Compare Life Insurance Quotes from Multiple Companies
About You1 of 2

How Much Does a 5 Million Dollar Life Insurance Policy Cost

Written by Jason Patterson

At one time, insurance agents would never have thought they would sell a policy in the multi-million-dollar range, but now these plans are sold every day to different consumers across the United States.

For the average person, a 5 million dollar life insurance policy might be excessive. But, for a lot of individuals, that’s exactly what they need.

There are certain demographics of Americans who need larger insurance policies for a variety of reasons. Policies as large as $5 million aren’t sold very often, but some applicants need this amount of coverage, and it’s important they get it.

Not having enough insurance coverage could leave a family stranded without enough funds to pay off any excess expenses.

In this article, we are going to look at the type of clients that should consider getting this large of a plan, and also how much you’re going to pay for the coverage.

It’s important you understand all of the different aspects of a life insurance policy before you make the decision to buy a plan.

Who Needs A 5 Million Dollar Life Insurance Policy?

There are not too many people who fall into the category of needing this much life insurance. However, there are some applicants will require a policy this large, but not realize it.

The largest demographic of applicants which need this size policy are business owners. If you were to pass away, your family or co-owners could be left scrambling to pay off business expenses or have problems finding ways to replace your skills, which could mean the business suffers.

Having an insurance policy can negate those complications and ensure your business doesn’t go bankrupt if anything were to happen to you.

There is another, smaller demographic could benefit from a policy of this size, and that’s any household that has a much higher mortgage or amount of debt. There are families with million dollar mortgages and high expenses that would need this large of a policy to replace lost income if a spouse were to pass away.

Not having enough life insurance coverage is almost as bad as not having any coverage at all. There are several different categories to consider when you’re calculating your life insurance needs.

Above we mentioned a few of the demographics that would need to pay a plan this large, there could be any number of different reasons why you would need $5 million of life insurance.

Before you buy life insurance, or if you’ve had your life insurance policy for several years, it’s important you calculate how much insurance coverage your family would need if something tragic were to happen to you.

Determining how much life insurance you need is easy. If you have any questions or you need assistance, please contact one of our agents today. We can walk you through the process and ensure you’re getting the best plan possible.

How Much Does A $5 Million Policy Cost?

For anyone who needs a 5 million dollar life insurance policy, the most important factor is the cost of the coverage. Because you’re dealing with a much larger insurance plan, the monthly premiums are going to reflect the size, but there are still affordable options.

Several different variables can impact how much the monthly premiums are for the insurance policy. The biggest ones are age and the company you purchase the policy from.

Every company is different, and they all have various methods for rating clients and calculating insurance rates, which means you could receive quotes which are drastically different for the same amount of coverage.

This is why it’s essential you receive quotes from multiple companies before you choose one that works for you.

The older an applicant is, the more risk they are to ensure for the insurance company, which means they will pay higher premiums. If you want to get the lowest rates for your coverage, it’s better to apply sooner rather than later.

Because several variables go into determining your monthly premiums, we can’t give you exact premiums, but we can give you a general idea of what you would pay for a $5 million policy.

The rates below are for a non-smoking male who received preferred rates:

Age 20 Year Term
30 $170
40 $250
50 $709

If you want quotes that are tailored to your specific situation, contact us today toll-free at 800-866-8780, and we can show you what you would pay for this coverage. In most cases, applicants are surprised to see how affordable the monthly premiums are for this size of a plan.

Every ten years makes a significant difference in how much you’ll pay for the coverage.

As we mentioned, these are only example quotes. There are dozens and dozens of different factors will impact how much you pay every month for your insurance policy.

While these are only estimates, we can deliver a personalized set of quotes directly to you in a matter of minutes.

$5 Million Life Insurance Policy Requirements

There are a few requirements you have to meet to show you qualify for a $5 million policy. The insurance companies don’t accept anybody who wants a policy this size.

To prevent any insurance fraud, the company needs to know there are legitimate reasons to insure someone for several millions of dollars. You can’t be worth more dead than you are alive.

Each company will have their own requirements, but most are going to ensure your annual salary is high enough to warrant the request for this insurance policy. For anyone ages 18 – 40, the income has to be within 35 times the amount of insurance you’re applying for, otherwise, you’ll be declined for coverage.

With the insurance policies valued over a million dollars, the insurance companies are much more interested in your health.

The medical underwriting is going to become stricter than it would be with a mere $300,000 plan. They are going to take a much closer look at any pre-existing conditions you have, but that doesn’t mean you can’t get coverage if you’re in less than perfect health.

