What You Need to Know About Million Dollar Life Insurance Policies in [2025] + YouTube Video
If you want to find out how to buy a million dollar life insurance policy, this article will answer most all of your questions.
Many individuals today are looking to purchase a life insurance policy with a million dollar face amount or higher.
We work with over 40 of the most competitive companies that offer the best rates for high face amount policies.
With our extensive network, we can help you find the lowest rates for million dollar or even multi million dollar life insurance policies. Purchasing a new policy with a high face amount has never been easier.
Our streamlined process eliminates the hassle and confusion that often comes with insurance shopping. We have done all the hard work for you by hand-choosing the top life insurance providers and guaranteeing you the best options available.
Applying for a million dollar life insurance policy is a snap. Keep reading, the best is yet to come.
Table of Contents
- Cost of a Million Dollar Policy
- Underwriting & Eligibility Requirements
- Types of Policies to Consider
- YouTube Video: Million Dollar Policies
- Who Needs a Multi-Million Dollar Policy?
- Which Companies Offer the Best Rates?
- Will Tobacco Use Affect My Premiums?
- How to Compare Million Dollar Policies
- Our Final Thoughts
Cost of a Million Dollar Policy
The cost depends on several factors of consideration:
Current Age:
The younger you are, the lower your premiums will be. It is very important to apply for life insurance early in life so you can enjoy very low life insurance premiums and have your rates locked in.
Health Status:
Smokers and those with pre-existing conditions will face higher premiums. As you scroll down in this blog post, you will find sections that will get into health conditions and tobacco use for more information.
Securing the best million dollar life insurance quotes will be heavily dependent on your health history.
Term Length:
Longer term policy lengths or purchasing permanent life insurance policies will cost more.
Gender:
Women have lower life insurance rates (about 15%) than men due to the fact they normally have a longer life expectancy.
Policy Type:
Term life insurance will be your best choice for affordable life insurance premiums with million dollar face amount policies. Universal Life and Whole Life policies will not be cost effective to apply for with high death benefits.
Without question, a multi million dollar life insurance policy will always be purchased on a term insurance platform.
Health History:
Naturally, your health history is going to be a major factor. Some insurers will require a medical exam and a full application to be completed unless you choose a no-medical-exam policy, which will eliminate the exam and provide you with a very short application to complete. If you’re a healthy individual, the approval process will be simple.
Current Age:
Young applicants are normally in very good health, which will allow for a simple application process. Older individuals or those with medical conditions will have a more detailed application and could possibly have more difficulty qualifying if their health issues are more severe.
Lifestyle:
Some of the risk factors involved may be using tobacco products such as smoking cigarettes, involvement in dangerous sports or having a hazardous occupation can affect your the final outcome of your policy as far as receiving the lowest rates.
Insurable Interest:
Let’s go to the extremes and use an example of applying for a $5,000,000 policy when you make $40,000 dollars a year and have financial liabilities of no more than $15,000 annually. The insurers are going to want to know why you are asking for such a high face amount.
When companies see this type of request, it can point to possible foul play. If you can justify this face amount, there will be no problem. Purchasing 1 million dollar life insurance policies is simple for anyone regardless of insurance interest or not.
What Type of Policy Should I Consider?
You have a choice of three main types of life insurance to consider:
Term Life Insurance:
America’s most popular and cost-effective product is definitely term life insurance with no close second. The plan is designed as a temporary form of coverage with available term periods from ten to forty years.
It can also be converted to permanent insurance at a specific point during the policy period. Virtually all million-dollar policies sold today are term policies designed to reduce costs.
Permanent Life Insurance:
Permanent life insurance products 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.
Unfortunately, whole life is not cost-effective in today’s market, and many companies have dropped it from their product lines. Permanent life insurance will not be cost effective when applying for a multi million dollar life insurance policy.
No Physical Exam Life Insurance:
These products are also referred to as “no medical exam” policies,” which means no medical exam is required if you are reasonably healthy. Non-Med policies cost more because companies do not collect all the information they would typically review if you had taken a medical exam.
How Much is a Million Dollar Life Insurance Policy in 2024? + YouTube Video
Our website quoting system will display the best million dollar life insurance quotes with a face amount of up to ten million dollars.
Who Needs a Million Dollar Life Insurance Policy?
A number of typical people requiring a million-dollar insurance coverage would include:
- High-income earners that have high financial liabilities.
- Individuals that have large outstanding debts are responsible for.
- People with dependents such as children or dependent parents.
- Business owners that require key employee insurance or have buy-sell agreements.
We can guide you through the process of comparing the best rates, selecting the best carriers, and determining the ideal coverage for your specific needs.
Which Companies Offer the Best Rates?
Here is just a sample list of five companies that commonly have some of the lowest rates. Just keep in mind that rates and companies will vary depending on the specific information of the prospective applicant.
