Potential clients often call us to ask, “How do I qualify for $1,000,000 or more in life insurance coverage?”
Whether you need $1,000,000, $2,000,000, $3,000,000, or more in life insurance, every life insurance company’s rates and requirements will vary. Insurance companies determine your rates and eligibility for coverage based on your age, health, and financial situation.
In this article, we’ll provide you with actual rates for $1,000,000 of life insurance, and everything you need to know about buying $1,000,000 or more of coverage.
Quick Article Guide:
1. What Does an Insurance Company Need to Know About Me Before They Can Approve My Policy?
2. How Does My Income Affect My Eligibility and Rates for Life Insurance?
3. How Does My Health Affect My Eligibility and Rates for Life Insurance?
4. How Does My Lifestyle Affect My Eligibility and Rates for Life Insurance?
5. How Do I Apply for $1,000,000 or More of Life Insurance Coverage?
6. What Will Preclude Me from Qualifying for $1,000,000 or More of Coverage?
What Does an Insurance Company Need to Know About Me Before They Can Approve My Policy?
Life insurance providers will consider 3 variables when reviewing your application and determining your eligibility for life insurance. These variables are outlined below:
1. Income: Does the applicant earn enough money to qualify for $1,000,000 or more of life insurance?
2. Health: How is the applicant’s overall health, is he or she insurable, and which “risk class” will he or she qualify for?
3. Lifestyle: Will the applicant’s occupation, hobbies, habits, and financial or criminal history prevent the applicant from being insurable?
How Does My Income Affect My Eligibility and Rates for Life Insurance?
Many people we speak to are surprised to learn that life insurance is something they must financially qualify for. To determine the total amount of life insurance an applicant can qualify for, insurance companies use an “income multiplier.” This formula is based off the applicant’s current age and annual income before taxes.
The life insurance companies use an income multiplier to determine the amount of money your dependents would stand to lose if you suddenly passed away. Life insurance is designed to replace your income for the people who rely on you for financial support, not to create wealth.
Younger applicants qualify for a larger income multiplier because they have more years of income to replace until they reach retirement age. Many life insurance companies will offer an applicant between the ages of 30 and 40 up to 35 times their current income before taxes. If you are between the ages of 40-50, you can usually qualify for up to 25 times your pre-tax income. After the age of 50, some life insurance companies will offer you up to 20 times your current gross income.
It’s important to note that each insurance company uses their own income multipliers. As an example: some life insurance companies will not offer an applicant more than 20 times their current income, regardless of their age.
Below is a chart illustrating the maximum amount of coverage you can qualify for when working full-time. If you do not work full-time, but your spouse does, most life insurance companies will allow you to purchase the same amount of coverage as your income-earning spouse. Life insurance companies understand that maintaining a household is just as important to the family as earning an income.
Income Multipliers for Applicants Working Full-Time
| Age | Maximum Amount of Coverage Available (Based on Current Income) |
|---|---|
| 30-40 years old | Up to 35 times your current income before taxes |
| 41-50 | Up to 25 times your current income before taxes |
| 51-60 | Up to 20 times your current income before taxes |
| 61-65 | Up to 15 times your current income before taxes |
| 66-70 | Up to 10 times your current income before taxes |
| 71-75 | Up to 7 times your current income before taxes |
What if I Do Not “Earn” an Income?
If you do not earn an income, there may be other ways to qualify for life insurance coverage. Common exceptions include business owners, retirees who collect a pension, and applicants with a high net worth. Life insurance is commonly purchased to secure a business loan, maximize a pension, or protect an estate from taxes.
Life insurance companies will not consider an applicant’s Disability Income (DI) or Social Security Disability Insurance (SSDI) when determining their eligibility for coverage. Unfortunately, most life insurance companies will automatically decline an applicant who is not physically or mentally healthy enough to work. If you collect disability and are over the age of 50, your best option for coverage is “Guaranteed Issue” insurance. These policies offer up to $25,000 of coverage and they are designed to pay for final expenses.
