A $5 million 10-year term policy costs around $329 per month for men and $265 per month for women at age 40.
Find estimated life insurance rates for $5M coverage below.
Updated: December 12, 2025
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A $5 million life insurance policy offers significant coverage for high earners, business owners and those with significant estate planning needs.
Coverage at the $5 million level often requires financial underwriting to verify income justification.
Finding $5 million life insurance with no medical exam is extremely rare. Most insurers require full medical underwriting for $5 million policies, though some may offer streamlined processes for exceptionally qualified applicants.
Policies at $5 million or above often require additional financial documentation and sometimes involve stacking coverage from multiple carriers.
Your premium depends on your age, health classification, smoking status and term length. Compare quotes from at least three insurers to find the most competitive rate for your profile.
A $5 million life insurance policy costs more than smaller coverage amounts because insurers take on greater financial risk. For $5 million policies, you’ll encounter stricter underwriting requirements than you would for a $1 million or $2 million policy.
Many insurers consider $5 million the upper limit for standard issue coverage. Expect detailed financial verification, including income documentation. Your age, gender, health status and smoking habits all affect your final premium.
A $5 million term life insurance policy costs about $329 per month for healthy 40-year-old men and $265 per month for women. These rates reflect a 10-year term plan. Choosing a longer term results in higher premiums. A 20-year term policy costs an average of $463 per month for men and $372 per month for women.
Age is the biggest factor insurers consider when setting premiums. Buying coverage when you're younger locks in lower rates for the entire policy term.
Women pay less than men because they have longer life expectancies on average. Some states prohibit gender-based pricing differences, so make sure you check state regulations.
25 | $167 | $2,010 |
40 | $265 | $3,177 |
50 | $574 | $6,903 |
60 | $1,497 | $17,977 |
70 | $4,183 | $50,188 |
25 | $203 | $2,442 |
40 | $329 | $3,960 |
50 | $776 | $9,317 |
60 | $2,134 | $25,610 |
70 | $5,819 | $69,834 |
25 | $237 | $2,837 |
40 | $372 | $4,465 |
50 | $799 | $9,594 |
60 | $2,036 | $24,435 |
25 | $287 | $3,433 |
40 | $463 | $5,552 |
50 | $1,081 | $12,955 |
60 | $2,897 | $34,764 |
All rates above are based on estimates for nonsmokers with average health. Actual costs will vary depending on your profile, health and insurer.
Permanent life insurance costs considerably more than term coverage at the $5 million level. Whole life and universal life policies build cash value and provide lifelong coverage, which can substantially increase premiums over time.
Most applicants seeking $5 million in permanent coverage work with specialized brokers who access multiple carriers. Financial underwriting requirements are stricter for permanent policies due to the larger long-term commitment insurers take on.
Getting approved for $5 million in coverage requires meeting both financial and medical requirements. Insurers want to verify that the coverage amount matches your actual financial need.
Insurers use income multipliers to determine how much coverage you can buy. These multipliers decrease as you age because you have fewer working years ahead.
Insurers may request IRS Form 4506-C or recent tax documentation to verify income, particularly for large coverage amounts.
Income multipliers are typically based on gross annual income, though insurers may consider other factors like bonuses, investment income, and spouse's earnings
A full medical exam is almost always required at $5 million, including blood and urine tests. Applicants age 50 and older need an EKG, while those 60 and older or anyone with a complex health history should expect a request for an Attending Physician Statement. Approval takes four to eight weeks
Choosing $5 million in life insurance requires balancing your family’s needs against qualification requirements.
If you earn $400,000 or more annually, $5 million in coverage follows the 10x to 12x income rule. This amount ensures your family can maintain their lifestyle for 10 to 15 years and covers mortgage payments on high-value properties.
Business owners use $5 million policies to fund buy-sell agreements, provide key person insurance and cover business debt. If your business valuation exceeds $1 million or you have substantial business loans, this coverage level may be appropriate.
The federal estate tax exemption is $13.99 million in 2025, but state limits are often lower. A $5 million policy can cover potential estate taxes or fund an Irrevocable Life Insurance Trust for wealth transfer and legacy planning.
Families with mortgages exceeding $1 million, multiple children requiring private school or college education, or living in high cost of living areas may need $5 million to cover all their financial obligations.
When both spouses earn $200,000 or more, your combined lifestyle and obligations may require significant coverage. Consider comparable coverage amounts on both spouses to protect against the loss of either income.
If $5 million exceeds your needs, consider smaller coverage amounts. We analyzed rates for other life insurance policies.
Use our life insurance calculator to determine the right coverage for your situation.
This information is for educational purposes only. Consult with a licensed insurance professional or financial advisor to determine the appropriate coverage for your specific situation.
Healthy 40-year-olds pay $329 (men) or $265 (women) monthly for a 10-year, $5 million term policy. Expect higher premiums for longer terms, older ages or health complications.
Qualifying for this coverage level requires meeting financial requirements based on your age and income. Most applicants need full medical underwriting, though some may qualify for accelerated options.
Compare quotes from multiple insurers to find the best rate for your situation. Rates vary by company, and the right insurer depends on your specific health profile and coverage needs.
Traditional underwriting takes four to eight weeks due to financial verification requirements. Few insurers offer accelerated underwriting at the $5 million level.
Yes, most term policies include conversion rights allowing you to switch to permanent coverage without new medical underwriting. Check your policy for conversion limits and deadlines.
Coverage limits depend on income, assets and financial need. Most insurers allow 10x to 30x annual income. High-net-worth individuals may qualify for $10 million or more, sometimes exceeding $50 million with verified financial need.
Almost always yes. Most insurers require full medical underwriting at $5 million. Even accelerated underwriting programs typically cap at $1 million to $2 million.
You generally need $200,000 to $500,000 or more, depending on your age. Younger applicants may qualify with lower income due to higher income multipliers.
Data Collection and Extrapolation
We gathered term life insurance quotes for different coverage amounts from major insurers. Sample profiles include nonsmoking males and females at ages 25, 40, 50, 60 and 70. We analyzed 10-year and 20-year term lengths.
Extrapolation Method
We analyzed rate patterns across coverage levels. Using observed pricing relationships, we extrapolated estimated costs for $5 million coverage. This extrapolation accounts for typical volume pricing patterns at higher coverage amounts. These are estimates, and actual quotes may vary based on individual factors and insurer.
Sample Profile Details
Important Notes
Rates shown are estimated, not direct quotes from insurers. Individual rates depend on health, lifestyle, occupation and other factors. We recommend getting personalized quotes from multiple insurers.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
He writes about economics and insurance, breaking down complex topics so people know what they're buying.
