How much does a million-dollar life insurance policy cost?
Quick Facts
Million-dollar life insurance is a type of life insurance for high-net-worth individuals
Experts recommend purchasing a life insurance policy equal to 10 to 12 times your annual salary, so individuals earning $100,000 or more could benefit from million-dollar life insurance
You’ll pay around $40 monthly for a million-dollar life insurance policy
A million-dollar life insurance policy offers high-value life insurance coverage to individuals looking to give their life insurance beneficiary financial protection if they pass. On average, it costs $40 monthly for a million-dollar life insurance policy.
To find the coverage you need at a price within your budget, compare million-dollar life insurance quotes and shop for different types of term life insurance policies.
Understanding Million-Dollar Life Insurance Policies
To those wondering how much term life insurance you can buy, policyholders can purchase million-dollar life insurance coverage in term life insurance. However, this is a large life insurance policy, so it’s more expensive than a policy with lower coverage amounts. By comparing term life insurance quotes for million-dollar policies, you can find an affordable policy to secure your family’s financial future and begin estate planning.
Generally, permanent life insurance policies have low coverage amounts, so you can only get term life insurance policies with $1 million of coverage. Read more about whole life insurance companies if you have different coverage needs.
Your life insurance quotes are always free.
Secured with SHA-256 Encryption
Cost of Million-Dollar Life Insurance Policies
On average, it costs $40 a month for a million-dollar life insurance policy. However, your rates will vary depending on age, gender, health concerns, and coverage amount. Check out the table below to see average million-dollar life insurance rates.
Million Dollar Term Life Insurance Rates by Term Length
Term LengthMaleFemale
10-year term$26$22
15-year term$29$27
20-year term$40$29
30-year term$65$49
As you can see, a life insurance policy for adult children is more affordable than for older adults, making it wise to buy a policy early.
Factors Affecting Your Million-Dollar Life Insurance Rates
Companies consider several factors when crafting your million-dollar life insurance rates to assess your risk to insure. Below is a list of common factors companies consider:
Age: Young people have a lower mortality risk and pay lower rates for million-dollar life insurance policies.
Lifestyle choices: Smoking, excessive alcohol drinking, or participating in high-risk activities like skydiving can lead to higher rates. However, finding a cheap life insurance policy for smokers is not impossible.
Gender: Women have a higher life expectancy than men, so they pay lower average million-dollar life insurance rates.
Term length: The higher your policy’s term length, the more you’ll pay for coverage.
Health: Health concerns or pre-existing conditions can affect rates, and some companies may deny you coverage since many require medical exams. These individuals can consider a no-medical exam life insurance policy, a type of guaranteed issue life insurance policy, though rates will be more expensive.
Consider factors you can control — like lifestyle choices and coverage options — and compare quotes from various companies to find a million-dollar life insurance policy with affordable rates.
Million-Dollar Life Insurance Policy for 10 Years
The table below shows 10-year term million-dollar life insurance rates based on age and gender.
Million Dollar Term Life Insurance Policy w/ 10-Year Term
AgeMaleFemale
30$26$22
35$26$23
40$35$28
45$53$43
50$81$63
55$136$102
60$223$150
On average, you’ll pay $72 monthly for a 10-year million-dollar life insurance policy.
Million-Dollar Life Insurance Policy for 20 Years
Check out the table below to see how much you could pay for a 20-year term million-dollar life insurance policy.
Million Dollar Term Life Insurance Policy w/ 20-Year Term
AgeMaleFemale
30$40$29
35$43$34
40$60$48
45$96$71
50$145$105
55$245$175
60$422$294
As you can see, it costs around $126 a month to get million-dollar life insurance for 20 years. You’ll also pay lower rates when you get coverage at a younger age.
Million-Dollar Life Insurance Policy for 30 Years
See the table below for average 30-year term million-dollar policy rates.
Million Dollar Life Insurance Policy w/ 30-Year Term
AgeMaleFemale
30$65$49
35$74$57
40$107$82
45$167$122
50$268$190
55$524$349
60N/AN/A
You’ll pay $171 monthly on average for a 30-year million-dollar life insurance policy.
Best Companies for Million-Dollar Life Insurance Policies
You can purchase a million-dollar life insurance policy from several companies, including:
AIG
Pacific Life
New York Life
Prudential
Banner Life
MetLife
Mutual of Omaha
Lincoln Financial
When considering rates, customer satisfaction, and financial stability, we consider the best companies for million-dollar life insurance policies to be New York Life, Banner Life, and Mutual of Omaha.
Your life insurance quotes are always free.
