So you’re looking for a 1 million dollar life insurance policy to protect your family, loved ones or business. You’re probably wanting to know what is the best life insurance company for a one million dollar life insurance policy and who will provide the lowest rate? Will the rates be too expensive? Will you qualify?
There is a misconception that million dollar life insurance policies are only for the rich or top one percent – it isn’t, so let’s get started!
How Much is a Million Dollar Life Insurance Policy?
$1,000,000 seems like a sufficient amount of money for anyone buying life insurance coverage. Shoppers often believe that a 1 million dollar life insurance policy will be too expensive and difficult to buy.
The reality is that million dollar term life insurance coverage is frequently bought when the actual price is seen because of its low cost.
$1 Million Dollar Life Insurance Rates
Smart shoppers want to get an idea of what a $1 Million dollar life insurance premium would cost before applying.
We’ve compiled a huge list of rates from the Top 10 life insurance companies. Rates are all based on non tobacco “Preferred Best” rates.
Million Dollar Life Insurance Quotes
10-Year Term $1,0000,000 Men
|Company||Age 30||Age 40||Age 50||Age 60|
|Mutual of Omaha||$23.80||$31.68||$84.18||$250.43|
20-Year Term $1,0000,000 Men
|Company||Age 30||Age 40||Age 50||Age 60|
|Mutual of Omaha||$37.80||$59.68||$161.18||$481.43|
20 Year Term vs 25 Year Term?
Here is another example of $1 million term life insurance. This term life insurance comparison provides you examples of ages and term lengths with Banner Life.
As you can see, rate increases are not significant between 25 and 35 year olds. However, life insurance rates rise quickly once you reach your 40s.
Life Insurance Companies with the Best Rates
When it comes to million dollar policies, you can’t just look at general life insurance company reputations.
See, many companies offer great rates for policies that are five or six figures, but they fail to be competitive for bigger policies. Not all life insurance companies are competitive for a million dollar insurance policy.
So the big question is how much would a million dollar life insurance policy cost from the top carriers?
Each company has their underwriting strengths and your specific details will be a major factor in which company will provide the best deal. Here are the top companies (in alphabetical order) that do offer competitive rates for million dollar life insurance policies.
1. American General
The American General life insurance company holds an A rating with A.M. Best, and it has been in business for over 160 years. To give you an idea of pricing, let’s look at a couple of examples. Sample rates below are for a 35-year-old and 45- year old nonsmoker looking for a 20-year term, one million dollar life insurance policy.
AIG $1 million term life insurance premiums
|20-Year Term||Preferred Plus Rates||Standard Rates|
|35 Years Old||$44||$71|
|45 Years Old||$101||$170|
3. Protective Life
In business since 1907, Protective Life is another A+ rated insurance company. A 35-year-old and 45 year old male nonsmoker seeking a 20-year term 1 million dollar life insurance policy with Protective will likely be offered the following rates below.
Protective $1 million term life insurance premiums
SBLI is an A+ rated insurance provider with currently over $125 billion in active life insurance policies. SBLI also offers a great term life policy without a medical exam. Let’s look and see how SBLI stacks up with 1 million term life insurance.
This is another A+ rated life insurance company that also offers competitive pricing for million dollar term life. Here is what you could expect to pay with Transamerica:
Transamerica $1 million term life insurance premiums
The Best Company Will Depend on Several Factors
As you can see from the quotes above, the company with the lowest rate changes based on your age.
Your AGE is just one of many factors that will determine which company offers the best deal.
Let’s add in one more factor: Tobacco Use. The list of companies will change once again when you factor in tobacco use. Each an every underwriting factor can change who will provide the lowest rate.
Make sure to use an independent life insurance broker like Life Insurance Blog. We’ll be able to make sure you’re getting the best deal based on all the underwriting factors. We’ll shop your case from over 60 top rated companies to get you the best deal.
Million Dollar Life Insurance Policy
The truth is that if you make around $75,000 a year or over, affording a million dollar life insurance policy could be the right coverage for you.
After all, keep in mind that a life insurance policy is meant to help cover funeral and burial costs in addition to years of lost income.
Simply getting a policy that is the equivalent of your annual income will not sustain your loved ones for long.
