How Much $2 Million In Term Life Costs

Jeff Root Jeff Root Posted in Term
Last updated on April 30, 2019

How much does 2 million dollar term life insurance cost?

A 2,000,000 term life insurance policy sounds like a lot of coverage, but is it the right amount for you?

You’re looking to provide financial security for your loved ones or business. After you’re gone, you don’t want financial burdens to be placed on them.

Your funeral costs, liabilities, debts, and salary are just a few of the areas that life insurance is set up to cover.

Your cost of living now and in the future is very important to assess. It’s a very common problem to undervalue what your future earnings are and how to keep your family’s standard of living the same.

You can easily compare term life insurance rates on this page or read on if you want to learn about how much 2 million dollar life insurance costs and how to qualify for the best rates.

How Much 2 Million Dollars of Term Life Insurance Costs


2 million term life insurance.

The amount that you will ultimately pay for a $2,000,000 term life insurance policy will depend on several underwriting factors. These are just a few of the factors:

  • Age
  • Health
  • Gender
  • Height & Weight
  • Tobacco Use

There are other factors involved, but these are the five major ones. Each of these factors can cause your rate to increase or decrease. Life insurance rates will vary from person to person and each company looks at these factors differently.

Let’s look at an example in order to get an idea of a range of rates.  We’ll focus on just one factor that can effect the rates of a 2 million dollar term life insurance policy.

Meet the Doe family. We’ll use a father and son for our example.

John Doe Jr is 30 years old and his father, John Doe Sr is age 55. They both are looking for a $2,000,000 life insurance policy and a 20 year term.

Both John Jr and Sr are in perfect health, don’t use tobacco and their height/weight ratio is excellent.

Based on these factors, we’ll quote them at “Preferred Best” rates. Let’s look at their sample rates:

  • John Jr (Age 30) will pay a monthly rate as low as $65 per month.
  • John Sr (Age 55) will pay a monthly rate as low as $464 per month.

As you can see, age is one of the biggest factors when it comes to how much you’ll pay for your term life insurance policy.

Let’s look at another example and see what a million dollar term life insurance policy would cost the Doe’s.

How Much Will $1,000,000 Term Life Insurance Cost?


Now let’s see how much the monthly premium would be if we were to reduce the benefit by 1 million dollars.

Remember that these quotes are based on 20 year term and at a “Preferred Best” non tobacco rate.

  • John Jr (Age 30) will pay a monthly rate as low as $34 per month.
  • John Sr (Age 55) will pay a monthly rate as low as $232 per month.

As to be expected, the $1,000,000 term life policy monthly rates were approximately half of the $2,000,000 monthly rates.

In fact, John Doe Sr’s rate was exactly half.

Life Insurance Rates with Health Issues


The sample rates above were quoted at the absolute best health class rating: “Preferred Best”.

Also known as “Preferred Plus”, this health class is the absolute best rate you will get from a life insurance company. If you aren’t in perfect health then you will qualify for another health class.

There are approximately a total of 12 health class ratings that life insurance companies use. Some companies use less and some more.

Each health class you go up will raise your rate based on that company’s underwriting rules.

Here are the most common health class ratings:

  1. Preferred Best / Preferred Plus (Least Expensive)
  2. Preferred
  3. Standard Plus
  4. Standard
  5. Table 1
  6. Table 2
  7. Table 3
  8. Table 4
  9. Table 5
  10. Table 6
  11. Table 7
  12. Table 8 (Most Expensive)

As stated before, each life insurance looks at your situation differently. Not every company will look at your health, weight, or tobacco use the same.

You may qualify for Standard with a few companies, Standard Plus with a few more, and maybe Preferred with a few others depending on the risk factors.

How Do I Get the Best Rate for $2,000,000 Term Life Insurance?


Now that you know that every life insurance company will look at you differently, you can use that knowledge to your advantage. You should always use the expertise of an Independent Life Insurance Agent.

An independent life insurance agent will be able to shop from dozens of companies for you. Your agent should take the time to ask you about your health and the other needed details so they can shop your case.

Be open and honest because they are shopping based on the information you provide them.

The quotes and recommended companies that your agent provides you will be based on the details that you give them. If you withhold some health information, your quote could be inaccurate any you might be applying with a more expensive company.

Here is a quick example.

I helped a gentleman who didn’t reveal that he smoked a few cigars a year. My research was based only on “Non Tobacco” rates and we applied with the best non tobacco life insurance company for $2,000,000 term.

Unfortunately for him, he was rated up for not revealing this information. The company he applied with had great rates for “Non Tobacco” but was horrible for “Tobacco”.

Even worse, if he would have provided me this information, I could have gotten him “Non Tobacco” rates with a few companies that don’t mind that he smoked cigars.

This is the case for all factors. If you have high blood pressure, there are life insurance companies that are better than others. Same with diabetes, high cholesterol, etc.

Top Life Insurance Companies for $2,000,000 Term Life Insurance?


The top life insurance company for a two million dollar term life policy will depend on you. You are unique and because of this the life insurance company that is best for you probably won’t be the best for someone else.

Remember that your age, health, lifestyle, term length and more are all factored in what your agent uses to find the best company for you.

The key for you to get the best $2,000,000 life insurance policy is to contact an independent life insurance agent that has access to multiple companies.

Get Help Now with Your Life Insurance Options


A million or $2,000,000 term policy seems like a huge life insurance policy. It’s when you take a little time and look at your entire financial picture that you see how quickly it can go.

Replacing your income long term, mortgage, college for your children – these are just a few examples of what your policy will help protect.

Contact me today and I’ll take the time to know your specific need, gather life insurance quotes from multiple companies and even help you apply.

You can even get instant life insurance quotes online by completing the life insurance quote tool on this page to get an idea of rates.

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