Updated: June 1, 2025
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Age and gender impact life insurance costs, with 30-year-old women getting the cheapest average rate at $27 per month.
Rates for $1 million life insurance policies vary between insurers. Transamerica and GEICO offer the lowest rates at this level.
The $1 million payout can cover funeral expenses, pay off debts, and help maintain your beneficiary’s lifestyle. This lump sum is generally tax-free.
A $1 million life insurance policy costs more than smaller policies because insurers take on greater financial risk if you die. The average cost of a million-dollar policy ranges from $53 to $83 per month, depending on term length.
Your personal rate depends on your age, health, lifestyle and other risk factors. Here are average costs for $1 million life insurance policies across different profiles and needs.
Term life insurance with $1 million in coverage costs an average of $53 per month. A $500,000 life insurance policy costs $29 per month — a $24 difference for double the coverage.
Average Monthly Cost
$29Average Monthly Cost
$53This is 83% more expensive.
**Note: The costs above are based on averages for a 40-year-old male policyholder with a 10-year term policy.
Term length is how long your life insurance policy stays active, usually 10 to 30 years. Longer terms cost more because insurers face higher risk over time. A 10-year, $1 million term life insurance policy costs an average of $53 per month, while a 20-year term costs $83 per month.
The table below shows cost differences by term length for a $1 million policy.
| 10-Year Term | $53 |
| 20-Year Term | $83 |
Many term policies have "auto-renewal" features when the term expires — you don't need to go through the underwriting process again, but the rate may change. — Mark Friedlander, Director, Corporate Communications, Insurance Information Institute.
Locking in a rate while younger saves money on $1 million term life policies. A 10-year policy costs an average of $35 monthly for a 30-year-old but $719 for a 70-year-old.
The table below shows how monthly premiums change across different ages from 30 to 70 years old.
| 30 | $35 |
| 40 | $53 |
| 50 | $117 |
| 60 | $271 |
| 70 | $719 |
Smoking dramatically increases the cost of $1 million life insurance because of the health risks. A 10-year term policy costs smokers an average of $125 monthly — that's $72 more than nonsmokers pay. The table below shows average monthly costs for smokers with $1 million term life insurance.
| 10-Year Term | $125 |
| 20-Year Term | $196 |
The cost of $1 million of term life insurance will reflect the increased likelihood of health-related claims for those in poor health. Below are the average monthly costs for a $1 million life insurance policy for individuals with health concerns.
| 10-Year Term | $65 |
| 20-Year Term | $103 |
Permanent life insurance costs much more than term life insurance for the same $1 million coverage. Permanent policies like whole life and universal life often cost up to 15 times more than term policies. The exact difference depends on your age, health and policy details.
Permanent life insurance costs more because it lasts your entire life and builds a cash value component you can borrow against. By contrast, term life insurance covers you for a specific period like 10, 20 or 30 years. Because most people outlive their term, insurers face lower risk and charge less.
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.
Several factors affect policy premiums for $1 million life insurance plans. These include your term length, your age and whether you have pre-existing health conditions.
Age directly affects your $1 million term life insurance cost. Younger people pay lower premiums because they're typically healthier and have longer life expectancy. Premiums increase each year because older applicants face higher health risks.
Your health determines a major part of your life insurance cost. Insurers require medical exams to check your weight, blood pressure and cholesterol levels. Poor health results in higher premiums because you represent greater risk to the company.
Smokers pay much more for life insurance because of tobacco-related health risks. The rate difference reflects the higher chance of early death and smoking-related illnesses. Expect to pay considerably more than nonsmokers for the same $1 million coverage.
Shorter terms like a 10-year policy cost less monthly for $1 million life insurance. Insurers face lower risk because fewer people die during shorter coverage periods. A 20-year term life insurance policy costs more because the insurer commits to longer coverage and faces higher chances of paying a claim.
Women typically pay less for life insurance than men because they have longer average life expectancy. Insurers use mortality data showing men face higher death rates at younger ages, which increases premiums for male applicants.
Dangerous jobs increase your life insurance cost. People in high-risk professions like construction, mining or commercial fishing pay higher premiums because of increased injury and death risk. Office workers typically get standard rates.
High-risk hobbies like skydiving, rock climbing or motorcycle racing increase your premiums. Insurers also consider habits like excessive drinking or drug use when setting rates. Healthy lifestyle choices can sometimes qualify you for discounts.
Your family's health history affects your rates even if you're currently healthy. Hereditary conditions like heart disease, cancer or diabetes in close relatives can increase your premiums. Insurers use this information to predict your future health risks.
Understanding these elements may help you anticipate the cost of a $1 million life insurance policy and even adjust some variables to your advantage.
$1 million life insurance costs depend on multiple factors that each company weighs differently. Compare personalized quotes from several insurers to find your actual rate. Use our life insurance rate calculator below to see what you'll pay.
We’ll give you a suggested amount of cover to buy in just 3 easy steps. — it's free, no personal information required, no spam.
Rates updated:
Jun 06, 2025
When considering a $1 million life insurance policy, a strategic approach can help you get the best deal and ensure that your coverage meets your needs. Here are the steps on how to get a million-dollar life insurance policy:
Calculate your debts, future obligations and income replacement to ensure that $1 million is the right coverage amount.
Obtain quotes for a million-dollar life policy from some of the best life insurance providers to gauge market rates. Online comparison tools can make this process easier.
Look up the financial stability ratings of potential insurers through agencies like A.M. Best or Moody's to ensure that the insurer is likely to fulfill its obligations when you or your beneficiaries file a claim.
