3 Million Dollar Life Insurance Policy: Cost & Quotes From $5/mo

How much life insurance coverage is enough? $2 million or something that’s higher? Certainly, some might think that a $1 million or $250,000 worth of coverage will do. 

The purpose of life insurance is usually to protect your loved ones, and you don't want to leave them short when you're no longer around. 

However, deciding how much coverage you really need isn't always straightforward. You need to know exactly why you're setting up a life insurance policy and what it's expected to cover when you pass away. 

A $3 million life insurance policy might seem like a lot, but a death benefit of this size can quickly get used up. If you have a significant mortgage to pay off and want to support your family, this amount might not go as far as you imagine. While not everyone needs a life insurance policy with $3 million worth of coverage, it can be the right choice for many people. 

Of course, with such high coverage, you have to think about how much it's going to cost. Comparing life insurance quotes is the best way to determine how much you could pay. It gives you the opportunity to input your own details and get a customized estimate. 

Why Take Out a 3 Million Dollar Life Insurance Policy? 

For many people, $3 million is on the higher end when considering how much life insurance coverage they need. You might determine that $500,000 or even less would be adequate to cover your needs. However, there are several reasons you might decide that a higher level of coverage is required. 

There are many things to consider when working out how much coverage you need. One of them is your mortgage or debts you have. If you buy property in a high-cost-of-living area, you could easily have a mortgage of at least $1,000,000. 

Once your life insurance has paid that off, you still want to have some left over to take care of other expenses. And if you have a high-value mortgage, it's likely your other expenses and your income are on the higher end too. 

You want your life insurance to match these so that your family can maintain the same standard of living after your death. 

Whole Life Insurance vs. Term Life Insurance 

If you want to have $3 million life insurance, what type of life insurance should you be looking at? There are various options, but some might make more sense if you want to get the right price and the right coverage. 

The main options you have are whole life insurance or term life insurance. Whole life insurance does more than simply provide you with a death benefit. It can also be used as a tax-deferred savings account, which you can also borrow from if you need to. This cash value means that the value of your policy grows over time. 

However, this can also make whole life insurance expensive. It's a type of life insurance that's designed to last for your whole life, which means you'll pay more. But the benefits can definitely outweigh the downsides for many. 

Term life insurance is your other option, and can help you to save money. You can get the $3 million coverage that you want, but it will only be for a set amount of time. However, you do get to decide how long that is. It could be just a handful of years, or perhaps as long as 30 years. 

One thing to take into account is that if you take out your policy when you're older, it could cost you more. So, although term insurance is renewable, you could end up paying more when it's time to renew. Additionally, you can convert term life insurance to whole life insurance with some providers. 

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How Much Coverage Do You Really Need? 

Before you take out a life insurance policy offering $3 million, you need to work out how much life insurance coverage you really need. There are some different factors you will want to think about to work this out.  Start with the following list to help you decide just how much coverage you need: 

  • Your income-Multiplying your annual income can be a good way to work out a minimum amount of coverage for your life insurance. Start with a multiple of 10, then consider other factors to see if this is enough

  • Your mortgage and other debts-You probably want your life insurance to pay off your mortgage, and this can even be required by mortgage providers. Your coverage should take care of your mortgage and other debts that you might have

  • Your regular expenses-In addition to any debts, your regular expenses such as bills and daily living costs are also important to consider. Think about how long you want your death benefit to be able to pay for these expenses for your family

  • Extra expenses-Other expenses after your death could be important to consider too. These could include things like funeral expenses or medical bills that aren't paid for by your medical insurance

Are You Eligible for $3 Million Coverage? 

You might decide that you want to take out $3 million in life insurance coverage. But will you qualify for this amount of coverage? It's a large amount and you need to be able to afford the premiums. Additionally, the insurance company won't want to give you a high amount of coverage if they see you as high-risk. 

Whether you are eligible for this level of life insurance coverage will depend on a number of different things. You can't truly know whether you are eligible until you make an application, but requesting a quote from a provider will also give you a good idea of whether they will approve your application. 

You could find that you are limited in how much coverage you can take out, perhaps by your age, your health, or other factors. If you are looking at term life insurance, you could also find that the length of the term is limited by your age. 

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3 Million Life Insurance Policy Cost 

When you're looking at the average 3 million dollar life insurance policy cost, you can find that there is something for most budgets. Of course, you can expect to pay more if you're looking for coverage at this level. However, you can still find policies that you can afford. Below you can see some rates for $3 million term life insurance. 

Customer 20 Year Term Insurance 30 Year Term Insurance 
30 year old male $104.53 $153.31 
30 year old female $86.50 $122.51 
40 year old male $163.67 $297.57 
40 year old female $104.53 $232.89 
50 year old male $569.42 $922.95 
50 year old female $407.84 $649.58 


You can find that in some circumstances, 3 million dollar term life insurance is cheaper than whole life insurance. This is because term life insurance has a set end date, making it a more affordable option. However, some people still prefer whole life insurance for the other benefits that it provides. 

