2 Million Dollar Life Insurance Rates and Options – A $2,000,000 life insurance policy may sound like a lot, but it does exist for a reason. After all, the whole point of life insurance is to provide for your loved ones after you are gone.
With funeral expenses, debts, and just everyday living costs, many people find that the payout from their deceased spouse or parent’s life insurance policy often does not cover as much as they initially hoped it would.
Because different people have different costs of living, there are many different amounts of life insurance coverage.
You can compare life insurance quotes using our free quoter on this page, or keep reading for more on qualifying for 2 million dollar life insurance rates and options.
Related Post: Is a $2 million policy too much coverage? Read our post on a Million dollar life insurance policy.
2 Million Dollar Life Insurance Rates and Options – Who is it For?
The truth is, if you make a six-figure salary you may need a life insurance policy worth this much.
In fact, if you make more than $100,000…
… you should automatically consider a policy worth at least $1 million.
Although the exact amount will of course depend on your debts, the amount of dependents you have, and your family’s overall financial needs.
So, for those in the upper middle class and upper class, a life insurance policy in the millions is very reasonable.
How to Get the Best Life Insurance Rates
Finding the lowest rates online for a $2,000,000 life insurance policy can be quite confusing.
Some shoppers go directly to the big life insurance company websites to get quotes.
Others go to life insurance comparison websites to get quotes. Both of those strategies can be a huge mistake.
Watch this video to learn how to avoid the most common life insurance shopping mistakes.
How to Qualify for a 2 Million Dollar Policy
Although your eligibility for a $2 million life insurance policy is based largely on your annual income…
…your age is a factor as well.
In fact, it is largely a combination of the two that determine your ability to qualify.
See, life insurance companies determine whether or not you are eligible for certain policy amounts by using a multiple of your annual income, and that multiple reveals the minimum amount you must earn to qualify.
Financially Justifying 2 Million Dollar Life Insurance
Remember that life insurance companies don’t just hand out million dollar policies just because you want one.
Even if you can easily afford the policy, you need to justify it with the company you apply with.
This is just one reason of several reasons why you will want to work with an independent life insurance agent who has access to multiple top rated companies.
Your agent will be able to help you by:
- Conducting a needs analysis of your assets and debts.
- Use this information and find the companies that will give you the best chance at a $2 million dollar policy.
- Analyze these companies and find the ones that will offer the best rate.
Here are the basics as far as $2 million policies go
Age 40 and younger: Multiply annual income by 25 – You need to earn at least $80,000 a year to qualify for a $2 million policy.
Ages 41-50: Multiply annual income by 20 – You need to earn at least $100,000 a year.
Ages 51-55: Multiply annual income by 15 – You need to earn at least $132,000 a year.
Ages 56-65: Multiply annual income by 10 – You need to earn at least $200,000 a year.
Ages 66-70: Multiply annual income by 5 – You need to earn at least $400,000 to qualify.
Ages 71 and up: Your eligibility will be based on your overall financial situation.
In addition to this, life insurance companies will of course look at your current health condition and medical history.
As with most other kinds of life insurance policies…
…the healthier you are, the better your chances of getting the coverage you want.
It is important to know that each life insurance company has different requirements when they are looking at your lifestyle, finances and health before approving your policy.
It is very important that your agent explain this to you and is able to shop your case to find the best policies available to you.
How Much Will a $2 Million Life Insurance Policy Cost?
Premiums for term life insurance depend on a wide variety of factors, such as age, gender, health condition, etc.
Because of this, rates vary from person to person.
Nevertheless, it always helps to look at an example for a rough idea of what to expect.
Let’s say Greg is a 30-year-old man in great health who currently makes about $90,000 a year but expects his income to increase within the next several years.
For a $2 million policy, he can expect the following rates:
For a 20-year term— as low as $68 a month
For a 30-year term— as low as $122 a month
Keep in mind that these are also Preferred Plus rates, which Greg managed to get because he has been deemed to be in excellent health.
Do you have some health issues? You can expect your rates to increase depending on your health conditions.
How Much Life Insurance Can I Get Without a Medical Exam?
Life insurance with a medical exam is how most people buy life insurance.
However, there are more and more life insurance companies offering No Medical Exam life insurance.
Unfortunately, these No Exam policies have a much lower maximum death benefit.
A No Exam policy typically maxes out at about $400,000 depending on the life insurance company.
There are a few companies that offer higher amounts – up to $1 million dollars in fact.
You will need to undergo a medical exam for a life insurance policy over $400,000. The medical exam required for a 2 million dollar life insurance policy is very similar to an annual physical with your doctor.
The medical exam is scheduled at a time and place of your choice and is paid for by the insurance company.
The exam takes less than a half hour and the examiner will gather the following:
- Height and Weight
- Blood Pressure
- Urine Sample
- Blood Sample
- It is possible that ECG or EKG is part of the exam
The results of this exam as well as other underwriting details are analyzed by the life insurance underwriter.
The underwriter may order physician notes from your doctor(s), check what medications you use or have used from a medication database, MVR, and MIB.
All of this information will be used to determine your risk and provide a health class rating.
You health class rating will determine your rate with that company.
Best Life Insurance Companies for a 2 Million Dollar policy
Let’s look at some rates to give you an idea of which companies offer the best rates for $2 million dollar term life insurance.
All quotes are based on non tobacco rates at a “Preferred Plus” health class.
Preferred Plus (or Preferred Best) is the best health class available from every life insurance company.
You must qualify for this health class in order to get these rates.
Best Companies for 2 Million Dollar 30 Year Term
There are a couple of companies that consistently come up on top when analyzing the best life insurance companies for 30 year term life insurance and a $2 million benefit.
Let’s look at the chart below to see the top 2 companies for men and women at 3 common age brackets.
|Age||Sex||10 Year Term||Company 1||Company 2|
|30||Male||$2 Million Benefit||AIG. $112.80 per month.||SBLI. $115.19 per month.|
|40||Male||$2 Million Benefit||AIG. 197.57 per month.||SBLI. $200.27 per month.|
|50||Male||$2 Million Benefit||AIG. $505.51 per month.||SBLI. $509.99 per month.|
|30||Female||$2 Million Benefit||AIG. $90.31 per month.||SBLI. $92.05|
|40||Female||$2 Million Benefit||ANICO. $155.52 per month.||Banner. $156.63 per month.|
|50||Female||$2 Million Benefit||SBLI. $371.32 per month.||Lincoln Financial. $371.70 per month.|
Remember that each life insurance company will look at you differently. Some companies are more strict with their underwriting for certain risks.
Perhaps the premium costs of 30 year term are not in your budget. Try getting quotes for a 15 year term life insurance policy. A 15 year term policy may actually meet all of your goals and fit your budget.
Remember “Greg”, in our example above?
He was provided a “Preferred Plus” health rating because he was in perfect health.
He could simply apply with the lowest rate from a list of companies.
Now what if Greg had some health issues?
It becomes a bit more complicated with who to apply with.
Remember that each life insurance company looks at you differently, it’s important that Greg’s life insurance agent knows all about Greg’s risks.
Greg’s life insurance agent should gather every detail on his health and lifestyle in order to find the best life insurance companies that Greg can qualify with.
Depending on Greg’s risk, he may be denied with some companies, rated higher with some, and given the best rates with others.
The key is to find the company that gives you the greatest chance at the best rate.
Work with us!
If you are interested in getting a $2 million life insurance policy, please contact us at 888-411-1329 for more information.
We’ll start by getting you a customized quote based on your unique situation, but you can also start comparing rates today using our online quote tool.
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