Buying life insurance is purely a personal decision. If you love your family, you may not want them to suffer financially after your demise. You already know that having a life insurance policy is the only way to ensure that your family will continue to live a stress-free life after you die. More importantly, the amount of coverage you are purchasing is a great concern. If nobody is pushing you into this, then you have to exercise your generosity by allocating a reasonable amount of money to your life insurance. You should not invest a small amount, which is not even enough to finance your burial expenses. If you are an above average income earner, then a 2 million dollar policy is worth it. Don’t be mean to your loved ones!
What Affects Life Insurance Cost?
The cost of life insurance depends on some factors. Everyone is looking forward to getting affordable life coverage. So, comparing quotes from different companies is the surest way to get reasonably-priced life coverage. Outlined below are the tiptop aspects that can impact your life insurance premiums:
All other factors having been held constant, the young you are, the lower your premium rates will be. That is why insurance experts advise people to buy life insurance while they are still young. Nevertheless, it is never too late to purchase life coverage because there is a myriad of affordable options available for you.
Your health history. Your insurer would want to know more about your medical history. If you have a history of health complications, this could result in higher premiums. Remember you cannot lie about this because they will crosscheck with the database.
Your current health. Insurance companies usually conduct medical examinations on potential candidates. If you are currently in good health, you will enjoy lower rates. But still, there are no medical exam life insurance policies, which are a bit costly.
Your weight. If you are obese or overweight, you are likely to pay more for your life insurance policy. This is because the chances of developing health problems in the future are way too high.
Your occupation. There are certain jobs that insurers regard as risky. For example, if you are a car race driver, your insurer may be forced to charge you more on your premiums. This is because your life is at great risk.
Smoking. If you are a chain smoker, expect to pay more for your life insurance than a non-smoker. This is because of the health risks associated with the habit. If you stop smoking, you can qualify for lower premiums.
Drinking. Before qualifying for a life insurance policy, the insurer will inquire about your drinking habits. Remember that heavy alcohol consumption is health hazardous. People who drink frequently are likely to pay higher premiums.
Your hobbies. If you engage in risky recreational activities, such as rock climbing or scuba diving, this is likely to increase your premium rates. However, it depends on your insurer because what a particular company regards as risky may be perceived otherwise by another company.
Your gender. As per the general rule, women have a longer lifespan than men. As such, their premiums are generally lower than that of men.
Your family history. If in your family there is a history of serious health complication like cancer, you may find yourself paying more for life insurance.
Types of Life Insurance
The two major types of life insurance are a term and whole life. Also referred to as permanent life insurance, whole life is subdivided into several categories, which comprises of traditional whole life, variable life, universal life, and variable universal life insurance.
Term Life Insurance
This is the most popular type of life insurance. The payout is done only if death occurs during the policy’s term. The term could be one up to 30 years. The two basic types of term life insurance policies are level and decreasing term. The former means that the benefit does not change throughout the entire duration of the policy. For the decreasing term life, the death benefit keeps on reducing over the period covered by the policy.
The 2 Million Dollar Term Life Insurance
To some individuals, a 2M term life insurance policy may seem to be a lot of coverage. This is not the case. Remember you are looking forward to providing financial security to your loved ones when you are no more. After you die, you do not want your family to face financial burdens whatsoever. For example, you want life insurance to cater to your funeral expenses, debts, liabilities and salary.
It is important that you assess your cost of living right now and in the future. It is very easy to underestimate what your future salary is, and how to maintain the same standards of living for your loved ones.
Bear in mind that the amount of premiums you are supposed to pay for a 2M dollar term life insurance is depended on several aspects. These may include your age, gender, health, weight, and tobacco usage, among others. Each of these factors can either positively or negatively affect your premium rates.
Check out this sample of a 2M dollar 20-year term life insurance for both men and women.
$2 Million Term Rates for Men
$2 million Term Rates for Women
Is a $2 Million Term Life Insurance Policy Worth It?
To some people, this may seem to be a waste of money. But there are people who want to purchase such a large policy. Remember that everyone has his reasons for purchasing life insurance. But does it make sense to have such a large policy?
Well, if it is only you and your partner with no kids, then such a big policy is of no use. But if you have several young kids depending on you, you can commit yourself in such a big investment. With such young children, a term life insurance policy you secured ten years ago may not be enough.
