The cost of a $1 million life insurance policy varies significantly based on age, health, gender, tobacco use, and policy type. For a healthy non-smoker, $1 million in term life insurance is surprisingly affordable, particularly at younger ages. However, permanent coverage for $1 million is substantially more expensive due to the lifelong death benefit and cash value component.
For term life insurance, illustrative monthly premiums for a $1 million 20-year policy for healthy non-smokers might be: Age 30 male: $40 to $55. Age 30 female: $30 to $45. Age 40 male: $55 to $80. Age 40 female: $45 to $65. Age 50 male: $120 to $190. Age 50 female: $90 to $140. These ranges reflect Preferred and Standard rate classifications. Smokers can expect to pay two to four times these amounts.
For permanent life insurance, a $1 million whole life policy might cost: Age 40 male: illustrative $700 to $1,200 per month. Age 40 female: illustrative $600 to $1,000 per month. A $1 million IUL policy might cost: Age 40 male: illustrative $400 to $800 per month. IUL policies feature a 0% floor and cap rates typically in the 8% to 12% range, with policy fees that affect cash value accumulation. Guarantees are backed by the financial strength and claims-paying ability of the issuing carrier.
A $1 million coverage amount is appropriate for many families with significant income replacement needs, substantial debts, multiple dependents, or estate planning goals. A licensed agent in our network can help determine whether $1 million is the right coverage level and identify the most cost-effective policy structure. All figures are illustrative; actual premiums vary by carrier and individual underwriting.