How Much Is a $1 Million Life Insurance Policy

How Much Is a $1 Million Life Insurance Policy

A $1 million life insurance policy typically costs between $25 and $50 per month for a healthy 30-year-old buying a 20-year term policy, though monthly premiums can range from roughly $15 to over $100 depending on age, health, and policy type. The price you actually pay depends on a set of individual risk factors that insurers evaluate before issuing a quote.

What Drives the Cost of a $1 Million Policy

Underwriters assign rates based on several core factors:

• Age: Younger applicants pay less; premiums rise with each decade.
• Health and medical history: Conditions such as heart disease, diabetes, or smoking significantly increase risk and cost.
• Policy type: Term life is the least expensive; whole life and universal life carry higher premiums due to cash value accumulation.
• Coverage length: A 20-year term costs less per month than a 30-year term for the same death benefit.
• Occupation and hobbies: High-risk jobs or activities can add surcharges.

Term vs. Whole Life at the $1 Million Level

For most people seeking a $1 million death benefit, a 20- or 30-year term policy delivers the coverage at the lowest monthly cost. Whole life policies with a $1 million face value can cost several hundred dollars per month because they include a savings component and guarantee coverage for life. The trade-off is flexibility versus long-term cost.

How to Get an Accurate Quote

To find the exact price for your situation, request quotes from at least three insurers, provide consistent health and lifestyle information, and compare the premium, rider costs, and cash value projections where applicable. An independent broker can help you evaluate which $1 million policy fits your budget and coverage timeline.