If you need help determining the amount of life insurance you can qualify for, please call us toll-free at 855-902-6494. One of our experienced agents will be able to help you compare rates and coverage options from over 60 top-rated life insurance companies in just a few minutes.
How Does My Health Affect My Eligibility and Rates for Life Insurance?
A person’s health plays an important role in determining their rates and eligibility for life insurance. If a life insurance company is going to offer someone $1,000,000 or more in coverage, they are going to want to know about the health of the individual that they’re considering insuring.
Life insurance companies determine an applicant’s “risk” by using a scale with 16 different rate categories. An applicant in excellent health presents less of a risk to the insurance companies than an applicant with some health issues. This is why applicants in excellent health receive lower rates for their life insurance – the insurance company insuring them has a lower risk of paying a claim.
Can someone qualify for an affordable rate if they are more than a few pounds overweight and take a medication for blood pressure or cholesterol?
The good news is, yes! Some life insurance companies will overlook an applicant’s minor health issues even if they take a medication for their blood pressure, cholesterol, thyroid, or are up to 30 pounds heavier than the American Heart Association’s “ideal weight” guidelines.
In the life insurance industry, the least expensive life insurance rate class available is “Preferred Best” or “Preferred Plus.” With some top-rated life insurance companies, this rate class may be available to applicants in overall good health, even if they take a preventative medication to control their blood pressure or cholesterol. This is one of the reasons why working with an independent agency could save you a considerable amount of money on the cost of your coverage.
Having access to multiple insurance companies and their guidelines allows an independent agency to serve as your “matchmaker,” matching your specific health profile with the “A-rated” life insurance companies that are willing to offer you the best rates.
The following chart shows “Preferred Best” rates for $1,000,000 in coverage. These rates and coverage amounts are guaranteed not to change for 10, 20, or 30 years. We also included rates for level coverage until age 90.
“Preferred Best” Monthly Rates for $1,000,000 of Life Insurance for a Male
| Age | 10 Year Level Term | 20 Year Level Term | 30 Year Level Term | Level Rates to 90 |
|---|---|---|---|---|
| 30 | $21.28 | $34.98 | $59.62 | $306.37 |
| 35 | $22.10 | $36.67 | $68.98 | $360.10 |
| 40 | $28.71 | $51.97 | $101.70 | $442.49 |
| 45 | $47.85 | $93.43 | $161.24 | $503.10 |
| 50 | $74.82 | $143.76 | $256.39 | $630.90 |
| 55 | $129.60 | $232.33 | $486.06 | $820.80 |
| 60 | $214.20 | $400.62 | N/A | $1053.39 |
| 65 | $373.19 | $765.58 | N/A | $1360.85 |
| 70 | $609.45 | $1553.16 | N/A | $1286.16 |
| 75 | $1241.34 | N/A | N/A | $2354.15 |
*Displayed monthly rates are accurate as of 02/15/2017, sample rates are provided for educational and informational purposes only. Please contact us for a free, no-obligation personal life insurance quote.
“Preferred Best” Monthly Rates for $1,000,000 of Life Insurance for a Female
| Age | 10 Year Level Term | 20 Year Level Term | 30 Year Level Term | Level Rates to 90 |
|---|---|---|---|---|
| 30 | $18.83 | $29.42 | $48.16 | $253.16 |
| 35 | $19.65 | $31.44 | $58.23 | $300.27 |
| 40 | $26.01 | $43.92 | $80.35 | $341.10 |
| 45 | $42.54 | $70.89 | $124.60 | $384.30 |
| 50 | $62.97 | $103.50 | $176.75 | $515.70 |
| 55 | $95.38 | $167.91 | $338.08 | $668.50 |
| 60 | $139.81 | $269.78 | N/A | $861.20 |
| 65 | $227.88 | $487.96 | N/A | $1,104.80 |
| 70 | $372.38 | $1,048.25 | N/A | $1,542.10 |
| 75 | $787.64 | N/A | N/A | $2,145.36 |
*Displayed monthly rates are accurate as of 02/15/2017, sample rates are provided for educational and informational purposes only. Please contact us for a free, no-obligation personal life insurance quote.
