If you're looking for an affordable life insurance policy that's guaranteed to pay out a death benefit of at least $1 million, chances are good that you've visited several online quote aggregators. After all, nearly 1,000 term life insurance providers operate in the United States. Unless you have few other obligations, it's unlikely that you're willing to source individual quotes from each of these providers. As such, you've probably used a quote aggregator like selectquote.com to glean pricing information from hundreds of different issuers at once.
While this might not produce a perfect picture of your life insurance options, it's certain to serve as a great starting point. However, most life insurance policies are worth far less than $1 million. Since the market for high-value policies is often distorted by economic forces or momentary spikes in demand, it can be useful to do some background research on the historic cost of a $1 million life insurance policy.
Ultimately, the cost of your policy will depend upon your current age, health and lifestyle. Although there are plenty of other risk factors that might increase your chances of dying during your policy's term, these are by far the most important.
Most financial experts advise prospective life insurance policyholders to obtain coverage before turning 40. If you can follow this advice, it's likely that you'll save thousands of dollars in premium costs over the life of your $1 million life insurance policy. If you obtain a 10-year term life policy before your 30th birthday, you might pay an annual premium of just $500. If you wait until your 40th birthday to obtain an identical policy, you might need to pay as much as $900 per year.
Most financial experts also advise individuals who work in hazardous occupations to refrain from taking out life insurance policies on a whim. If your job is physically dangerous or requires you to travel extensively, it's likely that you'll have to pay a significant "risk premium" for your life insurance policy. If you're planning on working in your field for a long time, this additional cost might be worthwhile. If your job is temporary, you may wish to quit before purchasing your policy. Once you've removed this glaring risk factor, your quoted premiums are likely to decrease by a substantial margin. However, it's important to note that your $1 million life insurance policy will still be far more expensive than a more reasonably-sized $250,000 policy.