How Much Is a Million Dollar Whole Life Insurance Policy?

What Affects the Price of a Million Dollar Whole Life Insurance Policy?

Your rate is unique to you, reflecting your age, gender, health, and lifestyle. That’s why the sample rates above may or may not be close to what you’d pay if you applied for a million dollar whole life policy. The best way to see what your actual rate might be? Contact us for a free quote at (800) 521-7873 or email us at info@lifequote.com.

Here’s what the insurance companies use to set prices:

Age. The younger you are, the less your policy will cost. Think of this in terms of risk: the insurance company is more likely to have to pay out for a senior citizen than they are for a 20-year old. So the more advanced your age, the greater the risk you present to the insurer in terms of a possible payout.
Health class. Based on your height, weight, and the results of a medical exam (usually required for million dollar whole life insurance policies), the insurer will assign you a health class, often called a rate class. That class determines what they’ll charge for your coverage. If you’re in great health, you’ll be assigned the “best” or “preferred plus” class. As the scale decreases from stellar health to impaired health, the rates move from “preferred” to “standard” to what we call table ratings (T1, T2, T3, etc.). The higher your table rating, indicating the more health issues you have, the more you’ll pay. If you’re a smoker, your rates will also increase.
Family health history. Do your parents or siblings have a history of serious illnesses such as cancer or heart disease? That will likely affect your cost of coverage.
Job & hobbies. Do you have a dangerous job? Do you participate in dangerous hobbies? That will also affect your cost of coverage. Insurers consider some outdoor hobbies dangerous, including scuba diving, rock climbing, car racing, hang gliding, and more. Dangerous jobs include pilot, diver, firefighter, and racecar driver (to name just a few).