You’ve come to the right place if you’re in the market for a million-dollar life insurance policy.
While it may seem like a hefty sum, many affluent individuals find it necessary to secure such coverage to ensure financial stability for their loved ones.
To help you navigate this process smoothly, we have compiled some valuable tips that will aid you in obtaining this crucial policy.
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Reasons for Million Dollar Life Insurance
Selecting the optimal amount of life insurance coverage will depend on your goals, income, assets, liabilities, and family circumstances.
Most successful people purchase life insurance primarily to provide financial support for their spouses and children in the event of their untimely demise.
Therefore, high-wage earners often seek a million-dollar term life insurance policy to replace their lost income. It involves acquiring sufficient life insurance to generate an income similar to what one would have earned if still alive.
Moreover, wealthy individuals often have large mortgages or other debts they do not want to leave behind for loved ones to contend with when they die.
By calculating all current debts, regular living expenses for the family, and future financial obligations, it becomes apparent that a $1 million life insurance policy might be necessary.
Surprisingly enough, once the need for a million-dollar life insurance policy arises, individuals may find the premium payments quite affordable.
Million Dollar Term Life Insurance
Million Dollar Term Life Insurance Term life insurance offers a straightforward way to secure financial protection for your loved ones, with fixed premiums and death benefits over 10 to 40 years.
Naturally, longer-term lengths come with higher costs due to the increased likelihood of payout within that timeframe.
However, lengthier term insurance plans also provide longer-lasting security, an essential factor when weighing term lengths against average cost considerations.
For young adults with high earnings, a $1,000,000 life insurance policy is a budget-friendly option for protecting a growing family.
Middle-aged individuals can protect their substantial earnings until retirement or cover mortgage loans through term policies, ensuring financial security during these pivotal years.
Although the cost of term life insurance for seniors increases, it can be a temporary solution until pension income becomes available or while assets accumulate within retirement plans.
In addition, many term policies allow policyholders to convert from term to permanent coverage as their financial situation improves.
Term Life Insurance for Business Owners
Successful small business owners often need more than a million worth of term insurance coverage.
Obtaining personal and business life insurance is vital for entrepreneurs to protect their company’s continuity and secure their family’s financial future.
Business owners often opt for life insurance coverage for key employees and partners and to cover business loans.
Selecting a term length that exceeds your most extended financial commitment is important for continuous income protection throughout your entrepreneurial endeavors.
Case Study:
A business owner with an annual income of $200,000 and holding $1 million in debts from personal and business loans is considering his life insurance needs.
Getting a policy valued at five times his annual income for adequate family protection is advisable.
Therefore, a life insurance policy of $2 million would be ideal to both replace his income and pay off his debts.
How Much is a $1,000,000 Life Insurance Policy?
How Much is a $1,000,000 Life Insurance Policy?Are you considering a million-dollar life insurance policy that suits your needs?
Look no further, as we have prepared a sample of term life insurance rates by age for your evaluation.
Explore our convenient chart below, displaying the average monthly premiums for death benefits ranging from $1 million to $4 million over ten and twenty years.
Million Dollar Term Life Insurance Rates
| 10 | $1mm | $2mm | $3mm | $4mm |
| 45 | $46 | $91 | $137 | $182 |
| 50 | $73 | $145 | $218 | $290 |
| 55 | $125 | $249 | $374 | $499 |
| 60 | $203 | $406 | $609 | $812 |
| 65 | $360 | $754 | $1,131 | $1,508 |
| 70 | $591 | $1,182 | $1,772 | $2,363 |
| 20 | $1mm | $2mm | $3mm | $4mm |
| 45 | $92 | $184 | $277 | $369 |
| 50 | $141 | $281 | $422 | $563 |
| 55 | $229 | $457 | $686 | $915 |
| 60 | $394 | $788 | $1,183 | $1,577 |
| 65 | $744 | $1,488 | $2,231 | $2,975 |
| 70 | $1,352 | $2,703 | $4,055 | $5,407 |
* Monthly rates for million-dollar term policies for non-smoking males.
Save Money by Laddering Term Insurance Policies
Let’s say you need a 5 million dollar life insurance policy. Instead of purchasing one big policy, you could opt for a more cost-effective laddering strategy.
- You could buy a cheaper 2 million insurance policy for ten years to cover a mortgage loan.
- Then, buy another 3 million dollar life insurance policy for 20 years to protect your income until retirement.
The key is to match the expiration dates of each policy with your expected needs as they evolve throughout different stages of life.
This way, you have peak coverage when it is most necessary and pay less during periods when your insurance requirements decrease.
