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Who needs a $3 million term life insurance policy?

When shopping for a $3 million term life insurance policy, there are five questions you need to ask yourself.

For many of us, merely talking about receiving a $1 million term life insurance policy feels like discussing a life-changing amount of money. And yet, that can be the right amount of coverage for many families—a figure that can help with a myriad of debts, daily living and future expenses for the loved ones left behind in the event of your death.

Talking about a $3 million term life insurance policy feels like discussing, well, three times as much. The fact is, for some families, it’s the just-right amount of financial protection for their loved ones. And when you’re buying term life insurance, the monthly premium price for a $3 million policy may be more affordable than you think.

If you’re considering buying a $3 million term life insurance policy, there are a few things you should consider. For example, does a $3 million policy comfortably fit into your budget? Are you eligible for this policy amount? These questions, along with the other four below, will help you get the right coverage to protect your loved ones.

In this article:

#1 How much life insurance do I really need?

When it comes to life insurance, more is not always better. Here’s what we mean:

The purpose of life insurance is to help protect your loved ones financially if you were to pass away—after all, they will be the beneficiaries receiving that death benefit, which you understandably might want to be as large as possible, so that it can help cover a whole range of expenses. For that reason, it can be tempting to purchase as much coverage as possible.

However, the beauty of something like term life insurance is that it’s designed to be budget-friendly. Part of maintaining that affordability is getting the right amount of coverage — not so little that your loved ones’ financial security is in jeopardy, but not so much that you’re overpaying.

Fortunately, choosing the right policy is pretty simple. A tool like an online life insurance calculator will take into consideration your income, age, debts, and family structure to help recommend a policy that suits your needs.

For example, according to the life insurance calculator, this is the type of individual who might need a policy around $3 million: A healthy 35-year-old woman who has two kids (3 and 5), a working husband, earns $200,000 annually and owns a home in San Francisco. The median home sales price in SF is $1,500,000, so let’s assume her combined debt including her mortgage is $1 million. Our life insurance calculator recommends a 30-year, $2.6 million Haven Term policy, which will offer coverage until her 30-year mortgage is paid off and the kids are adults. The quote for this policy is $141.63 per month.

In the above scenario, it’s likely that both the wife and her husband will need individual policies to help financially protect each other. (More on when both spouses need life insurance here.)

Life insurance needs aren't one-size-fits-all.

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#2 How much will a $3 million life insurance policy cost?

The cost of a life insurance policy is determined by a variety of factors including your age, gender, health, chosen term length, and the value of the policy itself. The younger and healthier you are, the less your policy will cost. Additionally, the shorter the term length, the lower the life insurance premiums. The latter brings us back to our earlier point about why it’s important to use a life insurance calculator so you buy the right coverage for your needs – it can save you money over the long-term.

Below are some sample life insurance quotes for individuals in excellent health buying a $3 million Haven Term policy.

Quotes for a $3 million term life insurance policy

AgeGenderTerm lengthFace amountPremium
30Male30 year$3 million$174.57
Female30 year$3 million$134.42
35Male20 year$3 million$96.27
Female20 year$3 million$82.22
40Male15 year$3 million$107.45
Female15 year$3 million$93.52
45Male10 year$3 million$139.10
Female10 year$3 million$119.47
Source: Haven Life Insurance Agency
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#3 Am I eligible for a $3 million life insurance policy?

This is the question that can render the others moot. That’s because, to apply for a $3 million Haven Term policy, you will need to be eligible based on your age and income. Depending on your age, the maximum life insurance coverage you can purchase is anywhere from 10x to 30x your income. For instance, this means that a healthy 30-year-old would need to earn at least $100,000 per year to be eligible for a $3 million Haven Term policy.

#4 How do I buy a $3 million life insurance policy?

As with any insurance coverage, the process of getting a $3 million term life insurance policy begins with getting a quote and then filling out an application, both of which you can do online with forward-thinking life insurance agencies like Haven Life. That said, it might not be possible to apply online for this level of coverage everywhere since it’s a more substantial amount of coverage.

