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How Much Is a Million Dollar Life Insurance Policy?

November 28, 2023
Our goal is to educate and advise on life insurance options, so you can feel confident in making the right choice, whether that’s through Quotacy or somewhere else. To ensure we provide accurate and trustworthy information, our writers follow strict editorial standards.

How much is a million-dollar life insurance policy? Costs vary based on individual circumstances, but it’s often far cheaper than you think, especially if you’re a reasonably healthy person.

What’s more, buying a million-dollar life insurance policy is quite common. Consider everything your income provides for your loved ones – it’s a lot.

If you die unexpectedly, a one-million-dollar life insurance policy can replace your income so your family’s standard of living can remain the same and they can pay for your final expenses. Get a better idea of what a million-dollar policy might cost you by comparing quotes for $1,000,000 of term life insurance coverage instantly.

How Much Does a Million-Dollar Life Insurance Cost?

The cost of a million-dollar life insurance policy differs from person to person. Let’s review the factors that impact pricing to better understand how prices are determined.

Factors That Impact Life Insurance Rates

Life insurance is generally cheaper for young, healthy individuals. But several factors can impact the cost of a million-dollar policy such as:

  • Type of Policy – Term life insurance rates are much cheaper than any permanent policy.
  • Length of Policy – Term lengths range from 10-40 years. The longer the term, the higher your premium.
  • Age – The older you are, the more likely you will experience health issues. Furthermore, the older you are, the closer you are to dying. Therefore, the older you are, the more expensive life insurance is.
  • Gender – Statistically, women live longer than men. So, women pay less for life insurance than men on average.
  • Health – If your health is worse than average, your life insurance rates will be higher than average.
  • Lifestyle – If your lifestyle is deemed risky by the insurance company (e.g., history of DUIs, participating in dangerous hobbies, heavy alcohol or drug use, hazardous occupation), your life insurance rates will reflect these risks.
  • Family’s Health – If your immediate family (mom, dad, siblings) were diagnosed with or died from a hereditary disease early in life, this may impact your life insurance rate.

Average Cost of a Million-Dollar Term Life Insurance Policy

Now that you know individual risk factors determine the cost of a million-dollar term life insurance policy, let’s look at actual pricing.

h Note: It’s far more common to purchase one million dollars of term life insurance than whole life. It’s also remarkably less expensive. So, we’re focusing on term life in this guide.

$1,000,000 Term Policy: How Risk Class Affects Cost

Life insurance underwriters evaluate applications and assign each a risk class. To determine a risk class, underwriters review the information you provide along with other data discovered through your prescription history, medical records, motor vehicle records, and life insurance medical exam results, if applicable.

The less risky you are to insure, the lower your costs. The table below shows monthly rates for a 35-year-old individual applying for a 20-year, $1,000,000 life insurance policy.

1 Million Dollar Life Insurance Policy - 20 Year Term
Risk ClassMaleFemale
Preferred Plus (Healthiest)$32.66 $28.25 
Preferred$43.58 $36.02 
Standard Plus$60.58 $46.01 
Standard (Average Health)$70.83 $54.61 
Preferred Tobacco$155.07 $112.15 
Standard Tobacco$193.78 $162.92 

$1,000,000 Term Policy: How Age Affects Cost

The younger you are, the cheaper life insurance is. The tables below show monthly rates for a 20-year term.

1 Million Dollar Life Insurance Policy - Standard Rates (average health)
30$58.45 $47.54 
35$70.83 $54.61 
40$99.05 $77.53 
45$156.11 $120.74 
50$244.30 $180.65 
55$418.81 $283.71 
60$702.74 $471.56 
1 Million Dollar Life Insurance Policy - Preferred Plus Rates (above average health)
30$29.52 $23.47 
35$32.66 $28.25 
40$48.73 $40.51 
45$80.00 $65.83 
50$129.08 $95.48 
55$215.82 $157.08 
60$378.77 $264.07 

$1,000,000 Term Policy: How Term Length Affects Cost

Term life insurance rates are locked in for the duration of your policy. To get the best deal on life insurance, we recommend buying it as soon as you need it. The longer you wait, the more you’ll pay.

The table below shows monthly rates for a 35-year-old healthy, non-smoking individual.

1 Million Dollar Life Insurance Policy - Preferred Plus Rates
Term LengthMaleFemale
10-Year Term$19.41 $16.04 
15-Year Term$24.39 $20.11 
20-Year Term$32.66 $28.25 
25-Year Term$50.31 $41.91 
30-Year Term$62.77 $50.24 
35-Year Term$77.94 $62.10 
40-Year Term$133.98 $91.71 

​Your rate for a million-dollar policy may be higher or lower than these quotes depending on your risk factors.

Do I Need a Million-Dollar Life Insurance Policy?

Consider all your expenses and the financial responsibilities your loved ones would face if you passed away unexpectedly. Owning one million dollars of life insurance isn’t unusual, especially if you have kids.

Factors That Determine How Much Life Insurance You Need

When determining how much life insurance you need, you must consider everything you want your policy to cover.

Income Replacement

Term life insurance is designed to cover your prime earning years. Your income helps sustain your family’s living standards. If you die, they’re still responsible for many expenses.