If you are a non-working spouse, you should know that you can usually get the same amount of coverage as your working husband or wife.
Cost of Million Dollar Life Insurance is Going Down
People today are living longer due to modern medicine, better diets, and other factors. The benefit of having longer life expectancies is that life insurance rates have gone down. Life insurance rates for $1,000,000 policies have also gone down.
Higher cost of living requires a higher death benefit
When helping life insurance shoppers find the best million dollar policy, they typically ask the following questions:
- What does a million dollar life insurance policy cost?
- How expensive is a $1 million life insurance?
Shoppers will usually add up their cost of living, debts, and expenses before they even contact us. They can quickly see that a million dollar life insurance policy can be the perfect amount to cover short and long term financial protection. Mortgages, credit card debt, sba loans, and college for their children.
These are just a few of the most common costs of living that can make a $1 million dollar life insurance policy the right choice. So how much will a million dollar policy cost you? It depends on what you qualify for.
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How to Get the Cheapest Life Insurance Rate?
If you’re like most, you want to make sure you’re getting the lowest rate for a $1,000,000 life insurance policy.
- How do you make sure you’re getting the best quotes when you shop online?
- What does a million dollar life insurance policy cost?
- How do you qualify for a million dollar policy?
Let’s look at how life insurance companies will qualify you before they approve your application.
Qualifying for a Million Dollar Life Insurance Policy?
When you apply for a million dollar life insurance policy, you will need to qualify before it is offered. To be approved for a million dollar policy there are certain qualifications you need to meet.
- Health Underwriting
- Financial Underwriting
Most life insurance shoppers are aware that their health is part of the underwriting process. However, you also have to qualify financially.
Life insurance providers determine the amount of coverage you are eligible for by using a multiple of your annual income. If you have other life insurance policies that you will not be replacing with this new one, they should be factored in as well.
- Age 40 and younger: Multiply annual income by 25 – You need to earn at least $40,000 a year.
- Ages 41 – 50: Multiply annual income by 20 – You need to earn at least $50,000 a year.
- Ages 51 – 55: Multiply annual income by 15 – You need to earn at least $66,000 a year.
- Ages 56 – 65: Multiply annual income by 10 – You need to earn at least $100,000 a year.
- Ages 66 – 70: Multiply annual income by 5 – You need to earn at least $200,000 to qualify.
- Ages 71 – 80 and up: Your eligibility is based on your overall financial situation.
If you’re buying a policy for estate planning purposes it’s possible that if you don’t meet the income qualifications, that you could qualify based on your assets.
The Life Insurance Medical Exam
Financial requirements aren’t the only standards that need to be met. To qualify for a million dollar life insurance policy, you will need to take a medical exam, or rather, a paramedical exam. There are many pros and cons of life insurance medical exams. Price, speed and convenience are at the top of the list.
In this type of exam, a paramedic comes to you to record your height and weight, take blood and urine samples, as well as check your blood pressure. Additionally, all applicants 40 and over need a resting EKG (a heart test). Life insurance companies will usually want copies of your medical records as well.
There are life insurance policies that do not require a medical exam. These policies are often referred to as Non Med or No Medical exam life insurance.
However, there’s great news!
There have been a few companies recently that have offered a million dollar non medical exam option. Principal Life offers no exam life insurance 1 million dollar policies. This is 50% more coverage than most of the no medical exam life insurance companies on the market.
Affording a Million Dollar Life Insurance Policy
Are you interested in a million dollar policy? Perhaps after reading this article, a 2 million dollar life insurance policy is a better fit? Feel free to contact us today for customized quotes and more information on getting the coverage you need. Life Insurance Blog is an independent life insurance agent and impartially shops your case from dozens of top rated life insurance companies. We’ll find the ones that will provide you the best policy at the lowest rate.
You can call us and we’ll help you from start to finish. You can also fill out the quote form on this page to start comparing rates immediately.
Thank you for reading our post, Million Dollar Life Insurance Policy. Please leave a comment or question below. Be sure to check our Life Insurance Payout Amount article if you’re looking to learn about other benefit amounts such as a $5 Million dollar life insurance policy.