Deciding to get life insurance is always a step in the right direction. It ensures you're going to protect your family even after you're gone. Once you've decided that life insurance is necessary, the next step is to make a number of other decisions about the life insurance you need. There are several things to think about, including what type of life insurance is right for you and how much coverage you need.
Some people feel that it's enough to take out just $250,000 or $500,000 of coverage, or perhaps even less. However, others want and need to make extra sure that their family will be provided for and that any expenses and debts are covered.
A 1 million dollar life insurance policy can provide the protection that you need, helping to replace lost income, pay off remaining debts, and pay for expenses such as funeral costs. You can find plenty of options if you're looking for this level of coverage. Comparing quotes is the best way to find the right provider and policy.
The first thing you need to do is consider what type of life insurance you want to get. This is important to think about before you consider the necessary amount of coverage.
Your two options are whole life insurance and term life insurance. These both provide a payout to your named beneficiary when you die, but they work in different ways. This means that they can be useful in different circumstances and used for varying purposes.
Whole life insurance is designed to provide you coverage for your whole life. It will keep going unless you cancel it or until you die, at which point it will pay a death benefit to your beneficiary. Because it never expires, this type of life insurance is typically a fair amount more expensive than the other type, term life insurance.
In addition to having a death benefit, whole life insurance serves the dual function of being a tax-deferred savings account. The death benefit accrues interest, with some of your premiums being paid into a savings account so that the value of the policy grows over time. You can also borrow from this cash value if you want to. So if you choose a whole life 1 million life insurance policy, you could increase its total value beyond that.
Term life insurance is another popular type of life insurance. Unlike whole life insurance, it expires after a set term. This could be as little as a year or two or it could be several decades. It doesn't have a cash value but pays out a death benefit if the policyholder dies during the term. It can be renewed or can sometimes be converted to whole life insurance. 1 million term life insurance will provide you with that level of death benefit if you choose a level term policy. Another option is a decreasing term policy, where the benefit decreases over the term. This is often required by mortgage lenders or other creditors.
Other types of life insurance are also available too, and could also be useful to consider. These include:
Universal life insurance
Variable life insurance
Mortgage life insurance
Accidental death and dismemberment life insurance
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Once you've considered what type of life insurance you're looking for, the next thing to do is think about how much coverage you need. But how do you work this out? More coverage will mean higher premiums, and balancing these two things can be tricky.
There are several things you can think about if you want to work out how much coverage you need and if life insurance at $1,000,000 is right for you.
Your family and dependents-Start by thinking about who will benefit from your life insurance and what help they may need when you die
Your income-Your income can help you to work out how much life insurance you need, with some experts saying that 10 times your annual income is a good starting point
Your debts-Making sure your debts are paid off is one of the key things to consider, so take account of how much you owe on your mortgage, car, credit cards, or other debts
Other bills and expenses-Consider what bills and expenses your family may be left with. Will your coverage easily cover funeral costs? How long would $1 million help to pay the bills?
Some insurance providers and finance websites provide calculators to help make it easier for you to work out how much life insurance coverage you need.
When you start to look at the average cost of $1 million life insurance, you might start to wonder whether it's necessary. But there are multiple benefits to having a larger amount of life insurance coverage.
Taking out a larger amount of coverage gives you the peace of mind that your family will be provided for. It can ensure your debts are paid so your family isn't left to deal with them and can mean your other assets are left untouched.
When you have million dollar term life insurance or whole life insurance, you can have a greater degree of confidence that it's going to be extremely useful after you have passed away. One of the main things it can do is help to make up for your lost income, perhaps even helping to support your family for years.
Of course, to take out life insurance, you need to gain approval. The million dollar life insurance cost isn't the only thing you need to think about. If you want a higher level of coverage, you need to remember that the approval process could be stricter.
Some providers might require you to have a medical exam if you want 1 million dollar term life insurance or whole life insurance. However, others may have exam-free policies offering this amount of coverage.
Here are some figures for the average cost of 1 million term life insurance and whole life insurance:
|Customer||Whole Life Insurance||20 Year Term Insurance||30 Year Term Insurance|
|30 year old male||$700||$31||$54|
|30 year old female||$620||$25||$44|
|40 year old male||$1,050||$49||$90|
|40 year old female||$899||$42||$75|
|50 year old male||$1,649||$133||$242|
|50 year old female||$1,399||$99||$175|
The average cost of 1 million term life insurance or whole life insurance is affected by several factors. Your age makes a difference, with older people usually having to pay more. Men will typically pay more for the cost of 1 million life insurance too. Other factors that will affect 1 million dollar life insurance cost include your occupation, health, and lifestyle.
As you can see, the 1 million term life insurance cost is much lower than whole life insurance. This is because term life insurance expires and doesn't offer some of the same benefits of whole life insurance, such as cash value. If you want to reduce your premium for 1 million life insurance, term insurance is the cheaper option by a mile.