It is good to think of all the expenses you will leave behind when you die. For example, you may be having pending car loans, student loans, credit card bills, and mortgage payments. If you fail to secure a term life insurance that is enough to cater to such needs, then you will leave your family in a big mess.
It is good to understand that most of the $2 million life insurance policies are not that expensive. You will have to pay higher monthly premiums for such a large policy. But is there a way you do to save money on your 2 million dollar term life insurance policy?
When applying for a life insurance policy, the insurer will look at your health and age. They will also pay keen attention to your occupation and hobbies. Most people fail on the part of health. If you are overweight, it is good to get to the gym a few months before purchasing your policy. Exercising helps lower your cholesterol and also prevent the chances of getting high blood pressure.
Again, you need to minimize tobacco usage. Insurers would like to know whether or not you are a smoker. If they realize you are a chain smoker, your premiums rates will go up. So, if possible, you need to quit smoking to enjoy lower premium rates.
And lastly, you need to shop around properly before purchasing your policy. Because each company is unique, it is good to compare rates from different companies before settling on one. These companies will look at your health and other factors differently, so never go for the first carrier you come across during your search. Also, different companies have more experience with large policies than others. If you invest your time well, you are likely going to land an affordable $2 million life insurance policy.
Whole life or permanent life insurance plan does not have an expiry date. The death benefit is only paid whenever you die. Permanent polices are quite expensive as compared to term life. With whole life, there is a guaranteed cash value growth. Permanent life insurance is the best option if you are above 50 years.
It is regarded as a type of life insurance policy designed to offer lifetime coverage while building up cash savings. The money grows over time and can be cashed out at some point, or o0ne can take a loan against it. Both your death benefit and cash value are guaranteed.
Now that you have understood what whole life insurance is, we can take sample quotes for various age groups.
A $2 Million Whole Life Insurance Quote for Male
$2 Million Whole Life Insurance Quotes for Female
As per the tables above, whole life seems way too expensive. So, if you aim to get a return on your investment, you better go for a term life policy and channel the rest of the money in other profitable investments. For lifetime protection, you can opt for Guaranteed Universal Life Insurance (GUL).
Guaranteed Universal Life Insurance
Guaranteed Universal Life Insurance is designed to last your whole life. A payout will be made to the designated beneficiaries when you die. Unlike other individual life insurance policies, GUL remains in place as long as the policyholder continues to pay the premiums. With this type of policy, there is guaranteed payout and premiums remain level throughout.
If you can commit to paying your premiums on time, then GUL is your best bet. Before committing yourself, ensure you have a reliable source of income. This is because any default in premium payments would result in the lapse of your policy. And since it is best suited for people with above-average income, buying a large policy would be better.
The tables below show the premiums to be paid by GUL policyholders for a $2 million GUL policy at different ages.
A $2 Million Guaranteed Universal Life Insurance Quote for Male
A $2 Million Guaranteed Universal Life Insurance Quote for Female
Finding a Two Million Dollar Life Insurance Policy
Finding a $500,000 life insurance policy is just the same as finding a $2 million policy. The requirements are the same. The only difference is that you will pay higher premiums for a larger policy. But remember you will be more secure with a large policy regardless of the high premium rates.
As you already know, everybody has unique reasons for buying life insurance. As such, a life insurance company that is best for you probably will not be the best for another person. So, you need to search for a company that is going to meet your needs.
Bear in mind that factors, such as age, health, and lifestyle will affect your premium rates. To get the best carrier, you need to do your legwork pretty well. It is advisable to use an independent life insurance agent that has access to multiple carriers. An experienced agent will not only find the right service provider for you but will also advise you accordingly.
When people hear of a $2 million life insurance policy, some get shocked. Especially those who do not know the importance of life coverage, they may think it is a waste of money. Truly, a large policy can save you a lot. If you purchase such a large policy, you are certain that the lifestyle of your loved ones will not change even after your death. But if you opt for a small-size life insurance policy that cannot even cater to outstanding bills, then your family will be in trouble once you join your ancestors.
The god news for you is you’re at the right place. Here at CFAinsure we shop around with all of the companies to get you the lowest rate on $2 million worth of life insurance, at no extra cost to you! Call us today or use the quote engine to request more info.