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.
See what you’d pay for $1,000,000 of life insurance
Comparison shop prices on custom coverage amounts from the nation’s top carriers with Quotacy.
When deciding if a million-dollar policy is right for you, here are the three most common questions:
- Can anyone get a million-dollar life insurance policy?
- When does a million dollars of coverage make sense?
- How much does a million-dollar life insurance policy cost?
To answer these questions, let’s take a closer look with a common scenario and example pricing for different age groups, genders, and term lengths.
» Calculate: Life insurance needs calculator
Can anyone get a million-dollar life insurance policy?
In order to qualify, insurance companies require a financial justification for large policies because life insurance is designed to replace wealth, not increase it.
There are also a number of factors that go into determining if you’re eligible for a million dollars of coverage. These include age, income, health, lifestyle, and length of coverage.
Not everyone can justify owning a million dollars of life insurance. However, purchasing a million-dollar policy doesn’t seem far-fetched when you add up all the financial obligations you would leave behind.
This can include the cost to replace your income, pay off the mortgage, send children to college, and take care of any other outstanding debt.
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.
How much does a million-dollar life insurance policy cost?
Now that we know John and Jane could each use at least a $1,000,000 term life insurance policy, let’s breakdown how much this would cost them.
In the tables below, we’ll illustrate the cost of a $1,000,000 policy across a couple ages and the typical non-smoker risk classes (Preferred Plus being the best possible class offered.)
Cost of a One Million Dollar Term Life Insurance Policy | |||
---|---|---|---|
Male, Age 40 | |||
Risk Class | 20-Year Term Monthly Premium | 25-Year Term Monthly Premium | 30-Year Term Monthly Premium |
Preferred Plus | $49.16 | $76.66 | $92.48 |
Preferred | $64.60 | $92.23 | $111.53 |
Standard Plus | $89.92 | $124.09 | $150.44 |
Standard | $101.41 | $145.34 | $175.08 |
Cost of a One Million Dollar Term Life Insurance Policy | |||
---|---|---|---|
Female, Age 40 | |||
Risk Class | 20-Year Term Monthly Premium | 25-Year Term Monthly Premium | 30-Year Term Monthly Premium |
Preferred Plus | $40.82 | $60.81 | $73.95 |
Preferred | $52.15 | $74.11 | $87.43 |
Standard Plus | $71.72 | $97.74 | $116.44 |
Standard | $79.63 | $120.69 | $135.13 |
Cost of a One Million Dollar Term Life Insurance Policy | |||
---|---|---|---|
Male, Age 45 | |||
Risk Class | 20-Year Term Monthly Premium | 25-Year Term Monthly Premium | 30-Year Term Monthly Premium |
Preferred Plus | $80.00 | $121.54 | $148.23 |
Preferred | $102.83 | $146.19 | $179.32 |
Standard Plus | $136.84 | $196.34 | $233.74 |
Standard | $158.93 | $237.13 | $284.73 |
Cost of a One Million Dollar Term Life Insurance Policy | |||
---|---|---|---|
Female, Age 45 | |||
Risk Class | 20-Year Term Monthly Premium | 25-Year Term Monthly Premium | 30-Year Term Monthly Premium |
Preferred Plus | $66.57 | $94.15 | $114.06 |
Preferred | $78.01 | $109.64 | $133.61 |
Standard Plus | $104.54 | $144.49 | $173.39 |
Standard | $123.23 | $170.84 | $201.43 |
As you can see in the tables above, even for individuals in their 40s, one million dollars’ worth of term life insurance is not that expensive considering how much your loved ones would receive if you died too soon.
Had John and Jane planned ahead and purchased a 30-year $1,000,000 term policy when their first child was born, they would be paying much lower premiums. Take a look at the table in the table below.
Cost of a One Million Dollar Term Life Insurance Policy | ||
---|---|---|
30-Year Term Length | ||
Insured at 30 Years of Age | ||
Who | Risk Class | Monthly Premium |
John Smith | Preferred Plus | $51.85 |
Preferred | $65.43 | |
Standard Plus | $86.69 | |
Standard | $108.78 | |
Jane Smith | Preferred Plus | $39.94 |
Preferred | $50.14 | |
Standard Plus | $75.64 | |
Standard | $82.43 |
A one-million-dollar life insurance policy may not be necessary for everyone. But, on the other hand, it might not be enough depending on your family situation.
If you are not sure how much life insurance you need, check out our life insurance needs calculator. It will point you in the right direction. From there you can run a term life insurance quote.
Using our quoting tool makes getting life insurance quotes simple. You can also adjust the term length and coverage amount as much as you need until you find a policy that fits well in your budget.
Plus, you don’t need to give up any contact information to run a free life insurance quote.
» Learn more: How Much Life Insurance Do I Need?
Note: Life insurance quotes used in this article are accurate as of March 11, 2022. These are only estimates and your life insurance cost may be higher or lower.
Watch the One Million Dollars in Life Insurance Video
Listen to the video recording
About the writer

Natasha Cornelius
Marketing Content Manager
Natasha is a writer and content editor at Quotacy. She is also co-host of Quotacy’s YouTube series. She can’t get enough of life insurance and outside of work is also working toward her Chartered Life Underwriter designation. Connect with her on LinkedIn.
I need an insurance policy that I can borrow against should the need arise and one that will not just disappear after I’ve put so much money into it. I want a policy that will never go away that I am reassured no matter how old I get a long a premiums are paid out well always be there
Hi Elia, you’re looking for a permanent life insurance policy. You can read more about the different types of our permanent life insurance guide and request quotes there as well.
Hi Natasha,
Thanks for this very informative article. A few questions …
– Can canadians buy life insurance in the US?
– Can I add my spouse (jointly) to my policy?
– We are seniors, how does that affect my rates?
Thanks
Hi Maria!
– To buy life insurance in the U.S., premiums need to be paid from a U.S. bank account, and the application, phone interview, and medical exam must be completed in the U.S.
– There are joint life insurance policies. They only pay out once, either “first to die” or “second to die”, depending on which type of policy you buy.
– As you age, the cost of life insurance increases. If you have any health issues, this will also increase the premium you pay.
I recommend that you reach out to an independent life insurance broker in Canada to help you and your spouse buy coverage.
Great article! Good luck on getting your CLU designation! When you add up all of your current debts, your family’s regular living expenses, and future financial obligations, you might just find that you actually need a $1,000,000 life insurance policy. Once you realize the actual need for a million dollar life insurance policy, you may be pleasantly surprised by the affordability of the payments. We will post his to our social media accounts! Good luck in 2019!