Naturally, you’ll want to shop for the best rates to get the most bang for your buck. Our calculator can compare the average life insurance cost per month from many quality companies in just a few minutes!
Million Dollar Permanent Life Insurance
Million Dollar Permanent Life Insurance If you want your coverage to last for your entire lifetime, permanent coverage will be the best kind of life insurance policy for you.
Permanent coverage is primarily available in universal and whole life insurance.
Universal Life Insurance: A UL policy provides a no-lapse guarantee for the premium and death benefits while offering a tax-deferred cash value component that fluctuates over time.
Whole Life Insurance: Whole life is a permanent coverage with lifetime guarantees on the cash value, premium, and death benefit with the potential for dividends.
Whole-life is significantly more expensive than universal life policies because they provide guaranteed cash values and dividends.
For those in middle age seeking lifelong coverage without a focus on the savings component, a guaranteed universal life (GUL) policy might be preferable.
How much is a million-dollar life insurance policy for a 50-year-old man? A healthy 50-year-old man could expect to pay around $711 monthly for a $1 million GUL policy.
Additionally, wealthy seniors often leverage universal life insurance as an estate planning tool to pass on wealth tax-efficiently to their heirs.
The chart illustrates the cost disparity between universal and whole life insurance for males.
Cost of $1,000,000 Universal vs Whole Life
| Age | Universal | Whole |
| 20 | $211 | $640 |
| 30 | $310 | $921 |
| 40 | $464 | $1,373 |
| 50 | $711 | $2,118 |
* Monthly rates for million-dollar permanent policies for non-smoking males.
Buying a $1,000,000 Life Insurance Policy
Buying a $1,000,000 Life Insurance PolicyNavigating the complexities of securing a $1,000,000 life insurance policy requires a comprehensive understanding of the factors influencing its cost.
As reported by USA Today, factors like age, health condition, and financial situation are fundamental in setting insurance policy premiums and securing approval for coverage.
Insurance companies vary in coverage retention limits; some cap policies at $3 million, while others extend to $10 million or beyond.
An insurer’s capacity to offer large policy amounts is influenced by its financial stability and the particular market segments it targets.
Reinsurance becomes necessary when death benefits surpass an insurer’s jumbo limit, the maximum amount they’re willing to cover.
This allows the primary insurer to share some risk and decision-making with reinsurance companies, effectively spreading the potential liability.
Our team specializes in guiding clients through this intricate landscape with precision and diligence.
We leverage our deep market knowledge and relationships with leading carriers to ensure you receive an attractive offer tailored to your needs.
First, we ask you a few questions:
- How much total new insurance coverage do you need?
- Do you need term or permanent life insurance?
- Why do you need the amount of coverage?
- Personal – Do you need to protect your income or mortgage balance?
- Business – Do you need coverage to secure a business loan or provide keyman coverage for your company?
- How much life insurance do you currently have in force now? The amount of coverage you have now will factor into how much additional coverage you can buy.
- How is your overall health? Depending on the size of your policy, you may need to submit to an insurance examination and provide your medical records.
- Do you participate in hazardous avocation, aviation, foreign travel, or other high risks?
- How are your current finances? Approval for between 1 and a 10 million dollar life insurance policy will require financial underwriting, which can include verification of your income and net worth.
The amount of life insurance you can purchase varies based on income, age, health status, and policy specifics.
While insurers set coverage limits, these caps are often higher than anticipated, accommodating a broad range of insurance needs.
How much life insurance can you buy?
| Ages < 40 | Annual income x 30 |
| Ages 41 – 50 | Annual income x 25 |
| Ages 51 – 60 | Annual income x 20 |
| Ages 61 – 70 | Annual income x 15 |
1 Million Life Insurance Policy with No Exam
1 Million Life Insurance Policy with No ExamInsurance companies often cap the life insurance coverage without a medical exam at a $500,000 death benefit to reduce their risk exposure.
However, industry research indicates that streamlining the underwriting process boosts people’s likelihood of purchasing life insurance.
Catering to this trend, some insurers now offer policies for a million or more in coverage without requiring a physical examination.
Lincoln Financial stands out by offering competitive rates for individuals between 18 and 60 years old seeking up to $1 million in coverage without medical checkups.Similarly, Pacific Life extends no-exam policies with limits reaching $2 million for healthy applicants under 60, while those aged between 61 and 69 can access up to $1 million in coverage.
Innovative insurance companies are transforming the industry by eliminating traditional exams and gathering underwriting information through phone interviews.
This streamlined approach attracts busy consumers interested in securing significant life insurance coverage more efficiently.
