Key takeaways:
A $1 million life insurance policy refers to the death benefit. That's the amount your beneficiaries receive, generally free of federal income tax, if you pass away while the policy is in force.
Term coverage is often the most affordable way to get $1 million of protection, and it may cost less than you think, especially if you're young and healthy.
Your age, health, tobacco use, sex, and term length are the biggest factors in your premium. Rates generally rise the longer you wait.
Rules of thumb like 10 times your income, the DIME formula, and "Human Life Value" can help you decide whether $1 million is the right amount for your family.
Whole life insurance costs more than term, but it's designed to last your whole life and builds cash value you can access while you're living.
You can start with coverage at work, get a term quote online, or work with a financial advisor to find the mix that fits your budget and goals.
One million dollars may seem like a lot of life insurance coverage. The average new individual life insurance policy bought in 2024 was $209,000.1 But $1 million may be closer to what your family needs than you'd expect. Think about all your debts, living expenses, and what you want your family to have in the future. If something happens to you, they'll need to replace several years of income you would have otherwise provided.
Get an instant term life insurance quote
You may actually need more than $1 million in coverage. The good news? A policy probably costs less than you think. See for yourself.
You're not alone if you assumed otherwise. Adults under 30 overestimate the cost of term coverage by five to six times, according to the 2026 Insurance Barometer Study from LIMRA and Life Happens.2
This calculator will estimate your life insurance needs and tell you the cost for a 20-year term life insurance policy — one of the most common types of coverage available.
What does $1 million life insurance mean?
When people talk about a $1 million policy, they usually refer to the "face value" or size of the death benefit. That's the amount of money paid out to your family if you unexpectedly pass away while the policy is in force. The benefit is generally paid out income tax-free and typically as a lump sum — although a beneficiary can choose instead to receive the money in installments over time.3
When does million-dollar coverage make sense?
Eight in 10 Americans are concerned about being financially prepared if they die prematurely, yet almost 3 in 10 don't own life insurance, according to Guardian's Prepared and Protected report.4
Why do people typically buy life insurance? Because if something happens and they pass away, it will help provide the financial support their loved ones need. So, it may make sense to get coverage of $1 million (or more) if that's the life insurance payout needed to meet future expenses and help ensure they can afford the life you want them to have. There are several ways to estimate what that means in actual dollars. Our life insurance calculator uses the "Human Life Value" method, which looks at your current annual income plus what you expect to earn in the future. Between the ages of 18 and 40, it multiplies current income by about 30; as you get older and have fewer working years left, that multiple decreases.5 Other rules of thumb include:
Consider multiplying your income by 10
Take your annual salary, and add a "0" at the end. So a $50,000 salary equals $500,000 of coverage, $75,000 equals $750,000, and so on.
Consider multiplying your income by 10 — and add college tuition for each child
How much should you add? Account for somewhere between $100,000 and $150,000 per child. If you split the difference — and have two kids — that's an extra $250,000. For context, average published tuition and fees for 2026–27 are $12,290 a year at public, four-year colleges for in-state students and $46,350 a year at private, nonprofit four-year colleges, before housing and food.6
Consider using the DIME formula
DIME stands for debt, income, mortgage, and education. This method estimates your coverage needs as the sum of your financial obligations and other expenses:
Debt: Total all your outstanding debt, including credit card balances, personal loans, and other financial obligations.
Income: Take your salary and multiply by the number of years you think your family needs protection — or at least as long as you have children at home.
Mortgage: Look at your last statement and get the payoff amount.
Education: Estimate the anticipated cost of sending each of your children to college.
How much does a $1 million life insurance policy cost?
The actual price you'll pay for a million-dollar policy depends on several factors that determine your risk to insure, such as age and health, as well as the specific features of your policy. To better understand how some of those factors affect cost, we'll look at the monthly premium amount for a $1 million policy by gender, age, and term length.
Monthly cost for a $1 million policy by gender (age 30)
Women | Men | |
|---|---|---|
20-year term life policy | $46 | $60 |
Monthly premium cost of $1 million of 20-year term life coverage for healthy nonsmoker applicants, age 30.7
Women generally pay less for life insurance than men of comparable age and health because they have a statistically proven tendency to live longer than men — so they pose less risk to the insurance company. Other factors include lifestyle (smoking) and occupation risks (safety), health history of immediate family members, and any additional coverage options you might choose.
