Shopping for a 2 Million term life policy may sound difficult– 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 coverage 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 coverage that’s needed to provide protection. But what are the best life insurance companies for 2 million dollar term life? How do you qualify? What are the companies looking for before they even offer you a policy?
Let’s find out.
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 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, an insurance policy in the millions is very reasonable.
Related: Is a $2 million policy too much coverage? Read about buying a million dollar life insurance policy.
How Much Does $2 Million Dollar Term Life Insurance Cost?
Cost is a major factor in buying coverage. We put together so sample quotes for a typical term policy using a 20 year term period. A 20 year term is the most popular plan design in the USA. Let’s look at some rates to give you an idea of which companies offer the best rates and options.
Sample 2 Million Dollar Insurance Quotes
We calculated some sample quotes so you can get an idea of how much you may pay for a 2 million dollar life policy. These rates are all based on health individuals who do not smoke. Rates are subject to change.
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 company.
You must qualify for this health class in order to get these rates. If you’re approved at a different health class, the top companies may be the same or different. Remember that a variety of factors such as your age, health, lifestyle, as well as the term length play a part in what company will be the best for your situation.
What about 30-year term?
$2 Million Dollar 30-Year Term life insurance quote samples
For our sample rates, we’re using a healthy 30 year old male in a “preferred non-smoker” rate class and we’ll list the Top 5 companies for $2 million dollar term. Rates are based on 30-year term and monthly rates and are subject to change.
Best Companies for 2 Million Dollar 30 Year Term
There are the top 5 companies that consistently come up on top when analyzing the top carriers for 30 year term life insurance .
How Much Will a $2 Million Life Insurance Policy Cost?
Premiums for term 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 to Get the Best Life Insurance Rates
Finding the lowest rates online for a $2,000,000 policy can be quite confusing. Some shoppers go directly to the big insurance company websites to get quotes. Others go to comparison websites to get quotes.
Both of those strategies can be a huge mistake. Always use an independent agent who shops with dozens of top carriers to get the best deal.
Watch this video to learn how to avoid the most common shopping mistakes.
How to Qualify for a 2 Million Dollar Policy
Although your eligibility for a $2 million 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, 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 insurers 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 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
Here’s a quick guide to calculate how much income you’ll need to qualify.
- 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, the carriers will of course look at your current health condition and medical history.
As with most other kinds of insurance policies…
…the healthier you are, the better your chances of getting the coverage you want.
It is important to know that each company has different requirements when they are looking at your 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 Life Insurance Can I Get Without a Medical Exam?
Applying with a medical exam is how most people buy insurance. However, there are more and more companies offering No Medical Exam options. 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 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 policy over $400,000. The medical exam required for a 2 million dollar 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. Your health class rating will determine your rate with that company.
Best Life Insurance Companies for a 2 Million Dollar policy
The Top 5 Companies for $2 Million 30 Year Term Life
Remember that each 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 agent knows all about Greg’s risks. Greg’s agent should gather every detail on his health and hobbies in order to find the 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, our licensed agents will provide you a free customized quote based on your unique situation. You can also start comparing rates today using our online quote tool found on this page. You can compare rates from the top life insurance companies with our instant quotes.