If you cannot qualify for the preferred best rate class, you may be able to qualify for a “Preferred” or “Standard Plus” rate class. These are top three rate categories that are available to life insurance applicants, and most people in average or better health will fall into one of these categories.
If you have a serious health issue, like a history of cancer or well-controlled diabetes, you’ll likely fall into the “Standard” risk class. Standard rates are the fourth best rate class available and are offered to clients who are considered to be in average health for their age. Most applicants between ages 50-70 will qualify for this rate class.
The following chart shows “Standard” rates for $1,000,000 in coverage. These rates and coverage amounts are guaranteed not to change for 10, 20, or 30 years. We also included rates for level coverage until age 90.
Standard Monthly Rates for 1,000,000 of Life Insurance for a Male
| Age | 10 Year Level Term | 20 Year Level Term | 30 Year Level Term | Level Rates to 90 |
|---|---|---|---|---|
| 30 | $46.21 | $69.69 | $124.41 | $415.00 |
| 35 | $46.21 | $80.15 | $141.34 | $487.00 |
| 40 | $63.38 | $114.77 | $200.13 | $599.40 |
| 45 | $102.62 | $182.41 | $322.13 | $689.02 |
| 50 | $164.26 | $274.20 | $495.13 | $858.60 |
| 55 | $254.25 | $460.19 | $784.90 | $1,076.50 |
| 60 | $392.00 | $763.77 | N/A | $1,368.66 |
| 65 | $695.28 | $1,444.97 | N/A | $1,851.82 |
| 70 | $1,177.17 | $2,585.16 | N/A | $2,400.43 |
| 75 | $2,169.99 | N/A | N/A | $2,907.92 |
*Displayed monthly rates are accurate as of 02/15/2017, sample rates are provided for educational and informational purposes only. Please contact us for a free, no-obligation personal life insurance quote.
Standard Monthly Rates for 1,000,000 of Life Insurance for a Female
| Age | 10 Year Level Term | 20 Year Level Term | 30 Year Level Term | Level Rates to 90 |
|---|---|---|---|---|
| 30 | $40.08 | $59.17 | $88.74 | $339.00 |
| 35 | $40.08 | $72.10 | $113.66 | $414.93 |
| 40 | $53.94 | $92.84 | $155.04 | $467.10 |
| 45 | $83.41 | $136.52 | $231.34 | $543.60 |
| 50 | $122.94 | $206.40 | $364.51 | $694.80 |
| 55 | $175.37 | $310.43 | $629.20 | $843.92 |
| 60 | $248.60 | $505.51 | N/A | $1,111.31 |
| 65 | $401.39 | $925.58 | N/A | $1,459.50 |
| 70 | $708.78 | $1,857.60 | N/A | $1,954.50 |
| 75 | $1,289.20 | N/A | N/A | $2,636.05 |
*Displayed monthly rates are accurate as of 02/15/2017, sample rates are provided for educational and informational purposes only. Please contact us for a free, no-obligation personal life insurance quote.
Please feel free to call us toll-free at 855-902-6494 to receive an accurate life insurance quote based on your age, health, and lifestyle. We work with more than 60 top-rated life insurance companies and we can help you find your most affordable options for coverage. If you want to learn more about the difference between the four most common rate classes; preferred best, preferred, standard plus, and standard, please see our article, “What Life Insurance Rate Class Am I?”
How Does My Lifestyle Affect My Eligibility and Rates for Life Insurance?