Monthly cost for a $1 million policy by age (20-year term life policy)
| no | Women | Men |
Age 30 | $46 | $60 |
Age 40 | $72 | $91 |
Age 50 | $166 | $232 |
Age 60 | $442 | $638 |
Monthly premium cost of $1 million of 20-year term life coverage for healthy nonsmoker applicants.8
Why does life insurance get more expensive with age? Because as you get older, life expectancy decreases — and the likelihood of an insurance payout increases. So understandably, age is an important factor that affects rates. It also means there may never be a better time to get life insurance than now: The longer you wait, the more you'll typically pay.
Monthly cost for a $1 million policy by term length (healthy nonsmoker, age 30)
| no | Women | Men |
10-year term | $34 | $42 |
$41 | $49 | |
20-year term | $46 | $60 |
30-year term | $91 | $113 |
Monthly premium cost of $1 million of term coverage for healthy nonsmoker applicants, age 30.9
The longer your coverage term, the more you pay for coverage. Why? Because while a person may have a very small chance of passing away over the next year, there's a much higher chance of death over the next 30 years. Nevertheless, if you think you'll need protection for 30 years, you should probably apply for a 30-year policy, as opposed to, say, a 20-year policy now and another 10-year policy after it expires. You'll pay significantly higher rates for the policy you purchase in 20 years, and if you develop a health issue, you may not even qualify for coverage. Another alternative? Instead of getting a 30-year term policy, get a permanent whole life policy that covers you for the rest of your life — with monthly premiums that never go up.
The type of policy affects the cost of coverage
All life insurance policies pay a death benefit to your loved ones if you pass away. But they don't all work — or cost — the same. Term life lasts only for the term you choose, while whole life is designed to last your entire life as long as premiums are paid. Here's what you should know about term versus whole life insurance, two of the most common types of policies:
Term life insurance
Term life insurance rates are typically significantly less than permanent whole life, making a million-dollar policy very cost-efficient, especially for younger buyers. However, term is "pure" life insurance coverage designed only to provide a death benefit if you die while your policy is in effect. The protection is temporary, typically for a set period of 10, 15, 20, or 30 years. No matter how long your term lasts, when it ends, there's no value to the policy despite years of paying premiums. Also, you're no longer protected — you either have to apply for a new policy and pay higher rates (because you're older) or go without coverage. However, many term life policies (such as those from Guardian) may let you convert to permanent coverage while the policy is still in effect, so you can keep protection after your term ends without a new medical exam. Learn more about what happens when your term life policy expires.
Whole life insurance
This type of permanent insurance costs more than term because it is designed to provide lifelong protection and other financial benefits. Like a term life policy, there is a guaranteed death benefit payable from the first day the policy is in effect.10 Unlike term life coverage, that protection never ends, as long as premiums are paid. You also get a financial asset that can last your entire life because whole life policies build cash value.11 A portion of your premium dollars can contribute to a policy's cash value, and that sum grows at a guaranteed rate — with tax advantages.12 A mutual insurance company (such as Guardian) may also pay dividends, which can further compound growth.13 Over time, the cash value can grow into a significant sum that can provide tax-efficient policy loans, tax-deferred growth, cash to supplement retirement income, or even help pay monthly premiums.14 Learn how soon you can borrow against a life insurance policy.
How much does a $1 million whole life policy cost?
A $1 million whole life policy typically costs many times more each month than a $1 million term policy for the same person, because it provides lifelong coverage and builds cash value. Your premium depends on your age, health, and the policy's features, such as how quickly you want to pay it up. Whole life policies are tailored to your financial needs, so the best way to see what $1 million of permanent coverage would cost is to request an illustration from a financial advisor.
How to buy a million-dollar policy
At work
If your workplace offers life insurance as a benefit, it could be a good place to start — even if you can't get the full amount of coverage you want. "I'd say everybody should get term insurance in addition to what they have through their workplace," says Andy Gordon, Head of Individual Life Insurance at Guardian. "It's a simple way to get protected, and it takes care of a premature death."15 Employer-provided life insurance policies feature group rates, which may be a better value for you. As a result, it's generally affordable and easy to buy. Your employer has done the work of getting reputable quotes and choosing a policy, so enrolling typically requires little more than signing a form. For lower coverage amounts, you do not have to have a medical exam or provide medical records. If the maximum benefit amount isn't enough for your needs, you can supplement your coverage with another policy.
