How Much Is a Million Dollar Life Insurance Policy?
Is a Million Dollars Enough Life Insurance?
Some people may need more than one million dollars of life insurance.
You may want to consider a higher amount of coverage if you:
Own a business
Are a high earner
Have investment properties
If you sit down and total all your financial responsibilities, a $5,000,000 or $10,000,000 term life insurance policy may start to sound reasonable.
Did you know? You can own more than one life insurance policy. If you think you need millions of dollars of life insurance, you may save money by laddering policies instead.
Laddering life insurance policies means owning multiple life insurance policies to cover various needs. The policies may have different coverage amounts and term lengths, and you can buy them anytime throughout your life.
Explore different life insurance policies and their average monthly costs.
Who Can Get a 1 Million Dollar Life Insurance Policy?
Not everyone needs nor can justify owning a million-dollar policy.
The purpose of life insurance is to replace income, not increase wealth. So, when people apply for large amounts of life insurance, companies require financial justification. They’ll review your income, net worth, and financial obligations.
Most applicants who have dependents or own a business can qualify for a million dollars’ worth of life insurance. If you’re wondering whether you need a million dollars of life insurance, the answer is probably yes.
Tips When Buying a Million-Dollar Term Life Insurance Policy
If you’re ready to get a $1,000,000 policy, we have a few helpful tips to consider while you shop.
Work with a Broker
When you choose to work with a broker, you gain access to a variety of policies from different life insurance companies. In contrast, if you opt to work directly with a company, you’ll be connected with a captive agent who exclusively sells their own products.
The broad range of options through a broker enhances your likelihood of approval and helps ensure you’re not overpaying for coverage. Life insurance companies assess risk factors differently; for instance, if you use tobacco, have a DUI on your record, or engage in activities like SCUBA diving, your rates will vary based on the insurance company you apply to.
At Quotacy, we carefully review your application to confirm that the company you chose through our online application is the best match for you. If another carrier is more accommodating and offers better rates, your agent will reach out to present alternative options.
Since a million-dollar life insurance policy isn’t the cheapest option, working with a broker can help make sure you’re not paying more than necessary for your coverage.
Getting a $1,000,000 Policy with No Exam
One-million-dollar life insurance policies that don’t require a medical exam are available. Select carriers offer this to eligible applicants.
Eligibility requirements may include the following:
Age 60 or younger
Non-smoker
Average health or better
No-exam eligibility requirements vary by insurance company. A broker will compare quotes and shop around on your behalf to help find a no-exam life insurance policy you may qualify for.
When applying, if you are not eligible for the no-exam route, chances are you can still qualify for a $1,000,000 policy if you’re willing to take a medical exam.
Consider a $1,000,000 Term Policy with a Conversion Option
You may not need permanent life insurance now, but there’s a chance your future insurance needs will change. Getting a term life insurance policy with a conversion option is a good idea.
A term conversion option allows you to change, or convert, your term policy into a permanent one without proving you’re still insurable. This is priceless protection for your family if you’re diagnosed with a terminal illness.
It’s important to be aware that converting your term policy into a permanent one will result in higher monthly costs, as permanent rates are more expensive than term rates. Additionally, know that conversion isn’t an all-or-nothing decision; you have the flexibility to convert only a portion, such as $100,000.
If you convert just a portion, you’ll have two separate policies; a term policy to protect your working years that now costs less because it’s smaller, and a permanent policy to protect your loved ones forever.
Get a Million-Dollar Term Life Quote Through Quotacy
Getting a quote for a million dollars of life insurance is free. You don’t even need to provide a phone number or email address.
Get a million-dollar life insurance quote online instantly. If $1,000,000 isn’t the right amount for you, the quoting tool allows you to adjust the coverage amount and length to find a policy that fits your budget.
As an independent broker, Quotacy works with over 25 of the nation’s top insurance companies and can help ensure you get the right policy for you at the best price. Applying online takes just a few minutes. A dedicated agent will help you throughout the buying process.
