How Much is a $5 Million Dollar Life Insurance Policy?
This article explains the approval process and income requirements to help you determine the amount of coverage you can qualify for.
We've also provided some life insurance rates by age, gender, and risk class for $5 million dollars of term and permanent life insurance coverage to help you estimate the monthly cost of your policy.
Here’s what we'll cover in this post:Quick Article Guide
How Much Life Insurance Can I Qualify For?
Skip to Rates To prevent someone from being over-insured, the life insurance providers use an income multiplier to determine the amount of coverage an individual can qualify for. This formula is based on the applicant's pre-tax earnings and age. We've provided an example below:
| Ages | Maximum Amount of Coverage Available |
| 18-30 | 35 x your gross (pre-tax) income |
| 31-40 | 35 x your gross (pre-tax) income |
| 41-50 | 25 x your gross (pre-tax) income |
| 51-60 | 20 x your gross (pre-tax) income |
| 61-65 | 15 x your gross (pre-tax) income |
| 66-75 | 10 x your gross (pre-tax) income |
| 76-80 | 5 x your gross (pre-tax) income |
While every company sets their own guidelines, every insurer will substantially limit the amount of coverage you can purchase after you retire. If you have a large net worth, or if you need life insurance to collateralize a business loan, some companies are willing to make an exception though.
What's the Cost of A $5,000,000 Term Insurance Policy?
There are hundreds of life insurance providers in the United States and most of these companies offer 12 to 16 rate classes. While each company set's their own risk classes and rates, the cost of a $5,000,000 term life insurance policy is primarily determined by these three factors:
How Age Affects Life Insurance Premiums
It's no secret that as we get older, our mortality risk increases. As a result, the life insurance providers charge higher rates to older applicants. The following tables illustrate the cost of a 10-year, $5,000,000 level term life insurance policy for an applicant in excellent health for their age.
Sample Rates by Age - 10 Year Term - $5,000,000
| Age | Female | Male |
| 35 | $60.66 | $72.71 |
| 40 | $91.50 | $107.65 |
| 45 | $158.15 | $201.13 |
| 50 | $257.11 | $319.06 |
| 55 | $424.81 | $569.06 |
| 60 | $638.56 | $947.77 |
| 65 | $1,056.06 | $1,675.56 |
| 70 | $1,821.37 | $2,750.06 |
| 75 | $3,821.80 | $5,622.56 |
To instantly compare quotes from dozens of highly-rated life insurance providers, please use our free term life insurance quote calculator below, or give us a call toll-free at 855-247-9555 to speak with an expert.
How Health Issues Impact Life Insurance Rates
The risk of being diagnosed with a serious health issue increases as we get older. While most life insurance companies will overlook minor health issues like high blood pressure, or elevated cholesterol, ailments like diabetes can substantially impact your rates.
It's also important to note that every insurance provider sets their own underwriting guidelines. What might be a non-issue with one company could be a deal-breaker with another. The chart below compares State Farm's guidelines to Banner Life. Both companies are rated "Superior" by A.M. Best.
If you are in excellent health, have no unfavorable family history, and a perfect driving record, a "Big-Box" insurer might have your best option. If you don't fit this mold, shopping the market and comparing multiple companies should save you a considerable amount of money.
The following tables provide sample rates for a 10-year level term for a male and female in excellent to average health for their age group. To learn more about each life insurance company's rate class, please read our insider's guide, "Here's What Each Rate Class Means."