Your Health

One of the areas the insurance company is going to be concerned with the most is your health. They are going to look to see if you are in decent health with no major health complication.

The worse your health is, the more risk you are to accept for coverage, which is going to make the insurance company wary of giving you protection.

During the application process, the insurance company is going to require you to take a medical exam. There are no exam options for policies under $1 million, but once you reach a plan of this size, that’s no longer an option.

The results of the medical exam are going to play a significant role in how much you pay for your plan and your chances of being accepted for the policy.

The medical exam is going to require a paramedic or nurse come to your home to check all of your basic health signs and get some health information from you. The company is going to want to see your weight, your heart rate, cholesterol levels, and they will also take a blood sample and a urine sample.

Because of the size of the policy, they are going to also take an EKG test from a cardiologist before they accept your application. With some insurance company, they may require you go to a doctor’s office instead and get a full physical exam.

If you have any pre-existing conditions, like diabetes, don’t assume you’ll automatically be declined for life insurance coverage. Some insurance companies are going to be more lenient of applicants with health problems, and they will give you a better chance of getting accepted.

Your Age

Another major factor is deciding if you’ll be accepted for a $5 million insurance plan is your age.

You can’t do anything about it, but how old you are is going to play a significant role in your chances of getting coverage and how much you’ll pay for the plan.

The older you are, the more likely you’re going to suffer from a health complication and the less time the insurance company is going to receive your premiums.

Your Lifestyle

A lot of the questions the insurance company is going to ask you are going to revolve around your lifestyle habits. They are going to ask you questions about everything from your hobbies to your exercise.

It’s important you answer honestly and share any relevant information you have. Not being honest could lead to serious legal complications in the future, like your family not getting the payout from the policy.

The agent will ask if you smoke or use any form of tobacco. Smokers have a much higher chance of being diagnosed with health complications like heart disease or lung cancer. As a smoker, you’re going to get different rates and pose different challenges to the insurance company for your policy.

The company will also be concerned with your weekend hobbies. If you enjoy going out for motorcycle rides or skydiving in your free time, then you’ll naturally be considered a high-risk applicant.

None of these factors are going to automatically get you declined for your plan, but they are significant red flags.

Getting Affordable $5 Million Life Insurance Coverage

The more life insurance coverage you buy, the higher your premiums are going to be, but that doesn’t mean you have to pay for an expensive policy. There are many ways to secure better insurance premiums. Making a few simple changes could help you save hundreds of dollars every year on your life insurance plan.


If you’re listed as a smoker on your million-dollar life insurance application, you can expect higher premiums, even up to double what you would pay if you were not a smoker. If you want to get the most affordable plan, regardless of how much coverage you’re buying, you’ll need to kick those bad habits to the curb.


As we mentioned, your health is going to play a major role in how much you pay for your insurance coverage. If you want to save money on your life insurance policy, you’ll need to get better results from the insurance company.

Improving your overall health could save you hundreds of dollars every year on your insurance plan.

There are two main things to do before you apply for life insurance coverage, start a healthy diet and start getting regular exercise. If you’re carrying around any extra weight, you will pay 50% or more for your life insurance plan. Because you’re getting a large plan, being overweight could get you declined for life insurance.

Losing those extra pounds is a great way to get affordable life insurance.

As we mentioned, every insurance company is different, which means the quotes you get are going to vary drastically. It’s important you find the company which will offer you the lowest insurance rates available. There are hundreds of companies on the market, and you could spend days calling those companies.

Instead, let one of our independent insurance agents do all of the dirty work for you.

Obtaining Life Insurance Coverage

Having life insurance is the most important investment you’ll ever make for your loved ones, but it’s vital you have enough coverage.

If your family is left with too little coverage, they could find themselves with bills left over and no resources to pay for them, which can create additional financial stress to an already stressful situation.

If you have any questions about life insurance or getting a $5 million policy, please contact us today, we would be happy to connect you with the perfect policy at an affordable rate.

Our independent agents have years of experience working with all kinds of different applicants across the country. Our agents can help you calculate how much life insurance you’ll need and help you find the best plan to meet your needs.

Don’t wait any longer to get the insurance protection your family deserves. Don’t let your family become one of the countless stories of losing a loved one, and having thousands of dollars of debt.

About Jason Patterson

Jason Patterson has been in the insurance industry for over fifteen years. Starting in 2005, he became one of the first agents to sell medicare supplements online. From that small start, he grew an agency that helped thousands of people with their insurance needs in all fifty states.

This entry was posted in life insurance. Bookmark the permalink.

Leave A Reply