When you apply for life insurance, the insurance companies will need to verify your lifestyle risk when approving your application. We’ve outlined some of the lifestyle issues that can affect your rates and eligibility for life insurance coverage below:
Future and Past Travel Plans
Not surprisingly, the life insurance companies would prefer not to insure applicants who travel to “war zones” like the Gaza Strip, or countries where healthcare is relatively poor. Because of these concerns, the life insurance company you apply with may consider the countries you’ve traveled to in the last two years and your future travel plans. Over the years, we’ve seen some life insurance companies routinely decline applicants who intend to travel to countries that are listed on the State Department’s travel advisory list.
What’s odd is that the travel questions that life insurance companies are allowed to ask you can differ depending on the state you reside in. In fact, some states actually have restrictions that prevent life insurance companies from asking their residents about past and future travel plans. In addition, these travel questions may vary by state and by insurance company. As an example, in Oklahoma, American General will consider your past and future travel plans, while a company like United of Omaha will not. This is another reason why you need an experienced life insurance agent with access to dozens of life insurance companies.
The states that tend to be the most lenient when evaluating an applicant’s past and future travels include:
- California
- Colorado
- Connecticut
- Florida
- Georgia
- Illinois
- Massachusetts
- Missouri
- New Jersey
- Oklahoma
- Tennessee
- Washington
Real Life Example of a Client We Have Helped:
Last year, we worked with a client named Samuel. Samuel retired to Louisiana and is a missionary with the Gideons. Samuel came to us because he had previously been declined for life insurance due to the fact that he travels to Nigeria for 3 weeks every year to deliver Bibles.
The U.S. State Department’s website lists Nigeria as a dangerous travel destination and many life insurance companies will automatically decline applicants who intend to travel there. Fortunately for Samuel, Protective Life will not consider an applicant’s past or future travels if they reside in Louisiana. Protective Life is one of the only companies that offers this leniency, and they are A+ rated by AM Best. Samuel is now happily insured!
Current or Pending Bankruptcies
Every life insurance company has their own guidelines for approving an applicant who has recently filed for bankruptcy. Bankruptcies can be extremely stressful and often affect one’s health beyond the expected depression. Some of the potential clients we speak with are also surprised to learn that bankruptcy courts can preclude you from entering into a contract, and life insurance is considered a contract.
If you filed for Chapter 7 bankruptcy, almost all of the life insurance companies will allow you to apply for life insurance as soon as the bankruptcy is discharged. If you’re in a Chapter 13 bankruptcy and paying back the debt, most life insurance companies will want to see at least 18 months of payment history before approving your application.
Hazardous Occupations
Life insurance companies will evaluate their applicant’s occupation before approving their life insurance policy. Many people mistakenly believe that policemen or firefighters are difficult to insure, but the insurance companies do not consider these occupations “hazardous.” In fact, the majority of the firefighters and policemen we have worked with were approved at “Standard” or better rates.
Some of the occupations that affect an applicant’s life insurance premiums include commercial loggers, commercial fishermen, roofers, SWAT team members, structural iron/steel workers, and high-rise window washers.
Real Life Example of a Client We Helped:
A few years ago we worked with a client named Gregg who had been declined by his local insurance agent’s company, Farmers Insurance. Gregg’s application for life insurance was declined because he is an engineer on an oil rig in the Indian Ocean, and he is required to live on the oil rig for 6 months of each year.
After comparing his options from a few dozen companies, we were able to find an insurer that would offer him a $1.5 million policy. Gregg’s health results came back great, but because of his occupation, he was offered a “Standard” rate with a flat extra of $2.50 per thousand dollars of coverage. His policy ended up costing him $312.50 each month, however, the insurer offered to drop the flat extra fee once our client becomes “land based.”
Military Service
If you are currently on active duty, or scheduled for deployment, qualifying for life insurance with some companies can be a challenge. A handful of life insurance companies may be able to offer you their lowest rate class if you are not scheduled for deployment, but you must complete your exam and activate your coverage while you are in the United States.
The approval process for a life insurance policy usually takes 4-8 weeks following a free health screening exam, so if you will be traveling overseas for active duty, make sure you start the process early.
