How Much Does a Million Dollar Life Insurance Policy Cost? (2026 Rates)

A $1 million, 20-year term life insurance policy costs $86 per month for a 40-year-old woman and $109 for a man in average health, based on MoneyGeek’s analysis of quotes from more than 30 insurers. Age at purchase is one of the largest cost differences in our data. 10 years later at age 50, the same policy rises to $194 for women, 126% more than at age 40, and $262 for men, 140% more than at age 40.

Whether a $1 million life insurance policy is the right amount for you depends on the income, debt, mortgage and future expenses your beneficiaries would need to cover. 

Compare $1 million policy costs by age, gender, term length, tobacco use, underwriting type and insurer.

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Updated: September 30, 2026

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Key Takeaways
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A $1 million, 20-year term policy costs $86 per month for a 40-year-old woman and $109 for a man in average health. At age 50, rates rise to $194 and $262 for the same coverage.

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A 40-year-old woman pays $91 per month for a $1 million no-exam life insurance policy with a 20-year term. That's just $5 more than the $86 average rate for traditionally underwritten policies with a medical exam. For men, the difference is $7, at $116 for no-exam policies versus $109 through traditional underwriting.

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Smoking raises the monthly cost of a 20-year, $1 million life insurance plan from $86 to $281 for 40-year-old women and from $109 to $376 for men. Over a full 20-year term, smoking adds $46,800 in premiums for women and $64,080 for men.

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Permanent life insurance costs much more than term life insurance. A 40-year-old man pays $1,115 per month for $1 million in whole life insurance, 923% more than the $109 monthly cost of a 20-year term policy.

Who Needs a $1 Million Life Insurance Policy?

A $1 million life insurance policy is appropriate when the financial needs you want the death benefit to cover total about $1 million after accounting for savings and existing coverage. Those needs can include income replacement, non-mortgage debt, your remaining mortgage and future education expenses.

For example, $500,000 of income replacement, a $300,000 mortgage and $200,000 for education add up to $1 million before subtracting savings or existing life insurance. If your remaining obligations are lower, a smaller policy such $500,000 may better match your needs. Use our free life insurance calculator to run your own estimate.

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    Young families with a mortgage

    Young families need $1 million in coverage when a large mortgage, years of income replacement and future education costs overlap. A 20-year term can align the coverage period with the years when your children are still dependent and your mortgage balance is still high.

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    High earners

    A $1 million policy replaces less income as earnings rise. For someone earning $150,000 per year, a $1 million death benefit equals about 6.7 years of gross income before accounting for a mortgage, debt or education expenses. High earners with longer income-replacement needs would need more than $1 million in coverage.

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    Business owners with key-person risk

    Business owners can use $1 million of life insurance to fund a buy-sell agreement or cover the financial loss associated with a key owner or employee. The appropriate amount depends on your business’s valuation and the financial obligation the policy is meant to cover.

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    Buyers in their 40s

    Age materially changes the cost of $1 million life insurance plans. A 40-year-old man pays $109 per month for a 20-year term policy, compared with $262 at age 50. Waiting 10 years adds $153 per month, or $36,720 over a 20-year term at those rates. If you need coverage today, purchasing sooner allows you to lock in a lower rate for the entire term.

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Estimates are based on average health with $1,000,000 in coverage.

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Average Monthly Rate—

Average $1 Million Term Life Insurance Cost

A $1 million, 20-year term life policy costs $86 per month for a 40-year-old woman and $109 for a man in average health. At age 50, rates rise to $194 for women and $262 for men, an increase of $108 per month for women and $153 for men for identical coverage.

Term length also affects the price. At age 40, increasing the term length from 20 to 30 years raises the monthly rate from $86 to $154 for women and from $109 to $198 for men. Applicants in their 60s and 70s have fewer term-length options, with 30-year coverage unavailable in the rates we analyzed at age 60 and 20-year coverage unavailable at age 70.

