How Much Does A Million Dollar Life Insurance Policy Cost?

Having a million-dollar life insurance policy may sound like overkill, but in today’s modern age, with increasing inflation and cost of living, a million dollars isn’t that much anymore. 

If you sit down and calculate how much money your loved ones would need, in case you were to pass away, you would easily arrive at a number close to $1 million or more, especially, if you are the sole breadwinner and have outstanding mortgages, credit card debt, leases, and other liabilities. 

On top of this, you would also have to account for day-to-day expenses your family would need and school and college fees for your children if you have any. Add all of this up and you will likely arrive at an astronomical number!

Luckily, the cost of a million-dollar life insurance policy isn’t as much as you would think. Depending on factors such as age, gender, health, lifestyle, and the type of policy you choose, you may well be able to find a million-dollar life insurance policy that has the coverage you need and more importantly, is a policy you can afford.

To learn more, read on!

Factors Influencing Premium Costs for a Life Insurance Policy

Before we can provide a breakdown of how much a million-dollar life insurance policy costs, we must first look at the factors that insurance providers account for when determining monthly or annual premiums.

Let’s take a look at each of these factors and how they influence premium costs.

1. Age 

Generally, the younger you are, the healthier you are likely to be. Younger individuals are more likely to be free of any pre-existing medical conditions that often manifest with age. As such, they pay lower premiums because they are considered lower risk. 

The older you get the higher the premiums you have to pay for life insurance and in some instances you may even need to pass a medical exam as part of the life insurance application process.

As such, financial experts always recommend purchasing life insurance early as it is easier to obtain and can provide several long-term benefits.

2. Gender 

Statistically, women tend to live longer than men. Thus, their premiums are often lower.

3. Health 

Your overall health plays an integral role in determining how much you pay in premiums. Maintaining an active lifestyle, visiting your doctor regularly for medical exams, and using wearable devices such as fitness trackers to monitor your overall health can all help reduce premium costs. In fact, having documentation of your good health and proof of an active lifestyle can save you up to 15% on annual premiums alone!

4. Lifestyle & Occupation

Those who smoke, drink alcohol, or take part in high-risk hobbies will likely be quoted much higher premiums than non-smokers and those with healthy lifestyles.

Those with dangerous jobs or jobs that include a lot of travel are also considered higher risk by insurance providers and will likely be quoted higher premiums.

5. Type of Policy 

There are two types of life insurance policies – Term life insurance and Permanent Life Insurance. 

Term life insurance is usually cheaper than permanent life insurance as the policy covers the policyholder for only a fixed period, usually between 10-30 years. Once the term expires, the coverage ends. 

Permanent life insurance or whole life insurance, on the other hand, is more expensive as it provides protection for the entirety of the policyholder’s life and includes a cash value component that grows as the policy ages. 

Such policies also offer more features such as disability riders and long-term care to ensure loved ones remain financially protected under all circumstances.

6. Term Length 

The longer the term of your life insurance policy the higher the premiums are likely to be. A term life insurance policy that lasts for 10 years will have, for example, a much lower premium than a policy that lasts 30 years. Permanent or whole life insurance policies are also more expensive for this reason as they can last for an indefinite period.

7. Coverage Amount 

Similar to term length, the higher the coverage amount of the policy, the higher the premiums you will have to pay. 

This is why you have to be careful when determining coverage amount and ensure all your current financial obligations including children’s education fees, retirement costs, funeral costs, and any outstanding debts are taken into account. 

You should also review your policy every 3-5 years or after any major life event such as marriage or the birth of a child to ensure the coverage you are paying for still meets all your needs.

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

As discussed above, several factors can influence how much a million-dollar life insurance policy costs. 

However, to get an idea of what premium quotes to expect here is a table that illustrates monthly premiums for a million-dollar term life insurance policy for various age groups, based on average life insurance rates in Canada. 

Please note that this is just an approximation and the actual cost of a policy can vary depending on the factors listed above.

Age Group	Gender	Non-Smoker	Smoker
25-35	Male	$25-$40/month	$80-$100/month
25-35	Female	$20-$35/month	$65-$90/month
35-40	Male	$40-$60/month	$100-$120/month
35-40	Female	$35-$50/month	$90-$110/month
40-50	Male	$70-$110/month	$180-$250/month
40-50	Female	$50-$90/month	$160-$220/month

This chart takes into account factors such as age, gender, and lifestyle but negates many of the other factors listed. 

To get a full picture it is highly recommended to speak to an insurance broker or shop around and compare quotes from multiple insurance providers to try and get the best rates.

Secure a Million-Dollar Life Insurance Policy with McIver Insurance Inc.

Purchasing a million-dollar life insurance policy is an expensive undertaking and a long-term commitment. It requires careful research and preparation to ensure you find a policy that best matches your needs and your budget.

It is therefore recommended to always consult with a trusted insurance broker, such as McIver Insurance Inc. to help you find a policy that is right for you and your loved ones. 

Our expert insurance brokers can help you find the best coverage and rates for whatever policy you may have in mind and guide you on what would be the appropriate choice based on your current situation and needs.

What are you waiting for? Call now at 1-902-220-3279 or email [email protected]

FAQs

Q) Do you need to take a medical exam for a $1 million-dollar life insurance policy?

No. Many insurance providers offer policies that pay out a million dollars or more in death benefits without requiring a medical exam, especially, for younger individuals.

Q) How much does a million-dollar life insurance policy cost per month?

The cost of monthly premiums for a million-dollar life insurance policy can vary greatly depending on your age, health, gender, occupation, lifestyle, and the type of policy you choose. On average, you can expect to pay anywhere from $25-$50 per month if you are between the age of 25-40 and are in good health.