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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.
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:
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.
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:
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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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.
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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$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 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 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
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
Pros:
Cons:
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 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
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.
0 / 10
AIG’s financial advisor kept harassing my mom for four straight days, trying to take out one of their policies which was much more expensive than what she had paid for with the other company that she has been with for many years. I filed a complaint with them and also with FSA. AIG’s advisor turned a little aggressive with his tone of voice and did not appreciate the fact that I cancelled his cold-call pressure sold product.
2 / 10
ABSOLUTELY THE WORST COMPANY IN AMERICA. DOES NOT MATTER WHAT YOU NEED TO UPDATE YOUR POLICY, THE FORMS OR PROCESS IS NOT ACCEPTED.
2 / 10
Nothing but crooks. Would not pay death benefit on my mother's insurance policy. The most terrible customer service I have ever dealt with. They made all types of exercises to me. Do not get any type of insurance with this company
2 / 10
AIG has not been the same since the scandal of 2009. Unfortunately I took out a 30-year term policy with them so I'm stuck but they have done two updates on their website and it automatically sets things like your payments to auto pay etc wait times are horrible and if you do have a claim you are going to jump through many hoops and hurdles no matter how many years you have paid on your policy as they do everything to try and not pay out any of your policy amount and then they try to but limits... Read More
2 / 10
Easy to get a sales person but after a death they are not accepting to pay the policy don't waste your money the local offices are gone and you will not collect the policy
9.6 / 10
Ok so I gave online 4 stars well because I never use it. I have nothing bad to say about AIG. I had a very nice policy and when my wife passed. They where very good about getting me my money. The hardest part was not them it was waiting on the death certificate. One I got that they got me my money pretty fast and all of what I was paying on. I may be stupid but I am still paying them for my life insurance but I probably should stop. I would definitely tell anyone to use them.
2 / 10
I DO NOT recommend this life insurance company. AIG bought out Franklin Life Ins Co (who we had a policy with from 1978). After AIG took over, they paid us $1 per year dividend on our annuity. Our left our policy invested for 44 years & earned almost nothing on our long term investment.
2 / 10
AIG worst nightmare ever do not purchased anything from this company they will deny your policy and still take money out of your account causing overdraft fees to your account and replying well you need to send proof of fees we don’t see anything on your account it’s closed . I can imagine if I had died I’m sure my daughter would have been disappointed because she would not have received a Dime . Theses people are just like the thieves in the streets just not using a weapon. Professional... Read More
2 / 10
They offer Apple care plus as well and they are the worst ever , total scam folks ..
2 / 10
Companies like this make you wonder why you can’t give less than one star. Their representative took weeks to contact me and then had poor communication about what they needed for my claim, taking weeks again between replies. I still haven’t heard from them in end of May 2023 for a claim in February. 0/0 terrible company.
2 / 10
option did not give me choice of LTC. But.... this is an example of how they treat long time customers. NO ETHICS! HORRIBLE ... HORRIBLE COMPANY. We bought a good long term care police early. We were in our early 40's and bought in October 1999. They stopped selling long term care insurance in December 1999. NOW... after all these years of faithfully paying our annual amounts I just received a letter, and they are raising our annual amounts by 300% from the original. REALLY... they are... Read More
2 / 10
Allianz. The biggest insurance company in the world. RUN, don’t walk, from this swindling company of crooks!! This company is a perfect example of bad faith insurance and unfair claims settlement practices, and my family along with all my mom’s friends who know her and have seen how her illness has debilitated her are going to get to the bottom of this. My parents have been paying this scandalous, unethical company for 20 years ..thousands of dollars just so they could have peace of mind... Read More
2 / 10
Allianz insurance a pack pure evil swindlers refusing to pay not fault drivers car repair costs,the lowest form of scum on earth
2 / 10
One star is too much for this insurance. My kids have GN Network, which is among the most expensive. NOTHING was approved for the full year! Literally nothing. We needed to pay each test. Always asking for more clarifications from doctor, and rejected at the end. Stating that kids have chronical issues?! My child has lack of iron. We discovered it during the year. They didn't want to approve testing as lack of iron is chronical condition for a child! At the end we discovered that kid has celiac... Read More
0.3 / 10
I have had a life insurance policy for my husband since February, 1988 and just received a letter saying that I wasn't paying the correct amount of premium. I paid the exact same amount that appears on billing all along. Their customer service said it is my responsibility to pay the right amount. Unbelievable.... I pay the same amount that is on billing. Now they claim that the policy will be cancelled if I don't pay them $1800 immediately. My spouse is going to turn 82 soon and we have fixed... Read More
0 / 10
Mid December of 2019 I received a letter in the mail asking for a copy of my sister in law’s death certificate. I had no idea about this policy, but they have somehow found me. I called them back the next day and was told I can’t receive any information about the policy before sending a copy of the death certificate. After sending it I called again. This time they said they cannot provide me with any information and they would send a death claim form. Today - a month and half... Read More
5 / 10
I purchased together with my husband an Old Life Term insurance policy, about two decades ago. At some point they were bought out by AIG. Our policy was ending in December 2019 so on November we called to let them know we don’t wish to renew the policy.The person we spoke with stated he terminated the policy and stopped the automatic monthly payment. He also told us to ignore any correspondence from AIG.
