One of the most common questions I receive is what is the cost of a one million life insurance policy? The good news is that the best rates on a one million life dollar insurance policy can be very affordable and have favorable underwriting guidelines if you choose the right company. If you’re looking for a million dollar life insurance policy cost comparison for the best rates with favorable underwriting, then this article is for you.
The reality is that there are over 700 life insurance companies in the United States and each one will have their own price for a ten million dollar life insurance policy. Factors such as age, health, medications, and many other aspects will determine your premium. The key is to compare rates from the top companies to see which insurer will offer the best rate for your specific age and health. Whether it is Prudential, AIG, Mutual of Omaha, Pacific Life, Principal, Lincoln Financial or another carrier, comparing rates from many of the nation’s top carriers before you move forward is paramount if you want the best rate and most favorable underwriting to get approved at that rate. Many people are incredibly surprised to see how much the rate can differentiate from one life insurance company to the next.
Table of contents
- How to get a one million life insurance policy
- Underwriting a million life insurance policy
- $1 million life insurance policy- exam vs. no exam vs. accelerated underwriting
- $1,000,000 life insurance underwriting guidelines by age and company
- Common health conditions that affect a $1 million life insurance policy
- $1 million term life insurance policy cost
- Sample Rates for $1 million 20 year term life insurance policy
- $1 million whole life insurance policy cost
- $1 million ($1,000,000) life insurance policy-wrap up
How to get a one million life insurance policy
The first step is to receive quotes from multiple companies to compare rates for the best price. You can call the different insurance companies yourself or have an independent broker shop the market for you. (There is no charge for a broker, the same price you receive from an agent-broker is the same price as going to the company directly.
Select a company and start the application
Choose the best company and complete the application.
Paramed (if it’s fully underwritten), phone interview if it’s a no exam policy
Schedule and complete the 30-minute no-cost paramed exam. If it’s a no-exam policy, complete the phone interview.
Wait for the underwriting process to be completed. Your age and health will help determine how long it will take. The underwriter may request your medical records, which they will obtain.
Once approved, you will receive the policy, review it, and if you accept then make the first payment. You don’t have pay anything until you are approved and accept the policy, unless you want coverage during the underwriting process. The policy will go inforce and the coverage is active.
Underwriting a million life insurance policy
Each life insurance company has their own underwriting guidelines and niches for a million dollar life insurance policy, the rates can vary significantly. For example, Prudential Life Insurance Company has great underwriting guidelines in many areas including for people who chew or use dip. They are one of only a few companies in the country that offer a non-tobacco rate which will be about half the price of the other life insurance companies. Another example is with a top life insurance company called Banner Life. They are great for people with diabetes and can typically provide a more favorable health class then the other top companies and in return offer a much lower premium. These are just a few examples, since each company has their own price and niche. That is why it is imperative to call the top companies to receive multiple quotes or use a broker who can do the shopping for you to ensure you are receiving the best rate for specifically for you and your age, health, family history, etc.
$1 million life insurance policy– exam vs. no exam vs. accelerated underwriting
Many people prefer to avoid a medical exam if they can, especially over this past year with COVID-19. While life insurance underwriting has come a long way in the decade, it is still not perfect. There are a few companies that you can obtain a one million life insurance policy with no paramed exam at all and the rates are competitive to those with the exam. Then there are other companies that offer a one million life insurance policy with no medical exam policy at all as well but the rates are very expensive, sometimes double that of those with an exam. The next option is something called accelerated underwriting (AU).
Accelerated underwriting typically involves a phone interview to see if you qualify for the no exam policy and goes up to $1 million in coverage. This type of policy is for people in good health as about 50% of applicants qualify for accelerated underwriting. If you qualify for accelerated underwriting the approval is faster and doesn’t require the paramed. Also, the carriers that offer this are some of the most well-known and best life insurance companies in the country.
If you do try to get approved for the accelerated underwriting policy and the after the phone interview, the underwriter requests the paramed exam, it’s not the biggest deal, as you would have had to take the 30 minute no-cost paramed anyway and you are still with one of the best companies in the country.
Whether you choose a policy with the exam, or no exam or the accelerated underwriting, all three will look at the prescription database, check the MIB (Medical Information Bureau) and look at your driving history.
No exam and accelerated underwriting polices are typically for those between the ages of 18 to 60 years old.
$1,000,000 life insurance underwriting guidelines by age and company
So exactly what are the underwriting requirements to be approved for a ten million life insurance policy? Below are the exact requirements from a few of the nation’s top life insurance companies to provide an example of exactly what they look for when underwriting a one million dollar life insurance policy.
