How Much is a Million-Dollar Life Insurance Policy?

A million-dollar life insurance policy might sound like an exclusive product, but the truth is that a fairly modest number of dependents, financial responsibilities, and debts can put a person in the category where a million-dollar life insurance policy might be exactly what they need.

Don't be put off by big numbers when you weigh up your life insurance options. Instead, focus on your needs, remembering that the purpose of life insurance is to serve as a financial security blanket to your dependents in the event of your death. Certain Corebridge Direct products offer policies with $1 million or more in coverage, including Term Life Insurance, Universal Life Insurance, and Quality of Life Insurance. So how do you know if they could be right for you?

Who Should Consider a Million-Dollar Life Insurance Policy?

Simply put, if your financial obligations and commitments are in the region of one million dollars, you should consider applying for a million-dollar life insurance policy. Fortunately, there's a process for figuring this out. First, you need to establish how much life insurance you need. Start by thinking about your current and anticipated future financial obligations. What would need to be covered in the event of your passing? These financial obligations could include:

From there, the calculation is straightforward: Those that have financial obligations that are at (or exceed) a million dollars should consider purchasing a policy that reflects these needs. This doesn’t necessarily mean that taking out a million-dollar life insurance policy is the right course of action for you, but it should be a consideration.

How Much Does a Million-Dollar Life Insurance Policy Cost?

As with all life insurance products, the cost of a million-dollar policy will vary depending on the product, coverage amount, as well as the age, gender, and health status of the purchaser. The only way to find out exactly what life insurance rates will be available to you for a million-dollar policy is to request a quote from an agency like Corebridge Direct.

However, it's important to stress that purchasing a million-dollar policy may also not be as expensive as you think. Using Term Life Insurance as an example, a 40-year-old male who is underwritten at the best possible rate class (Preferred Plus) could expect to pay $34 per month for $1 million in life insurance coverage on a 10-year term policy. For comparison, the same 40-year-old male with a $500,000 coverage policy could expect a monthly premium of $23 per month. That means for just $11 more per month, he could double his coverage and protect his loved ones with a million-dollar policy.

Those considering Term Life Insurance can take advantage of our Term Life Insurance Calculator tool to help calculate their needs and the estimated life insurance cost per month of a given policy. Of course, remember that a quote is only an estimate. Your final Term Life Insurance rate won't be confirmed until you have gone through the underwriting process and been approved for a million-dollar Term Life Insurance policy.

How Do You Get a Million-Dollar Life Insurance Policy?

If you believe a million-dollar life insurance policy is the right choice for you, the next step is shopping for the ideal life insurance product. You're looking for the product that best meets your needs and eligibility while providing one million dollars (or more) in coverage. At this stage, talking to a life insurance agent is strongly recommended. An appointed agent will work with you to understand your needs before guiding you through the life insurance products and options available and appropriate for you that include a million dollars of coverage.

A life insurance agent will ask you to provide some personal information, including your age, how much you earn, and your current and anticipated future financial obligations. Insurers want to verify that you actually need the amount of coverage you are applying for, and in any case, it's not the best use of your money to pay premiums for more coverage than you need.

To learn about the policy options and life insurance rates available to you and their costs, contact an Corebridge Direct licensed life insurance agent at 800-294-4544.

For more information, tips, and links to further resources, read Corebridge Direct's guide to buying life insurance.