Online
If you don't have workplace coverage — or want to supplement it — it's easy to get term life insurance quotes online. Many providers, including Guardian, will estimate how much you need, make it easy to compare rates, and start your application — all within minutes. On the other hand, if you're looking for a whole life policy that builds cash value, it's harder to get a quote for permanent coverage online. These types of financial products are more complex and should be tailored to your individual financial needs, so it's worth your while to talk things over with a financial advisor.
Working with a financial advisor
If you're interested in permanent coverage with a wealth-building component — or you're not sure what kind of protection is best for you — it's a good idea to work with a professional who can help guide these important financial decisions. They can provide helpful information about the options that fit your current budget and long-term financial goals. If you have a financial advisor you trust, ask them how much coverage and what type of policies to consider. Otherwise, Guardian can connect you with a financial advisor who will listen to your needs, tell you about some of the best ways to meet those needs at a cost you can afford, then help you decide.
Frequently asked questions about million dollar life insurance
A healthy, nonsmoking, 30-year-old woman can get $1 million of coverage for as little as $34 a month with a 10-year term life policy. Monthly premiums vary by age, gender, and other factors, including the type of policy, because term life insurance rates are lower than whole life rates.
If you are reasonably healthy, you may qualify for a million-dollar policy, and if you're in your 20s, 30s, or even 40s, the cost may be lower than you think for term life coverage. However, rates increase due to age and age-related health factors, and at a certain point, a million-dollar policy may become unaffordable for your budget. The younger and healthier you are, the greater the likelihood of getting affordable million-dollar coverage. If you need less coverage, Guardian's minimum term life policy is $100,000.
It's possible, but premiums are much higher at older ages, and approval depends on your health. For example, a healthy 60-year-old nonsmoker can expect to pay about $442 a month (women) or $638 a month (men) for $1 million of 20-year term coverage. Many older applicants consider a smaller term policy or permanent coverage designed for estate planning. Learn more about life insurance options for people over 50.
Many insurers offer $2 million, $5 million, or more in coverage. Larger policies cost more in total, but the cost per $1,000 of coverage generally decreases as the coverage amount increases, so a bigger death benefit can be cost-effective if your family needs it.
Large policies usually involve medical underwriting, which may include health questions, a medical exam, or both. Policies that skip these steps tend to offer smaller death benefits and can cost more per $1,000 of coverage. A financial advisor can explain what underwriting to expect for the amount you need.
If you don't have other assets to protect your family's financial future — and provide for them if you pass away — then a million-dollar life insurance policy can be an affordable way to give them a large sum of money to help maintain their lifestyle. "Life insurance has been reduced to a cost conversation because people don't see its value," says Gordon.16 However, only you can decide if that benefit is worth the monthly cost.
If you pass away while the policy is in force, your beneficiaries (typically, your spouse or other family members) have to file a claim with the insurance company and provide a copy of the death certificate. So you should ensure they know about your coverage and where to find the policy documents. The insurance company will need some time to process the claim. This could take just a few days or as long as two months, for example, if the policyholder passes away abroad. Once the claim is validated, the insurance company pays your beneficiaries a $1 million lump sum, typically free of income taxes. If they choose, your family can also opt to annuitize the payments: The insurance company invests the benefit amount and pays a set of guaranteed installment payments over time. Taxes may be owed on any interest earned, but not on the $1 million death benefit itself. If you own the policy, the death benefit may also count toward your estate for estate tax purposes, though the federal exemption is high enough that most families aren't affected.
It depends on the kind of policy. With a million-dollar term policy, you pay premiums, and if you pass away during the term, the insurer pays the death benefit to your family. However, once the term ends, you're no longer covered, and there's no payout. With a million-dollar whole life policy, coverage lasts for life, so your beneficiaries are guaranteed a payout as long as premiums are paid. These policies also build cash value that you can borrow against or access while you're still alive.
All large national life insurance companies can write a million-dollar policy, but it pays to be a bit choosy when getting a large policy. Some companies are more financially sound. Others are easier to work with. If you want to find and work with some of the best life insurance companies, there are objective metrics that can help:
High financial strength ratings: Independent organizations rate the financial strength of insurance companies to gauge their ability to provide coverage and meet obligations.
High customer satisfaction scores: Customer surveys and reviews can tell you how satisfied others are with an insurance company's services.
Low customer complaints: The National Association of Insurance Commissioners (NAIC) collects data about complaints filed with state regulators, which you can search with its Consumer Insurance Search tool.
A healthy, nonsmoking 25-year-old woman can get a million-dollar 10-year term life insurance quote for as little as $33 a month. The cost for a man is slightly higher: $41 a month.