18 to 40 years old- Paramed, (Possible AU), IRP, MVR report
41-45 years old- Paramed, (Possible AU), ECG, IRP
46-50 years old- Paramed, (Possible AU), ECG, IRP
51-64 years old- Paramed, (Possible AU to age 60) ECG, IRP
65- 70 years old- Paramed, ECG, IRP
71-75 years old- Paramed, APS, IRP, COG, FRAILTY, MOBILITY, Rx
Over 75 years old- Paramed, APS, IRP, COG, FRAILTY, MOBILITY, Rx, MVR
Paramed- paramed exam- which includes height, weight, blood pressure and a small blood and urine sample
MVR- Motor Vehicle Report (driving record)
IRP- Insurance risk profile (comprehensive blood and urine panel)
ECG- Electrocardiogram- (same as EKG), examiner brings out the machine when does the paramed
APS- Attending Physician Statement (medical records)
COG- Cognitive functioning test, administrated by the examiner
FRAILTY- Senior supplement questionnaire, administrated by the examiner
MOBILTY- Get Up & Go mobility test, administrated by the examiner
Rx- Pharmaceutical database check
AIG- American General Life Insurance Company
40-44 years old- Paramed, BU, MVR, CR
45-49 years old- Paramed, BU, MVR, CR
50- 55 years old- Paramed, BU, MVR, CR
56- 59 years old- Paramed, BU, MVR, CR
60- 66 years old- Paramed, BU, MVR, CR
67-70 years old- Paramed, BU, MVR, FQ, CR, AC
71+ years old- Paramed, BU, MVR, FQ, ES, CR, AC, EKG, 71IR
Paramed- paramed exam- which includes: height, weight, blood pressure, pulse
BU- Full blood profile and urine analysis
MVR- Motor vehicle report
FQ- Financial Questionnaire
ES- Electronic records search
TT- Tax Transcript
CR- Credit Report
TPF- Third party financial provided by CPA
AC- Agent Certification form
IRP- Expanded Inspection Report which includes, Cognitive Tests. This test takes about fifteen minutes.
Pacific Life Insurance Company
41-50 years old- Paramed, HOS, Blood, (Possible AU, no exam, no blood, APS)
51-60 years old- Paramed, HOS, Blood, (Possible AU, no exam, no blood, APS)
61-70 years old- Paramed, HOS, Blood/NT-ProBNP, APS, IR (age 65+), (Possible AU, no exam, no blood, APS)
71 years old and over- Paramed, HOS, Blood/NT-ProBNP, APS, IR, FCA
Paramed- paramedical exam-height, weight, blood pressure
APS- Attending Physician Statement (medical records)
BLOOD- Blood Profile
FCA- Functional Cognitive Assessment
HOS- Home Office Specimen (Urine Sample)
IR- Inspection Report
NT-ProBNP- Natriuretic Peptide Test (link to article on Pro-BNP)
Common health conditions that affect a $1 million life insurance policy
As mentioned earlier, each carrier will have their own price for for a one million life insurance policy. The key is to know which company will offer the best rate for your situation. Whether it be your age, build, any medications, family history, driving record, etc. Below are some common health conditions that can significantly affect which life insurance company will offer the best rate.
Build- height & weight
-Cholesterol readings- total, HDL, triglycerides
-Blood pressure readings
-Diabetes- pre-diabetes, type II, type I, gestational diabetes history
-Arthritis- osteo and rheumatoid
-ADD & ADHD
-DVT- Deep Vain Thrombosis
-SVT- Supraventricular tachycardia
-Atrial Fibrillation (A-fib)
-Cancer history- prostate, melanoma, thyroid, breast, family, other
-Elevated Liver Functions
-Elevated microalbumin ratio
-Elevated calcium score
-Elevated serum creatine
-Depression, one or multiple medications
-Anxiety, one or multiple medications
-MS- multiple sclerosis
-Foreign travel to certain countries
-Bankruptcy or multiple bankruptcies
The are many more but these are some of the most common. Since each company does underwrite these health conditions differently, it’s important to compare rates from several companies.
$1 million term life insurance policy cost
Below are the best rates for a $1,000,000 term life insurance policy, male at the preferred plus health class.
|Age||10 Year Term||15 Year Term||20 Year Term||25 Year Term||30 Year Term|
|Age 40||$23 month||$34 month||$47 month||$78 month||$94 month|
|Age 45||$44 month||$66 month||$87 month||$123 month||$150 month|
|Age 50||$70 month||$103 month||$134 month||$201 month||$245 month|
|Age 55||$123 month||$164 month||$221 month||$356 month||$457 month|
|Age 60||$209 month||$279 month||$387 month||$686 month||NA|
|Age 65||$365 month||$486 month||$743 month||$1,290 month||NA|
|Age 70||$598 month||$910 month||$1,338 month||NA||NA|
|Age 75||$1,213 month||$2,338 month||NA||NA||NA|
Sample Rates for $1 million 20 year term life insurance policy
$1 million whole life insurance policy cost
Below are the rates for a $1,000,000 million universal life insurance policy (no-lapse guarantee) for a male to age 110 years old at the preferred plus health class.
$1 million ($1,000,000) life insurance policy-wrap up
Securing a one million dollar ($1,000,000) life insurance policy at the best rate can be easy if you know where to go and how to choose the right company. There are literally hundreds of life insurance companies in America and each one will offer a different rate based on several factors. Your age, height and weight, medications, your readings (blood pressure, cholesterol, liver enzymes, etc.), and many other aspects will determine which insurance company will have the lowest rates for you. This is why it’s imperative to compare rates from multiple carriers with a high financial rating to ensure that you are receiving the best rate and with a great company.