Quick Facts
- Million dollar life insurance is a type of life insurance for high-net-worth individuals
- Experts recommend purchasing a life insurance policy equal to 10 to 12 times your annual salary, so individuals earning $100,000 or more could benefit from million dollar life insurance
- You’ll pay around $40 monthly for a million dollar life insurance policy
A million dollar life insurance policy offers high-value life insurance coverage to individuals looking to give their life insurance beneficiary financial protection if they pass. On average, it costs $40 monthly for a million dollar life insurance policy.
To find the coverage you need at a price within your budget, compare million dollar life insurance quotes and shop for different types of term life insurance policies.
Understanding Million Dollar Life Insurance Policies
To those wondering how much term life insurance you can buy, policyholders can purchase million dollar life insurance coverage in term life insurance. However, this is a large life insurance policy, so it’s more expensive than a policy with lower coverage amounts. By comparing term life insurance quotes for million dollar policies, you can find an affordable policy to secure your family’s financial future and begin estate planning.
Generally, permanent life insurance policies have low coverage amounts, so you can only get term life insurance policies with $1 million of coverage. Read more about whole life insurance companies if you have different coverage needs.
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Cost of Million Dollar Life Insurance Policies
On average, it costs $40 a month for a million dollar life insurance policy. However, your rates will vary depending on age, gender, health concerns, and coverage amount. Check out the table below to see average million dollar life insurance rates.
Million Dollar Term Life Insurance Rates by Term Length
| Term Length | Male | Female |
|---|---|---|
| 10-year term | $26 | $22 |
| 15-year term | $29 | $27 |
| 20-year term | $40 | $29 |
| 30-year term | $65 | $49 |
As you can see, a life insurance policy for adult children is more affordable than for older adults, making it wise to buy a policy early.
Factors Affecting Your Million Dollar Life Insurance Rates
Companies consider several factors when crafting your million dollar life insurance rates to assess your risk to insure. Below is a list of common factors companies consider:
- Age:Young people have a lower mortality risk and pay lower rates for million dollar life insurance policies.
- Lifestyle choices:Smoking, excessive alcohol drinking, or participating in high-risk activities like skydiving can lead to higher rates. However, finding a cheapÂlife insurance policy for smokers is not impossible.
- Gender:Women have a higher life expectancy than men, so they pay lower average million dollar life insurance rates.
- Term length: The higher your policy’s term length, the more you’ll pay for coverage.
- Health: Health concerns or pre-existing conditions can affect rates, and some companies may deny you coverage since many require medical exams. These individuals can consider a no-medical exam life insurance policy, a type of guaranteed issue life insurance policy, though rates will be more expensive.
Consider factors you can control — like lifestyle choices and coverage options — and compare quotes from various companies to find a million dollar life insurance policy with affordable rates.
Million Dollar Life Insurance Policy for 10 Years
The table below shows 10-year term million dollar life insurance rates based on age and gender.
Million Dollar Term Life Insurance Policy w/ 10-Year Term
| Age | Male | Female |
|---|---|---|
| 30 | $26 | $22 |
| 35 | $26 | $23 |
| 40 | $35 | $28 |
| 45 | $53 | $43 |
| 50 | $81 | $63 |
| 55 | $136 | $102 |
| 60 | $223 | $150 |
On average, you’ll pay $72 monthly for a 10-year million dollar life insurance policy.
Million Dollar Life Insurance Policy for 20 Years
Check out the table below to see how much you could pay for a 20-year term million dollar life insurance policy.
Million Dollar Term Life Insurance Policy w/ 20-Year Term
| Age | Male | Female |
|---|---|---|
| 30 | $40 | $29 |
| 35 | $43 | $34 |
| 40 | $60 | $48 |
| 45 | $96 | $71 |
| 50 | $145 | $105 |
| 55 | $245 | $175 |
| 60 | $422 | $294 |
As you can see, it costs around $126 a month to get million dollar life insurance for 20 years. You’ll also pay lower rates when you get coverage at a younger age.
Million Dollar Life Insurance Policy for 30 Years
See the table below for average 30-year term million dollar policy rates.
Million Dollar Life Insurance Policy w/ 30-Year Term
| Age | Male | Female |
|---|---|---|
| 30 | $65 | $49 |
| 35 | $74 | $57 |
| 40 | $107 | $82 |
| 45 | $167 | $122 |
| 50 | $268 | $190 |
| 55 | $524 | $349 |
| 60 | N/A | N/A |
You’ll pay $171 monthly on average for a 30-year million dollar life insurance policy.
Best Companies for Million Dollar Life Insurance Policies
You can purchase a million dollar life insurance policy from several companies, including:
- AIG
- Pacific Life
- New York Life
- Prudential
- Banner Life
- MetLife
- Mutual of Omaha
- Lincoln Financial
When considering rates, customer satisfaction, and financial stability, we consider the best companies for million dollar life insurance policies to be New York Life, Banner Life, and Mutual of Omaha.
Read more: AIG vs. Lincoln Life Insurance
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Determining Whether You Need a Million Dollar Life Insurance Policy
Generally, experts recommend people buy life insurance equal to 10 or 12 times their annual income, so individuals who make $100,000 a year should consider a million dollar life insurance policy. Here is a list of people who could benefit from a million dollar life insurance policy:
- Business owners: A business owner who plays a critical role to the company’s operations, has high business debts, and various financial obligations should consider million dollar life insurance. Life insurance for business owners is instrumental in ensuring a business can thrive after an owner’s death.
