Quotes for $1 Million to $2 Million of Term Life Insurance

by Chris Huntley

When I was a young agent, I used to think $1 Million to $2 Million of term life insurance was a lot of coverage.  But now with hundreds of clients and 7 years of experience, I can easily make an argument for why a spouse, parent, or business owner might need 1 or 2 Million of term life insurance.

Here’s one quick example.  Let’s take a young husband and father making $50,000 per year.  He wants to leave his wife enough coverage to replace his income indefinitely.  After all, she’ll need to be able to pay the mortgage and other bills, raise the children, and put them through college.

He would need at least a 20 year term, $1,000,000 policy on his life.  If we assume 1 Million will earn 5%, that will generate $50,000 per year, and she could live off the interest without ever depleting the principal.  You could even argue she needs more than a million, because where are going to get 5% in this day and age?

This need for coverage easily becomes a $2,000,000 life insurance need when that income earner makes $80,000 – $100,000 per year.

$1,000,000 and $2,000,000 20 year Term Life Insurance Quotes

The quotes below assume MALE, non tobacco user in excellent health.  Please note that use of medications or health history may or may not increase the premium.  Call us to discuss your case for an individual quote at 877-443-9467.

Age $1,000,000 $2,000,000
30 years old $37.19 $68.09
40 years old $55.63 $103.69
50 years old $154.44 $303.19
60 years old $424.98 $842.39
70 years old $1,547.64 $3,092.62
80 years old $4,303.82 $8,607.64

 

Please note all quotes above are MONTHLY premiums for a MALE, 20 year term.  The one exception is for the 80 year old, which is a guaranteed universal life quote, which had to be quoted since no companies offer 20 year term past age 75.

Can I qualify if I take medication for blood pressure, cholesterol, or diabetes?

Yes, in most cases.  If your hypertension or cholesterol are well controlled, you may even be able to qualify for Preferred rate classes, such as the rates quoted above.

In the case of diabetes, with good control and no other medical issues, a Standard classification is easily obtained.  Even preferred is a possibility with recent diagnosis, low a1c, and diagnosed over age 55.

A history of certain medical conditions could also push you out of the preferred rates, such as a history of heart disease (stints, bypass, heart attack, etc), cancer, hazardous hobbies, occupation or travel, and many other factors apply.  For a personalized quote, it’s best to call us.

Does $842 per month for a 20 year term, $2 Million policy sound expensive to you?

If you can afford the premium, this could be the best investment you ever make.  Let’s say you purchased this policy at age 60 for $2 Million 20 year term, and lived for 10 years.  You would have paid $101,086 into the policy over the 10 years, but your return upon death would be $2 Million.  That’s an internal rate of return of 62% per year!

If you lived 15 years, your equivalent rate of return would be 32%, and it would be 20% if you lived 20 years.  In other words, if you wanted to accumulate 2 Million dollars over the course of 20 years, and invested $842 per month into an alternate investment, it would need to earn 20% per year to accumulate to $2,000,000.  So, yeah, it’s a great investment, if you can afford it.

$1 Million or $2 Million of Universal Life or Whole Life

You can get quotes for guaranteed universal life using our form on the right.  This policy is similar to whole life insurance, but without the cash value accumulation.  So you pay the lowest amount possible (only the cost of insurance) to provide guaranteed coverage for life, whereas in whole life, you pay extra premiums that build up as cash value.

We primarily sell guaranteed universal life and term life insurance at the 1 and 2 Million dollar levels, since it is so much less expensive than whole life, but if you want to see a quote for whole life, we’re happy to provide this if you call us at 877-443-9467.

*Written by Chris Huntley. Huntley Wealth Insurance and its representatives do not give legal or tax advice. Please consult your own legal or tax adviser.
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Chris Huntley
Chris Huntley is the owner of Huntley Wealth Insurance, a San Diego life insurance agency. You can find him on Google + and Facebook. Over the past 8 years, Chris has consulted with over 2000 individuals about their insurance needs. He is a proud husband and father to three adorable girls.
Chris Huntley
Chris Huntley

{ 13 comments… read them below or add one }

BABA JOEL November 21, 2012 at 8:14 am

If I have £,2000,000.00 of my own and intend to invest it over 20 years when I will be 80 yrs old. Are you interested in this? How much will you give me yearly/monthly? What will happen to my capital invested at the end?

Regards

Baba Joel

Reply

Chris Huntley December 12, 2012 at 2:13 pm

Hello Baba,
Thank you for your comment. I would be happy to discuss your financial planning needs if you call me at 877-443-9467. I prefer not to get into personal financial planning over the comment board on my site. Thanks.

Reply

James March 31, 2013 at 9:08 am

Chris Huntley Still an agent? See chris in my situation I am providing $1,000.00 dollars a month to my spouse since we married but seperate. I don’t want to divorce I want to continue to provide for her. IF I find better employment up north using my education and my current federal worker status I could transfer in. See I am finishing up my bachelors and begining the Masters program at South University for my MBA in finance. I feel obligated to provide for her indefinately. I realize there is more crime is in the area I am seeking employment. I feel with my education I consider my self an asset. I want her to be continued to be taken care of if anything were to happen to me on the Job or otherwise. Do you feel that is a good enough case for term $1,000,000,000 – $2,000,0000,000 life insurance policy?

Reply

staci winstead April 15, 2013 at 7:33 pm

I am a 43year old single parent. I already have an wholelife insurance policy and would like to have more coverage. What is the difference between whole life and universal whole life? Very much interested in getting an $2million dollar policy. Could you please give me information regarding these types of policies. THANK YOU, Ms. WINSTEAD

Reply

Chris Huntley April 24, 2013 at 1:20 pm

Yeah, we can help with that. I’m going to have our agent, Ellen Edwards shoot you an email.

Reply

staci winstead August 22, 2013 at 2:33 pm

I have yet to receive an email from your agent
.

Reply

Leonard August 29, 2013 at 11:53 pm

I disagree because this does not account for taxes and inflation.
Here’s some rough numbers to illustrate:

1. Lets say you were lucky enough to make 6% returns average over the 20 years
2. Consider 1.5% – 2% of that gone for taxes
3. Average inflation tends to sit around 4% over last few decades I think.

The principle will dwindle away, so a million dollars might just last you 20 years at 50K a year, and of course its better than not investing at all, but the point is, you wont have nearly as much as you think because of taxes and the hidden taxes which is controlled by the money supply (inflation).

I’d like your feedback on this, esp in real-world cases.

Reply

jennifer r June 8, 2014 at 9:02 pm

I would like to speak with someone about getting a 1000000 $ policy on my mother if you could call me after 3 pm mt time that would b great. Thanks. Jennifer Radomski

Reply

Chris Huntley June 12, 2014 at 10:22 am

Will do. I erased your last name and phone # from your comment since it’s made public.

Reply

Jamie Wilson July 23, 2014 at 12:55 pm

I am also wondering what the difference is between 20 year “term” life insurance and WHOLE life insurance?

Reply

Chris Huntley July 24, 2014 at 9:57 pm

Hey Jamie,
Thanks for the question. If you didn’t find what you were looking for on the site, give us a call at 877-443-9467 and we will be more than happy to answer all your questions and explain the difference between the two types of policies.

Reply

Sweta August 6, 2014 at 11:16 am

I am interested in the 2 million dollar life insurance policy for my husband.

Reply

Chris Huntley August 6, 2014 at 7:54 pm

Hi Sweta, We would be happy to work up a few estimates for you. We will send you some questions to answer. You can also give us a call at 877-443-9467 to discuss your insurance needs.

Reply

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