Million Dollar Life Insurance

If someone offered you a million dollar life insurance policy, you may think that it is too much coverage; that you might not qualify. Contrary to popular belief, million-dollar3 life insurance is way more affordable and accessible than you might think.
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Author: Brian Greenberg CEO of True Blue Life Insurance
Last updated: June 21, 2021

Improvements in the insurance industry have made it much easier and commonplace to get these kinds of million-dollar policies. Over the course of many years, this policy will serve as income replacement in the event of your untimely demise.

With all of that in mind, here’s what you need to know about million dollar life insurance:

Q: What is the most important factor in qualifying for a million-dollar policy?

A: Your annual income.

Do your financial obligations warrant this kind of policy?

This is most often determined by a Multiple of your Annual Income

Your AgeRecommended CoverageMaximum Coverage
20-3015x annual income20x annual income
31-4015x annual income20x annual income
41-5010x annual income15x annual income
51-607x annual income10x annual income
61-655x annual income7x annual income
66 or Older3x annual income 5x annual income

As you would when considering any life insurance policy, you need to consider what financial obligations a potential policy would need to cover.

For example, if you are a 30-something making $50,000 a year, your recommended coverage amount would be somewhere between 15-20 times your salary. Using this metric, you’d be right in the sweet spot for $1 million coverage.

Once you know if your income qualifies, it’s important to consider the expenses that a million-dollar policy could cover. It’s important to consider the expenses that your family would have to cover in the event of your death. These are the kinds of questions you need to be thinking about:

  • Do you have outstanding student loan debt?
  • How much do you owe on your mortgage?
  • What would it cost to put your children through college?
  • Do I already have enough saved away as a safety net?

The idea of these questions is to make sure that you aren’t selling yourself short on the kind of coverage you actually need.
Like any life insurance policy, it is meant to be income replacement for 5-10 years after your death, not an increase in income. So, if your long-term expenses total out around $1 million, then this kind of policy might be right for you.

Best companies for no medical exam million dollar life insurance

Sagicor Life Insurance Company

Sagicor Life Insurance Company is one of the largest life insurance providers in the country.

They have been providing quality and value to their policyholders for over 60 years.

Their parent company, Sagicor Financial has approximately $5.5 billion in assets.

American National Life Insurance Company

American National Life Insurance has been writing life insurance for more than 100 years.

They also carry A ratings from both Standard and Poors and A.M. Best.

Best companies for million dollar life insurance with a medical exam

AIG American General Life Insurance Company

AIG is one of the best, financially stable insurance companies that is internationally available.

They boast A+ ratings from both the Better Business Bureau and A.M. Best, as well as a AAA rating from Standard and Poors.

Banner Life Insurance

Banner Life Insurance has been writing life insurance for more than 50 years.

They boast A+ ratings from both the Better Business Bureau and A.M. Best, as well as a AA rating from Standard and Poors.

In many cases, this helps determine if you are actually healthy enough for this policy, and the risk of insuring you. But, there are some insurers who offer no medical exam policies which bypass this step entirely. Though, in doing this, they assess your risk by analyzing your medical history, driving records and questions about your lifestyle. All things to keep in mind when considering this avenue for coverage.

If you meet all of these eligibility requirements, then you’re one step closer to getting coverage.

Sample rates for million dollar life insurance

These rates are for a 40-year-old non-smoker from Missouri in the standard health class.
CompanyMale (Age 40)Female (Age 40)
Banner$91.82 per month$71.30 per month
AIG$91.83 per month$71.31 per month
American National (No Exam)$104.54 per month$82.02 per month
Sagicor (No Exam)$126.97 per month$103.63 per month

If one spouse qualifies for a million dollar policy, the other spouse qualifies as well!

You may think that only the main income earner in a family can get one million dollars in coverage. When one spouse has all or most of the coverage, the insurance companies run a higher risk of insurance fraud. In consideration of this life insurance coverage is based on household income. This means both of you can get a million in coverage.

P.S. We don’t want our spouses to be tempted :)

The general rule of thumb is that 2% of your yearly income should be spent on life insurance.

If you compare million-dollar term coverage to whole life, you may be surprised by the price difference. This means that you could be paying way more for a whole life policy versus an equivalent term policy with $1 million of coverage. For this reason, you should weigh your options. If you meet the eligibility and health requirements, then million-dollar life insurance might be right for you.

Is million dollar life insurance actually affordable?

In the end, you’re the only one who really knows if a million-dollar policy is right for your life insurance needs. As noted above, this often depends on your income and health, so you will want to take those into consideration before making any big decisions. You can even input some of that basic information into a calculator and see how affordable your monthly premiums might be as well.

Our recommendation is to purchase as much life insurance as you qualify for.

If you decide to explore these policies further, True Blue Life Insurance has plenty of tools to help you compare quotes from many providers. This way you can find the million-dollar policy that will fit you best.

Get the most accurate rates in 2 minutes or less
Making a financial decision doesn’t have to be stressful.
See what you qualify for by answering some health questions.

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About the author
Brian Greenberg author
Brian Greenberg
Founder and CEO
Brian is licensed to sell life, health, annuities, and property and casualty insurance in all 50 U.S. states. He is the author of The Salesman Who Doesn't Sell and is a member of the Million Dollar Round Table, an organization that consists of the top 1% of financial advisors worldwide.