Having a life insurance plan in place is extremely important, but it’s also vital that you purchase a large enough plan. If you don’t have enough coverage, your loved ones could be left with additional expenses and not have enough money to pay off all of your bills. Before you apply for life insurance coverage, it’s important that you get the amount of coverage that your family needs.
If you’re earning over $75,000 a year and are anywhere between age 25-50, you might be looking for one million dollar life insurance rates. This blog post will cover one $1MM term life insurance – which companies are most competitive, what you need to do to qualify for a million dollar life insurance policy,medical exam requirements, and some specific examples of pricing. You can use our quote comparison tool below to get quotes, or continue to read for more on one million dollar life insurance rates.
While there are millions and millions of life insurance policyholders across the United States, a large majority of them are drastically underinsured. That means that if something were to happen to them, their loved ones would be left with additional bills that they didn’t have the money to pay for. There are a couple different reasons that people don’t get the amount of coverage that they need. Either they don’t know they need that much, or they assume that they can’t afford a larger plan. Having enough life insurance is one of the best purchases that you’ll ever make for your peace of mind and the security of your loved ones.
One Million Dollar Life Insurance Rates – Which Companies Have the Best Pricing?
Life insurance is an interesting marketplace. While one company may be very competitive for $100,000 rates, they may not be competitive at all for a larger policy. To get the best pricing you really need to compare quotes and find out who is competitive for the coverage amount you are looking for. Fortunately, I’ve done the research and here are the top life insurance companies for a one million dollar term life policy:
SBLI – An A+ rated company with over $125 billion in life insurance policies in force.
Banner Life – A+ rated. In business since 1949, over $400 billion of life insurance policies in force.
Protective Life – A+ rated and in business since 1907. They have an interesting term life policy. I wrote an article about Protective Term Life Here.
American General – A rated and in business over 160 years. Competitive pricing and also a good choice in some high risk life insurance situations.
Transamerica – An A+ rated company with an excellent reputation and competitive pricing.
If you are a smoker, Assurity Life has competitive rates for smokers.
While we represent other top life insurance companies, such as MetLife and Prudential, the 5 companies above usually have the most competitive quotes for one million dollar term life insurance policy.
Qualifying For A 1MM Term Life Insurance – Financial and Medical Requirements
Financial qualifications for life insurance are based on your income, or your spouse’s income if you aren’t working. Life insurance companies use a multiple of your income to determine how much coverage you could qualify for. Below are some guidelines to help you figure out how much life insurance you can qualify for. Note that any policy you have at work will not count in the calculation, but if you have other existing policies that you won’t be replacing with a new policy, that number should be included in the total.
- Under Age 40 – 25 Times Annual Income. You would need to earn $40,000 a year to qualify.
- Age 41-50 – 20 Times Annual Income – You would need to earn $50,000 a year to qualify
- Age 51-55 15 Times Annual Income – $66,000 to qualify.
- Age 56-65 10 Times Annual Income – $100,000 to qualify.
- Age 66-70 5 Times Annual Income – $200,000 to qualify.
- Age 71+ – Based on financial situation.
If you’re buying a policy for estate planning purposes it’s possible that if you don’t meet the income qualifications, that you could qualify based on your assets.
If you are a non working spouse you can usually get at least as much coverage as your working spouse.
Medical Exam Qualifications for a Million Dollar Life Insurance Policy
To qualify for a million dollar policy a paramedical exam is required. A paramedic would come to your home or office and take blood, a urine sample, and your blood pressure, as well as check height and weight. If you’re over 40 a resting EKG will be required as well, and the life insurance company will also order copies of your physician’s records.
Examples of One Million Dollar Life Insurance Rates
Now that we’ve covered the basics, let’s look at some examples of pricing.
I’ll use a 35 year old male, and 45 year old male as an example – both for a 20 year term at Preferred Plus rates and Standard Non Tobacco Rates – so you have a range of what pricing might look like.
35 Year old Male $1,000,000 20 Year Term Policy:
Preferred Best Non Tobacco – $38 a month with SBLI
Standard Non Tobacco – $84 a month with SBLI
Note that there are a few health ratings between Preferred Best and Standard, which is why the big range of $38-$84. Pricing will be based on your health.
45 Year old Male $1,000,000 20 Year Term Policy
Preferred Plus – $99 a month with SBLI, $100 month with Protective
Standard Non Tobacco – $192 with SBLI, $195 with Protective (monthly).
How Much Life Insurance Do You Need?
Before you apply for life insurance, regardless of the amount, it’s important that you calculate your life insurance needs. Not having enough life insurance is one of the worst mistakes that you could ever make for your loved ones. There are several different categories that you need to add up when you’re looking to get the right amount of life insurance coverage.
The first number that you should add up is your debts and final expenses that would be left behind to your family members once you pass away. Add up everything from your to your credit cards bills. Make sure that your plan is enough to pay off all of those bills.
The next number to tally is your annual income. If you’re one of the primary bread-winners in your house, they would struggle without that source of income. The next goal of your life insurance is to give them the money that they would need to pay for all of their expenses without sacrificing their standard of living.
With just these two simple categories, it’s easy to see how a family could need a million dollars of life insurance coverage. If you need any assistance calculating your life insurance needs, our agents can walk you through all of the calculations and help you determine what size plan is going to work best for you and your family’s needs.
Getting An Affordable Million Dollar Life Insurance Plan
If you’ve determined that you need a million dollars of life insurance coverage, you might be nervous about how much you’ll have to pay for a plan that size. I showed you some quotes above, but there are several ways that you can secure lower rates, regardless of the size of insurance plan that you need. Making a few simple changes can help you save hundreds of dollars on your insurance plan.
The first thing that you should do is eliminate any tobacco that you currently use. If you’re listed as a smoker on your insurance plan, you can expect to pay much higher premiums. In fact, smokers are going to pay twice as much for life insurance coverage versus what a non-smoker is going to pay for the same sized plan. If you want to get affordable life insurance, you’ll need to kick the bad habits once and for all.
The next thing that you should do is stick to a healthy diet and get regular exercise. Both of these are an excellent way to improve your overall health and help you get better rates from the insurance company. Before the company accepts your application, they are going to require that you undergo a medical exam, and the results of the exam are going to play a major impact on how much you pay for the coverage. A diet and exercise are going to help you lose weight, lower your cholesterol, lower your blood pressure, and drastically reduce your chances of being diagnosed with health complications. Lacing up your tennis shoes and hitting the gym is a great way to save hundreds of dollars on your life insurance plan every year.
The best way to ensure that you’re getting the most affordable plan is to work with an independent insurance broker. Unlike traditional agents, independent agents work with dozens of highly rated companies across the nation, which means that they can bring all of the best rates directly to you.
Every insurance company is different and all of them are going to have different ways to calculate premiums rates, which means that you could get drastically different rates depending on which company that you get the quote from. It’s vital that you get dozens of quotes before deciding which plan is going to work best for you.
You can’t predict the future, which means that you never know what’s going to happen tomorrow. Don’t wait any longer to get the insurance protection that your family will need if something tragic were to happen to you. We know that nobody wants to think about their death, but not planning for it is one of the worst things that you can do.
If you have any questions about getting a million-dollar life insurance plan or about the other options for you, please contact one of our agents today. We would be happy to answer those questions and ensure that you’re getting the best plan for you. It’s our mission to connect you with a quality insurance plan at an affordable price.
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