3 Million Dollar Life Insurance Policy

Three million dollar life insurance policy rate chart

If you’re reading this article then you are likely in the market for a 3 million dollar term life insurance policy. While three million dollars may sound like a lot of money, it is right amount of life insurance coverage many Americans should have to properly protect their families or business.

How Much Is A $3 Million Term Life Insurance Policy?

Now let’s take a look at exactly how much a three million dollar term life insurance policy costs. These rates are for a 35-year old male, in excellent health.

  • A $3,000,000 10-year term life insurance policy is priced at $539 in annual premiums, and a 20-year term costs $1,001 a year.
Insurance CarrierAnnual Premium
Lincoln Financial$539
AIG (American General)$591
Pacific Life$599
Symetra $634
Protective Life$644
Nationwide$645
Transamerica$660
Mutual of Omaha$722
SBLI$780
Ameritas$800
AAA Life$810
State Farm$850
Banner Life$914
Cincinnati Life$1,095
Primerica$1,065
New York Life$1,112
John Hancock$1,132
Prudential$1,345
Northwestern Mutual$1,497
$3 million term life insurance policy rate chart

*Date of birth 6/1/1987, 35-year old male, excellent health, non-smoker

Pro Tip: Only choose a life insurance company that has received an A (Excellent) or A+ (Superior) financial rating from A.M. Best.

Underwriting A 3 Million Term Life Insurance Policy

The underwriting for a 3 million dollar term life policy is similar to the underwriting for any other life insurance policy. It requires a no-cost paramed that consists of: height, weight, blood pressure and a small blood and urine sample. Some companies may require an EKG or financial questionnaire depending on your age.

Each life insurance company has their own underwriting guidelines so it is best to speak with your agent.

Laddering/Layering Your Coverage

A popular strategy to reduce the cost of life insurance is to “ladder” or “layer” your coverage. This simply works by getting two policies for two different terms to meet your needs.

For example, a 45-year old male with a good income, has two children ages 12 and 13, a wife and a good size mortgage. After a needs analysis, he needs $3 million in coverage to adequately protect his family.

To ladder his coverage which will save him money on monthly premiums and provide more flexibility (can cancel one of the policies at anytime if doesn’t need the $3 million in coverage), he gets a $1 million policy for a 10-year term to protect his children until they are out of college for $46 month and a $2 million 20-year term to protect his income until retirement age and his mortgage until it’s paid off, primarily to protect his wife for $169 month. This way he has $3 million of life insurance coverage for the next 10 years when he needs it most then it drops to $2 million for the last 10 years until he retires, the mortgage is paid off and his kids are in their 30’s. By laddering or layering his policies he saves him over $8k over the course of the policy while providing proper protection he needs.

Quoting A 3 Million Life Insurance Policy

Receiving instant quote comparisons for a $3 million term life insurance policy is very quick and easy. The quote engine on our site lists the top life insurance companies and their rates in order from lowest to highest. The quote engine goes up to ten million dollars in coverage, so feel free to compare several different coverage amounts and policy lengths.

If you need instant life insurance quotes for $3,000,000 of term life insurance or permanent life insurance, it is one click away.

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Rates updated 6/1/2022

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