$10 million life insurance is a policy that pays out a $10 million death benefit to your beneficiaries when you die. If you have a high net worth or significant personal or professional financial protection needs, a $10 million life insurance policy may be right for you.
What is a $10 million life insurance policy?
A $10 million life insurance policy can refer to any type of life insurance with a coverage amount — also called the face value — that equals $10 million. This means that if you die while the policy is active, your beneficiaries can file a claim for $10 million.
Who needs a $10 million life insurance policy?
$10 million is a significant amount of coverage — though you may need it for varying purposes, related to either personal assets or business needs.
These are some of the reasons why you might need a multi-million dollar policy.
Income replacement: Even if you earn a very high income, it often makes sense to pay a relatively nominal premium in order to protect it. This way, if something were to happen to you, your family would be able to maintain their lifestyle without sacrificing any other hard-earned assets.
Estate planning: Life insurance can be used to offset estate tax. If your estate is valued over $12.92 million, life insurance can be used to pay any excess taxes in order to guarantee an inheritance. 
Key person insurance: If you’re a key executive at a large company, your employer may take out a high-value life insurance policy on you to protect the company from profit losses if you were to die.
Buy-sell agreement: This type of arrangement can guarantee that a business is able to continue if a partner dies. It’s a contract between co-owners of a business that holds that if one dies, the death benefit of the life insurance policy is used to purchase their portion of the company.
If you’re not certain if your personal or business-related financial needs warrant a policy with $10 million worth of coverage, it’s generally best to consult a financial advisor.
Who can qualify for a $10 million life insurance policy?
If your financial protection needs for either your family or your business add up to $10 million or more, you’ll likely qualify for a policy with that coverage amount.
For high-value policies like these, the insurer will take a holistic look at your assets and financial profile to ensure that the coverage is a fit.
Insurance companies also typically use income multipliers for financial justification, which places applicants into brackets that determine how much coverage they qualify for.
Usually, the younger you are, the higher the coverage amount you’re likely to get approved for. For example, if you’re in your 20s or 30s, you may qualify for a death benefit up to 30 times your income. If you’re in your 60s, you may do so for up to 10 times your income.
Below is an example of how much life insurance you’re likely to qualify based on your age, though every insurer has its own guidelines.
Age 18 to 40: 25x to 30x income, or sometimes higher
Age 41 to 50: 20x income
Age 51 to 60: 15x income
Age 60 to 65: 10x income
Age 66 and above: 5x income
The idea is that the older you are, the fewer working years you’ll have left, and the less income you’ll need to replace.
For instance, if you’re 40 years old and making $500,000 annually, a $10 million policy equals 20 times your income. Therefore, you’d be able to qualify for a policy with this coverage amount.
If you’re not certain you would qualify for a $10 million life insurance policy, a Policygenius agent can help you look at your options across the country’s top insurers.
What types of policies offer a $10 million payout?
Term life insurance and permanent life insurance — the two main types of life insurance — can both offer payouts of $10 million.
Term life insurance is one of the most common life insurance options on the market — and all the coverage that most families need. It lasts for a set number of years and comes with few tax rules and restrictions. Term life is significantly cheaper than permanent life insurance policies. Generally speaking, if you’re looking for a coverage option to make sure your family won’t suffer financially in your absence, term life is your best bet.
Whole life insurance — one of the most popular types of permanent life insurance — can be an option for people looking to use life insurance to diversify their investment portfolio, or those with permanent financial needs, like dependents who require lifelong care or specific estate planning goals. Whole life is much more expensive than term life, since it doesn’t expire and it also comes with a cash value component.
Universal life insurance is another type of popular permanent coverage. It offers more flexibility because you can increase or decrease how much you pay toward premiums, and you can eventually use your cash value to cover your premiums entirely if you so choose.
A financial planner or insurance professional can help you determine which type of life insurance is best for you. If you have a high net worth, a combination of both term life and permanent life insurance might be the right approach to fulfill your financial protection needs.