Million Dollar Life Insurance with an Exam
A medical exam that evaluates vital health indicators like blood pressure, cholesterol levels, and body weight can lead to more favorable rates on your policy.
Furthermore, specific policies such as whole or universal life are often only available to those who complete these medical assessments.
Additionally, undergoing an exam can unlock access to higher coverage amounts because insurers may restrict maximum coverage for those who opt out of the exam process.
If you’re aiming for a substantial policy to ensure comprehensive protection for your family or business, completing a medical exam is necessary to secure more extensive coverage options.
How to get a million-dollar life insurance policy
- Collaborating with several insurers might be necessary to match you with the perfect insurance policy and provider for your desired death benefit.
- An insurance examination and a medical summary (APS) from your doctor will be necessary.
- Financial underwriting is necessary for large policies ranging from $1 million to $10 million.
- Our team will submit “trial applications” to various life insurance companies that outline your medical and financial information.
- After identifying the cheapest initial rates, we officially apply with the best insurance company.
- You will be required to undergo a telephone inspection report that verifies all provided details are correct.
- Once your policy is approved and reviewed for accuracy, we deliver the most affordable policy in the marketplace.
How Much is Million Dollar Life Insurance?
- Select Duration
- Select Amount
- Press Get Quote
With numerous companies offering life insurance, it is vital to consider the price and the insurer’s reputation.
Companies such as Banner, Corebridge, and Protective have built a strong reputation by offering high-quality products at competitive prices while providing exceptional customer service.
Our complete list comprises insurers with excellent ratings from trusted sources like the Better Business Bureau, AM Best, and J.D. Power.
These companies offer affordable options, and many are included in CNET’s list of the Top Life Insurance Companies in the United States.
| COMPANY | BBB | AM Best | JD Power |
|---|---|---|---|
| AIG | A+ | A | 718 |
| AXA Equitable | A+ | A+ | 752 |
| Banner Life | A+ | A+ | N/A |
| Brighthouse | A+ | A+ | N/A |
| Guardian Life | A+ | A++ | 760 |
| John Hancock | A+ | A+ | 739 |
| Lincoln Financial | A+ | A+ | 744 |
| Mass Mutual | A+ | A++ | 780 |
| Metlife | B- | A+ | 780 |
| Mutual of Omaha | A+ | A+ | 766 |
| Nationwide | A+ | A+ | 806 |
| Pacific Life | A+ | A+ | N/A |
| Principal Financial | A+ | A+ | 774 |
| Protective | A+ | A+ | 742 |
| Prudential | A | A+ | 770 |
| SBLI | A+ | A+ | N/A |
| Transamerica | A+ | A+ | 720 |
FAQs: Million Dollar Life Insurance Cost
FAQs: Million Dollar Life Insurance CostIs a million-term insurance policy appropriate for my needs? Aim for coverage 7 to 10 times your annual income when determining if you need a million-dollar policy. Also, factor in any existing debts such as mortgages, student loans, or business loans that may impact your financial needs.
Can an average person obtain a million-dollar insurance policy? Eligibility for coverage depends on whether an individual can afford the premiums and satisfies the financial underwriting criteria of the insurance company.
What is the monthly cost of a $1 million life insurance policy? The average monthly payments for a $1 million life insurance policy typically fall between $40 and $200, influenced by the policyholder’s age and health status.
How much is a million-dollar term policy for a 50-year-old man? A ten-year term policy would cost $870, whereas a sixty-year-old man would pay $1,688 per year for a twenty-year term policy.
What does million-dollar term life insurance cost a 60-year-old? For a 60-year-old, the annual premium for a $1 million term insurance policy differs by gender. Men pay $3,300 for a 10-year term and $6,700 for 20 years. Women’s premiums are lower at $2,300 and $3,800 respectively.
What does a $1 million policy cost a 70-year-old man? A 70-year-old man would face annual premiums of $7,089 for a ten-year term. Opting for a twenty-year term, the yearly cost jumps to $16,220.
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Affordable Life USA is dedicated to providing comprehensive life insurance solutions to families and business owners throughout the United States.
For over thirty years, our agency has provided a platform for comparing hundreds of life insurance policies without the stress of high-pressure sales tactics.
Our experienced team of financial planners has helped thousands of clients obtain affordable coverage through our efficient online application process.
Our founder, Eric Van Haaften, expanded our consumer-centric sales model nationally by leveraging the influence of renowned publications such as Time, Newsweek, and The Wall Street Journal.
Eric acquired his love for quantitative analysis while getting his business degree from Ferris State University, which provided a solid foundation for his analytical approach to financial planning.
Eric Van Haaften, LUTCF
1-877-249-1358