If you are scheduled for deployment, or if your duties will require you to travel overseas to a “hot-spot,” your best option for life insurance is probably through SGLI or Servicemembers Group Life Insurance. SGLI is a government-run life insurance company that only offers coverage to active members of the U.S. Army, Navy, Air Force, Marines, and Coast Guard.
Hazardous Hobbies
An applicant’s insurability and cost of coverage can be affected by hobbies that are considered hazardous. Examples of hazardous hobbies include skydiving, bungee jumping, motorcycle racing, wreck or salvage diving, and flying a hang glider or an experimental aircraft.
If skydiving was something you “tried once” and have no current plans to skydive again, it likely won’t affect your rates. However, if you continue to regularly skydive, finding an inexpensive life insurance policy can be more of a challenge.
Scuba Divers
A hobby we commonly encounter is scuba diving. Luckily, most insurers are not concerned with an applicant that regularly dives to depths of 100 feet or less as long as they do not dive alone. Insurers are very cautious about offering coverage to salvage or wreck divers though, and these hobbies can affect your insurability and cost of coverage. Remember, each insurer has its own unique set of underwriting guidelines. If you scuba dive, give us a call, we can shop more than 60 top-rated life insurance companies to find the insurer that is able to offer you the lowest rates.
Private or Commercial Pilots
If you’re a commercial pilot that flies for an airline with regularly scheduled flights, almost all insurance companies will offer you their top rate class, Preferred Best, if you’re in good health. If you’re a private pilot, most insurance companies will consider the amount of hours you expect to fly annually, and your total hours of solo flying experience.
Life insurance companies tend to be the most lenient with private pilots who have more than 100 hours of solo flight experience and intend to fly 300 hours per year or less. In addition to considering your experience and expected annual flying hours, the life insurance companies will also consider your age. Most life insurance companies prefer to not insure pilots who are under the age of 25 or over the age of 70.
If you have a pilot’s license but are no longer flying, the insurance companies will ask you to sign an “aviation exclusion.” This means that your life insurance policy will protect you as long as you do not pass away while you are flying an airplane. It’s important to note that the aviation exclusion does not exclude you from coverage if you are a passenger in an airplane.
If you’ve stopped flying for more than a year, but think you may fly again in the future, we recommend signing the aviation exclusion and purchasing a separate life insurance policy from your flight club or association. This strategy will save you up to 50% on the cost of your life insurance, and you’ll still be able to purchase life insurance to cover you while you’re piloting an aircraft, if you decide to fly again.
Driving Records
Nearly every life insurance company will review your MVR (Motor Vehicle Record) when they are reviewing your application for life insurance. If you’ve had fewer than 3 tickets in the last three years, don’t worry, they shouldn’t affect your rates. However, the life insurance companies are not as lenient with applicants who have had a recent DUI or DWI (Driving Under the Influence or Driving While Intoxicated).
While most life insurance companies will automatically decline your application if you’ve had a DUI or DWI within the last 2 years, don’t worry, we can help. Our agency works with a few top-rated companies that will offer coverage to applicants who have been charged or convicted of a DUI within the last 12 months. If you’ve been convicted of more than 2 DUI’s in the last 5 years, your life insurance application will most likely be declined with all of the life insurance companies we represent.
Real Life Example of a Client We’ve Helped:
One of the clients we recently worked with has a very extensive and unfavorable driving record. In the last 10 years, he had acquired 14 speeding tickets! He is a very busy CEO that is required to constantly travel for business. After reaching out to almost a dozen life insurance companies, we were able to find him an affordable policy from an A+ rated company. He was approved for $1,000,000 of coverage at a “Standard” or average rate class!
Remember, every insurance company’s guidelines are unique. If your driving record is less than perfect, give us a call, we’ll shop more than 60 companies to find your most affordable options for life insurance coverage.