The cost of a $1 million life insurance policy varies based on factors like your age, gender, health, and the term length. Here are some companies that consistently offer competitive rates for such policies:
Pacific Life:
Known for very competitive rates across all age groups and for applicants with with health conditions, Pacific Life will historically be one of the most cost effective insurers for term life insurance. Pacific Life is headquartered in Newport Beach, California.
Banner Life:
This Maryland-based company has always been one of the most applicable choices for low-cost term policies, and Banner Life offers some of the lowest possible rates for young, healthy applicants.
Their underwriting department is also well-known for being very liberal with applicants with pre-existing health conditions.
Protective Life:
Alabama-based Protective Life is well known for their low term prices and some of the lowest cost universal life options. They offer a wide assortment of term lengths and additional riders that can be added to their base policies for added protection.
This has always made protective life one of the best choices for 1 million dollar life insurance policies.
AIG American General:
American General based in Houston, Texas, is a popular insurer for people with pre-existing health conditions such as diabetes and many others.
AIG is a huge company that can afford to offer lower rates to applicants with health conditions. This is due to the fact they have the ample financial resources to take larger underwriting gambles.
Transamerica:
Transamerica, based in Cedar Rapids, Iowa, is well known for competitive premiums and is also known as one of the pioneers in life insurance with living benefits.
This company will always be a top contender for having excellent rates for million dollar life insurance policies. Applying for a Transamerica policy will always be a very good choice.
Do I Really Need a Million Dollar Policy?
Keep in mind that high inflation will tear down the financial protection of your life insurance policy. For example, if you purchased a 20 year term policy today with a $1,000,000 face amount and you passed away 15 years from now. Your life insurance policy would be worth about $700,000 with the usual increases in inflation we are now exposed to.
I often hear people ask if they need a multi–million dollar policy. The answer to these questions is strictly up to the individual. They are the only ones who can sit down and carefully examine their monthly expenses, income, and 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. We want to ensure your life insurance portfolio is not over- or under-insured. The next step is to analyze your budget to make sure you can comfortably afford your premium.
Examples of Premiums Ranging from 1 – 20 Million Dollar Face Amounts
The example below will display the rates for death benefits ranging from 1 to 20 million dollar face amounts. This will give you a quick comparison to give you a better understanding of premiums.
*We will be using a 30-year-old male with a preferred non-tobacco rate class for a term period of 20 years. We are using Banner Life for this illustration.
$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
Activate our quoting system to quickly compare the best million dollar life insurance quotes from over 40 highly rated insurers.
How Do Health Classifications Influence Rates?
Health classifications will have a major impact on your premiums. Here are examples of $1,000,000 policies displayed with a variation of 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 class costs over 400% more than the Preferred Plus Non-Tobacco class. The bottom line is don’t smoke!
Does Tobacco Use Affect Premiums?
If there ever was a surefire way to increase life insurance rates, it was smoking cigarettes with no 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 applying for a policy.
Smoking cigarettes will destroy your health and inflate your premiums to the point where most people are not able to afford it.
It is common to see smoker rates increase premiums by 250% or more depending on the carrier.
Some companies are more liberal with smoking, but your rates will still be much higher. Check out our smoking-related blog post if you smoke for more details concerning smokers’ life insurance rates.
Medical Conditions & How They Affect Premiums
Your current health is the most important underwriting factor that will affect your rates.
If you have any serious medical conditions, make sure to let your agent know so he can give you an accurate prediction of your rates before you begin to apply.
When applying for a million dollar life insurance policy, having a medical condition would simply work the same as the more common lower
face amount policies.
Underwriters will consider the added risk your health issues will add to your overall risk factor.
If your medical condition is severe, you could pay a higher premium for the additional risk the insurer is taking.
Using our quote engine is a great idea but your agent (hopefully us) will have to prepare a custom quote for you based on your health history if you have considerable health concerns.
If you fall into the high-risk life insurance category, a company that is liberal in its approach to your specific health condition will be very important. A simple medical assessment should be performed by your agent before you apply.
How to Compare Million-Dollar Life Insurance Quotes
The most common question we are asked is, how much is a million dollar life insurance policy per month? Comparing million dollar quotes is simple with our instant rate comparison tool built into our website.
You can run quotes from $1,000,000 up to $10,000,000. You will quickly find out which company has the lowest rates if you were to apply.
Contact us to determine which company will be your best choice so you receive the lowest premiums possible.
How Do I Apply for a 1 Million Dollar Life Insurance Policy?
Applying for a million dollar policy has never been as easy as it is right now. The quickest and easiest way is to apply by phone
.
You can still apply online or through a paper application, but the telephone application process is the only way to go.
All you have to do is listen to the gal asking 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 completing a question on the application like it was on the paper applications from years ago.
Our Final Thoughts
If you have any questions concerning million dollar life insurance policies, don’t hesitate to contact us. 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.
Applying for a million dollar policy should always be a simple process, especially when you have an independent agent helping you every step of the way.
All the best,
Jack Venturi
Contact us 7 days a week at 815-390-7545 and get answers to all your questions at no cost or obligation.
