Get Approved for a Million Dollar Life Insurance Policy / 12 Easy Steps

Our agency often works with successful executives, doctors, and small business owners who require a substantial amount of life insurance. We have developed a disciplined and streamlined process to help you get approved for a million dollar life insurance policy.

Many wealthy people seeking life insurance policies of 1 million, 2 million, or more, commonly need coverage to either protect their income or to cover a large loan. Many large life insurance polices are purchased on the recommendation of our client’s CPA or attorney.

Typically, most life insurance companies apply more stringent underwriting to applicant’s seeking life insurance with larger death benefits.

Some insurance companies have special criteria for 1 million dollar life insurance plan, while others may not have a problem with 5 million or more of coverage. This depends on a lot of factors including the insurance company’s financial strength and market segment.

Many carriers may not have the capacity or desire to underwrite a large face amount. Some companies also need support from reinsurance companies before they can make an initial commitment to coverage.

Death benefits above certain thresholds can violate the company’s jumbo limit, taking underwriting control away from the carrier and sending your application into the reinsurance market.

Not to mention, many agents do not routinely sell huge policies and have not developed either the knowledge or the carrier relationships needed to secure the best premium for their clients.

A majority of these agents will simply run a spreadsheet of the cheapest 1 million dollar life insurance policies from multiple carriers, and go directly to filling out a formal application. An immediate red flag should be raised, if your agent develops your application for life insurance in this manner.

Furthermore, many agents are not familiar with correct steps and also do not have internal systems in place to facilitate offers for wealthy individuals.

getting approved for a 1 million dollar life insurance policy Getting Approved for Coverage

If you are looking into securing a 1 million dollar life insurance policy, it is very important to work with an agent who is familiar and comfortable handling large cases.

Our advisers often take many intricate steps to navigate the marketplace on your behalf to find you the most competitive offer. This is how we do it:

First, we ask you a few questions:

  • How much total new insurance coverage do you need?
  • Do you need term or permanent life insurance?
  • Why do you need the amount of coverage?
    1. Personal -protect personal income, protect a personal mortgage balance.
    2. Business – secure a business loan, or provide Key Person coverage for a company
  • How much life insurance do you currently have in force now? (this will factor in to how much additional coverage you can obtain)
  • How is your overall health? (you will need to submit to an insurance examination and provide your medical records)
  • How are my current finances? (1 million dollar life insurance policies require financial underwriting, which can include verification of income and net worth)
  • Do you participate in a dangerous avocation, aviation, foreign travel, or other high risks?

With these pertinent details available to us, it is now time to begin the application vetting process. First and foremost, we always package our large case files to be evaluated by many insurance companies in the market via our “Concierge Shopping Service”.

1 million dollar life insurance

 One Million Dollar Life Insurance /12 steps:

  1. Your  information is initially evaluated and matched to companies offering the best insurance product(s) for the required death benefit.
  2. It may also be necessary to look at several insurance carriers to place the total risk because an individual carrier’s retention limits, may still fall short of the total amount of coverage you need.
  3. We will need you to complete an insurance examination which will be utilized with many insurance companies.
  4. We will also order the required medical summary from your doctor (APS) to be used with all the viable life insurance companies.
  5. Large one million dollar life insurance polices are subject to financial underwriting, and we can determine whether the amount of life insurance can be justified based on your financial information.
  6. Our in-house underwriters summarize, and analyze all medical and financial information and determine which companies to submit to for “tentative offers”.
  7. Your medical and financial profile is presented as a “trial application” to multiple life insurance companies to determine which life insurance carrier would be willing to offer coverage at the most competitive rate class.
  8. This concierge service allows us makes preliminary premium comparisons more accurate based on “tentative offers” although you will not know the ultimate premium until the carrier makes a formal offer of coverage.
  9. Now, a formal application will be submitted to the carrier which offered the best initial rates to you during our shopping process.
  10. An inspection report is used to verify the information provided on the formal application is correct.
  11. Congrats! Your policy has been approved and mailed to us to verify accuracy
  12.  We fly or drive to your office to deliver a policy with the best pricing available in the marketplace.

Our strategy outlines to our clients and there advisers the time horizon and the details required to purchase a large life insurance policy. Our history in the large case market validates that larger life insurance policies can be complex and require a defined strategy.

types of miilion dollar life insurance policies

 Do you Need a One Million Dollar Life Insurance Policy?

Here is a typical scenario for a successful married couple:

  • $100,000 primary wage earner
  • non-working spouse
  • children
  • mortgage
  1. Your first calculation should be based on the death benefit required to generate an enough income to provide for your surviving spouse and children.
  2. Then, figure the additional amount needed to pay off any outstanding mortgage balance.
  3. Now, your will simple need to get an estimate for mortgage life insurance rates, along with an additional death benefit to cover your income.

A million dollar life insurance policy covers both needs:

  • $100,000 Income (x 5 years) = $500,000 Life Insurance
  • $500,000 Mortgage Balance =  $500,000 Mortgage Life Insurance
  • $1,000,000 Life Insurance

Once realize the actual need own a million dollar life insurance policy, you may be surprised by affordability of the payments. Here is an example

Rates for Male, Non-smoking, Preferred Plus

10 Year
1 Million 2 Million 3 Million 4 Million
Age 45    547 1,094 1,641 2,188
Age 50    870 1,740 2,610 3,480
Age 55 1,496 2,992 4,488 5,984
Age 60 2,436 4,872 7,308 9,744
Age 65 4,325 9,050 13,575 18,100
Age 70 7,089 14,178 21,267 28,356
20 Year
1 Million 2 Million 3 Million 4 Million
Age 45 1,106 2,212 3,318 4,424
Age 50 1,688 3,376 5,064 6,752
Age 55 2,744 5,488 8,232 10,976
Age 60 4,730 9,460 14,190 18,920
Age 65 8,925 17,850 26,775 35,700
Age 70 16,220 32,440 48,660 64,880

Types of Million Dollar Life Insurance Policies

What types of policies are available to cover my needs for life insurance? The most popular and affordable type of policy used to protect your income and pay off the mortgage is term life insurance. There are two common types of life insurance policies to provide coverage for your family or business.

  • Term Life Insurance  Term life offers the cheapest rates on life insurance with guaranteed death benefits and level premiums for periods of 10, 20 or 30 years.
  • Universal Life Insurance A permanent cash value life insurance policy with flexible premiums and fluctuating interest rates and death benefits which last for your entire lifetime.

We would be happy to assist you in your search to obtain a 1 million dollar life insurance policy. You can get term and permanent life insurance with our life insurance premium calculator using Million Dollar Life Insurance Quotes.

We work you to match your unique planning needs with a customized insurance solution. Please call us with any questions 1-877-249-1358.

Eric Van Haaften, LUTCF is the president of Affordable Life USA. We are a nationally licensed life insurance agency focused on finding our clients custom planning solutions at excellent prices. 1-877-249-1358.