$4 Million Life Insurance Policy- Best Rates

Why Four Million Dollars Of Life Insurance Coverage?

There are several reasons why one would need a $4 million life insurance policy. Some of the most common reasons include:

  • Income replacement
  • Mortgage protection
  • Estate Planning (taxes)
  • SBA Loan
  • Business loan
  • Cover debts (business, personal)
  • Key person life insurance
  • Divorce agreement
  • Buy-Sell Agreement

Importance of Receiving Multiple Rate Quotes From Different Insurers

The premiums for a four million dollar life insurance policy can vary greatly from one insurer to next. As seen with the sample rates below, the company with the lowest rate in the country compared to the company with the one of the highest rates in the country is a difference of over $254 month! If you do the math on that savings per year it comes to over $3,000 and $30,489 savings over the course of the policy. This is just on a 10-year term. The longer the term the more the savings difference would be.

$4 Million Life Insurance Policy CostTop 29 Companies

Below is a list of the top 29 life insurance companies, in order by price from lowest to highest for a 4 million dollar life insurance policy.

This is for a 10-year level term for a 50-year old male, in excellent health. D.O.B. 1/5/1971.


Protective Life Insurance Company
Protective Life Insurance Company



Lincoln Financial Life Insurance
Lincoln National Life Insurance Company



Principal National Life Insurance
Principal National Life Insurance Company



Pacific Life Insurance Company
Pacific Life Insurance Company



AIG (American General Life Insurance company)
AIG (American General Life Insurance Company)



Transamerica Life Insurance Company
Transamerica Life Insurance Company



SBLI (Savings Bank Life Insurance Company)
SBLI (Savings Bank Life Insurance Company)



John Hancock Protection Term
John Hancock Life Insurance Company



Nationwide Life Insurance Company
Nationwide Life and Annuity Insurance Company



North American Life Insurance Company
North American Company for Life and Health



ANICO- American National Life Insurance Company
American National Insurance Company



Ohio National Life Insurance
Ohio National Financial Services



Principal Life Insurance Company with Term Insurance with Conversion Extension
Principal National Life Insurance Company- Conversion Extension



Banner Life Insurance Company
Banner Life Insurance Company



Guardian Life Insurance Company
Guardian Life Insurance Company



Protective Life Protective Custom Choice UL
Protective Life Insurance Company- Choice UL



MassMutual Vantage Term
Massachusetts Mutual Life Insurance



State Farm Life Insurance Company
State Farm Life Insurance Company



Securian Financial Life Insurance
Securian Financial



Prudential Life Insurance (Pruco) Term Essential
Prudential Life Insurance Company (Pruco)



Mutual of Omaha Term Life Answers
Mutual of Omaha Life Insurance Company



Ladder Life Insurance Company
Ladder Life

$357.00/month ($11.90 a day)


Sagicor Life Fully Underwritten
Sagicor Life Insurance Company



Thrivent Financial for Lutherans
Thrivent Financial for Lutherans



AAA Life Insurance Company
AAA Life Insurance Company



Primerica Life Insurance Company
Primerica Life Insurance Company



New York Life Insurance Company
New York Life Insurance Company



Assurity Life Insurance Company
Assurity Life Insurance Company



Northwestern Mutual Life Insurance
Northwestern Mutual Life Insurance


Additional Sample Rates

Amount of Insurance: $4,000,000

Length of Term: 20 Years

Age: 45

Gender: Male

Health Class: Preferred Plus

Birthday: March 5th, 1976

Age Nearest: 45

Actual Age: 45

#Company NameAnnualMonthlyQuarterlySemi-Annual
1.Lincoln National Life Insurance Company$3,862.36$337.97$1,011.94$1,989.12
2.Principal National Life Insurance Co$3,910.96$336.34$1,026.63$2,004.37
3.Sagicor Life Insurance Company$3,911.44$342.25$1,024.80$2,033.95
4.Symetra Life Insurance Company$3,921.80$343.16$1,039.28$2,019.73
5.Penn Mutual Life Insurance Company$3,926.00$337.64$1,020.76$2,002.26
6.Protective Life Insurance Company$3,937.40$334.68$1,063.10$2,047.45

Things to Consider When Shopping for a Four Million Dollar Life Policy

The life insurance premiums listed above are for a healthy 50-year old male on a 10 year fixed term. America has over 700 life insurance companies in 2021 and each one has their own price and underwriting guidelines for a $4 million policy. So while you may qualify for a Preferred Plus health class (top health class) with one company you may be a Preferred health class (second best health class) or even higher rate class with another company which will increase the monthly premiums significantly.

Height & weight, blood pressure reading, cholesterol reading, family history, and many other factors (diabetes, sleep apnea, etc.) will determine which life insurance company will have the lowest rates for you. Even one pound on the rate chart can equate to a higher premium and cost you thousands of dollars by not selecting the correct insurer. Take the time and receive rate quotes from multiple life insurance companies or take advantage of a broker who can do the shopping for you and knows the the guidelines for the top companies so you can have peace of mind you are receiving the best rate.

Consider “Laddering” Your Life Insurance Coverage

A savvy strategy I recommend to some of my clients is called “laddering”
or “layering” their life insurance. The way it works is that instead of having one policy for $4 million for say a 20 year term, you can have two policies. The first would be a $2 million 20 year term and the other is $2 million for 10 years. This would provide $4 million in protection for the next 10 years then $2 million for the last 10 years.

Say you are married, have two teenagers and a mortgage. If anything happens to you in the next 10 years while the kids are still dependent on you, while they’re in school or college, and you were to pass, the family would receive for $4 million in life insurance proceeds, income tax free.

In 10 years from that point, the first policy expire and the 2nd policy for $2 million is still in place for the remaining 10 more years to protect your spouse, income, mortgage etc. By the end of the 10 years (20 years from now) the need for life insurance is greatly reduced or hopefully even eliminated as you will have assets and if everything goes to plan, be self-insured.

By laddering or layering your policies, you can save thousands or even tens of thousands of dollars. Also, you have the flexibility to drop a policy at any time if you don’t need the full amount of coverage. For example, a 45-Year old male, excellent health $2 million 10 year term= $87.50 month,45-Year old male, excellent health $2 million 20 year term= $170.11 month total = $257.61 month. Compare this to a $4 million 20 year term policy= $334.68 month. This is over a $9k savings in just 10 years!

The monthly and annual savings by laddering your life insurance policies and going this route, you can invest the savings difference in your 401k, IRA, stock market, 529 or you pay off your mortgage faster. Again, ideally this is going to expedite your goal of being self-insured.

Compare Rates

When seeking a $4 million life insurance policy it’s imperative to compare rates from multiple life insurance companies to ensure you’re receiving the best rate in the country. As seen above, the prices vary significantly from one insurer to the next based on age, height & weight, health history, family history, driving record, etc. Save time, instead of calling each company individually to receive a quote, take advantage of our instant quoter to receive rates from all the top companies immediately side-by-side.

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