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How Much Does a $1,000,000 Life Insurance Policy Cost?

million dollars life insurance

A million-dollar life insurance policy is a type of policy that provides a death benefit of $1 million to the policyholder’s beneficiary or beneficiaries in the event of the policyholder’s death. These policies are generally used to provide financial security and support for loved ones in the event of the policyholder’s death and may be used to cover expenses such as funeral costs, outstanding debts, and future living expenses.

And while million dollar life insurance policies are generally more expensive than policies with lower coverage limits, the actual cost of insurance per unit is typically lower than smaller amounts of coverage, so you get more bang for your buck. And this is despite the fact that the insurer is taking on a higher level of risk by providing a larger death benefit.

Which is why we wanted to take a moment and discuss when a million dollar life insurance policy (or more) makes sense and what considerations one should factor in when making the decision as to what dollar amount to get.

Questions that will be examined will include:

  • How much life insurance does an average person need?
  • What type of life insurance is right for me?
  • How much does a million dollar life insurance policy cost?
  • Can everyone qualify for a million dollar life insurance policy?

And without further ado, let’s jump right in.

How much life insurance does an average person need?

There is no “one size fits all” answer to how much life insurance an average person needs, as the amount of coverage you need will depend on your specific circumstances and financial goals.

When determining how much life insurance you need, there are several factors to consider, including:

1. Your current and future financial responsibilities: Consider the financial obligations you have now and any that you may have in the future, such as a mortgage, car loans, credit card debt, and any other debts or financial obligations. You may also want to consider any ongoing expenses, such as childcare, education, or healthcare costs.

2. Your income: Consider the income that you or your spouse brings in and how much of it is necessary to maintain your current lifestyle and meet your financial obligations.

3. Your assets: Consider any assets you have, such as savings, investments, or property, and how they could be used to meet your financial obligations in the event of your death.

4. Your beneficiaries: Consider who you want to provide for with your life insurance policy, such as a spouse, children, or other loved ones.

Ultimately, this will be a decision you’ll need to make on your own, however we here at IBUSA have found that what’s usually very helpful is to first get an idea about how much coverage you think you might need, then take a look at what that might cost.

If the price is extremely affordable to you, you might think about increasing the amount of coverage you were thinking about.

However, if the price is too high, we will usually recommend lowering the overall cost of coverage by getting less life insurance or shortening the term length so that the price you pay is one that you are comfortable with.

Because the last thing you want to do is purchase a life insurance policy that you’re not going to be able to maintain months or years from now.

What type of life insurance is right for me?

There are several types of life insurance available, and the right type for you will depend on your specific needs and goals. Here is a brief overview of the main types of life insurance:

Term life insurance: Term life insurance provides coverage for a specific period of time, typically 10, 20, or 30 years. It is generally the most affordable type of life insurance, but it does not accumulate cash value and the coverage ends when the term expires. Term life insurance may be a good option for individuals who want to provide financial protection for a specific period of time, such as while they are raising children or paying off a mortgage.

Whole life insurance: Whole life insurance provides coverage for the policyholder’s entire life and accumulates cash value over time. It is generally more expensive than term life insurance, but it provides lifelong protection and may be a good option for individuals who want to leave a financial legacy for their loved ones.

Universal life insurance: Universal life insurance is a flexible type of policy that combines elements of term and whole life insurance. It provides coverage for the policyholder’s entire life and also accumulates cash value, but the premiums and death benefits can be adjusted over time to meet the policyholder’s changing needs and circumstances.

Variable life insurance: Variable life insurance is a type of policy that allows the policyholder to invest a portion of their premiums in a variety of investment options. The death benefit and cash value of the policy depend on the performance of the investments. Variable life insurance is generally more complex and risky than other types of life insurance, and may not be suitable for all individuals.

The good news is that while we specialize in term life insurance here at IBUSA, we do offer a wide assortment of products for you to choose from should your needs extend beyond a traditional term or whole life insurance policy.

How much does a million dollar life insurance policy cost?

The cost of a million dollar life insurance policy will depend on a variety of factors, including the policyholder’s age, health, and lifestyle. In general, a million dollar policy will be more expensive than a policy with a lower coverage limit, as the insurer is taking on a higher level of risk by providing a larger death benefit.

Other factors that may impact the cost of a million dollar life insurance policy include the type of policy (term, whole, or universal), the policy’s term length (if it’s a term policy), and any riders or endorsements added to the policy.