Here’s another table that gives you a more idea of the average cost 1 million life insurance by showing the rates of the best companies:
|Cost per Month||Cost per Year||Best for|
|Fabric||$27.20||$326.40||$1 million life insurance that can be canceled anytime|
|Haven||$38.27||$459.24||$1 million life insurance available in two options|
|State Farm||$41.79||$501.48||A wide range of options|
|Ethos||$58||$696||Life insurance that’s 100% online|
|AARP||$150||$1,800||Seniors looking for term or whole life insurance|
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Most life insurance providers will offer $1000000 life insurance as a whole life or term life insurance policy. There are also carriers that offer both and even allow you to upgrade a term life policy into a whole life policy.
The cost for 1 million dollar life insurance will vary between providers, as well as being affected by the factors mentioned above. Here are a few providers that will offer you $1 million coverage from your life insurance.
130+ years of underwriting life insurance
100% digital term life insurance experience
No price changes
Good customer experience
Coverage can't be increased after purchase
Fabric by Gerber Life sees to it that you get immediate life insurance coverage online. This company’s quote process is streamlined, meaning that life insurance can be purchased without waiting for the call of an agent.
No need to worry if it’s your first time purchasing life insurance. Fabric lays everything simply on its online quote platform. All you have to do is provide some basic personal information. After that, you can then choose how much coverage to have with a simple click of a button.
Worth with Fabric because it has 130+ years experience granting life insurance coverage. Also, you’re given access to a mobile app as a policyholder. Last but not least, you can cancel your 1000000 term life insurance and whole life insurance anytime.
Best for: $1 million life insurance that can be canceled anytime
Average cost: $27.20 per month
Our rating: 10/10
Quote online or call
Underwritten by New York Life
Customers must be AARP members to apply
The AARP is an organization offering a range of membership benefits for seniors. They sell insurance via New York Life to seniors over 50, with both whole life insurance and term life insurance on offer. They offer competitive options. Payments on whole life insurance stop when you’re 95 and will then continue to grant coverage for free. This company’s one million life insurance cost is $150 per month.
Best for: Seniors looking for term or whole life insurance
Average cost: $150 per month
Our rating: 6/10
Get an estimate of your rates online
Works with multiple insurance companies to grant you coverage
No medical exam
Might not be able to grant coverage if you’re 66-69 years old
Ethos take pride in the fact that its customers enjoy comprehensive life insurance coverage with no medical exams needed regardless of their health status. Another notable thing that it boasts is that customers can get an online quote and have themselves insured. This company’s life insurance 1000000 is underwritten for people 20-65 years old. In connection, the coverage comes with a free will and estate planning.
Best for: Life insurance that’s 100% online
Average cost: $58 per month
Our rating: 9/10
Great discounts for members
15 year term life insurance offers child coverage
No medical exam required when converting term life insurance to permanent life insurance
Only available to USAA members
USAA offers its life insurance to active and retired military personnel. Their direct families can also avail this company’s policies. USAA offers term life and whole life insurance that comes with child coverage and life events coverage. If you go for a $1 million term life policy, you can decide to upgrade to a whole life policy with no medical exams. Note that if you need more coverage, USAA is ready to offer up to $10 million. They offer whole life insurance and their million dollar term life insurance cost is worth taking note of too. They have a range of insurance options and their coverage goes up to a huge $10 million.
Best for: Military members
Average cost: $27.49 per month
Our rating: 8/10
Offers term life insurance up to 30 years
Backed by a long-standing insurance company
Easy to apply online
Other financial services available
No convertible term life insurance option
Haven is another good option if you want to get covered online. Its $1 million life insurance is offered in two varieties. The first one, Haven Simple, offers a maximum $1 million worth of coverage which you can avail with no medical exam. The second, Haven Term, offers $100,000-$3 million worth of coverage and a medical exam might be required. Nonetheless, this offers a good value for money because a rider can be included.
Best for: $1 million life insurance available in two options
Average cost: $38.27 per month
Our rating: 9/10
Term life insurance can be converted to whole life insurance
Wide range of insurance options
Return of premium is available
Age and benefit restrictions for no-exam plans
State Farm is one of the most recognizable insurance providers, and they extend a variety of life insurance options to customers. With both whole life and term life insurance available, there's no need to worry about the cost for 1 million dollar life insurance. State Farm offers a $1 million worth of coverage for $47.91 per month, which is still cheap. They have great customer service and you can get quotes online in seconds.
Best for: A wide range of options
Average cost: $41.79 per month
Our rating: 8/10
If you're looking for a $1 million life insurance policy, compare quotes to find the right deal for your needs. Start by clicking the “Get Quotes” button on this page.
Excellent prices and customer service, and a very straightforward online shopping experience.
Incredible experience from quote to claims!
Policy Type: Life Insurance
Company name: Fabric Life Insurance
You wouldn't find such life insurance coverage, such excellent experience online, service and rock bottom rates elsewhere! That's my experience however. Don't think twice.
Very few coverage options... you are very limited on what you get life insurance wise, there are much broader coverage options on other life insurance companies
very indifferent about it