If you think that purchasing million-dollar life insurance policies is expensive and hard to get approved, you are in for a pleasant surprise. Buying a multi-million dollar policy is much easier than you would ever possibly believe.
Applying should be a smooth process if you use the most applicable carrier and have an experienced agent helping you. All you are doing is adding some extra zeros to the application.
Find out what $1,000,000 to $20,000,000 policies cost and the best ways to apply for them. Also, who are the best life insurance companies for million-dollar policies? Life insurance rate bands can discount those extensive face amount policies to affordable monthly premiums.
Table of Contents
- How Much is a Million Dollar Life Insurance Policy?
- How Difficult Is It to Purchase a $1,000,000 Policy?
- What Is an Insurable Interest?
- How Do You Use Rate Bands to Reduce Your Premiums?
- Who Needs a Million Dollar Life Insurance Policy?
- Frequently Asked Questions
- Examples of Multi-Million Dollar Life Insurance Policies
- How Do Health Classifications Impact Life Insurance Rates?
- Can Medical Conditions Affect My Rates?
- Can Laddering Life Insurance Policies Lower My Premium?
- Can Cigarette Smoking Affect My Application?
- What Type of Life Insurance Should You Apply for?
- What Insurance Company Has the Best Rates?
- How Can I Compare Million Dollar Life Insurance Quotes?
- Using an Independent Agent (Broker) vs. a Captive Agent
- Can a Medical Pre-Screen Help Me Find the Best Rates?
- How Do I Apply for a Million Dollar Life Insurance Policy?
- In Conclusion
It is not difficult to buy a $1,000,000 life insurance policy. All you have to do is need a $1,000,000 policy, an insurable interest in having one, and the ability to pay the premium, and you are good to go. The application process will work the same except for a slightly more rigid physical exam depending on the requested face amount. For example, it is also just as easy as purchasing a small $100,000 policy.
Applying for life insurance with a very high face amount will always raise concerns with life insurance companies. I am referring to an insurable interest to warrant a high face amount. Who will encounter such a high degree of a financial loss if the insured dies and why? They want to make sure there is no criminal intent present at the time of the application. Let’s take a look at an excellent example we can use.
In this example, we will use Jeff, 40 years of age. Jeff makes $45,000 per year as a factory worker. Jeff has approximately $4,000 left on his mortgage with no other outstanding debts. Jeff’s wife Lisa also works and makes $40,000 per year. They have two children who are no longer living at home that are out of college and married.
Lisa decided to purchase a $3,000,000 life insurance policy for her husband, where she will be the owner and beneficiary. She will have to prove why she needs such a high death benefit when her husband’s loss of income is only $40,000 per year. Lisa requested to overinsure her husband with such a high face amount drastically. If she has a valid reason, no problem, the insurance carrier will approve the face amount request.
When applying for million-dollar life insurance policies, having any medical conditions would work the same as the lower face amount policies. The underwriters would consider the risk of your health concerns.
If your medical needs are severe, you could pay more for the added risk the company is taking. So don’t get too carried away with running a quote engine if you have any medical conditions. Get your medical issues reviewed by a qualified agent first!
If you fall into a high-risk life insurance category, a company that is liberal for health conditions is required for the application. A simple pre-screening process should be performed to see what company would be the most applicable. For example, applying for a 1, 2, 3, 4, or 5 million dollar policy would differ from a $100,000 policy.
I have never met a consumer that knew what a rate band was. Most agents never take the time to mention them, less explain them in detail. However, using rate bands to your advantage can be the goose that laid the golden egg—premiums for life insurance are categorized into a series of rate bands, which means coverage volumes. The more you apply for can place you into these discount volumes, which reduces your premiums because you can buy in bulk, in other words.
Please take a moment to read our rate band article to learn more about discount buying.
Our website quoting system will display million-dollar life insurance quotes with a face amount of up to $10,000,000.
Many people today need million-dollar life insurance policies due to high inflation and the cost of living. However, insurance rates have steadily decreased because people live longer than ever. As a result, it is now cheaper than ever to buy million-dollar term life insurance at an affordable premium. As a result, the risk factor of people having fatal heart attacks and strokes has been reduced.
People giving up smoking and eating fattening foods have a lot to do with this increase in lifespan. When the risk factor goes down, premiums will go down.
Here are some of the most common questions we are often asked:
A number of these premium-related questions can be answered by activating our quoting system, but I will display life insurance quotes for a 30-year-old male with a preferred non-tobacco rate class.
Question- How much does 1 million dollar life insurance cost?
