One Million Dollar Life Insurance: Everything You Need to Know

Life insurance is one of the best things that you can buy for your family. It’s the best safety net that you can purchase to ensure that they have the protection that they need, regardless of what happens to you. Getting the best plan to fit your needs can be a long and difficult process, and we know how overwhelming the process can be. Luckily, we are here to help you get the best plan to fit your needs. Our agents can help walk you through the process and ensure that your loved ones have the protection that they need.

one million dollar life insuranceWhile a million dollar life insurance policy sounds like a lot of money, 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, and so there isn’t one life insurance company that has the best rates in every situation. Never the less, here are some of the carriers that consistently have the top rates, and are highly rated 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

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, pipe, chew tobacco, or even a marijuana user, Prudential will offer non smoker 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 your 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

Let’s take a look at some sample 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.

SBLI: $54 per month

Protective: $54

Genworth $56

American General $58

North American $62

AXA $62

MetLife $63

Banner Life $65

Transamerica $65

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 situation a thousand times worse. One of the biggest expenses is your mortgage payments, which can put your loved ones under financial strain. Make sure that your plan is large enough to pay off all of your bills.

The next factor to consider is your salary. The secondary 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 if something tragic were to happen to you. You should consider getting seven to ten times your annual salary.

Getting Affordable Life Insurance Coverage

One of the most common reasons that people don’t get life insurance is because they assume that the proper amount of coverage is going to be too expensive to fit in their budget, but that couldn’t be further from the truth. In most cases, a million-dollar life insurance plan is going to be an affordable option. There are several ways that you can secure the best rates possible for your insurance coverage.

The first thing that you should do to get lower insurance premiums is to improve your health. The insurance company is going to require that you take a medical exam before they accept your application. The better that your health is, the better rates that they will give you for your insurance policy. Due to this, you should start a healthy diet and get regular exercise. Both of these are going to help you lose weight, lower your cholesterol, and lower your blood pressure. All of these are going to translate into better results from the insurance company, which means lower premiums for your insurance.

The next thing that you should do to improve your health is to eliminate any tobacco usage, like smoking cigarettes or using chewing tobacco. Being listed as a smoker on your life insurance policy is going to cause your life insurance premiums to go through the roof. In fact, smokers are going to pay twice as much for their life insurance versus what a non-smoker is going to pay for the same amount of protection. If you want to save money on your life insurance, it’s vital that you kick the bad habit once and for all.

The best way to ensure that you’re getting the best million-dollar life insurance plan, you’ll want to work with an independent insurance agent. Unlike a traditional agent, independent agents represent dozens of insurance companies across the nation.

Now that you know all about getting a million dollar term life insurance policy, you can get rates right on this page with our instant quote tool or call us at 888-552-6159 to discuss your life insurance needs. If you have any questions about life insurance policies or how much coverage you should purchase, please contact one of our agents today. We would be happy to answer those questions and ensure that you get the best plan.

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Liran Hirschkorn is an independent life insurance agent. His mission is to help individuals across the U.S in finding the best rates on life insurance as well as helping those that have previously been declined get approved for coverage. Liran looks forward to speaking with you about your life insurance needs.

Comments (2)

  1. Raul Gomez Jr says:

    Need quote for 53 year old $1 million 20 year level term

    1. Liran says:

      Hi Raul,

      I just sent you an email.

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