To tailor coverage to your situation, examine the policy's terms, including premium payment schedules and any available riders for million-dollar life insurance policies.
Familiarize yourself with scenarios where the policy won't pay out to avoid surprises later.
Consulting a financial advisor can provide tailored recommendations based on your financial outlook.
If you prepare adequately and find the right coverage for your family's needs and financial profile, you can secure the best million-dollar life insurance policy to provide substantial financial security.
Instant life insurance gets you approved in minutes or hours without a medical exam. You can get a $1 million policy without health tests, which speeds up the entire process. However, these policies cost more because insurers can't assess your health risks properly without medical information.
You can buy $1 million life insurance from traditional companies and online brokers. Multiple platforms let you compare rates and terms to find the right policy for your budget.
Transamerica and GEICO tie for the cheapest 10-year $1 million term policies at $26 monthly. Allstate costs around $29 per month. The table below shows average monthly premiums for 10-year $1 million term policies from different companies.
| Transamerica | $24 |
| Allstate | $26 |
| GEICO | $26 |
| Protective | $28 |
| Nationwide | $30 |
| Mutual of Omaha | $38 |
| AAA | $39 |
| State Farm | $42 |
| Progressive | $45 |
| Prudential | $46 |
| Haven | $53 |
| Bestow | $66 |
| Fidelity | $76 |
You might need $1 million in life insurance if your financial obligations and income replacement needs add up to that amount. Consider your mortgage, debts and how much income your family would need without you, then subtract your current savings and existing coverage.
For example, you might have a $300,000 mortgage, expect $200,000 in education costs and want $500,000 for income replacement. That totals $1 million, making a million-dollar policy the right fit.
Calculate how much life insurance you need by adding up your debts and future expenses. Include your mortgage, car loans, children's education costs and other major expenses like college or weddings. Add the income your family needs to maintain their lifestyle without you. Subtract your savings, investments and any existing life insurance. The difference shows how much coverage to buy.
Use our life insurance coverage needs calculator below to get an estimate.
The highest life insurance policy depends on the insurer, your income and your health. High-net-worth individuals can get coverage worth tens or hundreds of millions of dollars. Insurers look at your financial need, health and income to set maximum coverage limits. Policies worth hundreds of millions are rare.
For most people, $1 million represents substantial coverage that can secure your family's financial future. Getting $1 million in coverage requires financial documentation and usually a medical exam.
The most expensive life insurance policies offer the highest coverage amounts, often in the multi-million dollar range. These policies carry high premiums because they provide extensive financial protection.
People with large assets or major financial responsibilities buy the costliest policies. Premiums depend on your age, health and policy term. A 30-year term policy with $1 million coverage costs more than shorter terms.
A $1 million life insurance policy provides financial security for your loved ones, covering funeral costs, mortgage payments, education expenses and daily living costs. It helps them maintain their lifestyle and reach financial goals without you.
The average monthly cost for $1 million term life insurance is $53, but rates start as low as $35. Compare quotes from multiple providers to find your actual rate.
A $1 million life insurance policy is both attainable and sensible for many people. Here are answers to common questions about this coverage amount.
The average monthly premium for a $1 million term life insurance policy is $53. Your actual cost depends on your age, health and policy type.
A $1 million life insurance policy pays your beneficiaries $1 million when you die. This money can cover mortgage payments, education expenses and debts while replacing lost income for your family.
One way to determine whether you need $1 million in coverage is to multiply your annual income by 10 to 12.
Consider your debts like mortgages, student loans or business loans. A $1 million policy can also fund future expenses like college tuition or care for a child with special needs.
Yes, some companies offer instant life insurance policies where you won't have to complete a medical exam. If you qualify, insurers can approve your application in minutes. Ethos and Jenny Life offer these policies.
A 50-year-old man pays an average of $117 monthly for a million-dollar 10-year term policy. A 20-year term costs $203 monthly.
A 50-year-old woman pays around $95 monthly for a million-dollar 10-year term policy. A 20-year term averages $156 monthly.
Costs vary by gender for 60-year-olds. Men pay $271 monthly for a 10-year term and $556 for a 20-year term. Women pay $187 and $391 monthly for 10-year and 20-year terms.
A 70-year-old man pays about $719 monthly for a million-dollar 10-year term policy. A 20-year term averages $2,988 monthly.
To get a million-dollar life insurance policy, compare quotes from reputable insurers for both term and permanent options. Evaluate your financial needs, review policy features and consult a financial advisor for personalized advice.
You can get a $1 million life insurance policy from most major insurers. Companies offer both term and whole life options depending on your financial goals and health.
The highest life insurance policy can reach hundreds of millions of dollars for wealthy people who need extensive financial protection for estate or business planning. These policies often require multiple insurers.
Cash value only applies to permanent life insurance like whole life and universal life policies. Part of your premiums accumulates as cash value that grows tax-deferred over time. You can borrow against or withdraw this money for expenses or investments.
Why Trust MoneyGeek?
We analyzed 1,488 life insurance quotes to determine the average cost of a $1 million life insurance policy for a variety of needs.
Recency
Coverage costs and company information for life insurance providers were updated in 2025.
Methodology
MoneyGeek used a standard profile to obtain life insurance quotes:
Premiums are based on the standard profile unless otherwise noted.
We modified the profile by age, gender, height, weight, tobacco use, health rating and geographic location to collect a variety of quotes and determine average life insurance costs for several types of customers. We also collected quotes for term life insurance with varying term lengths and coverage amounts.
Additionally, we identified trends in the data set and used those patterns to calculate projections and extend the data beyond what was initially collected.
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!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.
