Term Life Last reviewed: 2026-10-03 Part of Term life

Term Life Insurance Cost by Coverage Amount

Written and reviewed by Hans Goldstein, licensed insurance producer, NPN 20602398 · CA Insurance License #4273294
Last reviewed October 3, 2026 · Published October 3, 2026

Short answer: term premiums rise with the face amount, but not in a straight line. Carriers price per $1,000 of coverage plus a flat policy fee, and most offer lower per-thousand rates at breakpoints such as $250,000, $500,000 and $1,000,000. That is why $1,000,000 of term often costs well under four times $250,000. The better question is how much you need, and that is a calculation, not a guess.

How the premium is built

A term premium is roughly: (face amount / 1,000) x the rate per thousand for your age, class and term length, plus an annual policy fee. Two effects follow:

The fee is spread thinner on bigger policies. A flat fee is a big share of a $100,000 policy's premium and a small share of a $2,000,000 policy's.
Price bands. Many carriers drop the per-thousand rate at band breaks. A $490,000 policy can cost about the same as, or more than, a $500,000 policy. Ask for quotes just above the nearest break.

How price bands typically work (general pattern; bands differ by carrier)

Face amount	What usually happens to the per-thousand rate	Shopping tip
$100,000 to $249,999	Highest per-thousand, fee is a large share	Compare $250,000; it may cost little more
$250,000 to $499,999	Lower band at many carriers	Check $500,000
$500,000 to $999,999	Lower again	Check $1,000,000
$1,000,000 and up	Lowest bands; more underwriting may be required	Accelerated underwriting limits matter here

Not a rate table. Bands and breakpoints vary by carrier and change over time.

For published dollar figures by age and face, see term life cost by age.

Size the face first: a simple method

A debts, income, mortgage and education (DIME-style) check

Piece	What to add up
Debts	Mortgage balance and other debts you would not want left behind
Income	Years of income your family would need, minus what other sources would cover
Children	College or support costs until they are independent
Final costs	Funeral and settling the estate
Subtract	Existing coverage and savings that would be used

Then match the term length to the longest piece, usually the mortgage or the youngest child's independence. A common design is a ladder: one larger policy for 20 years plus a smaller one for 30, so coverage steps down as the need does.

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When a bigger face changes the underwriting

Larger policies can require more underwriting. No-exam (accelerated) programs have face limits: for example $3,000,000 at Pacific Life for ages 18 to 60, $5,000,000 at Prudential for ages 18 to 64, $2,500,000 at Lincoln (Pacific Life, Prudential, Lincoln). Above the limit, expect an exam and labs. No-exam life insurance.

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Hans Goldstein · 213-414-2808 · NPN 20602398, independent licensed insurance producer

Frequently asked questions

Does $1 million of term cost four times $250,000?

Usually much less. Per-thousand rates drop at band breaks and the policy fee is spread over more coverage.

What are term life price bands?

Face amount ranges where a carrier uses the same per-thousand rate. Rates often drop at breaks like $250,000, $500,000 and $1,000,000.

How much term life insurance do I need?

Add up debts, the years of income your family would need, children's costs and final costs, then subtract existing coverage and savings.

Should I buy one big policy or two smaller ones?

A ladder (for example a 20-year and a 30-year policy) lets coverage step down as the need shrinks, and can cost less over time.

Do bigger policies need a medical exam?

Often above the accelerated underwriting limit, which ranges from about $1 million to $5 million depending on carrier and age.

Sources

Hans Goldstein, CA Insurance License #4273294 · NPN 20602398 · Goldstein & Co. LLC dba Goldstein Insurance Services, CA License #6016830

Contact: hans@hansgoldstein.com · 213-414-2808

General education, not tax or legal advice. Tax treatment depends on your facts and on current law, which can change. Talk to your CPA or estate attorney. Guarantees are backed by the financial strength and claims-paying ability of the issuing insurance company. Guarantees apply only to the contractual terms of the policy. Caps, participation rates, loan rates, charges and dividends are not guaranteed and can change. Hans is paid a commission by the insurer if you buy a policy through him. For life insurance, ask and he will tell you what he earns on your specific policy. Product and company names are trademarks of their owners. Goldstein Insurance Services is an independent agency, not affiliated with or endorsed by any insurer named here. Life insurance requires underwriting; not everyone qualifies. This page describes products in general terms; read the policy and the insurer's disclosures before you buy.