How Much Is One Million Dollars of Life Insurance Coverage?

Let’s face it, being a millionaire is something most people only dream about, but just because you’re not rolling in the dough doesn’t mean you should rule out a million-dollar life insurance policy.

In fact, million-dollar policies are fairly common and may be more affordable than you think. See for yourself. Get an instant quote for $1,000,000 of term coverage instantly using our free quoting tool. No need to give away any contact information in order to see real-time pricing estimates.

$1 Million Term Life Insurance Rates by Term Length

If you want a life insurance policy that lasts longer, you’ll pay more. Finding the right length for you will depend on the concern you want to cover with life insurance.

You don’t want your policy to expire before the financial needs of your family are met. On the other hand, you may not need a longer term if you buy the policy at an older age when some of your debts have been paid off or decreased substantially.

For a $1 million policy, determine which term length is best for your particular circumstances. Don’t assume a longer term won’t fit your budget before pricing it out.

Here we compare costs for various length policies for a 30-year-old male and female.

Term Male Female
10-year term $312 $264
15-year term $348 $324
20-year term $480 $348
30-year term $780 $588

Our analysis found that:

  • Upgrading from a 10-year term to a 15-year policy raises rates 12% for males and 23% for females.
  • Moving from a 10-year to a 20-year policy costs males 50% more but only costs females about 30% more.
  • For either gender, it’s a decent deal to double the time of your term life insurance policy and not even come close to doubling your premium.
  • To triple the time of the policy to 30 years from 10, it raises rates 150% for males and 123% for females.


Age vs. Health 

The prices on a whole life increase the older you get, just like any other policy. The sooner you get whole life insurance, the cheaper it will be in the long run.

Also, the price is guaranteed to remain the same for the rest of your life. So do not wait and lock in that low premium forever.

Age plays a significant factor in how much you pay for whole life, much more than health.

Health ratings will affect your whole life insurance, but the changes won’t be as drastic compared to a Term Life insurance.

Many different factors will determine the best whole life insurance for you. In addition, whole life is an asset and not an expense. Therefore, you want your assets to be the best and not the cheapest. Imagine a house that you are investing in. You would like to have a great asset, not just the cheapest one.

Price is important but it’s definitely not the most important. 

How Much Does A Million Dollar Life Insurance Policy Cost

The following table will estimate the cost of a million-dollar term whole and universal life insurance policy.

Life Insurance TypeMonthly Cost
Term Life InsuranceFrom $14.62
Whole Life InsuranceFrom $348.25
Universal Life InsuranceFrom $182.00
Monthly cost based on a 20-year-old female, non-tobacco, in excellent shape.

How Much Life Insurance Do You Need?

Before you apply for life insurance, regardless of the amount, it’s important that you calculate your life insurance needs. Not having enough life insurance is one of the worst mistakes that you could ever make for your loved ones. There are several different categories that you need to add up when you’re looking to get the right amount of life insurance coverage. The first number that you should add up is your debts and final expenses that would be left behind to your family members once you pass away. Add up everything from your to your credit cards bills. Make sure that your plan is enough to pay off all of those bills. The next number to tally is your annual income. If you’re one of the primary bread-winners in your house, they would struggle without that source of income. The next goal of your life insurance is to give them the money that they would need to pay for all of their expenses without sacrificing their standard of living. With just these two simple categories, it’s easy to see how a family could need a million dollars of life insurance coverage. If you need any assistance calculating your life insurance needs, our agents can walk you through all of the calculations and help you determine what size plan is going to work best for you and your family’s needs. We understand that purchasing a life insurance policy on yourself or a loved one can be quiet overwhelming if you are not familiar with the companies or policy types. If you need more clarification on the different types and ins and outs of life insurance coverage, check out our post on life insurance explained for dummies!

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

The first step for shopping for any term life insurance policy is calculating how much coverage you need. You want your life insurance payout amount to take into account your obligations, such as a mortgage, car loan, credit card balances and any other debt you have accumulated. Also, consider additional money you want to leave to cover other financial matters, such as income replacement or paying for college.

Here’s a calculator to help you determine how much life insurance you need.

Next, determine the term of the policy you need. How long do your family and loved ones need the money from the life insurance policy? For example, if you want to get your kids through college in 12 years, you’d want at least a 15-year policy.

Zero in on a term length but also look at longer policy terms for price comparison. It won’t hurt to expand your length if it fits your financial means so that if debts increase or aren’t paid off as fast as you anticipate, the life policy is there for a few more years.

For instance, if you don’t own a house now but plan to buy one with a 30-year mortgage in the upcoming years, it would make sense to expand your search from 15- to 30-year term lengths.

Once you have the policy amount and length of the policy determined, you’re ready to comparison shop for life insurance quotes.

When shopping for quotes for a $1 million term life policy, check if a medical exam is needed. Typically, life insurance companies want you to take a medical exam to understand your health and determine potential life expectancy.

