Affording a Million Dollar Life Insurance Policy

Million Dollar Life Insurance Policy

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.

You’ll probably be surprised how affordable a million dollar term life insurance policy can be. Get $1,000,000 term life insurance rates in 30 seconds from the top life insurance companies in the marketplace.

$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.

>>You can simply run instant life insurance quotes right here and compare million dollar rates to see just how affordable coverage really is.

Million Dollar Life Insurance Quotes

10-Year Term

10-Year Term $1,0000,000 Men

CompanyAge 30Age 40Age 50Age 60
Transamerica$20.64$39.56$93.74$248.54
AIG$20.86$35.40$78.15$226.06
Protective$20.95$28.64$73.86$212.47
Mutual of Omaha$23.80$31.68$84.18$250.43
Principle$24.50$29.75$76.56$224.48
Foresters$24.50$36.75$91.88$267.75
North American$25.08$33.88$79.64$223.08
American National$25.92$35.42$82.05$228.96
SBLI$26.51$33.02$75.15$216.17
AXA Equitable$28.64$38.90$79.09$227.00

10-Year Term $1,0000,000 Women

CompanyAge 30Age 40Age 50Age 60
Transamerica$18.06$32.68$73.96$202.96
AIG$18.30$30.27$63.61$165.36
SBLI$18.60$25.12$62.97$141.35
Protective$18.84$25.22$63.01$138.94
Banner Life$19.35$33.11$69.23$166.32
Foresters$20.13$29.75$67.38$171.50
Mutual of Omaha$20.30$28.18$68.43$162.05
Principle$21.00$27.56$65.10$146.56
American National$22.46$29.38$69.12$152.06
North American$23.32$31.24$65.56$151.80

20-Year Term

20-Year Term $1,0000,000 Men

CompanyAge 30Age 40Age 50Age 60
AIG$32.83$53.35$141.42$415.02
Foresters$34.13$56.00$150.50$438.38
SBLI$34.34$55.91$147.73$457.62
Protective$33.77$51.67$141.50$393.73
Banner$36.33$54.74$141.41$406.54
Mutual of Omaha$37.80$59.68$161.18$481.43
Principal$38.50$55.56$147.88$418.78
John Hancock$37.87$54.25$144.33$408.08
North American$39.16$60.28$150.92$427.24
American National$38.88$61.34$156.38$435.46

20-Year Term $1,0000,000 Women

CompanyAge 30Age 40Age 50Age 60
Banner Life$25.98$46.96$110.42$294.55
AIG$25.99$44.80$109.78$311.56
Protective$28.50$43.51$101.32$265.48
SBLI$29.04$43.67$103.07$270.11
Foresters$29.75$47.25$107.63$322.88
Mutual of Omaha$31.68$50.93$119.18$324.80
North American$32.12$48.84$113.08$283.80
Principal$32.16$46.81$108.94$283.50
American National$32.83$52.70$116.64$326.59
Transamerica$32.68$65.36$139.32$388.72

 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.

best 1 million dollar life insurance rates

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?

Here are the top companies (in alphabetical order) that do offer competitive rates for million dollar life insurance policies. Each company has their underwriting strengths and your specific details will be a major factor in which company will provide the best deal.

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 TermPreferred Plus RatesStandard Rates
35 Years Old$44$71
45 Years Old$101$170

2. Banner Life

Having been in business since 1949, Banner Life was given an A+ rating with A.M. Best and currently has over $400 billion worth of active life insurance policies.

Banner $1 million term life insurance premiums

20-Year TermPreferred Plus RatesStandard Rates
35 Years Old$41$71
45 Years Old$101$171

Read our Banner life insurance review for more information.

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

20-Year TermPreferred Plus RatesStandard Rates
35 Years Old$39$86
45 Years Old$100$195

Read our Protective life insurance company review for more information.

4. SBLI

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.

SBLI $1 million term life insurance premiums

20-Year TermPreferred Plus RatesStandard Rates
35 Years Old$38$69
45 Years Old$99$168

Read our SBLI life insurance company review for more information.

5. Transamerica

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

20-Year TermPreferred Plus RatesStandard Rates
35 Years Old$49$75
45 Years Old$106$175

Read our Transamerica life insurance company review for more information.

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.

Million Dollar Life Insurance Infographic

This infographic provides some sample rates for 20 year term life insurance at preferred plus non smoker rates.

how much does a 1 million dollar life insurance policy cost?

Share This Infographic On Your Site

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

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 4150: Multiply annual income by 20 – You need to earn at least $50,000 a year.
  • Ages 5155: Multiply annual income by 15 – You need to earn at least $66,000 a year.
  • Ages 5665: Multiply annual income by 10 – You need to earn at least $100,000 a year.
  • Ages 6670: 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.

Life Insurance Medical Exam What Do They Test For

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.

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.

Unfortunately, most companies cap the maximum benefit amount at around $500,000$750,000.

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 at 888-411-1329, but 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.

Summary
Review Date
Reviewed Item
Life Insurance
Author Rating
51star1star1star1star1star

You may also be interested in:

Michael Quinn

Michael Quinn

Michael is owner & life insurance expert at Life Insurance Blog where we've helped thousands of shoppers learn and secure affordable life insurance online.
Share on facebook
Facebook
Share on reddit
Reddit
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on pinterest
Pinterest
Share on email
Email

Simple way to compare and buy life insurance

The Simple way to compare and buy life insurance

Leave a Comment

Your email address will not be published. Required fields are marked *