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A $1 million life insurance is a type of policy that offers a larger death benefit payout. This level of coverage can be more costly, but it can be helpful if you need to replace a large income or if your loved ones will have significant financial needs in your absence. This article will explain how much a million dollar life insurance policy costs, including factors that impact premiums and situations where getting one may make sense.
A million dollar life insurance policy pays out a death benefit of $1 million to your beneficiaries if you pass away during the policy term. In exchange, you can pay premiums monthly or yearly to keep the policy active. A $1 million payout tends to be one of the more sizable death benefits you can get when purchasing a life insurance policy.
Here are the average monthly premiums for a 20-year, $1 million term life insurance policy for healthy, nonsmoker men and women:1
| Male | Female | |
|---|---|---|
| 30 | $30 | $24 |
| 40 | $49 | $41 |
| 50 | $129 | $96 |
| 60 | $380 | $266 |
| 70 | $1,550 | $1,165 |
Here are the average monthly premiums for a $1 million whole life insurance policy for healthy, nonsmoker men and women:2
| Male | Female | |
|---|---|---|
| 30 | $920 | $801 |
| 40 | $1,372 | $1,161 |
| 50 | $2,117 | $1,826 |
Don’t wait until it’s too late. Help cover yourself and your family with coverage from Aflac.
Several factors can impact the cost of a million dollar life insurance policy:
Life insurance premiums increase with age for all life insurance policies, including million dollar policies. However, many policies maintain fixed premiums once you take them out. Therefore, the earlier you get the policy, the more you can potentially save on your coverage.
In general, men pay more in premiums than women for the same level of coverage. This is because men tend to have a lower life expectancy and participate in risky activities at a higher rate.3
An individual or family history of certain diseases or health issues can result in higher premiums. Life insurance premiums can be significantly higher for smokers in particular. Smokers can still qualify for life insurance but will not have low rates as low as nonsmokers.
Since insurers consider some jobs to be riskier, they may charge higher premiums for the same level of coverage. Some jobs considered to have higher risk include:
Like occupation, certain hobbies and lifestyle pursuits are riskier from a life insurance perspective. Insurers may charge higher premiums if you engage in activities like:4
Since a $1 million death benefit is significant, it may cost more than other policies. However, it can make sense in certain circumstances:
Your expenses can increase once you have children. Not only do you have to make more everyday purchases, but you may need a larger living space. Furthermore, your child will be dependent on you for almost two decades. This means you may need a significant amount of coverage. A million dollar life insurance policy for your family can offer plenty of coverage in case you pass away. Your partner will have enough to replace your income and save for future goals.
If you pass away with debts, your partner may become responsible for paying them off. Alternatively, your estate may be used to pay them off. A million dollar life insurance policy can help, especially if you have significant debt, like a mortgage. Your partner can pay down all these debts to reduce monthly expenses and save the rest for later.
Any amount in your estate over $13.61 million may be taxed federally.5 Plus, your state may impose additional estate taxes. Life insurance death benefits may not count toward your estate amount if you place it in an irrevocable life insurance trust (ILIT). So, your heirs could potentially receive a substantial amount of assets via your death benefit without losing as much money to taxes.
Here’s how to get a million dollar life insurance policy:
Million dollar life insurance policies can offer a large death benefit and cost more than most other policies. However, the additional coverage can be worth it for many situations, such as starting a family, helping loved ones cover debt, and estate planning. Plus, various factors could help bring down the cost you’ll pay.
Aflac offers life insurance policies with a wide range of death benefit amounts, whether you need a small amount of coverage or much more. Speak with an agent to see what type of policy could work for you and get a quote today.
1 Forbes - How Much Does A Million Dollar Life Insurance Policy Cost? Updated November 30, 2023. https://www.forbes.com/advisor/life-insurance/million-dollar-life-insurance-cost/. Accessed March 12, 2024.
2Policygenius - Average whole life insurance rates. Updated February 14, 2024. https://www.policygenius.com/life-insurance/whole-life-insurance-rates/. Accessed March 12, 2024.
3Lifeinsurance.org - Is it True That Men Pay More for Life Insurance? https://www.lifeinsurance.org/questions/men-pay-more-for-life-insurance. Accessed March 12, 2024.
4Investopedia - Hazardous Activity: Meaning, Alternate Coverage, Example. Updated May 24, 2022. https://www.investopedia.com/terms/h/hazardous-activity.asp. Accessed March 12, 2024.
5U.S. Bank – Estate taxes: Who pays, how much and when. https://www.usbank.com/wealth-management/financial-perspectives/trust-and-estate-planning/estate-taxes.html. Accessed March 12, 2024.
Content within this article is provided for general informational purposes and is not provided as tax, legal, health, or financial advice for any person or for any specific situation. Employers, employees, and other individuals should contact their own advisers about their situations. For complete details, including availability and costs of Aflac insurance, please contact your local Aflac agent.
Aflac Coverage
Life (A68000 Series) - In Arkansas, Idaho, Oklahoma, Oregon, Pennsylvania, Texas, & Virginia, Policies: ICC1368100, ICC1368200, ICC1368300, ICC1368400. In Delaware, Policies A68100-A68400. In New York, NY68100-NY68400. Term and Whole Life (B60000 Series) - In Arkansas, Idaho, Oklahoma, Pennsylvania, Texas, & Virginia, Policies: ICC18B60C10, ICC18B60100, ICC18B60200, ICC18B60300, & ICC18B60400. Group Whole Life (Q60000 Series) - In Arkansas, Delaware & Oregon, Policy Q60100M. In Idaho Policy Q60100MID. In Oklahoma, Policy Q60100MOK. In Texas, Policy Q60100MTX. Group Term Life (Q60000 Series) - In Delaware, Policies Q60200M. In Arkansas, Idaho, Oklahoma, Oregon & Texas, Policies ICC18Q60200M, ICC18Q60300C, ICC18Q60400C.
Aflac coverage is underwritten by American Family Life Assurance Company of Columbus. In New York, coverage is underwritten by American Family Life Assurance Company of New York.
Tier One Coverage
Life (Final Expense Life) - In Arkansas, Delaware, Idaho, Oklahoma, Oregon, Pennsylvania, Texas, & Virginia, Policies ICC21-AFLLBL21 and ICC21-AFLRPL21; and Riders ICC21-AFLABR22, ICC21-AFLADB22, and ICC21-AFLCDR22.
Tier One coverage is underwritten by Tier One Insurance Company. In California, Tier One Insurance Company does business as Tier One Life Insurance Company (Tier One NAIC 92908).
Coverage may not be available in all states, including but not limited to DE, ID, NJ, NM, NY or VA. Benefits/premium rates may vary based on state and plan levels. Optional riders may be available at an additional cost. Policies and riders may also contain a waiting period. Refer to the exact policy and rider forms for benefit details, definitions, limitations and exclusions.
Aflac’s family of insurers include Aflac, Aflac New York, Continental American Insurance Company, and Tier One Insurance Company.
Aflac WWHQ | Tier One Insurance Company | 1932 Wynnton Road | Columbus, GA 31999.
Aflac New York | 22 Corporate Woods Boulevard, Suite 2 | Albany, NY 12211
Z2400287
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