However, recently no-exam life insurance has become more widely available. Note, however, that if you aren’t in very good or excellent health, you may not qualify for these instant policies. Also, not all no-exam companies offer $1 million policies.

It’s helpful to have on hand the following information as you shop for life insurance rate quotes:

  • Height and weight
  • Family medical history for immediate family, meaning parents and siblings
  • Personal medical information, knowledge of past and current health
  • Medications, both current and previous
  • Lifestyle information, such smoking and drinking
  • Dangerous hobbies, such a piloting plans and scuba diving
  • Future plans to travel outside the United States

Be sure to be truthful. Misrepresentations during the application process and void the policy in the future.

During the shopping process, check reviews of life insurance companies to make sure the ones you’re considering have a good reputation and the financial strength to pay out if a claim is made.

Need Help Getting Life Insurance Coverage?

If you have a preexisting medical condition and wa

If you have a preexisting medical condition and want to buy life insurance, you will need help from an expert. This person can help ensure that you get coverage so that you don’t get declined.

Warning: Applying for life insurance without a medical exam can be risky. If you get declined coverage, it could be at least two years before you can get any life insurance.

When does a million dollars of coverage make sense?

Not everyone needs a million dollar life insurance policy, but it can make sense in many family situations.

Let’s look at a common scenario in which one million dollars’ worth of life insurance makes sense and then we’ll breakdown the costs.

Example: Married couple with four kids and a house

John and Jane Smith each make approximately $60,000 annually. They have four children and live in a five-bedroom home with a $400,000 mortgage.

If either parent died, their wish would be to minimize the disruption by having enough coverage to take care of the mortgage, so the surviving spouse and children don’t have to move.

Another wish would be to take care of college tuition for all four children. Depending on state and whether it’s public or private, the average total cost can range from $154,400 to $535,660.

Using the life insurance needs calculator on Quotacy, here are some of the factors and costs that go into determining out how much life insurance coverage John and Jane need.

They want their life insurance policy to:

  • Cover a funeral: $10,000
  • Pay off mortgage: $400,000
  • Replace lost income: $600,000
  • Pay for children’s college tuition: $155,000

Based off these numbers, the suggested coverage amount for each would be $1,200,000.

For this example, we didn’t include additional debt, current savings and investments, or if they have a life insurance policy they plan to keep. These factors could significantly impact the dollar amount needed.


» Compare: Comparison shop the best life insurance rates

Who needs million dollar life insurance?

If you’re making $35,000 a year, have no children and your spouse also works, a million dollars of life insurance is probably overkill, unless you anticipate the need for a large sum of money in the future and want to ensure your beneficiary will be able to handle it if you’re not there.

A million dollars of coverage can be very useful, however, if you’ve got multiple debts either now or anticipated in the future. This could include:

  • Paying off your mortgage.
  • Educating your children.
  • Health care costs.
  • Paying for end-of-life costs, such as a funeral.
  • Making sure no one is saddled with your consumer debts after you die.
  • Ensuring that a non-working partner is able to continue with the life they are used to.

If any of these are true — or, even more, if you have multiple reasons for needing money — a million dollars can ensure that your heirs are not left in a difficult situation if you were to die.

What are the benefits of getting million-dollar life insurance?

One of the biggest reasons for purchasing a million-dollar term life insurance policy is gaining the peace of mind that your family’s financial obligations will be taken care of, protecting them for years after you’ve passed away.

At Legal & General America, we keep our customers needs at the forefront of our life insurance offerings. When you choose us, you can count on some of the most  competitive prices, as well as the most term life insurance options with reliable coverage for less than $24 a month

You can also lock in one price that is guaranteed to remain the same throughout your selected term. This means that if you are young and in good health, you can secure a lower rate and know that it won’t change in the next 15, 20, 30 or even 40 years.

Every year, the cost of purchasing life insurance can increase by up to 9%, taking into consideration lifestyle changes that pose an increased health threat, such as smoking. Locking in a lower premium while you are strong and healthy will help you save for later when you might be dealing with unexpected challenges.

Your coverage is just as reliable as the company that provides it. Legal & General America brings over 70 years of industry experience to the table. Our parent company, Legal & General Group Plc, is one of the world’s leading multinational financial services companies, which means we have a long history of strong financial ratings you can depend on.

Benefits at a glance

  • Peace of mind that your family is covered with life insurance
  • One price locked-in and guaranteed not to increase during the term period you choose
  • One of the most competitively priced products available in the market
  • Company with a long history of strong financial ratings.

Factors Affecting Your $1 Million Life Insurance Premiums

Before we move on to specific life insurance quotes, let’s first consider the factors that affect term life insurance premiums.


This is typically the single most important premium factor. The older you are, the more likely you are to die within the term of the policy.


This is a close second and why it’s so important to apply for a policy as early in life as possible. Premium rates literally increase by each year.

If you have any health conditions that may affect mortality, such as diabetes or hypertension, your premiums will be higher. This is another compelling reason to apply while you are young and in good health.