Rates by Health Class for Females - 10-Year Term - $5,000,000
| Age | Excellent Health (Preferred Best) | Great Health (Preferred) | Good Health (Standard Best) | Average Health (Standard) |
| 35 | $60.66 | $76.51 | $143.08 | $153.77 |
| 40 | $91.50 | $128.11 | $209.08 | $232.83 |
| 45 | $158.15 | $214.05 | $300.27 | $354.26 |
| 50 | $257.11 | $344.76 | $479.65 | $544.97 |
| 55 | $424.81 | $533.26 | $720.27 | $814.92 |
| 60 | $638.56 | $801.56 | $1,017.56 | $1,243.45 |
| 65 | $1,056.06 | $1,253.56 | $1,510.69 | $1,946.12 |
| 70 | $1,821.37 | $2,234.05 | $2,806.57 | $3,453.89 |
| 75 | $3,821.80 | $4,686.94 | $6,130.69 | $6,337.26 |
Rates by Health Class for Males - 10-Year Term - $5,000,000
| Age | Excellent Health (Preferred Best) | Great Health (Preferred) | Good Health (Standard Best) | Average Health (Standard) |
| 35 | $72.71 | $102.31 | $170.89 | $205.77 |
| 40 | $107.65 | $185.22 | $258.27 | $280.24 |
| 45 | $201.13 | $261.32 | $379.02 | $439.56 |
| 50 | $318.89 | $416.06 | $585.06 | $734.85 |
| 55 | $569.06 | $654.06 | $897.06 | $1,187.64 |
| 60 | $947.77 | $1,088.06 | $1,416.56 | $1,787.77 |
| 65 | $1,675.56 | $2,047.56 | $2,576.56 | $3,271.86 |
| 70 | $2,750.06 | $3,537.56 | $4,830.91 | $5,507.33 |
| 75 | $5,622.56 | $7,420.82 | $8,519.56 | $10,417.93 |
How A Policy's Term Length Affects It's Rates
When you apply for a new life insurance policy, the insurance provider will evaluate your health when you submit your application. While this provides them a snap-shot your overall health, it's not a crystal ball. Our heath can change at any time and without warning.
The reality is, the longer your term is, the greater risk you pose to the insurer. Shorter terms are less expensive because you're more likely to outlive your policy. The following tables compare the cost of a 10, 15, 20, 25, and 30-year term for an individual in excellent health.
Sample Rates by Term Length for a Female - $5,000,000
| 35 | $60.66 | $76.08 | $116.80 | $190.29 | $227.89 |
| 40 | $91.50 | $132.42 | $179.72 | $281.11 | $338.96 |
| 45 | $158.15 | $218.29 | $308.50 | $441.01 | $545.92 |
| 50 | $257.11 | $342.35 | $454.91 | $714.64 | $875.19 |
| 55 | $424.81 | $523.71 | $768.33 | $1,243.16 | $1,626.82 |
| 60 | $638.56 | $872.51 | $1,306.45 | $2,523.98 | N/A |
| 65 | $1,056.06 | $1,497.83 | $2,403.84 | $5,323.55 | N/A |
| 70 | $1,808.68 | $2,696.39 | $5,465.55 | N/A | N/A |
| 75 | $3,787.60 | $7,130.52 | N/A | N/A | N/A |
Sample Rates by Term Length for a Male - $5,000,000
| 35 | $72.71 | $97.00 | $138.39 | $232.78 | $292.34 |
| 40 | $107.65 | $142.90 | $220.11 | $364.53 | $441.07 |
| 45 | $201.13 | $300.89 | $402.06 | $585.51 | $712.51 |
| 50 | $318.89 | $456.06 | $602.06 | $981.88 | $1,188.47 |
| 55 | $569.06 | $739.56 | $996.06 | $1,757.88 | $2,260.20 |
| 60 | $947.77 | $1,244.06 | $1,745.06 | $3,411.25 | N/A |
| 65 | $1,675.56 | $2,185.06 | $3,402.56 | $6,369.05 | N/A |
| 70 | $2,750.06 | $4,250.06 | $7,572.25 | N/A | N/A |
| 75 | $5,622.56 | $10,676.06 | N/A | N/A | N/A |
As you can see from the tables above, the cost of a 30-year term is usually about double the cost of a 20-year term. To view actual life insurance rates by term length, please use our term life insurance rates calculator below or give us a call toll-free at 855-247-9555.
How Much Does $5,000,000 of Permanent Life Insurance Cost?
Most people outlive their policy's term which allows the insurance companies to charge a lot less for their temporary "term" coverage. A permanent life insurance policy, on the other hand, is designed to provide a death benefit regardless of how old you are when you pass away.
The least expensive form of permanent insurance is guaranteed universal life which offers level rates and fixed premiums until the age of 85 or later. These policies work just like term insurance and they do not require any investment risk or money management fees. You only pay for the cost of your coverage.