Answer – The cost of a 1 million dollar life insurance policy will depend on many different variables. Some of these variables will include what type of life insurance you are applying for, your age, your health status, how long you will need the life insurance, and many others.
How about $299.82 per year for a 30-year-old male with Lincoln Financial for ten years and a preferred non-tobacco rate class? Does that sound reasonable to you? That is because it is, and it could be even lower with a preferred best rate class if the applicant qualifies.
Question – What are the best quotes for 2 million to 3 million dollars of coverage?
Answer – To instantly find the lowest rates for 2 million and 3 million dollar life insurance quotes, activate our website instant quoting system and compare the best life insurance rates for 2 and 3 million dollar life insurance policies in less than a minute. You can quickly change from two to three million dollars with a flick of the drop-down menu.
Question – How much does a 2 million dollar life insurance policy cost?
Answer – The question of how much a 2 million dollar life insurance policy is a widespread question people ask. Many people with America’s extremely high inflation and cost of living have found that a $1,000,000 policy is not enough anymore. I suppose you support a spouse and multiple children with a large mortgage.
A $1,000,000 life insurance policy can disappear like a puff of smoke in a tornado. However, the $2,000,000 policies are becoming a face amount that many people need. Lincoln Financial Life Elements plan design comes in at $509.64 for two million dollars in coverage.
Question – What are the best quotes for 4 to 5-million-dollar life insurance policies?
Answer – To give you an idea of the cost, a $5,000,000 10-year term policy with Lincoln Financial for a 30-year-old male with a preferred non-tobacco rate classification would only be $1,139.10. That is less than $100.00 per month for $5,000,000 in coverage. Why so cheap, your thinking? The life insurance companies set their rate by statistics, showing that a 30-year-old male will outlive the policy.
Question – How much does a 10 million dollar policy cost?
Answer- $10,000,000 policy can also be very affordable if you need this face amount to be adequately covered. Our 30-year-old example would be able to be covered by a $10,000,000 life insurance policy for only $2188.20 per year. So, again, the statistics prove you should buy your life insurance when you are as young as possible.
Question – What are the best million-dollar life insurance quotes?
Here are the top 5 best $1,000,000 life insurance quotes:
- Lincoln Financial “TermAccel” – $299.82
- American General “Select-A-Term” – $299.90
- Transamerica “Trendsetter Super” – $300.00
- Protective Life “Classic Choice” – $331.20
- SBLI “Premium Term” – $341.00
Question – Do I need a one-million-dollar life insurance policy?
Answer – I often hear people ask, “do I need a $1,000,000 life insurance policy” and “do I need a multi-million dollar policy.” The answer to these questions is strictly up to the life insurance buyer. They are the only ones who can sit down and carefully examine their monthly expenses and their income each month, and their budget.
The most important part of your life insurance buying endeavor is how much you will need for a face amount. Take your time and think about it carefully. You want to make sure your life insurance portfolio is not over or under-insured. When you come up with a logical face amount, the next step is to make sure your budget will comfortably afford it.
Question – How much does a 30-year 1 million dollar life insurance policy cost?
Answer – If we go back to our 30-year-old example, we will find that Banner Life is coming in at $769.93 for a 30-year “OPTerm 30” term policy with a $ 1 000,000 face amount. You should better understand how affordable these higher face amount policies can be.
Just for example purposes, we will use a 30-year-old male with a preferred non-tobacco rate class for 20 years. We are using Banner Life for the illustration. These premiums are per year:
- $1,000,000 – $489.99
- $2,000,000 – $919.98
- $3,000,000 – $1349.97
- $4,000,000 – $1,779.96
- $5,000,000 – $2,209.95
- $10,000,000 – $4,359.90
- $15,000,000 – $6,509.85
- $20,000,000 – $8,659.80
Health classifications will have a direct impact on your premiums. Here are examples of $1,000,000 life insurance policies displayed with the essential health classifications.
- Preferred Plus Non-Tobacco – $401.44
- Preferred Non-Tobacco – $489.99
- Standard Plus Non-Tobacco – $653.89
- Standard Non-Tobacco – $743.83
- Preferred Smoker – $1,509.89
- Standard Smoker – $2039.88
The Standard Smoker rates class costs over 400% more than the Preferred Plus Non-Tobacco class.
Suppose you need a million-dollar life insurance policy or higher. You do not have to make up the full face amount on one policy because you can “ladder your policies.” Laddering your policies could save you thousands of dollars in the long run. For example, if you need a face amount of $3,000,000, you can have more than one policy.
You can purchase two policies if you need a death benefit of $3,000,000 for ten years and then only $1,000,000 for the following ten years. You would then have one policy with a face amount of $2,000,000 and another policy for $1,000,000.
