Head of Content
Former Senior Protection Advisor
A £1 million life insurance policy is a substantial amount of coverage, so it’s important to do your research and seek professional advice before applying for a plan of this size.
Here you will learn how to get life insurance cover for this amount, what it costs, how much it will potentially pay out and much more.
Can you get a £1 million life insurance policy?
Yes. Under the right circumstances it is possible to get a life insurance policy for the amount of £1,000,000 or more, but not all protection insurance providers will offer cover this high, and the ones that do often place greater scrutiny on applications for plans of this size.
If you are applying for a policy worth £1 million or more, expect the insurer to take a close look at your financial situation to ensure you can afford the premiums. They may also request that you attend a medical, especially if you have existing health issues, a family history of specific medical conditions, or there are risk factors related to your lifestyle.
Given that life insurance policies for £1 million are more difficult to come by than smaller amounts of cover, seeking professional advice before you proceed is a must.
We work with life insurance advisers who are experts when it comes to securing high value policies, and they can boost your chances of a successful outcome.
How much does a £1 million life insurance policy cost?
The average cost of a £1,000,000 life insurance policy at the time of writing (February 2025) is anywhere between £25.73 per month and £37.42 per month. This is based on a market comparison for a 30-year-old male with no existing health conditions or risk factors.
These figures are for a £1 million life insurance policy that would cover you for 25 years, taken out on a level term basis, but keep in mind that premiums can vary dramatically.
The actual cost of your coverage will depend on a range of different factors, including your general health and the type of policy you choose. Read on to find out more…
Factors that will affect the cost of your insurance
The cost of a £1 million life insurance policy will depend on the premium the insurer sets, and they will decide what to charge for it based on the following factors:
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Age: The older you are, the more your coverage is likely to cost.
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Amount of coverage: Higher amounts tend to have more expensive premiums, which is why a £1 million life insurance policy can be costly.
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Health and lifestyle: Having underlying health conditions can drive up the cost, as can lifestyle choices such as drinking regularly and smoking. Having high risk hobbies such as scuba diving and rock climbing can also drive up your premium.
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Occupation: Working in a high risk occupation, like the police or the military, can increase your premium and drive up the cost of a £1 million life insurance policy.
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Policy type: Level plans have more expensive premiums than decreasing policies, while whole-of-life, over-50s and increasing term insurance tend to be even higher.
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Gender: Life insurance is slightly cheaper for women compared to men.
How age will affect your premiums
The table contains example figures to illustrate how the cost of a £1,000,000 life insurance agreement will increase in line with the age of the policyholder.
|
Age |
Monthly Premium |
|
20 |
£14.46 |
|
25 |
£19.05 |
|
30 |
£25.73 |
|
35 |
£38.21 |
|
40 |
£58.91 |
|
45 |
£93.57 |
|
50 |
£155.98 |
These figures are quotes from a leading UK insurance provider. They are presented here for example purposes and may not be representative of what you would qualify for.
How much more more will smokers pay
The exact amount extra smokers will pay for a £1 million life insurance policy compared to a non-smoker will vary depending on factors such as how many cigarettes you typically smoke per day and whether you have underlying health problems or a family history of them.
For comparison purposes: the average cost of a 25-year life insurance policy that provides £1 million of coverage for a non-smoker is between £25.73 and £37.42 per month, while the average cost for a smoker of 10 cigarettes per day is between £48.23 and £87.23 per month.
How to get a £1 million life insurance quote online
The best way to get a bespoke quote for a £1,000,000 life insurance policy is to have a whole-of-market life insurance adviser, like us, draw them up for you.
We are on panel with every insurer in the UK, which means we can advise on their products and often have access to exclusive deals from them. When we compile quotes for you, the deals we highlight will be personalised recommendations from across the entire market.
You will be presented with options from mainstream insurance providers as well as specialist insurers for those with complex needs, and we will offer expert advice on which to choose.
Get started with a free, no-obligation chat and access your quotes below:
Get your £1 million life insurance quotes today
How much a £1,000,000 life insurance policy pays out
The amount a £1 million life insurance plan will pay out will depend on the policy type you opt for. A level term policy will pay out the full million regardless of when you pass away during the agreement, while a decreasing or increasing term plan will pay out differently.
Decreasing term cover
The table below shows how much a decreasing term policy for £1,000,000k will typically pay out depending on which year of coverage you pass away during:
|
Year of Coverage |
Amount Paid Out |
|
Year 1 |
£930,971 |
|
Year 2 |
£856,419 |
|
Year 3 |
£775,903 |
|
Year 4 |
£688,945 |
|
Year 5 |
£595,032 |
|
Year 6 |
£493,605 |
|
Year 7 |
£384,063 |
|
Year 8 |
£265,759 |
|
Year 9 |
£137,990 |
|
Year 10 |
£0 |
We have compiled these figures based on a policy with a 10-year term length that decreases by 8% each year. The exact rate that your policy will decrease by may vary.
Increasing term cover
The table below shows how much an increasing term life insurance policy for £1 million will pay out over the course of 10 years, depending on when the policyholder passes away.
|
Year of Coverage |
Amount Paid Out |
|
Year 1 |
£1,045,000 |
|
Year 2 |
£1,092,025 |
|
Year 3 |
£1,141,166 |
|
Year 4 |
£1,192,518 |
|
Year 5 |
£1,246,181 |
|
Year 6 |
£1,302,259 |
|
Year 7 |
£1,360,861 |
|
Year 8 |
£1,422,100 |
|
Year 9 |
£1,486,095 |
|
Year 10 |
£0 |
The above figures are based on a policy with a payout that increases by 4.5% each year to remain above current inflation levels. The amount yours increases by may vary.
Why choose Teito for your £1 million life insurance quote?
Our whole-of-life insurance brokers are well placed to help you find the most competitive quotes for your £1 million life insurance policy.
Here are just some of the reasons our customers choose us:
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We are on panel with every insurer in the UK
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Our advisers can access exclusive life insurance deals
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We are 5-star rated on leading review websites
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You can access your bespoke quotes in seconds
Ready to take advantage of a free, no-obligation chat with a whole-of-market life insurance adviser to access your personalised quotes today? Get started here.
FAQs
Whole-of-life insurance has more expensive premiums than standard life insurance. The exact amount a police with this amount of coverage will cost will depend on the age of the applicant, their health and lifestyle, the policy type and other factors.
Choosing an Adviser
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Read reviews from previous clients and make sure they provide a clear explanation of the products and services they offer, as well as the fees and charges associated with them.