If you seek an answer on the cost of a million-dollar life insurance policy, you are in the right place! Although a million-dollar life insurance policy may be considered expensive, it is worthwhile if you don’t want any of your family members to suffer financially if you pass it on.
Factors That Influence the Cost of a Million-Dollar Life Insurance Policy
There are several factors that affect the cost of a million-dollar life insurance policy, either monthly or annual.
The majority of life insurance companies’ factor in your age and gender when determining your insurance rates. Other factors include your health status, the type of policy you want, lifestyle, and the occupation you have.
• Gender
Your gender is one of the major factors that determines the price you will be charged for life insurance. Most often than not, females are charged higher premiums than males. This is because men are more likely to exhibit dangerous behaviors and engage in risky behaviors than women.
• Age
Usually, younger people are charged a lower premium than older ones. The reason is that older people require more coverage for certain health conditions as they grow. Unlike young people who still have a good immune system, old people are riskier to insurers.
• Health status
Those with pre-existing health conditions are automatically considered high-risk and, as such, will be charged a higher premium. If you have a chronic health issue like diabetes or high blood pressure, your insurance company will likely charge you more.
• Type of policy
In addition to the aforementioned variables, the type of policy you choose on your one-million-dollar life insurance also determines the cost of the coverage.
Basically, there are two main types of life insurance policies: term and permanent life insurance. The premium for term life insurance is lower than that of any other type of life insurance policy.
How Much Does a Million Dollar Life Insurance Policy Cost?
One of the primary factors that influences the cost of a million-dollar life insurance policy is the age of the policyholder. In most cases, the price of this life insurance policy rises as you grow older.
The cost can also vary significantly across different insurance companies, but here’s a sneak peek at the average cost for a million-dollar life insurance policy:
Average cost for a 10-year term per year
| Age | Annual Cost for Male | Annual Cost for Female |
| 30 | $38 | $15 |
| 40 | $26 | $24 |
| 50 | $69 | $57 |
| 60 | $203 | $135 |
| 70 | $592 | $368 |
Average cost for a 15-year term per year
| Age | Annual Cost for Male | Annual Cost for Female |
| 30 | $22 | $18 |
| 40 | $33 | $32 |
| 50 | $100 | $73 |
| 60 | $267 | $178 |
| 70 | $915 | $559 |
Average cost for a 20-year term per year
| Age | Annual Cost for Male | Annual Cost for Female |
| 30 | $30 | $24 |
| 40 | $49 | $41 |
| 50 | $129 | $96 |
| 60 | $380 | 266 |
| 70 | $1,550 | $1,165 |
Average cost for a 30-year term per year
| Age | Annual Cost for Male | Annual Cost for Female |
| 30 | $51 | $39 |
| 40 | $92 | $73 |
| 50 | $239 | $179 |
| 60 | NA | NA |
| 70 | NA | NA |
Tips on How to Find an Affordable Million-Dollar Life Insurance Policy
If you are in search of a million-dollar insurance policy that is cheap and easy to get, here are some tips you should consider:
• Determine how much coverage you need
Before purchasing a million-dollar life insurance policy, you need to calculate how much coverage you need. This would help you make a decision on the length of policy to choose and the type of risk you seek protection for. Once you have calculated the amount of coverage you need, the next step is to find an insurance company that offers this coverage.
• Shop around and compare quotes
This is also one of the most important things to do when in search of an affordable policy. By comparing the cost of a million-dollar life insurance policy from different insurers, you can find the one that suits your budget and needs. Ensure you evaluate the policy terms, rates, riders, discounts, and reputation of the insurance company.
• Understand the types of policy under life insurance
Generally, there are two types of life insurance policies, namely, term and permanent life insurance. Being able to identify and understand the difference between these two policies is essential.
This would enable you to know the policy type to opt for. A little advice: factor in your financial goals, coverage needs, and budget when settling for any type of policy.
• Demonstrate good health and lifestyle
Most insurance companies determine the cost of your life insurance based on your health status and the type of activities you engage in. Develop an excellent lifestyle and maintain good health; this can potentially help in getting lower premiums for a million-dollar life insurance policy.
FAQs
Do insurance companies offer million-dollar life insurance policies without a medical exam?
Yes, there are so many life insurance companies that do not conduct medical examinations when selling term life insurance policies. Some of these companies that offer no-exam life insurance policies include Banner Life, Brighthouse Financial, and Pacific Life.
Nevertheless, the feature of no-exam for life insurance policies might be limited to those who have a good or excellent health status.
How much is a million-dollar life insurance policy?
The average amount a policyholder pays per month for a million-dollar life insurance policy ranges from 50 to 100 dollars. The cost depends on several factors, such as your health, your health status, the type of policy you want, and other factors.
The price can also vary significantly across different insurance companies, so it is advisable to shop around to find the best option for you.
Can anyone purchase a million-dollar life insurance policy?
Of course, the policy is open to all and sundry. Literally, anyone can purchase a million-dollar insurance policy from an insurance provider of their choice. Regardless of whether you are in your 20s or 30s, you can still qualify for this policy if you have a good health status.
