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Life insurance benefits can cover final expenses like your funeral, but they can also help replace your income, pass on an inheritance, Pay off shared debtand more with that in mind, it’s easy to see why anyone might need one $1 million policy. But how much will it cost?
Monthly premiums for $1 million term life policies can range significantly, according to Haven Life’s quote data. The premium you pay will depend on your age, medical history, lifestyle habits and policy type.
If you’re in the market for life insurance – in any amount – start now by getting a free online price estimate here so you know exactly what you’re eligible for.
To help you estimate your costs, here are common factors that affect life insurance rates, as well as a lineup of $1 million policy quotes.
What affects the cost of life insurance?
When you apply for life insurance, the provider will ask you several questions to assess your health and life expectancy.
“Insurance companies will often request blood, urine, height, weight and blood pressure readings to confirm the health of the person applying for insurance,” says Brendan Sheehan CFP, managing director of Waymark Wealth Management.
He adds, “Other less obvious factors can affect costs, including a potential insured’s family history (such as the untimely death of a parent/sibling), demographics, driving record and credit score.”
Additionally, the type of policy you choose will play a big role in your costs. For example, a 10 year Tenure policy Will be cheaper than 20- or 30-year terms because shorter terms carry less risk. more, whole life Policies are generally more expensive than term policies as they are permanent and come with a cash value material.
The insurer you choose will also affect your cost as each company has its own risk assessment procedures, approval requirements and rates. You can be sure to find one Competitive rates By shopping, getting quotes and comparing offers side by side.
Get started with a free online price quote from Haven Life here or use the table below for in-store suppliers
How much does a $1 million life insurance policy cost?
For many reasons, there is no set price for a $1 million life insurance policy that applies to everyone. However, here’s how the price can vary depending on age and policy length.
Cost for a period of 10 years
male
|
age |
Policy cost per month |
Annual cost |
Full 10-year tenure cost |
|
30 |
$27.90 |
$334.80 |
$3,348.00 |
|
40 |
$40.76 |
$489.12 |
$4,891.20 |
|
50 |
$194.22 |
$2,330.64 |
$23,306.40 |
|
60 |
$585.87 |
$7,030.44 |
$70,304.40 |
woman
|
age |
Policy cost per month |
Annual cost |
Full 10-year tenure cost |
|
30 |
$23.11 |
$277.32 |
$2,773.20 |
|
40 |
$33.37 |
$400.44 |
$4,004.40 |
|
50 |
$129.40 |
$1,552.80 |
$15,528.00 |
|
60 |
$418.66 |
$5,023.92 |
$50,239.20 |
Cost for a period of 20 years
male
|
age |
Policy cost per month |
Annual cost |
Full 20-year term cost |
|
30 |
$43.27 |
$519.24 |
$10,384.80 |
|
40 |
$64.59 |
$775.08 |
$15,501.60 |
|
50 |
$388.74 |
$4,664.88 |
$93,297.60 |
|
60 |
$1403. 67 |
$16,844.04 |
$336,880.80 |
woman
|
age |
Policy cost per month |
Annual cost |
Full 20-year term cost |
|
30 |
$33.65 |
$403.80 |
$8,076.00 |
|
40 |
$54.05 |
$648.60 |
$12,972.00 |
|
50 |
$248.31 |
$2,979.72 |
$59,594.40 |
|
60 |
$1,118.76 |
$13,425.12 |
$268,502.40 |
Cost for a period of 30 years
male
|
age |
Policy cost per month |
Annual cost |
Full 30-year term cost |
|
30 |
$73.24 |
$878.88 |
$26,366.40 |
|
40 |
$135.40 |
$1,624.80 |
$48,744.00 |
|
50 |
$520.12 |
$6,241.44 |
$187,243.20 |
|
60 |
N.A |
N.A |
N.A |
woman
|
age |
Policy cost per month |
Annual cost |
Full 30-year term cost |
|
30 |
$64.06 |
$768.72 |
$23,061.60 |
|
40 |
$108.65 |
$1,303.80 |
$39,114.00 |
|
50 |
$380.67 |
$4,568.04 |
$137,041.20 |
|
60 |
N.A |
N.A |
N.A |
Assumptions: These quotes from Haven Life are based on a person who lives in California, is in good health, and does not use tobacco or nicotine. Permanent life insurance quotes were not available.
Some interesting takeaways:
- The cost of the policy increases with age.
- Coverage is more expensive for men than for women.
- The monthly premium increases as the term increases.
- The full-term cost of the most expensive policy was only 34% of the $1 million death benefit amount.
- Quotations on 30-year terms are not available for 60-year-olds.
Do you need a $1 million life insurance policy?
If you want to leave a lot of money to loved ones, life insurance offers a way to do that. but A $1 million policy is enough or too much?
“$1 million may sound like a lot, but if it’s spread over a lifetime (spouses and kids), many people will need more than $1 million to support even a modest lifestyle,” says Aaron Friedman CFP, insurance and financial strategist at MassMutual Idaho. . “
“There are many factors to consider, such as the family’s cost of living, if they want to have enough to send the kids to college, and whether the surviving spouse will work,” he adds.
Sheehan also points out that, in some cases, life insurance is not needed for family protection but is wanted for tax benefits.
“An elderly, 60+ year old parent may have substantial IRA and 401k balances that will be taxable to their heirs upon their passing. They may open an Irrevocable Life Insurance Trust (ILIT) and apply for a substantial life insurance policy. ILIT owned,” Sheehan explained.
He continued, “They can withdraw funds from their IRAs, pay taxes on the withdrawals, and ultimately pass an inheritance to their children through life insurance that is not subject to estate or income taxes.”
In either case, the policy amount that’s right for you will depend on how much you want to leave behind, if the premiums on your desired policy fit your budget, and—perhaps—what benefits you expect. to cover.
Get a quote for $1 million life insurance policy online now!
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