Secured with SHA-256 Encryption
Determining Whether You Need a Million-Dollar Life Insurance Policy
Generally, experts recommend people buy life insurance equal to 10 or 12 times their annual income, so individuals who make $100,000 a year should consider a million-dollar life insurance policy. Here is a list of people who could benefit from a million-dollar life insurance policy:
Business owners: A business owner who plays a critical role to the company’s operations, has high business debts, and various financial obligations should consider million-dollar life insurance. Life insurance for business owners is instrumental in ensuring a business can thrive after an owner’s death.
People with large debts: A million-dollar life insurance policy could benefit someone with a mortgage, student loans, or car lease.
Someone with multiple dependents: If several people rely on your income, or you have kids that will eventually attend college, consider a million-dollar life insurance policy.
Though $1 million seems like a lot of coverage, many people can benefit from it, and finding an affordable policy isn’t impossible. Check out the table below to see how a low or high coverage amount affects your rates.
Term Life Insurance Rates by Policy Amount
Policy AmountMaleFemale
$500,000$25$21
$750,000$33$24
$1 Million$40$29
$2 Million$73$52
As you can see, a male policyholder pays about $15 more monthly for a million dollar life insurance policy vs. a $500,000 term policy.
Tips on Shopping for Million-Dollar Life Insurance Policies
Consider the following tips when shopping for million-dollar life insurance policies:
Compare quotes. Insurance companies offer different rates depending on various factors, so compare million-dollar life insurance quotes from at least three companies before buying a policy.
Consider coverage needs. Before you get coverage, consider your financial obligations, like mortgages, car loans, credit cards, or other debts, to see if million-dollar life insurance is right for you. You should also determine what term length you need. If you want your premiums back when your term ends, consider a return of premium life insurance policy, though rates are higher.
Speak to an advisor. Speak with an insurance agent to help you navigate coverage options and find an affordable million-dollar life insurance policy.
As you can see, there are several things you can do to ensure you get an adequate amount of coverage that fits your budget.
The Bottom Line: Million-Dollar Life Insurance Policies
Consider a million-dollar life insurance policy if you’re a high-net-worth individual looking for life insurance. If you own a business, have large debts, or various financial obligations, million-dollar life insurance can offer financial protection to your beneficiaries.
Frequently Asked Questions
Are million-dollar life insurance policies expensive?
On average, a million-dollar life insurance policy costs $40 monthly, but rates vary depending on coverage amount, age, gender, term length, and type of life insurance.
Can you get a million-dollar life insurance policy with no-medical exam?
Yes, companies like AIG, Banner Life, Transamerica, Pacific Life, and Lincoln Financial offer million-dollar life insurance policies without a medical exam, also known as guaranteed issue life insurance policies.
Who needs a million-dollar life insurance policy?
If you’re estate planning, a business owner, have large debts, or have several dependents, consider million-dollar life insurance.
How do I file a claim on a million-dollar life insurance policy?
To file a million-dollar life insurance policy claim, call your insurance company and submit the required documents, such as a death certificate, to get the payout. However, each company’s claims process is different.
What types of million-dollar life insurance policies can I get?
You can get a million-dollar term life insurance policy. However, other policy types, like permanent life insurance, generally have lower payouts. You can also get a guaranteed issue life insurance policy with $1 million in coverage.
How does smoking affect my million-dollar life insurance policy rates?
Smokers pay higher million-dollar life insurance rates since insurers consider smokers high risk to insure.
Which company has the best million-dollar life insurance policy?
The best companies for million-dollar life insurance policies are New York Life, Banner Life, and Mutual of Omaha.
Can I get a million-dollar life insurance policy with cash value?
Million-dollar term life insurance policies don’t offer a cash value component.
What are the tax implications of a million-dollar life insurance policy?
Life insurance death benefits for a million-dollar life insurance policy aren’t subject to income or estate taxes. However, any interest earned on any type of life insurance is subject to taxation.
Your life insurance quotes are always free.
Secured with SHA-256 Encryption
Rachael Brennan
Licensed Insurance Agent
Rachael Brennan has been working in the insurance industry since 2006 when she began working as a licensed insurance representative for 21st Century Insurance, during which time she earned her Property and Casualty license in all 50 states.
After several years she expanded her insurance expertise, earning her license in Health and AD&D insurance as well. She has worked for small health in…
Benjamin Carr
Former State Farm Insurance Agent
Benjamin Carr worked as a licensed insurance agent at State Farm and Tennant Special Risk. He sold various lines of coverage and informed his clients about their life, health, property/casualty insurance needs.
Assessing risks and helping people find the best coverage to suit their needs is a passion of his. He appreciates that insurance was designed to protect people, particularly during times…
Former State Farm Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about life insurance. Our goal is to be an objective, third-party resource for everything life insurance-related. We update our site regularly, and all content is reviewed by life insurance experts.
