Jeff is a well-known speaker and expert in life insurance and financial planning. He has been featured and quoted in Nerdwallet, Bloomberg, Forbes, U.S. News & Money, USA Today, and other leading finance websites. He is a licensed life insurance agent and has helped over 3000 people secure life insurance. He is licensed in all 50 states & DC. Jeff has spoken at top insurance conferen...

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Benjamin Carr was a licensed insurance agent in Georgia and has two years' experience in life, health, property and casualty coverage. He has worked with State Farm and other risk management firms. He is also a strategic writer and editor with a background in branding, marketing, and quality assurance. He has been in military newsrooms — literally on the frontline of journalism.

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Reviewed by Benji Carr
Former Licensed Life Insurance Agent Benji Carr

UPDATED: May 13, 2022

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The Facts of Life

  • The average million-dollar life insurance rates for someone who is 30 and in good health is about $50 per month
  • Your age, health, lifestyle, term length, and more are all factored in what your agent uses to find the best company for you
  • Rates for those who just purchased a policy who are older than 50 will be higher than those who are younger than 40 years old

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. That’s life insurance 101

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

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 quotes for $2 million in term life insurance with our free tool. Enter your ZIP code to start researching local agents.

How much does a $2 million term life insurance policy cost?

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.

The Insurance Information Institute says term life is mostly bought at a level rate, but there are other policy types.

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 affect the rates of a 2 million dollar term life insurance policy.

We’ll use a father and son as our example.

Meet the Doe family:

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 with 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 life insurance policy would cost the Doe’s.

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How much does a million-dollar life insurance cost?

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

These $2 million life insurance quotes are based on 20-year terms 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 expected, the $1,000,000 term life policy monthly rates would be 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

Am I eligible for a million dollar life insurance?

If you’re reading this article, you’re probably wondering if you’re eligible for a million dollar policy, or even if you would qualify for a $2 million dollar life insurance policy.

First, let’s review how rates are quoted to you for coverage.

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

Also known as “Preferred Plus”, this health class is the 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 rating.

There are approximately a total of 12 health class ratings that all the best 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 company 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 your 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 and you might end up 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 a $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 had provided me with 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.

What are the top life insurance companies for $2,000,000 term life insurance?

The top life insurance company for a two million dollar 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 getting the best $2,000,000 life insurance policy is to contact an independent life insurance agent that has access to multiple companies.

How does gender affect the cost of $2 million Term Life Insurance?

As the estimated rate quotes show, gender is also a key factor when calculating life insurance rates. Females typically live longer than males, so they get a bit of a price break.

Our assessment shows that males continually pay higher rates, no matter their age. However, the difference between the rates varies as they age. This will be true whether you’re purchasing a simple $200,000 policy or applying for a $2 million term life insurance policy.

For example, looking at a 20-year term life policy, here is how gender affects rates: 

At age 30, males pay 38% more than females, which comes to around $130 more annually. 

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How much life insurance do you need?

Whether you’re shopping for a $1,000,000 policy or a $2,000,000 term life policy, those amounts may seem like huge for life insurance coverage. And you might wonder whether it’s worth it to obtain such a large policy. However, when you take a little time and look at the entire financial picture, you see how quickly it can go.

Consult with a financial planner about replacing your income long term, mortgage, and college for your children – these are just a few examples of how your policy will help protect their financial future.

Contact a licensed agent, and they will take the time to know your specific policy type, gather life insurance quotes from multiple companies, and even help you apply.

Or start with our free and easy tool. Get instant life insurance quotes online by completing the life insurance quote tool on this page to get an idea of rates. Enter your ZIP code to get started.