Being a millionaire is something most people only dream of becoming. Most never realistically think they’ll have a million euro, so why do some of us feel the €1M of Life Cover is a good idea?

Not everyone can justify owning one million Euro worth of life insurance. Depending on your age, Insurance companies require justification for large policies because life insurance is designed to replace wealth, not increase it.

However, a million euro in life insurance cover is common enough.

Purchasing a million euro Life Insurance policy doesn’t seem like a crazy idea when you consider how much it costs to replace your income, pay off the house, send children to college, and to make sure your family are not let in financial hard times after you’re gone.

Do you need that much cover?

It really depends on your circumstances.

First,  let’s look at an example in which one million Euro worth of life insurance makes sense and then we will breakdown the costs.


Paddy and Mary each make approximately €60,000 annually. They are both 43 years old. They have 3 children and live in a  home with a €400,000 mortgage. If either Paddy or Mary died, their wish would be to ensure the family would stay in the family home, and that all bills going forward would be looked after.

When you tailor a Life Insurance Plan you will also take college costs into consideration if that is something you plan on providing. College fees for 3 children can range from an average total of €100,000 to €300,000, depending on the circumstances such as living at home or away. Taking this into account, Paddy and Mary would be suited to buying €1,200,000 in life insurance each.

Using our own in-house life insurance needs calculator, entering Paddy and Marys information suggests that a €1,200,000 policy would be a good start to ensure that the mortgage is able to be paid off, to replace the lost income, cover a funeral, and pay for children’s educational costs.

 It does not take into consideration any current savings they may already have or current life insurance policies (if any).

When considering your life insurance cost, there are number for factors that determine your premium.

If you have a family and make a decent income, owning One Million Euro of term Life Insurance is actually not that far-fetched. This is because term insurance is quite affordable, even one million euro worth.

And how much does a million euro  policy for life insurance cost?

Here are a few examples of how much €1,000,000 of Life Insurance costs per month, based on age.

  • Age 30 – €35.71 per month
  • Age 35 – €44.17 per month
  • Age 40 – €62.38 per month
  • Age 45 – €92.49 per month
  • Age 50 – €142.26 per month

Valid 17/09/2020, subject to underwriting and based on a level 10 year term life insurance policy.

As you can see in the tables above, even for individuals in their 40s, one million euro worth of term life insurance is not that expensive considering how much your loved ones would receive if you died prematurely.

Had Paddy and Mary planned ahead and purchased a €1 Million term policy when their first child was born, when they were 30 years old, they would be paying much lower premiums.

A €1M life insurance policy may not be necessary for everyone. But, on the other hand, it might not be enough depending on your family situation. If you are not sure how much life insurance you need, please give us a call and one of our qualified advisors will tailor a plan to suit your needs and budget.

You can also go to our website quote page, and run a quote for yourself. It is very straight forward and you can even adjust the term length and coverage amount as much as you need until you find a policy that fits well in your budget.