices depend on the insurer, your health and whether you smoke. Get quotes from a licensed insurance advisor.
Talk to a Swift accountant
Who owns the policy, who the beneficiary is and how it fits your will decide the tax result. We review the structure with your insurance advisor and lawyer.