How much does a $10 million life insurance policy cost?
Whole life insurance can be five to 15 times more expensive on average than a comparable term life policy — but the discrepancy with $10 million worth of coverage can be even higher.
For instance, a 40-year-old woman might pay $500 per month for $10 million of term life coverage, but around $11,000 per month — or 22 times more — for $10 million of whole life insurance coverage.
Your exact rates will depend on your age, health, gender, and lifestyle factors, as well as the type of policy you’re purchasing.
A Policygenius agent can help you find the right coverage for you at the cost you’re looking for.
Term life rates vs. whole life rates
$10 million coverage amount, 20-year term life
$10 million coverage amount, whole life
How to buy a $10 million life insurance policy
You’ll buy your $10 million policy much like you would any other policy — but there will be a few extra requirements.
First, you’ll connect with a licensed agent. You can compare life insurance quotes and complete your application. This includes filling out some basic identifying information, plus details about your health and financial needs.
Next, you’ll complete a medical exam. The medical exam is a standard part of the application process, especially if you’re applying for more than $3 million in coverage. The exam is similar to an annual physical at your doctor ’s office — a licensed practitioner usually conducts the exam at your home or office and it takes about 30 minutes.
The insurance company will typically request additional information to confirm your health status and finances. You’ll fill out a few extra forms about your finances and your tax information. Many companies require an EKG (also abbreviated ECG, or electrocardiogram) in addition to the standard physical.
After that, you’ll wait for the insurance company to review your application and exam results. This is called underwriting, and the process takes about four to six weeks on average.
Once you have your final policy offer, you can sign the policy documents to make your coverage active. Your policy will remain active for the duration of the term, or as long as you continue to make premium payments.
What are the requirements for a $10 million life insurance policy?
Life insurance companies often have extra requirements in place for multi-million-dollar life insurance policies.
Financial questionnaire or tax transcript form (4506-C). It’s common for insurers to require income verification or additional details on your finances to ensure that the coverage is appropriate. Your agent or broker can help you along the application process if the insurance company requests extra documentation.
Attending physician statement (APS). An APS is a form from your doctor that essentially summarizes your health. It’s a relatively common part of the underwriting process, especially for people with health conditions, but if you are applying for $10 million of coverage and are over the age of 60, many insurers automatically require an APS so they can accurately assess your health risk and determine your premiums.
Electrocardiogram (ECG/EKG). If you’re over the age of 50 and applying for $10 million worth of coverage, it’s common for insurers to request an EKG in addition to the standard medical exam.
Every insurer may have slightly different guidelines when it comes to extra requirements for life insurance policies with high coverage amounts — but a Policygenius agent can help you navigate the whole application process with confidence
At Policygenius, we can help you compare top insurers in one place to find the one that’s best suited for your profile and financial needs. Our experts are licensed in all 50 states and can walk you through the entire life insurance buying process while offering transparent, unbiased advice.
Best companies for a $10 million life insurance policy
The best life insurance company for you will depend on your unique circumstances and financial protection needs. When applying for $10 million of life insurance coverage, many insurers will have similar requirements.
The vast majority of Policygenius partners offer $10 million policies. Below are a few that could be ideal if you’re applying for multi-million-dollar life insurance policies.
Pacific Life is an A+ rated company according to AM Best. When it comes to applying for high coverage amounts, it’s particularly flexible. For example, it doesn’t require an EKG if you’re above a certain age or applying for a high coverage amount. This helps streamline the application and underwriting process and gets you coverage faster. Pacific Life’s rates can also be cheaper than those from other insurers.
Corebridge Financial is an A-rated, reputable company with affordable premiums compared to the rest of the life insurance market. If you’re applying for $10 million of coverage or more, you’ll fill out additional paperwork on your finances, but the company only requires an EKG if you’re age 71 or older.