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

Life insurance has a number of excellent purposes. It can be protection for your family if you’re no longer around to support them. It can also be part of smart estate planning, allowing you to ensure your beneficiaries get a lump sum without having to worry about taxes. One of the main things you will want to consider when purchasing a life insurance policy is exactly how much coverage you need. Will it be $3 million, $4 million, or something much higher?

It’s important to ensure that the death benefit and any other money that’s paid out will cover essential expenses and give your family what they need. 

You can choose a life insurance policy with only a small amount of coverage, like say a $1 million term life insurance or lesser. However, it doesn’t hurt to get a hefty amount of coverage just to be sure all your uncertainties are accounted for. A 5 million life insurance policy isn’t necessary for everyone, but some people feel it’s good financial planning to take out this much coverage.

What Type of Insurance to Choose for High Coverage? 

You’re thinking about investing in a life insurance policy with a high amount of coverage.One of the first things you will need to do is consider what type of insurance is appropriate if you want to take out a 5 million dollar life insurance policy. There are several different types of life insurance, which can all be useful for different purposes. 

It’s also worth keeping in mind that you could have more than one life insurance policy, so you can enjoy the benefits of different policies at the same time or perhaps at different points in your life. Some key types of life insurance include: 

  • Whole life insurance-covers you for your whole life and also has a savings account that you can use to save and borrow 

  • Term life insurance-covers you for a set term, but can often be renewed or converted to whole life insurance 

  • Universal life insurance-a type of permanent (whole) life insurance with an investment element and flexible premiums and death benefit 

There are appropriate uses for these types of life insurance to meet your financial goals and help you protect your family. But if it’s the cost of life insurance that concerns you most, you might want to consider looking at a 5 million term life insurance policy over permanent life insurance. It’s typically going to be the cheaper option because it’s designed to provide coverage over a predetermined length of time. 

Do You Need a 5 Million Dollar Life Insurance Policy? 

Understanding the different types of life insurance is important, but the real question is whether you need 5 million dollar life insurance. It’s a lot of coverage that not everyone will need, and you don’t want to pay for it if it’s not really necessary. 

If you’re not sure how much life insurance coverage you need, it’s definitely a good idea to spend some time working it out. A quick way to do this is to use a life insurance coverage calculator. Insurance providers often have these on their websites, so you can input your details and get a suggestion for not just how much coverage you should get but how much you’re likely to be eligible for. 

You can also try to work out a figure yourself. Here are some of the things you might want to take into account: 

  • Who relies on your financial support

  • Your mortgage 

  • Debts such as personal loans 

  • Your bills and expenses 

  • Funeral expenses and other related costs 

  • Providing family with an inheritance 

When adding up how much coverage you want, you could find that it quickly comes close to $5 million, depending on your current situation and future needs. 

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Qualifying for $5 Million Life Insurance Coverage 

It’s also crucial to consider whether you can afford a life insurance policy of 5 million dollars. This isn’t just about whether you personally think you can afford it, but also whether you will gain approval when you make an application. 

There are a few things insurance companies might look at to determine if you are eligible for this level of life insurance. They might look at your income, and could have a set income multiplier in relation to the amount of coverage you are eligible for. They could also look at your age and your health. Although many life insurance policies don’t require medical exams, some with higher coverage amounts often do. 

Some insurance companies will tell you your chance of approval when you ask for a quote. Others might not make a final decision until you make an application or get in touch. 

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5 Million Life Insurance Policy Cost 

5 million life insurance policy cost estimates will vary depending on whether what you want to get is a whole life, term life, or universal life insurance plan. Term life insurance policy is the most popular. This type of life insurance makes it much more affordable to get high levels of death benefits. The average 5 million term life insurance cost could be $190 per month or $2,280 per year. 

As you can see from the numbers below, there are other factors that will affect how much you pay. Your age and gender are taken into account, and the length of the term you choose also affects the 5 million life insurance cost. 

Customer  10 Year Term  20 Year Term 
30 year old male  $90.44  $169.87 
30 year old female  $67.69  $139.81 
40 year old male  $134.23  $268.44 
40 year old female  $123.11  $225.50 
50 year old male  $652.33  $944.69 
50 year old female  $455.45  $675.38 


Of course, it’s important to keep in mind that 5 million term life insurance will eventually run out. If you don’t die during the term, your policy will expire when it reaches the end date. You might have some options, such as renewing the policy or converting it to whole life insurance before it ends. 