20
Female
$39
$45
$51
$52
$81
Male
$51
$59
$64
$71
$110
30
Female
$40
$47
$54
$60
$95
Male
$51
$59
$67
$73
$119
40
Female
$60
$73
$86
$97
$154
Male
$74
$92
$109
$128
$198
50
Female
$130
$160
$194
$227
$371
Male
$171
$213
$262
$317
$515
60
Female
$301
$399
$545
$545
N/A
Male
$429
$574
$771
$825
N/A
70
Female
$719
$1,038
N/A
N/A
N/A
Male
$1,103
$1,611
N/A
N/A
N/A

* Rates shown are for nonsmokers in average health. “N/A” indicates that policies aren't available for the given age and term length.

$1 Million Term Life Insurance Cost for Smokers

Smoking raises the cost of a $1 million, 20-year term life policy from $86 to $281 per month for a 40-year-old woman and from $109 to $376 for a man. That's $195 more per month for women and $267 more for men, adding $46,800 and $64,080 over a full 20 year term.

20
Female
$107
$126
$133
$136
$216
Male
$147
$173
$182
$199
$304
30
Female
$118
$147
$158
$178
$262
Male
$156
$193
$207
$243
$352
40
Female
$191
$247
$281
$344
$484
Male
$250
$324
$376
$460
$646
50
Female
$422
$548
$643
$795
$1,182
Male
$572
$756
$892
$1,021
$1,487
60
Female
$1,009
$1,291
$1,496
$1,739
N/A
Male
$1,478
$1,847
$2,159
$2,475
N/A
70
Female
$2,113
$2,783
N/A
N/A
N/A
Male
$3,367
$4,346
N/A
N/A
N/A

* Rates shown are for smokers in otherwise average health. “N/A” indicates that policies aren't available for the given age and term length.

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TOBACCO-FREE WAITING PERIODS

Many insurers consider former tobacco users for nonsmoker rate classifications after 12 to 24 months without tobacco. The required cessation period varies by insurer. 

Qualifying for a nonsmoker classification can reduce your rate by as much as 70% for a 10-year term policy at age 40 and 71% for a 20-year policy.

$1 Million Life Insurance Cost with No Medical Exam

No-exam life insurance accelerated underwriting adds relatively little to the cost of a $1 million term life policy for the 40-year-old profiles in our analysis. A woman pays $91 per month for a 20-year no-exam policy versus $86 with standard underwriting, while a man pays $116 versus $109. That's an additional $5 per month for women and $7 for men.

The pricing gap between accelerated and trandtional underwriting increases with age. At 60, women pay $565 per month without an exam versus $545 with standard underwriting, while men pay $806 versus $771. The additional cost is $20 per month for women and $35 for men, or $4,800 and $8,400 over a 20-year term.

20
Female
$43
$51
$57
$60
$94
Male
$58
$66
$69
$77
$128
30
Female
$43
$52
$58
$65
$110
Male
$55
$65
$71
$76
$137
40
Female
$66
$80
$91
$101
$176
Male
$82
$100
$116
$136
$225
50
Female
$145
$177
$210
$235
$413
Male
$191
$236
$282
$337
$580
60
Female
$374
$468
$565
$577
N/A
Male
$526
$665
$806
$896
N/A
70
Female
$893
$1,314
N/A
N/A
N/A
Male
$1,352
$1,846
N/A
N/A
N/A
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DO YOU NEED A MEDICAL EXAM FOR A $1 MILLION POLICY?

A medical exam isn't always required for $1 million of life insurance. Twelve of the 30 major insurers in our review offer no-exam policies with coverage limits of at least $1 million. Even without the medical exam, you'll still undergo underwriting, which can include health questions and reviews of prescription, medical, driving and other records.

Eligibility varies by insurer and applicant profile, so the availability of a $1 million policy without an exam doesn't mean every applicant will qualify for it.

Average Cost of a $1 Million Permanent Life Insurance Policy

Permanent life insurance costs much more than term coverage because it provides lifelong coverage and can accumulate cash value. In our analysis, a 40-year-old man pays $1,115 per month for $1 million of whole life insurance versus $109 for a 20-year term policy, a difference of $1,006 per month.

That price difference makes the purpose of permanent coverage important. Buyers considering it should have a need that extends beyond a temporary income-replacement period, such as estate planning, lifelong support for a dependent or a permanent business obligation. If your beneficiary's financial need ends after a mortgage is paid or your children become financially independent, term insurance provides the same $1 million death benefit during that period at a much lower premium.