Criminal Records
Life insurance companies will automatically review your criminal records if you’re applying for fully-underwritten life insurance coverage. If you have been convicted of a felony within the last 5 years, your best option for coverage is a “final expense” policy for $25,000 of coverage or less. You may also be able to qualify for an Accidental Death insurance policy for up to $250,000. These policies only protect you if you pass way in an accident, though. To learn more about Guaranteed Issue Life Insurance, please see our article, “What Is Guaranteed Issue Life Insurance?”
If you are currently on parole, probation, or are awaiting sentencing, we recommend waiting to apply for coverage. Your term life insurance application will be automatically declined, and this can affect your ability to purchase life insurance in the future.
Currently, all 63 of the term life insurance companies we work with have at least a 5- to 10-year waiting period AFTER your probation/parole has ended.
If you were charged with a violent or fiduciary (including fraud or forgery) crime, the waiting period is usually 10 years after probation has ended.
How Do I Apply for $1,000,000 or More of Life Insurance Coverage?
There are 3 simple steps to applying for $1,000,000 or more life insurance. We’ve explained each step below:
1. Contact an agency that can shop the market to find your best rates.
With a few questions about your health and lifestyle, an experienced agent will be able to pinpoint the company that has your best options. We represent more than 60 top-rated life insurance companies and our service is free. Once we determine your best options for coverage, we’ll email you an application for review and signature.
2. Complete a free, in-home mini medical exam.
If you wish to apply for a life insurance policy with a death benefit of $1,000,000 or more, a 20-minute, in-home health exam is required. The insurance company pays for the cost of the exam, and it is administered by one of the independent third-party exam companies that are licensed in your area. The examiner will come to your house or office and they are usually available Monday through Saturday.
The medical exam usually includes measuring your blood pressure, height, and weight. In addition, the nurse will collect a small blood and urine sample. An EKG or ECG is often required for men over 50 who are applying for $500,000 or more of coverage.
3. Review your approved policy and make a payment to start your coverage.
Once you complete the free in-home exam, your work is done. The life insurance company will review your exam results, medical records, prescription history, and driving record. Once the insurance company’s underwriters have had a chance to review your records, they will approve your policy and mail you a copy for review.
During this time, you have the right to accept or decline your offer for life insurance. If your needs have changed, you can also adjust the amount of coverage you accept before making your first payment. Once your first payment has been made and drafted from your bank, your policy is active. Most life insurance policies take 4 to 8 weeks for approval.
What Will Preclude Me from Qualifying for $1,000,000 or More of Coverage?
If you’re healthy enough to work and have met the minimum income requirements, you’re likely healthy enough to qualify for $1,000,000 of life insurance.
However, there are some health or lifestyle issues that will likely cause your application to get declined. We’ve outlined some of the issues that have caused our clients to get declined for coverage below:
- Recent diagnosis of cancer
- Poorly controlled diabetes; A1c over 10
- Mental illness not well controlled; or a suicide attempt within 10 years
- Current or ongoing treatments for kidney or liver disease or failure
- Heart attack prior to age 40; congestive heart failure; implanted defibrillator
- COPD, Emphysema, or any serious respiratory illness for current smokers
- Treatments for drug or alcohol abuse
If you are not sure if you are able to qualify for life insurance, we can help. Give us a call toll-free at: 855-902-6494. With a few questions about your health and lifestyle, we’ll be able to determine your best options for affordable life insurance. We’re experts at the lowest rates for applicants who are considered to be a “high-risk” for life insurance.
Call Us for More Information
If you are considering purchasing $1,000,000 or more of coverage, we can help save you time and money! In just a few minutes, one of our experienced agents will shop rates from more than 60 top-rated life insurance companies to find the most affordable options available to you. Our service is free, and there is no cost to apply for coverage.
We are an owner-operated agency that is licensed nationwide and all of our agents have at least five years of experience in the life insurance industry. We’re small enough to care, and big enough to help. Give us a call today toll-free at: 855-902-6494, or request a free quote online below to shop rates from dozens of companies in less than a minute.
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