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

million dollars life insurance

A one million dollar life insurance policy may seem like a lot at first blush but when you think about how far a dollar can go nowadays, $1,000,000 of life insurance coverage might just be what you need.

When determining how much a million dollar life insurance policy costs it is important to know that the lowest term life insurance rates are not always going to be from the company that gives you the lowest quote.

You see, if you are trying to lock into to the cheapest term or whole life insurance, then you have to know which companies are going to offer you the best rates once you are approved, not just lure you in with teaser rates that only a handful of people can qualify for.

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

What Million Dollar Life Insurance Policy is Best?

Why you need the life insurance and for how long is the most effective way of determining the best million dollar life insurance policy for you.

Term Life Insurance

Term life insurance is a great option for most, who simply want a large death benefit to go to their beneficiary if they die prematurely.

Term life insurance term length options include:

With so many different term lengths to choose from, it is easy to see why most people favor term life insurance.

Have a 30 year mortgage? Consider a 30 year term policy.

Have young kids in the house? Consider a 20 year term policy.

Need to cover an SBA loan? Consider a 10 year term policy.

Whole Life Insurance

Alternatively, a million dollar whole life insurance policy is ideal for anyone looking to secure a death benefit, but also build cash value.

Although it comes with a higher price tag, many people like the financial security whole life insurance provides.

For one, it offers a death benefit so if you die prematurely your loved ones are taken care of financially.

Two, it also acts as a glorified savings account, offering much better returns, (3-5%) on your money than a standard savings account or CD from the bank.

Eligibility For Million Dollar Life Insurance

Not everyone can qualify for a million dollar life insurance policy, nor does everyone need that much coverage.

Life insurance companies require an insurable interest to qualify for coverage. In most cases you can use a multiple of your income to determine how much coverage you can get.

Your multiple of income, or MOI, is your income times a factor set by the insurance company. The multiple is based on your age, with younger people being able to have a higher multiple, and older people with a lower multiple.

The idea is that the older you are, the less income you will make, and therefore the lower your multiple of income you can use.

Multiple of income based on age*:

  • Under 30 can get up to 40X income
  • Between 30-39 can get up to 30X income
  • Between 40-49 can get up to 20X income
  • Between 50-59 can get up to 15X income
  • Between 60-64 can get up to 10X income
  • Between 65-70 can get up to 5X income
  • Above age 71 is case by case

*Multiple of income varies based on carrier

Assess Your Need

At the end of the day, if you require a million dollar life insurance policy to protect your loved ones, fund a buy sell agreement, or cover a mortgage, the deciding factor on which policy will be best for you will come down to what you can afford.

A $1,000,000 term life insurance policy with a 10 year term is probably going to be the cheapest option.

And it makes a lot of sense to get the death benefit you need today versus gamble on a longer term that does not cover your immediate need.

You can use an online life insurance calculator to help you determine how much coverage you may need.

The Good News

The good news is that no matter what amount of coverage you need, or what type of policy you have your eye on, the team at IBUSA can help you find the best company and policy that meets your specific criteria.

So what are you waiting for? Give the team at IBUSA a call today for your complimentary strategy session and experience the IBUSA difference.

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