The cost of your life insurance will be affected by the type and amount of coverage you choose, but that's not all that matters. Your profile as a policyholder also makes a difference to the price. You could pay less if you're younger or even if you're a woman, are in good health, if you have a low-risk occupation, or if you have an active lifestyle

For a further idea of the 3 million life insurance policy cost, here’s another table showing the rates of the companies you might want to consider:

Cost per MonthCost per YearBest for
Fabric$56.87$682.44Easily applying online, no medical exam policies
Ethos$74$88810 year term life insurance with money back guarantee
USAA$74.15$889.80$2 million life insurance for military personnel
Haven$79.47$953.64$3 million life insurance with tax free payouts
Northwestern Mutual$94$1,128Flexibility
AARP$240$2,880$3 million life insurance for seniors

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Best $3 Million Life Insurance Companies 

Not all insurance companies are willing to offer as much as $3 million in coverage for life insurance. Some have lower coverage limits, while others might require you to have a medical exam if you want to access higher coverage amounts. If you're looking for an insurance company that will give you $3 million of coverage, take a look at these options. 

Fabric $3 Million Life Insurance


  • Various coverage options for term life insurance 

  • Fully online with an easy quote option and application 

  • Policies with up to $5 million coverage 


  • Only offers term life insurance 

  • Coverage can't be increased after purchase 

Fully online insurance providers are very popular with people who want to get set up quickly. Fabric is one of the options available to get the coverage you need without any hassle. 

This company allows you to get a quote online and purchase it. You can do this without talking to a Fabric insurance agent. Note that the company will initially offer a $2 million maximum coverage. Nonetheless, you can extend the available coverage amounts by clicking a link provided by Fabric’s life insurance quotation tool.

You can get covered with no medical exams. Moreover, in case you want to switch to another company later on, doing so is very easy because Fabric can instantly cancel your coverage without any charges.

Best for: Easily applying online, no medical exam policies 

Average cost: $56.87 per month

Our rating: 10/10

AARP $3 Million Life Insurance


  • Ensures that older individuals enjoy comprehensive life insurance coverage

  • Highly involved

  • Quote online or call


  • Customers must be AARP members to apply 

AARP works best if you’re someone who is currently aged 60 and above. This is a non profit organization that aims to help seniors with healthcare and finances. AARP works with New York life to give $3 million term life and whole life insurance to its members. Note that you might be referred to a New York life insurance agent for a quote. Though a bit traditional when it comes to granting coverage, AARP is still good because it offers numerous benefits alongside its life insurance for seniors. 

Best for: $3 million life insurance for seniors

Average cost: $240 per month

Our rating: 10/10

Ethos $3 Million Life Insurance


  • Automatic underwriting

  • Get an estimate of your rates online

  • Works with multiple insurance companies to grant you coverage


  • Doesn’t allow you to convert your term life insurance into a permanent life insurance policy 

Ethos works with multiple insurance companies to grant comprehensive $3 million life insurance coverage. That said, your policy from this company comes from different underwriters depending on risk profile. Another notable thing about Ethos is that most insurance applications are done with no medical exam. Moreover, similar to Fabric, you can get a quote online and purchase it. 

Best for: 10 year term life insurance with money back guarantee

Average cost: $74 per month 

Our rating: 10/10

USAA $3 Million Life Insurance


  • Specializes in working with military personnel

  • Upgrade to permanent life insurance policy with no medical exam

  • Child coverage included


  • Highly exclusive

Working in the military is dangerous. This is why most insurance companies give high rates to military personnel. USAA exists to provide a solution to this problem. It grants $3 million life insurance coverage to retired and active military personnel at fair rates. Also, it doesn’t care whether you’re deployed overseas. 

Your $3 million life insurance coverage from USAA has life events and child coverage. In case you pick term life insurance, USAA gives you the opportunity to convert your policy into a whole life policy after 1 year of enjoying coverage. 

Best for: $2 million life insurance for military personnel

Average cost: $74.15 per month 

Our rating: 9/10

Haven $3 Million Life Insurance


  • Offers term life insurance from 5 years to 30 years 

  • Backed by a long-standing insurance company 

  • Easy to apply online 

  • Other financial services available 


  • No convertible term life insurance option 

  • Low coverage for no-exam policies 

Haven is an insurance company with policies underwritten by MassMutual and C.M. life. You can get $3 million life insurance coverage by availing Haven Term;  a term insurance plan with tax free payouts, has level premiums, and accelerated death benefits. You can avail Haven Term with no medical exams required. But still, this doesn’t apply in all cases as stated by the company. 

Best for: $3 million life insurance with tax free payouts

Average cost: $79.47 per month 

Our rating: 9/10

Northwestern Mutual Life Insurance 


  • Both whole and term insurance are available 

  • A choice of insurance riders to add to policies 

  • Convertible term insurance with no medical exam 


  • Need to get in touch to find out about coverage limits 

Northwestern Mutual is an excellent choice if you're looking for flexible coverage. They have a number of different products to choose from and different ways to customize your plan too. 

Best for: Flexibility 

Average cost: $94 per month

Our rating: 8/10

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Compare quotes for life insurance to find out how much a $3 million policy will cost you. Start by clicking the “Get Quotes” button on this page. 

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