Best Life Quote

One Million Dollar Life Insurance Policy

Written By Doug Mitchell

Doug Mitchell, CLU holds a BA degree in Finance from Auburn University as well as having obtained a Chartered Life Underwriter (CLU) designation from The American College in Bryn Mahr, PA.  Doug has spent close to 30 years in the insurance and financial planning industry and has held licenses to sell securities, long-term care insurance, health.  Doug is also a financial blogger addressing the topics of life insurance, annuities and retirement income planning.

Holly Mitchell  &

Holly Mitchell’s background in life insurance insurance goes back to 1985 when she worked for her father who was a New York Life agent. Holly has a marketing degree from Auburn University and has had a life insurance license since 2008. In addition to advising life insurance for customers all around the country, Holly is our website fact checker.

Rob Pinner   &

Rob Pinner is the founder and CEO of Pinner Financial Services servicing all 50 states. Rob started his insurance career in 2002.

Louis LaBash

Results-driven and innovative life insurance professional with 30 plus years of life insurance industry sales and marketing experience. Recognized as a pioneer in the field, leveraging phone and internet channels to exceed personal sales of over $100 million during the first decade of the 21st century. Creator of a highly effective intuitive IUL life insurance sales software that facilitated the sale of millions of dollars of indexed universal policies by numerous life insurance agents. Proven track record as a Managing General Agent (MGA), Life Agent, IUL Life Insurance Sales Software developer, and leading-edge creator of insurance marketing tools, educational content, and delivery systems.

Table of Contents

I know a million dollar life insurance policy sounds like a lot of money. But many people with families should have a million dollar policy or higher.

When you add up the mortgage, replacing your income, and covering future college tuition for your kids, you can quickly see how a $1,000,000 policy makes sense.

This is especially true if you are in your prime earning years and want to make sure your income will be replaced with life insurance should something happen to you.

In this article, I’ll explore which companies to consider, life insurance company requirements, and provide some examples of pricing as well.

Companies With The Best Pricing

The company with the best pricing for you may very well be a different company that has the best pricing for someone else.

Companies price based on age, coverage amount, length of term, and overall health. So there isn’t one life insurance company that has the best rates in every situation.

Nevertheless, here are some of the carriers that consistently have the top rates, and are highly rated insurance companies as well.


SBLI has an A+ rating from A.M best and over $125 Billion in life insurance policies in force.

Banner Life

Rated A+ and in business since 1949, Banner boasts over $400 Billion in active life insurance policies.

Protective Life

Usually found in the top 5 best-priced companies, Protective has been in business for over 100 years. They also carry an A+ (considered ‘Excellent’) from A.M Best.

American General

This is one of our go-to companies for many high-risk life insurance situations. American General has been in business for over 100 years, with millions of customers throughout the U.S.


We had to include Prudential in our list. They have competitive pricing an A+ rating, and we use them in many situations. For example, Prudential offers non-smoker rates to anyone not smoking cigarettes.

That means if you smoke a cigar or pipe, use chewing tobacco, or even are a marijuana user, Prudential can offer nonsmoker rates. Prudential also approved active military duty personnel.

Aside from the companies above, we represent over 30 life insurance companies, however, the list above is companies that are often most competitive.

Financial And Medical Requirements

There are two general requirements to qualify for a million-dollar life insurance policy. First, you need to have an annual income that justifies you buying a 1MM policy, as well as qualify from a health standpoint. The younger you are, the higher the multiple of your income that is used.

If you’re between 20 – 30 years old, life insurance companies will generally allow you to use around 25-30 times your annual income, for the amount you can qualify for. Meaning a $50,000 income is enough to qualify. As you get older the multiple decreases. For example, a 40-year-old may be allowed to use 20 times their annual income, while a 50-year-old will be allowed 15 times income.

These financial multiples don’t apply in every single situation. For example if you’re buying a business and need life insurance as part of the loan collateral, that could justify a policy, regardless of income requirements.

If you are a non-working spouse, you can still qualify based on how much life insurance your working spouse has. Most insurance companies allow you to have an equal amount of coverage up to several million dollars.

As far as medical requirements go, a million-dollar policy will require an exam. A nurse would be sent to your home or office to do a blood test, take a urine sample, blood pressure, and height and weight.

Many times the insurance carrier would also want to order your doctor’s medical records as well.

One Million Dollar Life Insurance Rates

We’ll use a 40-year-old male applying for a 20-year term 1 Million dollar policy.

We’ll assume he is in excellent health and can get preferred plus rates. Rates below are monthly rates, and I’ll list the top 10 best-priced companies.

All companies on this list are rated A or A+ by A.M Best.

  1. SBLI: $54 per month
  2. Protective: $54
  3. Genworth $56
  4. American General $58
  5. North American $62
  6. AXA $62
  7. MetLife $63
  8. Banner Life $65
  9. Transamerica $65
  10. Principal National $66

While a million-dollar life insurance plan probably sounds outrageous, the majority of applicants need this much life insurance coverage for their family.

Before you apply for coverage through any of those companies, you should calculate your life insurance needs.

The first thing that you should calculate is your debts and any final expenses that you would leave behind your loved ones. If something tragic were to happen, your family would be responsible for all of the bills, which can make an already difficult worse.

One of the biggest expenses is your mortgage payments, which can put your loved ones under financial strain. Make sure that your final expense insurance plan is large enough to pay off all of your bills.

The next factor to consider is your salary. The second most prominent goal of your life insurance is to replace your salary if anything tragic were to happen.

If you’re one of the main income earners in your household, your loved ones would suffer financially. You should consider getting seven to ten times your annual salary.

Getting Affordable Life Insurance Coverage

In order to get approved for the lowest premiums, we suggest a few key steps:

  1. Talk to a knowledgeable, independent agent
  2. Compare rates from several insurance companies
  3. Apply to more than one carrier, if necessary

When you work with a true, independent agent or broker, it means you’re working with someone who is not bound to just one company, but offers many. It’s one of the more important ways you can spend your time early on in your search for coverage.

By comparing rates and types of insurance from many companies at once, you’ll also get a sneak peek into how many different options you have to choose from. This might mean paying slightly more to skip an exam, or simply to choose a name brand you recognize.

Last, if the first carrier doesn’t give you the rates you’re looking for, don’t hesitate to try the next carrier in line, if your agent thinks it’s worth the time.

Sometimes, it’s a result of something coming up in your medical history you had forgot about, but other times it’s the carrier being, well, stingy.

If you have any questions on how to save, please contact us today and we’ll get you going.

Picture of Doug Mitchell, CLU

Doug Mitchell, CLU

Doug Mitchell, CLU holds a BA degree in Finance from Auburn University as well as having obtained a Chartered Life Underwriter (CLU) designation from The American College in Bryn Mahr, PA. Doug has spent close to 30 years in the life insurance and financial planning industry and has held licenses to sell securities, long-term care insurance, health. Some other notable items about Doug: Top of the Table Million Dollar Round Table member (MDRT). (MDRT is a global, independent association of the world’s leading life insurance advisors) | Premier Partner with Lincoln Financial and Cabinet Member | Served two years as President of the Auburn/Opelika Association of Financial Advisors | Life Millionaire status at Horace Mann Insurance Company and was awarded the Life Agent of the Year Award | New York Life, Executive Council Member | Currently serves as President of Ogletree Financial, a life insurance General Agency. | Doug is also a financial blogger addressing the topics of life insurance, annuities and retirement income planning.

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