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How Much does $1,000,000 of Life Insurance Cost?

million dollar insurance policy cost

Reviewed By: Rob Pinner

Rob Pinner Rob Pinner is the founder and CEO of Pinner Financial Services servicing all 50 states. Rob started his insurance career in 2002.

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Individuals and families who are concerned about what will happen to loved ones if the primary breadwinner dies unexpectedly know that the primary family income can be replaced using term life insurance.

These folks typically understand the concept of income replacement and therefore a $1 million life insurance policy isn’t unusual in fact, for many families it’s expected. But what does a million dollar insurance policy cost?

Here, the concern is not the size of the insurance policy but, rather, the monthly premium that will accompany it. Certainly, Term Life Insurance will be the most affordable option so in this article, we’ll find out what’s the cost of a $1,000,000 life insurance policy.

Useful information about Term Life Insurance


Term life insurance is a fairly straightforward life insurance product. Only a few things need to be understood about how it works and why it’s so affordable. The rates are determined like any other type of life insurance product and the underwriting process is virtually the same across the board.

  • Term insurance pays a predetermined death benefit as long as the insured dies within the policy period (the term).
  • Once the policy is issued, the periodic premiums and death benefit will not change.
  • The terms (policy periods) commonly available are 10 year term, 15 year term, 20 year, 25 year, and 30-years.
  • Rates are based on these risk: age of the applicant, health of the applicant, length of the policy term, and the amount of the death benefit.

Even though this type of life insurance is fairly simple to understand, there are many insurance shoppers that have questions about other aspects of a term insurance policy which generally due to the additional riders and benefits that are available. Let’s discuss the riders first.

Optional riders that can enhance a $1,000,000 life insurance Policy


Your term life insurance can be much more than a death benefit for surviving loved ones. Using insurance riders allow policyholders to broaden their coverage.  Here is a list of some common riders available.


Type of Rider Rider Benefit
Waiver of Premium Premiums are waived if you’re disabled and cannot work
Accidental Death Benefit Adds additional death benefit if death is caused by a covered accident
Child Term Rider Allows the policyholder to insure all dependent children from birth to maximum specified age or marriage
Additional Insured Allows the policyholder to insure a spouse or partner up to the limit of the insured’s coverage
Conversion Privilege The term conversion option allows the policyholder to convert some or all of the term coverage to permanent coverage without proof of insurability. Many companies offer a premium credit toward the permanent policy.
Accelerated Death Benefit Provides for the insurer to advance a large portion of the death benefit to the insured in the event of terminal illness that will result in death.
Critical Illness Rider The insurer will provide a portion of the death benefit to assist in treatment expenses for a covered critical illness
Chronic Illness Rider Provides for the insurer to advance a portion of the death benefit to assist in treatment expenses of a covered chronic illness
Long-Term Care Rider Provides a portion of the death benefit for long-term care expenses such as in-home nursing costs.
Return of Premium Rider The insurance company will return all premiums paid for life insurance to an insured who outlives the policy term.

When shopping for a $1,000,000 life insurance policy, it’s critical that the company you select offers the riders you need to customize your term insurance coverage to meet your individual needs. Most riders are inexpensive and can prove to be a tremendous benefit when life happens during your policy period.

Be sure you evaluate your needs.  How much income do you want to replace?  Do you want life insurance to pay off your mortgage?  Do you want to provide a college fund for your kids?

The cost and availability of any life insurance riders will depend on the company you choose to do business with so make certain you speak with an insurance company and choose wisely.

Moreover, if you choose to purchase your term insurance online and directly from the insurance company, your choice of some very valuable insurance riders will be diminished.

Best rates for a $1,000,000 Life Insurance Policy


As an independent life insurance broker, we can provide the best rates from the many companies we represent and all of them will be highly-rated insurers.


 Here are the term life insurance rates for a male non-smoker in very good health for the most popular policy terms; 10, 20, and 30-years: 

Age of Applicant 10-Year Term 20-Year Term 30-Year Term
25 $19.57 $32.05 $49.27
30 $20.64 $32.73 $54.50
35 $22.04 $34.86 $64.26
40 $29.23 $50.10 $93.49
45 $47.00 $87.48 $150.44
50 $72.38 $136.77 $244.79

After you review this price chart you might notice the false assumptions that many insurance shoppers make about term life insurance:

  1. A $1 million dollar policy will be 10 times the amount of a $100,000 policy.
  2. A 30-year term policy will always cost the most but remember 30 years is a very long time.

 Here are the term life insurance rates for a female non-smoker in very good health for the most popular policy terms; 10, 20, and 30-years: 

Age of Applicant 10-Year Term 20-Year Term 30-Year Term
25 $16.66 $23.77 $38.22
30 $17.87 $25.38 $42.88
35 $19.35 $29.49 $53.20
40 $25.88 $42.39 $75.38
45 $41.14 $67.14 $115.59
50 $59.02 $99.02 $179.34

As you can see after comparing this rate chart with the one above it, the rates for women are lower than the rates for men. This is primarily due to women outliving men and therefore the insurance company will collect more insurance premiums from women over a long time period.

Term insurance rates for your actual age and preferred death benefit, can by using the quoter on this page.

Frequently asked Questions

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