Million Dollar Life Insurance Policy Monthly Cost
Depending on your age, previous medical history, and present health status, a one million dollar life insurance policy cost can vary a lot, so it's best to shop around and get several quotes from industry experts.
Choose age bracket for your $1,000,000 life insurance policy:
Although for many people, $1 million or more worth of life insurance may be too much, there are many reasons why a person would want to consider this amount of term life insurance:
- You may be a parent that wish to leave your spouse enough money to pay the mortgage, get the kids through college, and live a comfortable life.
- You may be a high-net-worth individual that needs the insurance policy to cover estate taxes, final expenses, outstanding debts, etc.
How Much Life Insurance Should One Get
Let's take the example of a man, father and husband, who earns $80,000 each year and wishes to take care of his family financially. To do this, he requires a minimum 1 million dollar life policy to 1.5 million.
Assuming that 1 million will generate an average of 5% interest per year, this would equate to a sum of $50,000, the 1.5 Million would net around $75K. As
such, there would be no requirement to deplete the principal.
There is an argument however that a figure greater than $1 million will be required because currently it's very difficult to find anywhere which would offer returns of 5%. Perhaps he would need a 2 million to 2.5 million dollar life insurance policy.
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Example best rates for a 20 year term, 1 million dollar policy, 2 million dollars, and 3 million dollars.
The monthly premium quotes below are for a male who is in excellent health and is a non-smoker. Do note, however, that a man or woman with a poor health history, smoker, or current medication use can potentially increase the premium.
| Age | 1 Million Dollars | 2 Million Dollars | 3 Million Dollars |
| 20 year old man | $35.25 | $65.64 | $99.50 |
| 30 year old male | $38.20 | $71.45 | $103.85 |
| 35 year old man | $41.85 | $78.62 | $115.20 |
| 40 year old male | $55.45 | $108.96 | $160.72 |
| 45 year old man | $108.77 | $210.45 | $312.87 |
| 50 year old man | $154.35 | $302.55 | $451.50 |
| 55 year old male | $265.93 | $524.39 | $782.33 |
| 60 year old man | $429.45 | $848.57 | $1,271.85 |
| 65 year old male | $903.35 | $1,798.75 | $2,694.30 |
| 70 year old man | $1,595.84 | $3,191.25 | $4,785.68 |
02/23/2023 - These typical premiums are just estimates. Your average costs will most likely be different.
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Example Life Insurance Rates for Women in Their Sixties
The monthly prices below are for a woman in good health, non-tobacco user.
| Age | $1,000,000 10 Year Term |
1 Million Dollars 15 Year Term |
$1,000,000 20 Year Term |
1 Million Dollars Age 90 Guaranteed |
| 60 year old female | $248.06 | $347.40 | $471.33 | $1,062.59 |
| 61 year old woman | $272.74 | $386.74 | $539.47 | $1,122.79 |
| 62 year old female | $296.22 | $426.86 | $609.17 | $1,182.18 |
| 63 year old woman | $347.28 | $476.42 | $695.28 | $1,238.80 |
| 64 year old female | $378.14 | $528.43 | $777.19 | $1,297.27 |
| 65 year old woman | $415.83 | $578.65 | $861.48 | $1361.47 |
| 66 year old female | $464.75 | $652.13 | $1,085.36 | $1,422.24 |
| 67 year old woman | $520.95 | $715.66 | $1,174.53 | $1,495.64 |
| 68 year old female | $583.52 | $815.98 | $1,235.84 | $1,562.64 |
| 69 year old woman | $653.15 | $994.99 | $1,349.38 | $1,632.27 |
02/23/2023 - These average premiums are just examples. Your prices will be different.
Recommended Life Insurance Amount
If you earn between $80,000 and $100,000 per year, the recommended insurance coverage would rise up to around $2,000,000. If you are over 55, the rates won't be cheap, but may be necessary.
If you take medication for diabetes, high cholesterol, or high or low blood pressure, you can still qualify in most cases. If your cholesterol or hypertension is well controlled, there is a still a reasonable possibility to qualify for the preferred rate classes, which are similar to the rates given in the table above.
With regards to diabetes, providing it’s well controlled and there are no additional medical issues, standard rates are easily obtained. Preferred (best) rates are also obtainable providing the diagnosis is recent with a low a1c, and you are not above the age of 55.
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Frequently Asked Questions
How much does a million dollar life insurance cost?
Like most things in life, it depends. The cost of a million dollar life insurance policy will depend mostly on your age and health status. If you are fairly young (30s, 40s, 50s) and have no major health problems, then getting coverage should not be difficult and still be low cost.
How much is a million dollar life insurance policy?
Like it was mentioned previously, the cost of a 1 million dollar policy or multi-million policy will depend on how old you are and if you are healthy. Understandably, if you have a medical condition like heart disease, cancer, diabetes, etc. Your premiums may be prohibitively expensive, or you may be denied coverage.
How much does a 2 million dollar term life insurance cost?
It's impossible to give an answer without knowing your age, healt status, previous medical hsitory, family medical history, your activities, etc. As you can understand, a life insurance company will want to know about any factors that may shorten your life. The table above has some rough estimates of premiums.
No matter your age, 30, 40, 50, 60, 70, etc. It is easy to find out typical policy costs by clicking here!
Nevertheless, certain medical conditions can, of course, push you outside the preferred rate status.
Those medical conditions include the following:
- History of heart disease (heart attack, bypass, stents, etc.)
- Cancer
- Obesity
- Occupation, hobbies or regular travel which is hazardous in nature
Consider a 20 year term, $2 million policy for $847 monthly premium. There can be no argument that if you can afford the $847 monthly premium, this would make for an excellent investment.
Taking the scenario that you are 60 years of age and you invested in the $2 million 20 year term policy, and you lived for a further 10 years, your investment into the policy over that 10 year period would be just over $101,000. This equates to an internal rate of return at 63% per annum!
Looking at this same scenario from another angle. If you lived to 75, the rate of return would be some 32%, and if you lived to 80, the rate of return would be 20%.
There's no doubt that this makes for a fantastic investment and there's little chance you could possibly emulate this with any other type of investment vehicle.