Finder makes money from featured partners, but editorial opinions are our own. Advertiser Disclosure

Compare $5 million life insurance policies

Whether it’s for estate taxes or paying off debt, choose the type of policy that aligns with your financial planning.

You may need a $5 million life insurance policy to cover major expenses or leave an inheritance for your family. But you’ll need approval by the insurance company for this level of coverage, based on your income level, age and health status. When choosing the right policy for you, consider whether or not your financial obligations will last your lifetime and whether you want an investment aspect to your policy.

What’s the cost of a $5 million life insurance policy?

A healthy 30-year-old man will pay about $131 per month for a 20-year term life policy at this coverage level. Similarly, a 30-year-old woman can buy the same policy for $99 per month.

However, a 30-year-old man who smokes can pay around $620 per month for a$5 million policy, while a woman who smokes might pay $485 per month. These show a huge difference in the premium you could pay, based on personal factors like your age, health and lifestyle habits.

* Based on sample rates from Policygenius, August 2020

$5 million in term vs. whole life insurance

You might choose a $5 million term life policy if you need a lower premium or expect your financial needs to go down over time. However, if you outlive your term life policy, you’ll have to qualify for a new policy if you still need life insurance. In this case, you’ll pay a higher premium since you’ll be older and may have pre-existing health conditions.

On the other hand, a $5 million whole life policy will cost significantly more than a term life policy, but the coverage lasts for your entire lifetime and builds cash value. Consider whether you can pay the higher premiums and whether you’ll need this level of insurance after your children have grown or you pay off your mortgage and other debt. A whole life policy benefits you if you expect your financial responsibilities to last well into retirement or beyond.

Another option is to choose a term policy that can convert to permanent life insurance later. With a convertible term life policy, you won’t have to take another medical exam or health questionnaire when converting to permanent life insurance. However, you’ll have to watch timelines since you must convert by a specific deadline written in your policy.

How to qualify for a $5 million life insurance policy

To qualify for a $5 million policy, you’ll need to meet age and income requirements set by the insurance company. You may need to:

  • Earn $250,000–$500,000 per year in income. Insurers typically offer 10 to 20 times your current annual income as the maximum coverage you’re allowed.
  • Have stable employment. Some insurers prefer the stability of working for a corporation to working as an independent contractor.
  • Apply at a young age, such as your 30s. This increases your chance of qualifying because insurers consider your earning potential and present and future financial obligations. However, you can apply at an older age.

Count on taking a medical exam

A $5 million policy requires a medical questionnaire and a 20- to 30-minute medical exam that you can schedule at your leisure. You may have the option to request temporary life insurance coverage while you wait for your test results. If you qualify, the temporary policy may be capped at $1 million instead of the full $5 million.

If you’re looking to bypass the medical exam, you’ll have to settle for much less coverage. Policies without medical underwriting, such as simplified issue and guaranteed issue life insurance, usually cap at $250,000 in coverage.

Will my current health problem disqualify me?

Not necessarily. If you can prove that your condition is managed by medication and a doctor’s care, you may qualify. But a past heart attack or cancer diagnosis will raise your premiums or disqualify you for the policy.

A $5 million policy helps with significant expenses

How much coverage you need depends on your family’s lifestyle, future financial needs and how much your family depends on your financial contribution. Estate planners recommend buying coverage at five to 10 times your annual salary. Expenses to consider when deciding whether a $5 million policy is right for you:

Protect your loved ones
Compare 12+ top insurers side-by-side to get the best possible deal, and shop return of premium policies online.

Need help? Talk to a customer specialist

  • Mortgage. Consider the monthly expense of your home, how much you owe and how long it might take your family to pay off your mortgage. If you’re seeing high numbers, consider a policy to match.
  • Tuition. Whether your kids are in private schools or planning for college education, factoring in tuition expenses can ensure your children get the education you want for them, even after you’re gone.
  • Long-term care. If you’re responsible for elderly or ill family members, life insurance can go a long way to help cover their medical care and future expenses in your absence.
  • End-of-life expenses. Funeral costs and hospital stays can eat into the money your family needs to get by. Planning to cover these costs with your life insurance money can ensure your family can stay afloat.
  • Business costs. Consider whether your business is one you want to keep in the family, or if you simply need to help cover expenses until the business can be sold.
  • Estate taxes. If you have an estate worth over $11.58 million, the 2020 estate tax threshold, your life insurance can help pay the taxes to keep your family from having to sell off assets to foot the bill.

Compare life insurance policies with high coverage

See your options for life insurance with million-dollar payouts. Then, choose Go to site to start your personalized quote.

Name Product Issue age Minimum Coverage Maximum Coverage Term Lengths Medical Exam Required
Policygenius - Life (Compare Landing Page only)
18 - 85 years old
10, 15, 20, 25, 30 years
Depends on provider and policy
Compare 12+ top insurers side-by-side to get the best possible deal, and shop return of premium policies online.
20 - 60 years old
10, 15, 20, 25 or 30 years
No, for coverage up to $3M
Apply for term life insurance online without the medical exam. Get an instant decision and adjust your coverage at no charge.
Everyday Life
18 - 70
10, 15, 20, 25, 30, 35 and 40 years.
Ladder multiple life insurance policies to save on the coverage you need for all your debts.
JRC Life Insurance
18 - 85 years old
10, 15, 20, 25, 30, 35, 40 years to lifetime/age 121
May be required
Compare policies up to $10 million from 45+ top insurance companies with the click of a button.
Nationwide life insurance
18 - 80 years old
10, 15, 20 and 30 years
Get term, whole, universal or no-exam life insurance with up to $1 million in coverage.
18 - 80 years old
10, 15, 20, 30 and 40 years
Depends on provider and policy
Score the lowest rate on life insurance by comparing no obligation quotes from 14+ companies online. No contact info, no spamming.

Compare up to 4 providers

Bottom line

A $5 million life insurance policy can cover major expenses like estate taxes and leave your loved ones with no financial worries after you’re gone. However, the type of policy you choose — term or permanent life — depends on whether your financial obligations will decrease over time as well as whether you’re using it for estate planning or building cash value. Consider a variety of life insurance options to get the most out of the policy you choose.

More guides on Finder

Ask an Expert

You are about to post a question on

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked provides guides and information on a range of products and services. Because our content is not financial advice, we suggest talking with a professional before you make any decision.

By submitting your comment or question, you agree to our Privacy and Cookies Policy and Terms of Use.

Questions and responses on are not provided, paid for or otherwise endorsed by any bank or brand. These banks and brands are not responsible for ensuring that comments are answered or accurate.
Go to site