It’s not that policies are not available to people with health conditions, it’s just that they’re less expensive if you don’t have any.

Policy Term

A 10-year term policy will have a lower premium than a 20-year term policy, which will be lower than a 30-year term. The shorter the term, the less likely it is the insurance company will have to pay a claim before it expires.

Policy Size

Size of the policy matters, but not the way you might think. Yes, a $1 million policy will cost more than a $500,000 policy. But it won’t cost twice as much.

The larger the policy, the lower the per-thousand cost will be.

When the size of the death benefit is considered, the larger policy will always be more cost-effective.

Work, Hobbies, and Habits

For example, certain occupations are more hazardous than others (think policeman versus librarian). Deep-sea diving is higher risk than golf. And smoking is the one activity guaranteed to raise your premiums substantially.

With this information in mind, let’s take a look at whether you should consider a $1 million whole life policy instead.

Types of Life Insurance Policies

What types of policies are available to cover my needs for life insurance?

There are two common types of life insurance policies to provide coverage for your family or business:

Term Life Insurance and Permanent Life Insurance

Term Life Insurance Today’s most popular kind of policy purchased in America is term life insurance. In fact, term life policies account for more than 25 % of new life insurance sales, according to LIMRA. Why is term coverage such a popular choice for people seeking a large amount of life insurance? It allows wealthy people to buy a significant policy for a modest cost. A term life insurance policy offers guaranteed death benefits and level premiums for initial term lengths of 10, 15, 20, or even 30 years. The term duration you choose will directly impact the price you ultimately pay for your policy. You can save money by matching your insurance needs with a term duration that will protect your family from a financial disaster should you die unexpectedly. Most people buy term life insurance to replace their income or to cover a mortgage over a certain period. Plus, term life coverage is a much cheaper option compared to whole life insurance for people looking to buy a million-dollar life insurance policy. For example, a ten-year $1,000,000 term policy will cost a healthy 50-year-old only 10% of the exact whole life policy costs! This is why term coverage is an excellent option for life insurance for people over 50. A 10-year term is ideal if you only need to protect a large salary if you should die before you reach retirement age. Term insurance can also act as a bridge until a pension income is available or allow assets to grow inside retirement plans. Term insurance can be a solid choice for young folks too! Either a 20 or 30-year term life insurance policy can be a perfect term insurance policy for high-earning young people needing to protect a long-term mortgage. The best thing about buying a million-dollar life insurance policy for young people is that it’s really affordable! Not to mention that most term contracts allow active policyholders to convert their term life insurance to permanent coverage without requiring any medical underwriting. A convertible term life insurance can be exchanged for a longer-running universal or whole life policy. You can also reduce your premiums and death benefit with a term life conversion, as your needs diminish in your retirement years. Do you own a small business? Many successful executives and small business owners often require even more term insurance coverage! We often find that a million-dollar business life insurance policy is purchased based on the recommendation of our client’s accountant or attorney. Many advisors will evaluate your personal and business life insurance needs when suggesting the proper amount of coverage to you. They will generally run an inventory of your business debts, your mortgage payments, the income needed for your family, and college loans for your kids. This evaluation will help determine the amount of life insurance you may need and guide your search for policies. In many cases, the required death benefit ends up being substantially more for company owners. Purchasing a 2 million dollar life insurance term policy can help wealthy executives cover personal and business life insurance needs.  So, how much does 2 million in term life insurance cost? We can always shop around to find you the cheapest rate on $2 million worth of life insurance, or feel free to use our quote engine to run a comparison for yourself.Permanent Life Insurance Do you want your coverage to last for your entire lifetime? Then, permanent coverage will be the best kind of life insurance policy for you. Permanent life insurance can be classified into two categories: Universal Life and Whole Life Universal Life Insurance is a permanent policy where the excess premium payments above the current insurance cost are credited to the policy’s cash value. Universal life insurance can be designed for cash accumulation with tax-deferred growth and lifetime coverage. Universal life insurance can also be structured with no cash value with guaranteed coverage to age 120. Whole life is another form of permanent life insurance coverage. Whole life provides fixed premiums and death benefits for the insured’s lifetime. Whole life insurance policies also accumulate guaranteed tax-deferred cash values and non-guaranteed dividends. The cash values are available upon surrender or by taking withdrawals or loans against an active policy. Is whole life, or is universal life a better value? A universal life policy is always a much cheaper option than whole life insurance if you need lifetime coverage. Because of its guaranteed cash values and dividends, million-dollar whole life insurance rates will often run almost 50% more than universal life. Universal life policies are better for middle-aged people who have accumulated enough savings and only need lifetime protection. Universal life is also ideal for wealthy seniors as part of a wealth transfer strategy. People buying life insurance in their 70s usually are looking to create an estate for their family. Many wealthy seniors consider permanent life insurance as just another asset class.   Permanent coverage allows wealthy senior citizens the opportunity to leverage current assets to maximize their total net worth. They can contribute smaller premiums towards a more considerable death benefit that will eventually be passed tax-free to their children!

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