Term life insurance is ideal for protecting a family’s home. A mortgage is often a household’s largest debt, but it’s temporary. If you die while it’s still being paid off, the death benefit from your policy can ensure your loved ones can keep their home.

Raising Children

If you have children, you know providing for them is not cheap. Not to mention, the cost of education rises every year.

Buy a term policy to last until your children are financially independent. If you die while they’re still young, the policy’s death benefit won’t help their grief but can protect them financially.

Final Expenses

When you think of final expenses, you may think of a funeral and burial. But sometimes, people don’t think of the potential medical bills that often follow a death.

When you die, you no longer have any financial responsibilities, but they are passed onto your loved ones. Don’t leave your family with debt. Protect them with life insurance.

If you have life insurance, your family is paid quickly because life insurance payouts don’t need to go through probate. Your beneficiaries can use the life insurance money however they wish.

A $1,000,000 life insurance policy allows you to continue providing for your family even after you’re gone. They can immediately use funds to pay end-of-life expenses and any due bills. The remaining funds can be invested and provide income for years.

Not sure how much term life insurance you need?

Is a Million Dollars Enough Life Insurance?

Some people may need more than one million dollars of life insurance.

You may want to consider a higher amount of coverage if you:

  • Own a business
  • Are a high earner
  • Have investment properties

If you sit down and total all your financial responsibilities, a $5,000,000 or $10,000,000 term life insurance policy may start to sound reasonable.

Did you know? You can own more than one life insurance policy. If you think you need millions of dollars of life insurance, you may save money by laddering policies instead.

Laddering life insurance policies means owning multiple life insurance policies to cover various needs. The policies may have different coverage amounts and term lengths, and you can buy them anytime throughout your life.

Explore different life insurance policies and their average monthly costs

Who Can Get a 1 Million Dollar Life Insurance Policy?

Not everyone needs nor can justify owning a million-dollar policy.

The purpose of life insurance is to replace income, not increase wealth. So, when people apply for large amounts of life insurance, companies require financial justification. They’ll review your income, net worth, and financial obligations.

Most applicants who have dependents or own a business can qualify for a million dollars’ worth of life insurance. If you’re wondering whether you need a million dollars of life insurance, the answer is probably yes.

Tips When Buying a Million-Dollar Term Life Insurance Policy

If you’re ready to get a $1,000,000 policy, we have a few helpful tips to consider while you shop.

Work with a Broker

When you choose to work with a broker, you gain access to a variety of policies from different life insurance companies. In contrast, if you opt to work directly with a company, you’ll be connected with a captive agent who exclusively sells their own products.

The broad range of options through a broker enhances your likelihood of approval and helps ensure you’re not overpaying for coverage. Life insurance companies assess risk factors differently; for instance, if you use tobacco, have a DUI on your record, or engage in activities like SCUBA diving, your rates will vary based on the insurance company you apply to.

At Quotacy, we carefully review your application to confirm that the company you chose through our online application is the best match for you. If another carrier is more accommodating and offers better rates, your agent will reach out to present alternative options.

Since a million-dollar life insurance policy isn’t the cheapest option, working with a broker can help make sure you’re not paying more than necessary for your coverage.

Getting a $1,000,000 Policy with No Exam

One-million-dollar life insurance policies that don’t require a medical exam are available. Select carriers offer this to eligible applicants.

Eligibility requirements may include the following:

  • Age 60 or younger
  • Non-smoker
  • Average health or better

No-exam eligibility requirements vary by insurance company. A broker will compare quotes and shop around on your behalf to help find a no-exam life insurance policy you may qualify for.

When applying, if you are not eligible for the no-exam route, chances are you can still qualify for a $1,000,000 policy if you’re willing to take a medical exam.

Consider a $1,000,000 Term Policy with a Conversion Option

You may not need permanent life insurance now, but there’s a chance your future insurance needs will change. Getting a term life insurance policy with a conversion option is a good idea.

A term conversion option allows you to change, or convert, your term policy into a permanent one without proving you’re still insurable. This is priceless protection for your family if you’re diagnosed with a terminal illness.

It’s important to be aware that converting your term policy into a permanent one will result in higher monthly costs, as permanent rates are more expensive than term rates. Additionally, know that conversion isn’t an all-or-nothing decision; you have the flexibility to convert only a portion, such as $100,000.

If you convert just a portion, you’ll have two separate policies; a term policy to protect your working years that now costs less because it’s smaller, and a permanent policy to protect your loved ones forever.

Get a Million-Dollar Term Life Quote Through Quotacy

Getting a quote for a million dollars of life insurance is free. You don’t even need to provide a phone number or email address.

Get a million-dollar life insurance quote online instantly. If $1,000,000 isn’t the right amount for you, the quoting tool allows you to adjust the coverage amount and length to find a policy that fits your budget.

As an independent broker, Quotacy works with over 25 of the nation’s top insurance companies and can help ensure you get the right policy for you at the best price. Applying online takes just a few minutes. A dedicated agent will help you throughout the buying process.

Note: Life insurance quotes used in this article are accurate as of November 28, 2023. These are only estimates and your life insurance costs may be higher or lower.

Watch the One Million Dollars in Life Insurance Video


  1. Elia

    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

    • Natasha Cornelius

      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.

  2. Maria

    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?


    • Natasha Cornelius

      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.

  3. eric van haaften

    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!


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