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
Most people hear “million-dollar life insurance” and think it’s only for the ultra-wealthy.
However, as Bankrate explains, a million-dollar policy isn’t just for the wealthy -there are many everyday situations where this level of coverage makes perfect sense.
To determine the right amount of life insurance coverage for you, consider this valuable question: What financial challenges would your family need to address in your absence?
For instance, if you earn $100,000 a year, your family relies on that income. A million-dollar policy can help replace your earnings if you pass away, giving them the time they need to adjust and maintain their lifestyle.
Additionally, it’s essential to think about your family’s debt. Many clients hold significant mortgages, particularly in the current housing market.
These financial responsibilities can accumulate rapidly when you factor in car loans, credit card debt, and future college expenses.
Good news! Many folks are pleasantly surprised to find they can obtain coverage of a million dollars or more while remaining within their budget.
Million Dollar Term Life Insurance
Million Dollar Term Life Insurance We recommend term life insurance for those seeking substantial coverage at reasonable rates. It offers fixed premiums and death benefits for 10 to 40 years.
While longer terms may have higher costs, they also offer longer-lasting security, which is an essential factor when weighing term lengths against 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 assets accumulate within retirement plans.
It’s also good to know that our policies include a conversion option. This means we can help you switch to permanent coverage later if your needs change.
Term Life Insurance for Business Owners
We often help successful small business owners secure more than a million worth of term insurance coverage.
Obtaining personal and business life insurance is important 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 $2 million policy would be ideal to 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?If you’re seeking insights on term life insurance rates, we have got you covered!
MoneyGeek reports that a $1 million policy costs an average of $53 per month for a 10-year term and $83 for a 20-year term, with rates varying by age and gender.
Our agency specializes in term life insurance, and we would like to share some actual cost estimates that might pleasantly surprise you.
Here’s the reality: a million-dollar policy can be remarkably affordable, especially if you’re under 50 and healthy.
For instance, a 45-year-old woman can secure a $1 million policy for just $38 monthly for a 10-year term, while men generally pay around $46.
As age increases, so do the premiums. By age 55, women typically pay around $90 monthly for a 10-year term, while men often see rates of $125.
The biggest jumps come after 60! For example, a 65-year-old woman would pay approximately $224 monthly for a 10-year term, while men at that age are looking at premiums of $360.
We’ve created a term life insurance chart showing average monthly premiums for death benefits between $1 million and $4 million for ten and twenty-year terms.
Million Dollar Term Insurance Rates for Women
| 10 | $1mm | $2mm | $3mm | $4mm |
| 45 | $38 | $69 | $98 | $129 |
| 50 | $57 | $167 | $157 | $208 |
| 55 | $90 | $177 | $258 | $342 |
| 60 | $136 | $265 | $386 | $509 |
| 65 | $224 | $441 | $659 | $876 |
| 70 | $367 | $726 | $1,089 | $1,448 |
| 20 | $1mm | $2mm | $3mm | $4mm |
| 45 | $66 | $126 | $186 | $244 |
| 50 | $97 | $185 | $276 | $365 |
| 55 | $158 | $309 | $460 | $609 |
| 60 | $261 | $522 | $781 | $1,039 |
| 65 | $487 | $966 | $1,447 | $1,917 |
| 70 | $1,098 | $2,196 | $3,283 | $4,376 |
Million Dollar Term Insurance Rates for Men
| 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 |
Save Money by Laddering Term Insurance Policies
We know that $5 million in life insurance coverage sounds expensive. But here’s a money-saving strategy we recommend to our clients.
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’re looking for coverage that lasts your entire lifetime, permanent coverage is the best option.
We specialize in two main types of permanent coverage: universal life and whole life insurance. Let’s break down what each means for you and your family.
Universal Life: UL policies offer rock-solid premium and death benefit guarantees while building a tax-deferred cash value that fluctuates over time.
Whole Life: This permanent coverage provides ironclad guarantees on cash values, premiums, and death benefits. Plus, you might see some extra money coming your way through dividends.
