A $1 million life insurance policy may sound extravagant, but if you want your family well taken care of after you’re gone, you may find it’s not an astronomical amount after all.

When you calculate how much life insurance you need, you can quickly arrive at $1 million and higher.

How Much Does a $1 Million Term Life Insurance Policy Cost?

We analyzed term life insurance quotes for $1 million policies to determine average costs. The average cost for a 10-year term, $1 million policy is $15 a month for a 30-year-old woman who is in good health and doesn’t smoke. It’s $24 for a 20-year term for a 30-year-old woman.

Your own cost will depend on your own age and health, plus other risk factors. However, our analysis can give you a general idea of what you can expect to pay.
Related:

$1 Million Average Term Life Insurance Rates by Age and Gender

Age and gender are among the important factors that affect life insurance rates. Men usually pay more for coverage than women and people in their 50s and 60s pay more than those in their 30s.

Monthly Cost for a 10-year, $1 Million Term Life Insurance Policy

Monthly Costs for 15-year, $1 Million Term Life Insurance Policy

Monthly Costs for 20-year, $1 Million Term Life Insurance Policy

Monthly Costs for 30-year, $1 Million Term Life Insurance Policy

Policies for a 30-year term are hard, if not impossible, to find for those aged 60 or over.


$1 Million Term Life Insurance Rates by Term Length

The length of a $1 million life insurance policy will also affect how much you pay for coverage. You’ll pay more if you want a term life insurance policy that has a longer period for the fixed rate. You can often renew a term life policy after this level term period ends, but you’ll likely pay substantially more each year you renew.

Average Monthly Costs for $1 Million Life Insurance by Term Length


Buying Younger Means Paying Less for a $1 Million Policy

Age is a primary rating factor for life insurance, and life insurance quotes will rise every year as you age. This is simply because as your life expectancy declines, the risk for the insurance company increases. That means you should buy coverage when you’re younger to lock in cheaper rates.

Our analysis reveals a huge savings if you buy coverage in your 30s. Buying a 20-year term policy in your 50s or 60s means you’ll pay significantly more than if you buy coverage at a younger age:

  • If you wait from age 30 to 40 to obtain a 20-year term $1 million life insurance policy, the rates jump up 63% per month for males ($19) and 71% for females ($17).
  • If you wait until 50, the rates increase 330% per month for males ($99) and 300% for females $72) compared to the cost for a 30-year-old.
  • Waiting until age 60 has a cost increase of over 1,167% per month for males ($350) and over 1,008% for females ($242), again compared to if you bought the plan back when you were 30.

Looking For Life Insurance?

See Our Ratings Of The Best Life Insurance Companies


How Gender Affects the Cost of $1 Million Term Life Insurance

As the estimated rate quotes show, gender is also a key factor when calculating life insurance rates. Females typically live longer than males, so they get a bit of a price break.

Our assessment shows that males continually pay higher rates, no matter the age. However, the difference between the rates varies as they age.

For example, here is how gender affects rates for a a $1 million 20-year term life insurance policy:

  • At age 30, males pay 25% more on average than females, which comes to $6 a month or $72 per year on average.
  • At age 40, males pay 20% more, which equals $8 per month or $96 annually on average than females.
  • At age 50, males pay 34% more than females, which is $33 more per month or nearly $400 annually on average.
  • At age 60, males pay 43% more than females, which comes to $114 a month or $1,368 annually on average.
  • At age 70, males pay 33% more than females, which is $85 a month or $1,020 annually on average.

Who Sells Million Dollar Life Insurance?

Buying a $1 million life insurance policy isn’t different from shopping for any other amount of life insurance. One million dollar life insurance is easy to find from most life insurance companies.

Life insurers that are top-rated in our analysis of the best term life insurance companies are:


Tips on How to Shop for $1 Million Term Life Insurance

  • Calculate how much coverage you need. Free life insurance calculators like ours above can help you with your calculation.
  • Determine the length of the policy you need. Figure out how long your family and loved ones would need a life insurance policy. For example, if you want life insurance to cover expenses to get your kids through college in 12 years, you’d want at least a 15-year policy.
  • Consider whether no-exam life insurance works for you. No-exam life insurance can be competitively priced with policies that require medical exams. You generally need to be in good health and under age 50 to qualify.
  • Gather information you will need. Have the following information on hand when getting life insurance quotes: height and weight; personal and family medical history for immediate family; list of past and current medications; any future plans to travel outside the United States.
  • Comparison shop for life insurance quotes. You can often get term life insurance quotes online. If you’re shopping for permanent life insurance such as whole life or universal, you’ll need to contact a life insurance agent.
  • Check company financial strength. Make sure the companies you’re considering have the financial strength to pay claims long into the future. Ratings agencies such as AM Best issue financial strength ratings.

Methodology

Term life insurance rates are for non-smokers in excellent health. We averaged the four cheapest quotes we found online. Your own rates will be different depending on your age, health and other factors.


How Much Does a Million Dollar Life Insurance Policy Cost FAQs

Do companies offer $1 million life insurance policies with no medical exam?

Yes, many life insurance companies offer no-exam term life insurance policies with a death benefit of $1 million. Multiple life insurance companies—such as Brighthouse Financial, Banner Life, Pacific Life and Transamerica—offer no-exam life insurance policies of at least $2 million.

No-exam life insurance may be limited to people who are in very good or excellent health.

How much is a $1 million life insurance policy per month?

The average monthly cost for a 20-year, $1 million term life insurance policy is $30 for a 30-year-old man and $24 for a 30-year-old woman. That average monthly cost increases to $49 for 40-year-old men and $41 for 40-year-old women—and only increases from there.

Besides age, life insurance companies also factor in your health, the length of the level term (during which your rates won’t change), smoking status, prescription drug history and other data.

How much is a $1 million life insurance policy for a 50-year-old man?

A 50-year-old man pays $129 monthly on average for a 20-year, $1 million term life insurance policy.

Policies with shorter terms, such as 10 or 15 years, usually cost less than a 20-year policy. For instance, a 10-year, $1 million life insurance policy for a male costs $69 monthly on average, while a 30-year policy costs $239 monthly on average.