1 million dollar life insurance policy: A crash course

Do you get a knot in your stomach just thinking about getting a million-dollar life insurance policy? It’s perfectly normal, especially if you don’t have all the details.

At first sight, $1 million of coverage might seem like an extravagance, with costs reserved for the wealthy. If you do the math, however, you might be surprised to discover that this is actually a reasonable amount of coverage and an option that many people can afford.

In this article, we’ll help you understand the ins and outs of a million-dollar life insurance policy, from costs to eligibility requirements and more. Equipped with the right knowledge, you can confidently choose the best option for protecting your family’s financial future.

What is a million-dollar life insurance policy?


A million-dollar life insurance policy is a contract worth a million dollars that you sign with an insurance company. You are considered covered from the moment you are approved and the first monthly premium is paid until the insured person passes away, or the policy is terminated (for example, if you were to stop paying your premiums).

If you pass away at any point during the contract, your beneficiaries will receive $1 million from your insurer, a sum that is typically not taxed. There are also no restrictions regarding how the money can be spent.

Your family can use the death benefit payout to cover funeral costs, mortgages, outstanding debts, childcare, medical bills, college tuition, or any other expenses.


Do I need $1 million of coverage?

Many people have trouble making an accurate assessment of their coverage needs and end up underinsured. To avoid falling into this trap, financial experts advise that you purchase coverage worth about 10-15 times more than your pre-tax annual income.

Another way to figure out how much insurance you need is to multiply your annual salary by the number of years you wish to cover your family’s living expenses. The result might be very close to a million dollars, as this amount of insurance is what many average middle-class households need to be fully protected in case of a tragedy. 

You don’t have to earn $100,000 a year to choose this amount of life insurance. If you factor in significant debts, like car payments, mortgages, or student loans, you might realize that this solution is right for you. 

How much does a million dollar life insurance policy cost?

When it comes to coverage pricing, many people overestimate the price of coverage by more than three times its actual cost.

A million-dollar life insurance policy can cost less per month than you might pay for a meal from a restaurant. It’s worth mentioning that the final cost of such a policy will depend on various factors including your age, health condition, lifestyle, occupation, and the type of health classification you receive during the underwriting process.

Usually, being employed, young, and healthy gives you a considerable advantage in terms of pricing and eligibility. You’ll get more affordable premiums if you qualify for the Preferred and Preferred Plus classifications versus the Standard and Substandard ones.

The type of policy also plays an important role in your total cost. At Legal & General America, we offer two types of life insurance. Learn more about our term life insurance  and universal life insurance solutions.

See how much it would cost you

Monthly cost for a $1 million 20-year term policy

Health statusAgeMaleFemale
Very Healthy (Non-Smoker)25$29.75$22.94
Very Healthy (Non-Smoker)35$36.12$29.21
Very Healthy (Non-Smoker)45$86.29$66.53
Healthy (Non-Smoker)25$39.94$28.89
Healthy (Non-Smoker)35$45.03$37.38
Healthy (Non-Smoker)45$106.83$78.01
Mostly Healthy (Non-Smoker)25$50.14$40.79
Mostly Healthy (Non-Smoker)35$63.32$48.02
Mostly Healthy (Non-Smoker)45$136.84$104.54
Average (Non-Smoker)25$60.33$46.74
Average (Non-Smoker)35$72.86$56.44
Average (Non-Smoker)45$158.93$123.23
Healthy (Smoker)25$118.99$92.64
Healthy (Smoker)35$157.24$120.69
Healthy (Smoker)45$382.49$275.39
Average (Smoker)25$124.09$109.64
Average (Smoker)35$209.37$164.89
Average (Smoker)45$508.29$386.74
Sample rates are updated twice per year; sample rates are as of 4.6.2022.

What are the benefits of getting million-dollar life insurance?

One of the biggest reasons for purchasing a million-dollar term life insurance policy is gaining the peace of mind that your family’s financial obligations will be taken care of, protecting them for years after you’ve passed away.

At Legal & General America, we keep our customers needs at the forefront of our life insurance offerings. When you choose us, you can count on some of the most  competitive prices, as well as the most term life insurance options with reliable coverage for less than $24 a month

You can also lock in one price that is guaranteed to remain the same throughout your selected term. This means that if you are young and in good health, you can secure a lower rate and know that it won’t change in the next 15, 20, 30 or even 40 years.

Every year, the cost of purchasing life insurance can increase by up to 9%, taking into consideration lifestyle changes that pose an increased health threat, such as smoking. Locking in a lower premium while you are strong and healthy will help you save for later when you might be dealing with unexpected challenges.

Your coverage is just as reliable as the company that provides it. Legal & General America brings over 70 years of industry experience to the table. Our parent company, Legal & General Group Plc, is one of the world’s leading multinational financial services companies, which means we have a long history of strong financial ratings you can depend on.

Benefits at a glance

  • Peace of mind that your family is covered with life insurance
  • One price locked-in and guaranteed not to increase during the term period you choose
  • One of the most competitively priced products available in the market
  • Company with a long history of strong financial ratings.


Get your million-dollar life insurance policy

A million-dollar life insurance policy can provide the ultimate safety net for your family in case the unthinkable happens. If you’re considering purchasing this type of policy, one of our agents can help you find a range of options and rates based on your unique needs.

More than an insurance provider, we are a trustworthy partner ready to answer all your insurance questions and make sure that your loved ones are financially secure.

Contact us today at 888-984-3393 or get your personalized coverage quote online