Life Insurance Rates for $5,000,000 to Age 100 - Females
| 35 | $1,623.07 | $1,729.02 | $1,883.95 | $2,051.61 |
| 40 | $2,007.00 | $2,216.06 | $2,449.89 | $2,661.64 |
| 45 | $2,237.80 | $2,541.00 | $3,101.00 | $3,330.00 |
| 50 | $3,003.10 | $3,332.40 | $3,812.00 | $3,936.20 |
| 55 | $4,086.70 | $4,265.00 | $4,850.00 | $4,850.00 |
| 60 | $5,105.00 | $5,465.00 | $6,472.00 | $6,614.20 |
| 65 | $6,790.00 | $7,345.00 | $8,817.60 | $8,990.80 |
| 70 | $9,690.00 | $10,150.00 | $11,410.00 | $11,893.40 |
| 75 | $13,685.00 | $14,025.00 | $17,315.00 | $17,315.00 |
Life Insurance Rates for $5,000,000 to Age 100 - Males
| 35 | $1,900.72 | $2,029.78 | $2,178.23 | $2,352.82 |
| 40 | $2,430.00 | $2,609.03 | $2,810.53 | $3,068.92 |
| 45 | $2,784.60 | $3,160.00 | $3,600.10 | $3,765.00 |
| 50 | $3,546.50 | $4,005.00 | $4,667.46 | $4,900.00 |
| 55 | $4,687.20 | $5,180.00 | $5,963.38 | $6,295.00 |
| 60 | $6,153.50 | $6,747.90 | $7,848.32 | $8,521.00 |
| 65 | $8,325.00 | $8,995.00 | $10,825.53 | $11,135.00 |
| 70 | $11,860.00 | $12,595.00 | $14,870.30 | $15,247.20 |
| 75 | $16,430.00 | $18,200.00 | $19,855.00 | $19,855.00 |
What's the Process for Buying $5 Million or More In Life Insurance?
Almost every life insurance provider requires a medical exam if you are applying for $5 million dollars of coverage. Here is how the application and approval process works. Please note, if you would rather avoid an exam, and don't mind paying a little extra, there are some options available.
1. Contact an Insurance Agent or Broker
To save time and money, we recommend working with an independent agency that represents at least a few dozen life insurance companies. This will allow you to compare rates and options from multiple providers without speaking to more than one agent.
2. Compare Your Options
If you are working with an independent agency like JRC, you will be able to compare options from dozens of companies before making a decision. Every company sets their own rates and guidelines and some policies offer additional benefits or "riders" for extra protection.
3. Apply for Coverage
Once we have determined which insurance provider offers the best rates and coverage for your situation, we'll complete your application with you over the phone, and electronically submit it to the insurance company on your behalf.
4. Complete Your Exam
After your application has been completed, an examiner will contact you to schedule and complete your free mini-medical exam. The exam can be completed at a lab, your home, or your office and it typically takes about 25 to 30 minutes.
5. Wait for an Approval
Most life insurance policies are approved within 6 to 8 weeks of completing your exam. If you are in excellent health and do not have extensive medical records to review, your policy cold be approved in as little as 3 to 4 weeks.
6. Activate Your Policy
When your policy is approved, your licensed agent will contact you to share the good news, and the insurance provider will mail you a copy of your policy. You will need to make the first payment to accept your coverage. If you decide not to accept coverage, no money is owed.
We're Here to Help!
Our independent agency is licensed nationwide, and we represent more than 50 top-rated life insurance providers. By asking you a few questions about your health and coverage needs, one of our experts will be able to match you with your best options.
Our comparative shopping services are completely free, and there is no cost to apply for coverage. Give us a call today, toll-free at 855-247-9555, or you can use our free life insurance rates calculator below to instantly compare your options.
Clifford Pendell
Managing Partner and Co-founder
Cliff is a licensed life insurance agent and one of the owners of JRC Insurance Group. He has helped thousands of families of businesses with their life insurance needs since 2012 and specializes with applicants who are less than perfect health. In his spare time he enjoys spending time with family, traveling, and the great outdoors.
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