$1 Million Whole Life Insurance Cost

A 40-year-old man pays $1,115 per month for $1 million of whole life insurance. That's $401,400 over 30 years. A $1 million, 30-year term policy for the same age and gender costs $198 per month, or $71,280 over 30 years, a difference of $330,120.

Whole life provides lifelong coverage and builds cash value, while term life does not. Buyers whose coverage needs end after a mortgage, income-replacement period or other temporary obligation should weigh those permanent-policy benefits against the additional $330,120 in premiums in this example.

20
Female
$584
$789
Male
$640
$858
30
Female
$783
$1,053
Male
$815
$1,096
40
Female
$1,065
$1,450
Male
$1,115
$1,525
50
Female
$1,283
$1,935
Male
$1,665
$2,447
60
Female
$2,729
$3,619
Male
$2,974
$3,876
70
Female
$4,870
$6,391
Male
$5,420
$6,936

* Rates shown are for people in average health.

$1 Million Universal Life Insurance Cost

Universal life costs less than whole life at every age in our analysis but is more expensive than term life. At 40, a woman pays an average of $594 per month for $1 million of universal life insurance versus $1,065 for whole life, a $471 monthly difference or $5,652 per year. For men, universal life costs $692 versus $1,115 for whole life, a difference of $423 per month or $5,076 per year.

Lower universal life premiums reflect a different policy structure compared with whole life. Universal life gives more flexibility in premiums and death benefits, but its cash value can be less predictable than whole life. If you want lifelong coverage, compare the tradeoffs in cost, flexibility and cash value guarantees rather than choosing based on premium alone.

20
Female
$288
$460
Male
$338
$559
30
Female
$406
$661
Male
$463
$777
40
Female
$594
$995
Male
$692
$1,195
50
Female
$871
$1,454
Male
$1,062
$1,853
60
Female
$1,487
$2,509
Male
$1,808
$3,054
70
Female
$2,714
$4,766
Male
$3,261
$5,683

* Rates shown are for people in average health.

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TERM VS. PERMANENT LIFE INSURANCE

The right choice between term and permanent life insurance depends on your needs and financial goals. Term life insurance works well if you want affordable coverage for a specific period, like until you pay off your mortgage or your kids become financially independent. Permanent life insurance makes sense if you want lifelong coverage and the ability to build cash value.

Cheapest $1 Million Life Insurance Companies

Penn Mutual has the lowest $1 million, 20-year term rates in our analysis for 40-year-old nonsmokers in average health at $69 per month for women and $87 for men. Banner Life and Pacific Life match Penn Mutual's $69 rate for women, while Banner Life and Transamerica are only $1 more for men at $88.

With the four lowest-cost insurers separated by just $1 to $2 per month for men and $1 for women, policy features and company quality become more useful differentiators than price alone. Banner Life has term lengths through 40 years, and Banner Life, Penn Mutual and Pacific Life hold A+ AM Best ratings. Transamerica has an A AM Best rating and a 3.86 NAIC complaint index, which is well above the 1.0 industry baseline. When choosing among these similarly priced companies, you should carefully compare term availability, financial strength and complaint history alongside the monthly premium.

Penn Mutual
$69
Penn Mutual
$87
Banner Life
$69
Banner Life
$88
Pacific Life
$69
Transamerica
$88
Transamerica
$70
Pacific Life
$89
Cincinnati Life
$73
Cincinnati Life
$94
Protective
$77
Columbus
$96
Lincoln Financial
$79
Protective
$99
Prudential
$81
Lincoln Financial
$102
Columbus
$82
Prudential
$105
Nationwide
$84
Nationwide
$105

* Rates shown are for 40-year-old nonsmokers in average health with a 20-year term policy.

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CONVERT $1 MILLION TERM LIFE INSURANCE TO PERMANENT COVERAGE

Most $1 million term life insurance policies include a conversion option that lets you switch to whole life or universal life without a medical exam though conversion terms and availability vary by insurer and policy type. You'll pay higher premiums, with new rates depending on your age.