One policy would be a 10-year term policy for $2,000,000 and another for $1,000,000 with 20 years. After the first policy drops off after ten years, you would still have the second policy for the next ten years. This way, you are not paying the total of $3,000,000 for the entire 20-year period.
Laddering your policies can work for anyone, not just people looking for high face amounts in the millions. The excellent part about low-cost term life insurance is laddering life insurance policies, also known as layering policies.
If there ever was a surefire way of increasing life insurance rates, it is smoking cigarettes with a not close second. If you are looking for the best life insurance rates, whatever you do, don’t smoke! Using tobacco products of any kind is very costly when buying life insurance. Smoking cigarettes will destroy your health and inflate your premiums which most people are not even affordable. It is common to see smoker rates increase premiums by 300%
Some companies are more liberal with smoking, but your rates will still be higher. Check out our smoking-related blog post if you smoke for more details concerning smokers’ life insurance rates.
You have a choice of three major types of million-dollar life insurance:
Term Life Insurance – Term life insurance is America’s most popular life insurance and the most cost-effective. Term insurance is temporary life insurance with available term periods between 10-40 years. It can also be converted to permanent insurance at a given point during the policy period. Virtually all million-dollar life insurance policies sold are designed on a Term life insurance plan design.
Permanent Life Insurance – Permanent life insurance products are policies that stay in force for the rest of your life as long as you maintain the premiums. The most affordable and cost-effective product is known as universal life insurance. Unfortunately, whole life is not cost-effective in today’s market, and many companies have dropped it from their product lines.
Non-Med Life Insurance – These products are also referred to as no medical exam life insurance, which means no medical exam is required if you are reasonably healthy. Non-Med policies cost more because the companies are not collecting all the information they would typically review if you had taken a medical exam.
In reality, no one life insurance company has the best rates. Rates will depend on many variables, such as your age and health, among others. In addition, all insurance companies underwrite applications differently than others. Therefore, choosing the most applicable company is extremely important.
What company might be the best for one person or may not be the best company for another person? Selecting the correct carrier is especially true if you have medical conditions, hazardous sports, or a high-risk occupation.
We use over 40 of the most competitive life insurance companies to shop the market for the lowest rates and cover all our bases. In addition, we use the most applicable company that will offer our specific applicants the lowest rates.
Comparing million-dollar life insurance quotes is simple with our instant rate comparison tool built into our website. You can run quotes from $1,000,000 all the way up to $10,000,000. You will quickly find what company has the lowest rates specifically for you.
Remember to speak with an experienced insurance agent to determine what company you should apply to. The company will be determined by a quick medical pre-screen if you have any medical conditions that could affect your rates.
You choose two different types of agents to help you buy life insurance. They are independent agents, otherwise known as brokers and captive agents representing only one company, such as State Farm. The independent agent (such as ourselves) do not work for insurance companies.
Our client’s primary interest is where the captive agent works for their insurance carrier. Therefore, the captive agents have to have their company’s main interest in mind.
We have access to over 40 top-rated life insurance companies as independent agents, whereas a captive agent only has one. Needless to say that an independent agent has a huge advantage in finding the lowest rates for their clients.
Running a quick 5 to 10-minute medical pre-screen can help you find the best rates. However, it can do more than that by eliminating the chaos of your agent running into additional medical conditions in your medical history revealed by your doctor or the Medical Information Bureau. When this happens, the rates you thought you would receive will change.
Keep in mind that your potential premium will be based on your health history and height and weight if you apply. So if you have any medical conditions or are overweight, contact us for a quick pre-screen to look at the rates you can expect to receive.
Applying for a $1,000,000 life insurance policy is very easy. We always recommend using the telephone to save a lot of time. You can still apply online or with a paper application, but the telephone application process is the only way. All you have to do is listen to the questions and then answer them.
You can easily explain all your answers in detail, so there is no room for a communication breakdown. It is also impossible to miss a question on the application like it was on the paper applications from years ago.
There is never any cost or obligation for our help, and you are welcome to contact us seven days a week. We can show you how to identify the best rates and have total confidence when you decide to apply. Purchasing a million-dollar life insurance policy should always be a simple process, especially when you have an experienced independent insurance agent who specializes in life insurance helping you every step of the way.
All the best,
If you have any questions about million-dollar life insurance policies and their cost, contact us today and let us help with no cost or obligation. Remember that we are brokers, and we work for our clients and not for the insurance companies. Our job is to help you get approved for the best policy for your needs with the lowest rates possible. You can also set up a specific time to answer all your questions. Thanks for reading this blog post!