Other factors influence the 5 million dollar life insurance policy cost. Your location, occupation, lifestyle, and health will all be looked at to provide you with an accurate quote. All insurance companies will ask if you use tobacco products. And if the answer is yes, then expect your premiums to be more expensive. Here’s another table showing the rates of the best companies:

Cost per Month Cost per Year Best for
Fabric $163.60 $1,963.20 Affordable term life insurance
Ethos $180 $2,160 $5 million life insurance with no medical exam
USAA $214.15 $2,569.80 Military members
AAA $249 $2,988 Bundle discounts
AARP $400 $4,800 $5 million life insurance for seniors

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The Best $5 Million Life Insurance Companies

$5 million is the upper limit for coverage for many insurance providers. Of course, the cost of 5 million dollar life insurance will vary between insurance companies. Here are the best picks. Read to know the pros, cons, and rates of these carriers for life insurance policy 5 million dollars. 

Fabric 5 Million Life Insurance


  • Flexible coverage with a choice of terms 

  • Affordable rates 

  • No brokers or agents 


  • Not available in California or Montana 

  • Can’t increase coverage after the start of policy 

Fabric is a good choice if you’re looking for affordable term life insurance rates. $5 million is their maximum amount of coverage and they offer a choice of terms up to 30 years. Their quick application process means that you can get the coverage you need in only a few minutes. The quote tool will also give you a good idea of how much you will pay before you apply. 

Best for: Affordable term life insurance 

Average cost: $163.60 per month 

Our rating: 10/10 

AARP 5 Million Life Insurance


  • Offers customized life insurance policies

  • Good for 5 million life insurance with innovative retirement savings

  • Cheap rates for members


  • Non members can apply for a 5 million life insurance but at steeper rates

AARP is a great option if you’re a senior looking for a $5 million life insurance coverage. By becoming a member, you won’t only enjoy comprehensive life insurance coverage but also other benefits such as speedy healthcare assistance. Note that AARP will refer you to its partner, New York life for a $5 million worth of life insurance coverage.

Best for: $5 million life insurance for seniors

Average cost: $400 per month

Our rating: 10/10 

Ethos $5 Million Life Insurance


  • No medical exam on $5 million life insurance

  • Non-binding online insurance quote

  • Changes to your policy can be made after purchase


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

What’s better than getting a $5 million life insurance coverage with no medical exam? Many carriers won’t offer coverage without doing this. However, Ethos does things differently. This insurance company offers up to $5 million worth of coverage with no exams needed. Note that online quoting is available but this only works for a $2 million life insurance policy. Consider talking with an Ethos agent to get a quote for a $5 million life insurance. 

Best for: $5 million life insurance with no medical exam

Average cost: $180 per month 

Our rating: 10/10

USAA $5 Million Life Insurance


  • Broad range of life insurance plans 

  • User-friendly application 

  • High coverage up to $10 million 


  • Must be a member 

  • Medical exam required 

There’s no need to be a military member to apply for life insurance with USAA. Any US citizen or permanent resident can get insurance from them. They have high coverage limits and offer both term and permanent life insurance, with prices starting from only $12 per month. However, you will likely need a medical exam to get the coverage that you want. 

Best for: Military members 

Average cost: $214.15 per month 

Our rating: 8/10

AAA $5 Million Life Insurance


  • Strong financial ratings 

  • Secure and user-friendly online platform 


  • Not available in New York 

AAA offers a few different insurance options, allowing you to bundle life insurance together with other types of insurance. Like many other providers offering $5 million coverage, a medical exam is required. Their website and online application platform make it easy to explore what they have to offer and apply for the product you want. 

Best for: Bundle discounts 

Average cost: $249 per month

Our rating: 7/10

Compare Life Insurance Quotes 

Get quotes today to compare the 5 million dollar term life insurance policy, whole life insurance policy, and universal life insurance policy of different companies. Start by clicking the “Get Quotes” button on this page. 

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