When purchasing a $3 million policy, it’s most likely going to be medically underwritten, which means that the insurer is going to look at factors like your lifestyle, health, and medical history to determine eligibility and pricing. For many people, medically underwritten policies are more affordable because pricing is based on your health and other known factors so the insurer is taking on less risk from the lack of unknowns.

For a medically underwritten policy that’s offering $3 million in coverage, you will need to take a medical exam to finalize coverage. The medical exam takes about 20 minutes and can be scheduled at a time and place of your choosing. Often, you can get some amount of temporary coverage while you wait to complete your exam and get a final decision.

#5 Is my life insurance coverage dependable?

Life insurance companies receive ratings from third-party agencies, who independently analyze their financial strength and ability to fulfill its contractual obligations to pay out a policy.

When shopping for life insurance coverage – no matter how much you’re purchasing – it’s important to research the ratings of the issuing insurance company you’re considering. Just as you’d do with any goods or products, you buy online. Most companies clearly (and proudly) display their ratings. It doesn’t hurt to check out life insurance reviews from customers either.

Buying the right coverage for you and your loved ones

In the end, it’s all about getting the right amount of coverage that will help financially protect your family if you were no longer around —whether that’s $500,000 or $3 million. Fortunately, it’s easier than ever to quickly learn how much you really need, and to discover peace of mind, at any price.

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About Louis Wilson

Louis Wilson is a freelance writer whose work has appeared in a wide array of publications, both online and in print. He often writes about travel, sports, popular culture, men’s fashion and grooming, and more. He lives in Austin, Texas, where he has developed an unbridled passion for breakfast tacos, with his wife and two children.

Read more by Louis Wilson

Our editorial policy

Haven Life is a customer-centric life insurance agency that’s backed and wholly owned by Massachusetts Mutual Life Insurance Company (MassMutual). We believe navigating decisions about life insurance, your personal finances and overall wellness can be refreshingly simple.

Our editorial policy

Haven Life is a customer centric life insurance agency that’s backed and wholly owned by Massachusetts Mutual Life Insurance Company (MassMutual). We believe navigating decisions about life insurance, your personal finances and overall wellness can be refreshingly simple.

Our content is created for educational purposes only. Haven Life does not endorse the companies, products, services or strategies discussed here, but we hope they can make your life a little less hard if they are a fit for your situation.

Haven Life is not authorized to give tax, legal or investment advice. This material is not intended to provide, and should not be relied on for tax, legal, or investment advice. Individuals are encouraged to seed advice from their own tax or legal counsel.

Our disclosures

Haven Term is a Term Life Insurance Policy (DTC and ICC17DTC in certain states, including NC) issued by Massachusetts Mutual Life Insurance Company (MassMutual), Springfield, MA 01111-0001 and offered exclusively through Haven Life Insurance Agency, LLC. In NY, Haven Term is DTC-NY 1017. In CA, Haven Term is DTC-CA 042017. Haven Term Simplified is a Simplified Issue Term Life Insurance Policy (ICC19PCM-SI 0819 in certain states, including NC) issued by the C.M. Life Insurance Company, Enfield, CT 06082. Policy and rider form numbers and features may vary by state and may not be available in all states. Our Agency license number in California is OK71922 and in Arkansas 100139527.

MassMutual is rated by A.M. Best Company as A++ (Superior; Top category of 15). The rating is as of Aril 1, 2020 and is subject to change. MassMutual has received different ratings from other rating agencies.

Haven Life Plus (Plus) is the marketing name for the Plus rider, which is included as part of the Haven Term policy and offers access to additional services and benefits at no cost or at a discount. The rider is not available in every state and is subject to change at any time. Neither Haven Life nor MassMutual are responsible for the provision of the benefits and services made accessible under the Plus Rider, which are provided by third party vendors (partners). For more information about Haven Life Plus, please visit:

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