Average Cost of $1 Million Life Insurance in April 2023

Many insurers offer life insurance policies with $1,000,000 in coverage, although premiums vary widely. MoneyGeek’s guide helps you determine which the most affordable life insurance companies and what factors could affect your insurance rates.

• How Much Is $1m Life Insurance?
• Cost by Term Length
• Cost by Age
• Cost if You Smoke or Are in Poor Health
• Cost of Permanent Coverage
• $1 Million Insurance With No Exam
• Is $1 Million Right For You?

The cost of a $1,000,000 life insurance policy for a 10-year term is $32.05 per month on average. If you prefer a 20-year plan, you’ll pay an average monthly premium of $46.65.

In addition to term length, factors such as your age, health condition or tobacco usage may affect your rates.

MoneyGeek compared several life insurance companies to determine which offers the most affordable rates for $1,000,000 term life insurance. Based on our internal rating system, the top two companies are Transamerica and Nationwide.

There are multiple options available from insurers when it comes to life insurance coverage amounts. The amount you choose determines how much your beneficiaries will receive when they file a claim after your death. Insurers can provide the payout as a lump sum, installments or an annuity.

If you earn around $100,000 annually, getting a $1,000,000 life insurance policy makes sense. It is also appropriate if you earn less but have substantial debt like a large mortgage or business loan that you need to pay off.

Term length refers to your policy’s duration. It’s the length of time you’ll be covered before your life insurance expires. Typically, term life insurance policies have options for 10-, 15-, 20- and 30-year lengths.

Premiums vary across companies and term lengths. Transamerica offers the lowest rates for all term lengths, while Progressive has the most expensive. Find the average cost of $1 million life insurance policies for different term lengths and companies in the table below.

Many people purchase life insurance in their 30s. Rates tend to increase as you get older because you’re more likely to develop health conditions and less likely to outlive your policy. Both factors make you risker to insure.

A 30-year-old policyholder may only pay a third of the premium amount a 50-year-old does for a 20-year term life plan. You’ll have fewer term length options as you age — insurers only offer 30-year plans to buyers who are age 50 and younger.

Several factors affect life insurance premiums, and health status is one. Buyers with severe health conditions are riskier to insure since they may be less likely than healthier policyholders to outlive their policies.

Lifestyle can also affect your premiums. The life expectancy of people who smoke is at least ten years shorter than people who don't, so insurers tend to price life insurance for smokers much higher.

Rates for consumers who smoke, have poor health or have a high body mass index (BMI) are higher than those for someone in good health. You can see the same pattern across all term lengths.

Policyholders who smoke pay the highest premiums. Even if you’re generally in good health, tobacco use can result in significantly higher rates.

There are several types of permanent life insurance policies, including whole life, universal life or guaranteed-issue. These can cost 20 times as much as term life insurance plans.

Though all of these offer permanent coverage, there are significant differences between them.

Whole life grants you coverage for your entire life as long as you pay your premiums on time. It assures you of a fixed rate, a death benefit and cash value.

Universal life policies are also known as adjustable life insurance. They allow for flexible premiums and an adjustable death benefit. A guaranteed-issue policy doesn’t require you to get a medical exam.

Instant life insurance policies don’t require medical exams. If you otherwise meet age and good health benchmarks, insurers may approve your application within minutes.

These are convenient and contactless, making them in-demand during the COVID-19 pandemic. Typically, an instant life plan with this coverage amount costs about the same as a $1 million term life insurance policy.

Instant life insurance should not be mistaken for guaranteed-issue policies, which are usually offered for seniors and can be more expensive. Simplified issue plans are also different in that they require you to answer a health questionnaire.

If you’re looking for a $1 million life insurance policy, one of the easiest ways to get it is by applying for an instant life insurance policy.

You can compare quotes from several insurers that offer this type of insurance, such as Ethos, Jenny Life, Haven Life or Ladder Life.

A $1 million life insurance policy may have higher premiums than policies with lower coverage levels, but it may be the best option based on your needs.

Ideally, your life insurance should be 10 to 12 times your annual salary. If you’re earning $30,000, a $300,000–$360,000 coverage amount may be more appropriate for you. However, even at this income level, a $1 million life insurance policy may be the right option if you have large debts such as a mortgage, student loans or business loans.

This coverage amount could also make sense if you are the sole breadwinner of your family, have several dependents who will one day attend college or you want to provide for a child with a permanent disability.

Life insurance with $1 million in coverage may seem like a lot, but it makes sense for some people and may not be challenging to get. Here are answers to some of the most commonly asked questions to help you decide whether it’s the right policy amount for you.