It’s difficult to provide an exact cost for a million dollar life insurance policy, as the premiums will vary based on the specific characteristics of the policyholder. To get an idea of how much a million dollar policy might cost, you can use our online quoter that will provide instant quotes to you from a wide variety of carriers that we offer.

It’s also worth noting that the cost of a million dollar life insurance policy may be more affordable than you think, especially if you are in good health and have a favorable risk profile.

Million Dollar Term Life Insurance Cost

The best 1,000,000 term life insurance rates are listed below. These quotes are form highly rated life insurance companies, are subject to change, and must be qualified for.

MaleFemale
$1,000,000 Life Insurance Rates for Men
The following sample life insurance quotes are based on a preferred plus male wanting ordinary whole life insurance to age 70 with an A- rated insurance company or better. Monthly Rates are for informational purposes only and must be qualified for.
1,000,00010 Year Term15 Year Term20 Year Term30 Year Term
Age 20$19.57$22.66$30.96$49.25
Age 30$19.57$22.66$31.46$54.50
Age 40$29.23$35.19$48.80$93.49
Age 50$72.38$103.33$135.88$244.79
Age 60$209.09$279.64$387.60N/A
Age 70$597.95$931.69$1,537.27N/A
All sample quotes are based on a monthly premium as of 05/20/2020 from an A- Rated Carrier and higher. Sample quotes are for a preferred plus male. Rates are for informational purposes only and must be qualified for.
$1,000,000 Life Insurance Rates for Women
The following sample life insurance quotes are based on a preferred plus female wanting ordinary whole life insurance to age 70 with an A- rated insurance company or better. Monthly Rates are for informational purposes only and must be qualified for.
1,000,00010 Year Term15 Year Term20 Year Term30 Year Term
Age 20$16.66$19.29$23.76$37.37
Age 30$16.66$18.92$25.38$42.88
Age 40$26.51$33.37$42.14$75.38
Age 50$59.02$75.18$98.04$179.34
Age 60$137.13$181.46$262.98N/A
Age 70$597.95$931.69$1,537.27N/A
All sample quotes are based on a monthly premium as of 05/20/2020 from an A- Rated Carrier and higher. Sample quotes are for a preferred plus female. Rates are for informational purposes only and must be qualified for.

Million Dollar Whole Life Insurance Cost

The best $1,000,000 whole life insurance rates are listed below based on a preferred plus rate class. These quotes are from A- rated carriers and better, are subject to change, and must be qualified for.

AgeMaleFemale
20$580$504
25$689$602
30$839$729
35$1038$894
40$1273$1081
45$1571$1364
50$1959$1681
55$2472$2158
60$3158$2756
65$4114$3595
70$5664$4952
75$7922$7062
80$11076$9597

Can everyone qualify for a million dollar life insurance policy?

Not everyone will be able to qualify for a million dollar life insurance policy, as the insurer will consider a variety of factors when determining whether to issue the policy.

To qualify for a million dollar life insurance policy, you will generally need to meet certain eligibility requirements set by the insurer. These requirements may include:

Age: Most insurers have age limits for their life insurance policies, and you may need to be within a certain age range to qualify for a million dollar policy.

Health: To qualify for a million dollar life insurance policy, you will generally need to be in good health. The insurer will typically ask you to complete a medical questionnaire and may request access to your medical records as part of the underwriting process.

Insurable interest: To qualify for a life insurance policy, you must have an insurable interest in the life of the insured person. This means that you have a financial stake in the continued life of the insured person and would suffer financially if they were to die.

Financial stability: The insurer will generally consider your financial stability and risk profile when determining whether to issue a million dollar policy. This may include factors such as your credit score, income, and assets.

It’s important to note that the eligibility requirements for a million dollar life insurance policy may vary by insurer, and the specific requirements will depend on the policy you are considering. It’s a good idea to speak with a financial advisor or insurance

The good news is that…

Here at IBUSA, we understand that purchasing a life insurance policy can seem daunting at first.  Which is why, we like to walk all of our clients through a series of steps so that they can determine what’s best for them.

These steps include:

  1. First determining one’s needs: Consider your financial obligations, income, assets, and beneficiaries when determining how much life insurance you need.
  2. Second, shop around: Compare quotes from multiple insurers to find the most affordable policy that meets your needs.
  3. Third, consider your options: There are several types of life insurance available, including term, whole, and universal. Carefully consider the features and benefits of each type to determine the best fit for you.
  4. Forth, determine which life insurance companies underwriting guidelines are going to provide you with the greatest opportunity for success!

So when you’re ready, give us a call and give us an opportunity to earn your trust!

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