0 / 10
AIG do not care about peoples emotions when they lose a loved-one. On March 6 2019 my brother who had an insurance policy and had my mother as a beneficiary - passed. My mother passed 5 years prior to his death. I am the only member left in my family, after my father passed on January 2019. I have been on a battle agains AIG after discovering all the insurance policies that my mother has purchased. AIG reps are so irresponsible, nasty and the least friendly people I have ever had to... Read More
0 / 10
AIG just delay and ignore your claims and hold on to your money, for as long as they possibly can. I had a horrible experience having to deal with the death of a family member, and then AIG denied my Pay on Death policy, saying they have lost it, or never got it or need more paperwork and documents that they’ve never mentioned before… Their latest trick was telling me that the files I sent care not visible on their system… And I sent HARD COPY notarised original documents! What are... Read More
0 / 10
MY agent has connected me to AIG for life insurance policy. Realizing we can’t meet with the monthly premium no more, they said my agent had to cancel the policy and that I could not do anything about it. At first I Wanted to switch to a cheaper monthly payment but they said I would have to wait an ENTIRE YEAR before I could switch… What kind of business practices is this??? Since they wanted nothing to do with my money, I chose to cancel my policy permanently and find another... Read More
0 / 10
In the last 3 months I’ve been talking on the phone with AIG multiple times, every single week, trying to fix my problem. It takes at least 10 minutes to get a customer service rep to talk to you. When you finally reach one, they would just tell you it takes their system 24-48 hours to update, that they can’t communicate with other departments in the office, or get any information and so on… It takes forever and a half to locate your supervisor and if you do reach them (which... Read More
0 / 10
AIG is a fraud beyond all reason and I would never ever go back to them. They kept sending me termination messages, even tho I kept paying the monthly premiums. There is no way to get a proper customer service. They kept saying we were sending the checks to the wrong address, even tho they kept on cashing them out… Scammers!!!
0 / 10
I bought life insurance policy with AIG. The entire initial process and set-up were pretty easy. But it all went down the drain from that point. I would NEVER receive a message with the auto-pay dates and never got a link to access eService online.. Before noticing, a month has passed and still they didn’t contact me. I researched online and came across eService to make payments on my own. A few more months went by and suddenly I received a message saying my policy was about to... Read More
0 / 10
It’s been two years now and I’m still waiting on my refund from them. I have lost both my daughter and my fiancee in December of 2017. My fiancee had life insurance for both of them. I have been chasing AIG around with phone calls and emails.. The last rep I was talking to was on a vacation. Must be really nice… I don’t know what that feels like as I am in too much debt - 2 funerals are not a cheap matter. “You need his medical forms” so I was told. Together with my... Read More
0 / 10
My husband is insured with AIG company and they have the worst customer service by far, to my knowledge and personal experience! They had only sent us a notice of pending termination but would NEVER send the bills. Months ago I complained about it but nothing have changed. Their documents keep saying "the policy will terminate unless payment is recovered by.....(date)." And that was on the very FIRST billing for the premium.. I was never able to make payments through their website,... Read More
0 / 10
I have life insurance with AIG and get quarterly bills. I pay it online on the same day I receive the bill - EVERY TIME - and every time about a month or so later, I receive a letter saying that the policy has lapsed because of unreceived payments… Seems like they are trying to trick people into not paying our what they need, when time comes. I do not recommend AIG!
0 / 10
I was lied to by AIG agents on two separate events, which ended up hurting me financially. As for now I seriously doubt that they would pay Seth benefits to my beneficiary, after I’m gone… I do no recommend AIG to anyone. If I didn’t lose all the money I already paid, I would cancel my policy in a heartbeat. Their customer service issues must be taken care of but I seriously doubt this would ever happen. They keep saying that they reputable and have been in business for a century,... Read More
0 / 10
I filed a claim and completed the paperwork process for my cousin with special needs who suddenly passed away. She was all alone with no siblings or parents alive, so my mother and I had to take care of all the funeral expenses. This had us taking a second mortgage. After a whole month with no response from AIG I started calling them every single day to inquire about the claim process status. I was then told that this would take additional two or three more business days. Reading the... Read More
0 / 10
The worst insurance company EVER… Do not use them for anything! I filed a claim and they would not even consider paying it. It felt like I was talking to a bot. Do not use them - scammers! AIG is a SCAM!!!
0 / 10
My life insurance policy is supposed to expire when I reach 74. However at the age of 74, my insurance could become unaffordable. AIG sent an agent to my house with life insurance policy. He totally misrepresented the policy where if I used the money as an annuity I would still provide the full investment as a life policy to my wife. And the annuity would be life-long which is important since my wife was younger than me. The agent filled up wrong details in my application and... Read More
0 / 10
We are all in deep trouble, if AIG is considered to be one of the best insurance companies… Their customer service is really horrible! AIG do great when it comes to taking your money but when they need to resolve situations and issues - it’s a menace! Calling customer service for any need? God help your soul. The minute they pick up the phone you can sense the incompetence and lack of professionalism. I would prefer talking to a robot than to have to listen to their reps while... Read More
0 / 10
My mother had two life insurance accounts that I have been trying to claim after her death. It has been 6 months so far with no success. We were never given any explanation as to what the problem is. We only got excuses like "our legal department is reviewing your death claim, still"! Feels like AIG is stalling on their claims, just so they could show a profit for the quarter. Judging by my own experience with them, my sister considered moving there account to another insurance... Read More
0 / 10
I used to be insured with Valic until AIG squired them and that’s where my issues with this company began. Their reps are so nasty, they kept “forgetting” my scheduled appointments. I sent them paperwork with the Plan With Ease Part that is a part of CPS. They then asked me for all kinds of different information, that was not mentioned before. I sent them all the other information and paperwork as requested using email and fax. All their email-responses to any question I had contained as... Read More
0 / 10
AIG’s financial advisor kept harassing my mom for four straight days, trying to take out one of their policies which was much more expensive than what she had paid for with the other company that she has been with for many years. I filed a complaint with them and also with FSA. AIG’s advisor turned a little aggressive with his tone of voice and did not appreciate the fact that I cancelled his cold-call pressure sold product.
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