How Much is a $1,000,000 Life Insurance Policy?
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It goes without saying that anyone purchasing a life insurance policy wants to ensure that they buy an adequate amount of coverage. After all, there’s little point buying a policy in the hopes that it will support your loved ones in your absence, if you don’t buy enough coverage.
For many people, $1,000,000 in coverage seems to be the magic number or at least that which is believed to be a more than the suitable amount of protection. But how much is a $1,000,000 life insurance policy?
While it’s impossible to state one single price for a $1 million policy for every person, it is possible to conclude that anyone who is healthy and relatively young will pay much less for such a policy than someone who has health problems or that is older in age. In fact, an unhealthy person may actually be rejected for a life policy if the insurance provider deems that they are too big of a risk from an insurance standpoint.
Example $1,000,000 Life Insurance Policy Quotes
Take these two scenarios as an example:
There are two men living in Florida and both wish to buy a term life insurance policy with $1,000,000 in coverage and a 30-year term. The first applicant is a 43-year old non-smoker. For a policy this size, this man could expect to pay anywhere from $150 a month to $238.97 a month for coverage.
Then, take another Florida male, also a non-smoker, and make him 52 years of age. Suddenly, his minimum monthly payment jumps to $387.45 a month and his maximum to $905.68 a month. This is because the life insurance companies base their pricing on the understanding that people typically incur more health problems as they get older. Just 9 years can make a significant difference in your monthly premiums.
Now if you were to drop that $1,000,000 life insurance policy for the 52-year-old to a 10-year term the rates would drop back way down to $99 a month if the 52-year-old is in perfect health. The first applicant that was 43 would see a rate of $40 a month if he was in perfect health. So you can see the age you apply and length you want to coverage play a huge role in the price you pay.
These are, of course, estimates and only applying for a policy and submitting for a health exam would determine the true cost of a life insurance policy with $1 million in coverage. Every applicant is different and so every price will also be different.
The best way to find out how much a $1,000,000 life insurance policy will cost you run a quote and to use the rate estimator. Getting the coverage you want and need could be more affordable than you think!