- People with large debts:A million dollar life insurance policy could benefit someone with a mortgage, student loans, or car lease.
- Someone with multiple dependents: If several people rely on your income, or you have kids that will eventually attend college, consider a million dollar life insurance policy.
Though $1 million seems like a lot of coverage, many people can benefit from it, and finding an affordable policy isn’t impossible. Check out the table below to see how a low or high coverage amount affects your rates.
Term Life Insurance Average Monthly Rates by Policy Amount
| Policy Amount | Male | Female |
|---|---|---|
| $500,000 | $25 | $21 |
| $750,000 | $33 | $24 |
| $1 Million | $40 | $29 |
| $2 Million | $73 | $52 |
As you can see, a male policyholder pays about $15 more monthly for a million dollar life insurance policy vs. a $500,000 term policy.
Read more: How much does a $100,000 life insurance policy cost?
Tips on Shopping for Million Dollar Life Insurance Policies
Consider the following tips when shopping for million dollar life insurance policies:
- Compare quotes.Insurance companies offer different rates depending on various factors, so compare million dollar life insurance quotes from at least three companies before buying a policy.
- Consider coverage needs.Before you get coverage, consider your financial obligations, like mortgages, car loans, credit cards, or other debts, to see if million dollar life insurance is right for you. You should also determine what term length you need. If you want your premiums back when your term ends, consider areturn of premium life insurance policy, though rates are higher.
- Speak to an advisor. Speak with an insurance agent to help you navigate coverage options and find an affordable million dollar life insurance policy.
As you can see, there are several things you can do to ensure you get an adequate amount of coverage that fits your budget.
Case Studies: Illustrating Million Dollar Life Insurance Policies
Case Study 1: Sarah’s Financial Protection
Sarah is a 30-year-old married woman with two young children. She is the primary breadwinner in her family and wants to ensure her family’s financial security in case something happens to her. After considering her family’s needs, she decides to purchase a million dollar life insurance policy.
She compares quotes from different insurance companies and finds a policy that offers the coverage she needs at an affordable premium. The policy gives her peace of mind, knowing that her family will be taken care of financially if she were to pass away prematurely.
Case Study 2: James’ Business Succession Plan
James is a 45-year-old business owner who runs a successful company. He has built a strong business over the years and wants to ensure its continued success even in his absence. James decides to purchase a million dollar life insurance policy as part of his business succession plan.
The policy is structured to provide funds that can be used to buy out his shares or provide financial support to the business in the event of his death. By obtaining quotes from multiple insurers, James finds a policy that aligns with his business goals and provides the necessary coverage.
Case Study 3: Emma’s Estate Planning
Emma is a 65-year-old retiree who has accumulated significant wealth throughout her life. She has multiple properties, investments, and valuable assets that she wants to protect and pass on to her heirs. As part of her estate planning, Emma decides to purchase a million dollar life insurance policy.
The policy is structured to provide a tax-efficient way to transfer wealth to her beneficiaries upon her death, ensuring they have the financial resources to manage her estate smoothly. By comparing quotes from various insurers, Emma finds a policy that offers the desired coverage and aligns with her estate planning goals.
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The Bottom Line: Million Dollar Life Insurance Policies
Consider a million dollar life insurance policy if you’re a high-net-worth individual looking for life insurance. If you own a business, have large debts, or various financial obligations, million dollar life insurance can offer financial protection to your beneficiaries.
Frequently Asked Questions
Are million dollar life insurance policies expensive?
On average, a million dollar life insurance policy costs $40 monthly, but rates vary depending on coverage amount, age, gender, term length, and type of life insurance.
Can you get a million dollar life insurance policy with no-medical exam?
Yes, companies like AIG, Banner Life, Transamerica, Pacific Life, and Lincoln Financial offer million dollar life insurance policies without a medical exam, also known as guaranteed issue life insurance policies.
Who needs a million dollar life insurance policy?
If you’re estate planning, a business owner, have large debts, or have several dependents, consider million dollar life insurance.
How do I file a claim on a million dollar life insurance policy?
To file a million dollar life insurance policy claim, call your insurance company and submit the required documents, such as a death certificate, to get the payout. However, each company’s claims process is different.
What types of million dollar life insurance policies can I get?
You can get a million dollar term life insurance policy. However, other policy types, like permanent life insurance, generally have lower payouts. You can also get a guaranteed issue life insurance policy with $1 million in coverage.
How does smoking affect my million dollar life insurance policy rates?
Smokers pay higher million dollar life insurance rates since insurers consider smokers high risk to insure.
Which company has the best million dollar life insurance policy?
The best companies for million dollar life insurance policies are New York Life, Banner Life, and Mutual of Omaha.
Can I get a million dollar life insurance policy with cash value?
Million dollar term life insurance policies don’t offer a cash value component.
What are the tax implications of a million dollar life insurance policy?
Life insurance death benefits for a million dollar life insurance policy aren’t subject to income or estate taxes. However, any interest earned on any type of life insurance is subject to taxation.
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Scott W. Johnson
Licensed Insurance Agent
Scott W Johnson is an independent insurance agent in California. Principal Broker and founder of Marindependent Insurance Services, Scott brings over 25 years of experience to his clients. His Five President’s Council awards prove he uses all he learned at Avocet, Sprint Nextel, and Farmers Insurance to the benefit of his clients.
Scott quickly grasped the unique insurance requirements of his…
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