We’ve worked with affluent clients for over three decades and consistently recommend guaranteed universal life insurance. Our experience shows it offers the sweet spot between flexibility and cost-effectiveness.
Let’s look at the numbers: a healthy 50-year-old man can buy a $1,000,000 universal life policy for $711 per month. This investment offers valuable protection and serves as a tool for tax-efficient wealth transfer.
The chart below compares the cost difference between universal and whole life insurance for males. Although females generally pay less than males, similar price disparities exist in the market.
Cost of $1,000,000 Universal vs Whole Life Insurance
| Age | Universal | Whole |
| 20 | $211 | $640 |
| 30 | $310 | $921 |
| 40 | $464 | $1,373 |
| 50 | $711 | $2,118 |
Buying a $1,000,000 Life Insurance Policy
Buying a $1,000,000 Life Insurance PolicyLet’s discuss getting you life insurance. Whether you need $1 million in coverage or more, we’ll make it really simple.
First, we assess your family situation, finances, and specific concerns to determine exactly what you need. To do this, we ask you a few simple questions:
- How much total new insurance coverage do you need?
- Do you need term or permanent life insurance?
- Is the coverage for personal or business purposes?
- 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.
- How are your current finances? Approval for a life insurance policy between 1 million and 10 million dollars will require financial underwriting, which can include verification of your income and net worth.
Now that we know what you are looking for, we tap into our network of top insurance carriers to find you the best possible rates.
Insurance companies often work with reinsurers for larger policies to share the risk when death benefits exceed their company’s coverage retention limits.
While some insurers may cap their policies at $3 million, others might extend coverage to $10 million or more.
While insurers set coverage limits, these caps are often higher than anticipated, accommodating a broad range of life 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 |
Million Life Insurance Policy with No Exam
Million Life Insurance Policy with No ExamWe are excited to share something revolutionizing how we handle life insurance coverage for our clients.
Traditionally, no-exam policies were capped at a $500,000 death benefit, but several companies now offer million-dollar policies without medical exams.
This more straightforward process appeals to busy professionals seeking substantial coverage without the hassle of traditional underwriting.
For instance, Lincoln Financial offers competitive rates for those between 18 and 60 who need 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.
Million Dollar Life Insurance with an Exam
In many cases, completing a medical examination is often required when buying a million or more of coverage.
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.
Process for Securing Million-Dollar Coverage:
We begin by conducting a market analysis across multiple insurance carriers to identify optimal solutions. This requires:
- Completing a medical examination
- Obtaining medical records from your healthcare providers
- Conducting financial underwriting for policies from $1-10 million
Our team submits preliminary applications to various carriers, analyzing your information to identify competitive rates.
Once we determine the most favorable option, we formally apply through the selected carrier.
Our team manages all documentation and coordinates each phase, maintaining communication to address any questions during underwriting.
Once your policy is approved and reviewed for accuracy, we deliver the most affordable policy in the marketplace.
Our systematic approach ensures appropriate coverage while maintaining competitive premiums, recognizing that life insurance represents a crucial component of your financial strategy.
How Much is Million Dollar Life Insurance?
- Select Duration
- Select Amount
- Press Get Quote
In today’s competitive life insurance marketplace, it is crucial to evaluate insurer’s reputations.
Our carefully curated list highlights insurers with exceptional ratings from esteemed organizations such as the Better Business Bureau, AM Best, and J.D. Power.
Notable companies like Banner, Corebridge, and Protective have built strong reputations by offering high-quality products at competitive prices and delivering exceptional customer service.
Many of these companies offer affordable premiums and are recognized by CNET’s prestigious ranking as one 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 insurance company’s financial underwriting criteria.
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 offers comprehensive life insurance solutions to families and business owners throughout the United States.
Our founder, Eric Van Haaften, developed his passion for quantitative analysis while earning his business degree from Ferris State University, which laid a strong foundation for his analytical approach to financial planning.
