How much does a million dollar life insurance policy cost?
Do you need a million dollar life insurance policy? Protecting your loved ones financially in case of the unexpected is a primary component of any good financial plan. But just having coverage typically isn’t enough.
Rather, having the right amount of protection is the key – and when you add up the cost of income replacement, debt payoff, and future financial needs, the numbers can seem a bit overwhelming. But the good news is that a million dollar life insurance policy may not cost as much as you might think.
What Factors Determine a Life Insurance Policy’s Premium
The pricing of a life insurance policy takes into consideration many different factors. These can include:
- Age and gender
- Health status
- Type and amount of coverage
- Smoking status
- Family medical history
- Driving record
- Insurance carrier
Applicant’s Age and Gender
Certainly, one of the most important criteria in the pricing of life insurance is the age of the applicant. Because the odds of the insurance company having to pay a claim are based in large part on life expectancy, the older a person is when they apply, the higher the premium is likely to be.
Gender is another biggie when it comes to life insurance quotes. Here, for instance, women – on average – live several years longer than men, so all other factors being equal, women will oftentimes pay insurance premiums for longer than men. Because of that, though, females tend to get a slight break on the price of their insurance.
Health status is also considered when pricing a million dollar life insurance policies. In this case, those who are in excellent health will usually enjoy lower (or Preferred) rates, while those who may have certain health issues will pay more for the same coverage. In some cases, if you have a very serious health issue such as diabetes or a heart condition, you may have to pay much higher rates – or you may even be declined altogether.
Type and Amount of Coverage
There are several different types of insurance available. The two primary categories are term and permanent. Term policies offer pure death benefit protection, whereas a permanent policy provides death benefit coverage as well as cash value or investment build up. That being said, term life insurance is typically less expensive than permanent – especially if you are younger and in relatively good health when you apply for the policy.
As its name implies, term insurance is purchased for a set period of time, or term. Most insurance companies that offer term life insurance have 10-year, 20-year, and 30-year options.
Take a look here at quotes for $1 million of term life insurance coverage. The premium is lower when the applicant applies for the policy at a younger age. In most cases, the premium on a term life insurance policy will remain level throughout the policy’s term length. With that in mind, it can be extremely beneficial to apply for coverage sooner rather than later. This can also help to ensure that you will have coverage locked in place, even if you are hit with an unexpected illness or injury that renders you uninsurable in the future.
It’s no surprise that smoking can cause a number of adverse health issues – and in turn, can have a big impact on your life expectancy. Because of that, many smokers will have to pay two, or even three, times more than the insurance policy premium that non-smokers pay. This is the case, regardless of whether you are considering a $100,000 or a $1,000,000 life insurance policy.
Family Medical History
In addition to your own health, family medical history is oftentimes also considered when you are applying for life insurance. This is because a family history of health issues like stroke or cancer could predispose you to such conditions. This, in turn, can pose more of a risk to a life insurance carrier.
Over the past several years, more insurers have been considering the driving record of applicants for life insurance coverage. This is because your driving record can tell a lot about whether or not you abide by the rules of the road, such as driving safely and at a reasonable (not dangerous) speed. If you’ve had a lot of speeding tickets, for instance – especially over the past five years – then chances are that you will pay a higher rate for your coverage.
The price of any life insurance policy – from $500,000 to $1 million, and beyond – can also have to do with the insurance company that is offering it. Even for the very same type and amount of coverage, the premium price can differ – sometimes quite substantially – from one insurance company to another. With that in mind, be sure that you shop and compare several alternatives before you commit to a policy.
How to Find the Right Life Insurance Coverage for Your Needs and Your Budget
Shopping for a $1 million life insurance policy may initially seem overwhelming. But if you work with an independent agency that has access to multiple insurance carriers, you can oftentimes find exactly what you need at an affordable price – and in a fraction of the time that it would take you to go from one individual insurance carrier to the next.
We are affiliated with more than 40 of the top life insurance carriers in the marketplace, so we can get you quick quotes on policies of $25,000, $1 million, $10 million – or more. When you’re ready to narrow down the right life insurance coverage for your needs, let Local Life Agents do the legwork.
$1,000,000 Life Insurance Rates Shown Below
We ran some quotes using our comparative rater and below are some sample million dollar life insurance rates including 10, 20 and 30-year term life policies. To know what the cost of life insurance will be for you we suggest using our quote engine. It will instantly compare the best million dollar quotes from the top insurance carriers in the country.
|$1,000,000 Death Benefit||10 Year Term||20 Year Term||30 Year Term|
|30 Year Old||$21||$33||$57|
|40 Year Old||$29||$52||$98|
|50 Year Old||$73||$141||$258|
*Million dollars quotes ran effective 10/25/2018. Subject to change. Male, Non-Smoker, Preferred Best rates shown.