If you’re reading this article you are likely in the market for a 20 million dollar life insurance policy. While twenty million dollars of life insurance may sound like a lot of coverage, for many it is the amount needed to adequately replace future income that would have been earned but wasn’t due to an untimely death. Also, for others it’s the coverage amount needed for estate protection, business succession, key person insurance, charitable bequests, a divorce agreement, debt repayment, buy-sell agreement or business succession.
How Much Is A $20 Million Life Insurance Policy?
Now lets take a look at exactly how much a 20 million dollar life insurance policy costs. These rates are for a 40-year old male, in excellent health.
- A $20-Million 10 year term life insurance policy is priced at $4,789 in annual premiums, and a 20 year term costs $9,419 a year.
- A $20-Million No-lapse Guarantee Universal Life Insurance Policy (GUL) is priced at $111,016 in annual premiums to age 100 and $123,413 year to have fixed premiums until 121 years old.
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Underwriting A 20 Million Dollar Life Insurance Policy
The underwriting for a 20 million life insurance policy is not much different than the underwriting for any other multi-million dollar policy. Some additional requirements, depending on your age, may be a resting EKG at the time of the exam and a inspection report (an inspection report is a 15-20 minute phone interview) or a financial statement. This is just to make sure you qualify financially for the 20 million policy. Each insurance company has their own underwriting guidelines, so it’s best to ask your agent.
Laddering Your Policy
A popular strategy some savvy life insurance agents utilize for their clients is called ”laddering” or ”layering” the policy. This simply means if you need a certain amount of life insurance, in this case $20 million, you can choose multiple polices for different term lengths. This will save you money and provide more flexibility.
For example, you can choose to do a $10 million life insurance policy for a 10 year term as well as a second policy for $10 million policy for 20 year term. This means you will have 20 million dollars in life insurance protection for the next ten years, then ten million dollars in protection for the last ten years.
Another example is choosing two different insurers. Some of the clients we work with want to diversify their risk. They will choose to do $10 million in coverage with one carrier and a second policy for $10 million with a separate company. This will provide the $20 million in coverage but spreads the risk between two different companies.
Quoting A 20 Million Dollar Life Insurance Policy
Receiving instant quote comparisons for a $20 million life insurance policy is very easy. The quote engine on our site lists the top companies and their rates. It goes up to ten million dollars in coverage, however, if you double the premium for the ten million dollar policy, the rate is fairly linear and can provide you with an accurate instant rate quote for the 20 million dollar policy. If you have any questions, feel free to contact us.
Whether you need instant life insurance quotes for 20 million dollars of term life insurance or permanent life insurance, we have you covered.