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How Much Does A 2 Million Dollar Life Insurance Policy Cost?

Written by Jason Patterson

There are many applicants who would balk at the idea of purchasing a $2 million dollar insurance policy for their loved ones, but there are a lot of households which need this much coverage.

Having enough insurance is the most important investments you can make for your family.

While not having life insurance is one of the worst mistakes you can make.

This article will look at how much you’ll pay for your insurance plan.

We will also give you some ways you can lower your insurance rates and keep more money in your pocket.

Do You Need a $2 Million Dollar Life Insurance Policy?

About half of all Americans who do have life insurance are drastically under-insured, which means if they were to pass away, their family wouldn’t have enough resources to pay off all of the debt they left behind.

Aside from having a policy, having enough coverage is the next most important decision.

Before you automatically assume $2 million is way too much for your family, you’ll need to do some important calculations first.

The primary goal of your life insurance is to pay for any expenses you would be left to your family after you passed away.

This includes:

  • Mortgage Payment
  • Car Payments
  • Student Loans
  • Business Loans
  • Medical Bills
  • Funeral Costs

With all of these unpaid expenses, it’s easy to see how your debt could quickly add up to $500,000 or $750,000 quickly, but this still isn’t anywhere near the $2 million dollars.

Your debts are only a portion of your life insurance needs.

The secondary goal of your life insurance is to replace your salary. If you’re one of the main income-earners in your family, they would struggle financially if you were to pass away, but that’s where life insurance comes in. It will give them the resources they need to pay for necessary expenses your paycheck typically covers.

This is especially true if your family only has one income. In this case, your life insurance should be able to compensate your salary for at least one year, but we suggest getting a policy which could cover your salary for seven to ten years.

For example, let’s say you’re the only income-earner in your household, and you make $90,000 a year.

You would want to get a life insurance policy that could take place of your current paycheck for ten years, which means your life insurance policy needs to be at least $900,000. It’s easy to see why some families will need $2 million in life insurance coverage if anything tragic were to happen.

If you’ve done all your calculation and determined you need $2 million in life insurance, you probably think you won’t be able to afford that much coverage, but these plans are much more affordable than most applicants assume.

Money shouldn’t prevent you from getting the coverage your loved ones deserve.

How Much Does a $2 Million Policy Cost?

Several different factors are used to calculate how much you’ll pay for your insurance coverage.

The company will look at:

  • Age
  • Health
  • Tobacco Usage
  • Pre-Existing Conditions
  • Term Length
  • And Much More

Because there are so many variables, each person could receive significantly different rates based on the situation, but we can give you generic quotes to give you an idea of how much you would pay for $2 million of coverage.

These are sample rates for a non-smoking man in the preferred rating:

Age 20 Year Term 30 Year Term
30 $69 $129
40 $105 $135
50 $295 $508
60 $840 N/A


As you can see, the younger you are, the more affordable one of these policies are. In fact, for anyone is 30 or younger, they are incredibly cheap. Requirements For a $2 Million Policy

There are some requirements applicants have to meet to be accepted for large policies over $1 million which aren’t required for smaller plans.

One of the first requirements is your income has to be enough that it makes sense for the insurance company to insure you for $2 million. You can’t ensure yourself for drastically more than you’re worth alive.

Each company has a different type of formula for their restrictions, but most of them only allow you to have around 35 times your income. The older you get, the less life insurance you’ll qualify for, because you have fewer working years ahead of you.

Also, they will also require a medical exam, like most insurance plans, but with the larger policies, they may also require a quick EKG to complete the exam before you can be accepted.

Not only do you have to be in relatively good health to be accepted, but the results of the medical exam will impact how much you pay for the insurance policy.

Because these policies are so large, the insurance company is going to be stricter with the underwriting and application process than they would with a larger policy. There is a chance you’ll be declined for coverage because of your health.

If that’s the case, you can find a company with more favorable underwriting or you can buy two insurance plans. Don’t let one rejection or high premiums keep you from getting the insurance protection you and your family deserve.

Getting Affordable $2 Million Dollar Life Insurance

When our applicants contact us about large life insurance plans for $1 million, $2 million dollars, or at times even $5 million life insurance policy of coverage, they assume their premiums are through the roof, but it couldn’t be further from the truth.

There are several ways you can get lower premiums for millions of dollars of coverage. It’s vital your family has the coverage they need, which is something you can’t put a price on.

One of the best ways to get lower rates is to kick some of your bad habits. If you’re a smoker or you drink excessively, then you’ll get higher premiums.

Both of these will increase the risk of health problems. That additional risk will translate into higher premiums from the insurance company. Quitting smoking is one of the best things that you can do for your health and your wallet.

Another excellent way that you can save money is by improving your health. They will require you to take a medical exam. Because of the size of the plan, the medical exam will be more intense than it would be with a smaller life insurance policy.

If you’re overweight, consider shedding those pounds before you apply for your life insurance protection.

Overweight applicants pay at least 50% more for their insurance policy. Before you buy your plan, hit the gym and stick with a diet, both of these can save you hundreds of dollars every year.

Every insurance carrier has various underwriting views, and when you’re shopping for larger plans, the premiums can vary drastically depending on which company you contact. Because there are hundreds of carriers, it could take you a long time to get through all of them.

It’s our mission to ensure you get quality coverage at an affordable rate by comparing quotes with several different companies.

If you think your family needs more insurance coverage to pay off debts, or you have business loans which will need to be paid for or any number of reasons you need $2 million life insurance, it’s vital you get the coverage you deserve.

We know nobody wants to think about his or her death, but it’s important you plan for the inevitable.

About Jason Patterson

Jason Patterson has been in the insurance industry for over fifteen years. Starting in 2005, he became one of the first agents to sell medicare supplements online. From that small start, he grew an agency that helped thousands of people with their insurance needs in all fifty states.

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