Conversion windows vary by insurer. Some allow conversion anytime during the term, while others have age limits (often 65 or 70) or require conversion within the first 10 to 15 years. Review your policy's conversion terms before purchasing.

What Affects the Cost of a $1 Million Life Insurance Policy?

Driving violations, hazardous occupations and high-risk hobbies can also affect underwriting. Compare quotes from multiple insurers, because underwriting treatment varies by company.

  • seniors icon

    Age

    Age is one of the largest factors influencing the cost of $1 million life insurance plans. A man in average health pays $109 per month for a 20-year policy at age 40, $262 at 50 and $771 at 60. For women, the same coverage rises from $86 at 40 to $194 at 50 and $545 at 60.

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    Term length

    Longer terms cost more because the insurer guarantees coverage for a longer period. At age 40, a woman pays $60 per month for a 10-year, $1 million policy, $86 for a 20-year policy and $154 for a 30-year policy. A man pays $74 for 10-year, $109 for 20-year and $198 for 30-year policies. Moving from 20 to 30 years adds $68 per month for women and $89 for men, but it also locks in your rate for longer.

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    Policy type

    Policy type creates an even larger price difference than term length or age. A 40-year-old man pays $109 per month for $1 million of 20-year term insurance, $692 for universal life and $1,115 for whole life. Permanent policies cost more because they provide lifelong coverage and include a cash value component.

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    Health classification

    Health classification affects the rate you'll pay after your insurer reviews your medical history, medications, test results and family history. The $1 million rates on this page assume average health. If you qualify for a better underwriting class, you'll less. Applicants with more serious health concerns will pay more or may be disqualified for coverage. 

    Guaranteed issue policies accept everyone with no medical exam or health questions required, though coverage is capped at $25,000 to $30,000.

  • cigarette icon

    Tobacco use

    Smoking more than triples the $1 million term rate for the base profiles in our analysis. At age 40, a male smoker pays $376 per month for a 20-year policy versus $109 for a nonsmoker, while a woman pays $281 versus $86.

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    Driving record and lifestyle risks

    DUIs, reckless driving violations, hazardous occupations and high-risk hobbies can lead to higher premiums or coverage restrictions.

Bottom Line: Is a Million Dollar Life Insurance Policy Worth It?

A $1 million life insurance policy is worth considering when your income-replacement needs, mortgage, debts and future expenses approach $1 million after subtracting savings and existing coverage. The cost depends heavily on when you buy and which policy type you choose.

For a 40-year-old in average health, a $1 million, 20-year term policy averages $86 per month for women and $109 for men. At age 50, those rates rise to $194 and $262. Whole life is much more expensive. A 40-year-old man pays $1,115 per month compared with $109 for 20-year term coverage.

Start by calculating how much coverage your beneficiaries would actually need and how long that need will last. Then compare quotes using the same coverage amount, term and profile. Among the lowest-cost insurers in our analysis, monthly prices differ by only a few dollars, so term options, complaint history and financial strength are useful tie-breakers.

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Frequently Asked Questions

A $1 million life insurance policy is both attainable and sensible for many people. We answer common questions about this kind of policy:

MoneyGeek analyzed thousands of life insurance quotes from more than 30 insurers to compare the cost of $1 million in coverage across applicant profiles and policy types.

Our standard profile is a 40-year-old nonsmoker in average health. We varied age, gender, tobacco status, health rating, policy type and term length to measure how each factor changed the premium. Unless otherwise stated, rates on this page assume average health.

Our analysis includes term, whole and universal life insurance. Where a displayed estimate is modeled from patterns in our collected quote data rather than based on a directly collected quote, we identify it as an estimate.

Related Pages: Compare Coverage Amounts

About Patrick Bryant

Patrick Bryant, Vertical Lead, Life & Health Insurance, MoneyGeek

Patrick Bryant is the Vertical Lead for Life and Health Insurance at MoneyGeek, where he researches insurance products, writes consumer guides and oversees provider scoring methodologies that are reviewed quarterly to reflect current market conditions and carrier data. He has analyzed more than 50 life insurance carriers across multiple policy types and collected thousands of quotes nationwide to compare pricing, coverage and underwriting requirements.

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