Most people wouldn’t think about buying a million-dollar life insurance policy. It’s an expensive investment, and most people only need a small amount of coverage to feel secure. However, for those who have a lot of assets to protect, or who want the peace of mind that comes with knowing they’re taken care of in the event of their death. A million-dollar life insurance policy can be a great investment. In this blog post, we’ll discuss the cost of a million-dollar life insurance policy and how it can benefit you!
First of All Do, do You Need A Million Dollar Policy?
As the name suggests, this type of life insurance provides a $1 million cash payout. This will payout to your family to help them replace your income, pay debts, and cover any other expenses. That payout can allow your family to focus on final expenses. It can also be used for and taking care of themselves, rather than worrying about financial challenges once you’re gone.
Ask yourself: If you weren’t there to provide for your family, what would your life insurance need to cover? Different costs to consider include:
- Daily expenses, like food and transportation
- Housing payments
- Caring for dependent children or family members
- Future college or education expenses
- Credit card or other debt
- Outstanding student loans
- Funeral and other end-of-life expenses
It’s recommended you get a policy that has a payout seven to ten times your current income. If you’re one of the nearly one in 10 Americans who earn $100,000 per year, that means it might take a million-dollar policy to cover your family’s expenses.
Your insurance plan’s coverage also depends on factors like your income. This helps determine how much you qualify for when it comes to a payout and the amount of savings or other assets you already have on hand. Try our term life insurance calculator to find the right coverage amount for your needs.
Can Anyone Get a Million Dollar Policy?
As long as you can show a financial need for the policy, you may qualify for a million dollars in life insurance coverage with some insurers. Before you apply, it’s important to remember that life insurance isn’t designed to increase your family’s wealth. It’s not to protect what you already have, so you’ll want to be smart about the policy size you need.
Factors like income, age, and health status could impact your eligibility for life insurance. So buying a policy to replace a reasonable multiple of your income, securing coverage at a young age, and being able to demonstrate good health are all ways to boost your chances of approval for a million-dollar life insurance policy.
What is The Cost?
It may sound expensive, but a million-dollar life insurance policy is probably more affordable than you think. Over half of Americans overestimate the cost of term life policies by more than triple in many cases. This perception remains true for a million-dollar policy. A healthy 30-year-old man could pay as little as $14 per month for a million dollars in life insurance.
Certain factors can affect how much you’ll pay, including your age, your overall health, and the length of the policy. Different insurance companies may offer you different rates. This is why it can pay to shop around when you’re looking to make a purchase such as a term life insurance. At United Insurance, we work with more than 14 insurance companies to help you find the right fit for your needs. Start by seeing your personalized price for a million-dollar policy here.
Coverage Will Give You Peace of Mind
You don’t need to be the typical tycoon to get protected like one. This is especially when you consider the true insurance policy cost. A million-dollar policy can be a cost-effective part of your financial planning. This will go on to ensure peace of mind and protection for your entire family, no matter what happens.
Bottom Line
No one wants to think about their death, but a life insurance policy gives you peace of mind knowing that your loved ones will be taken care of financially if something happens to you. A million-dollar life insurance policy may sound like a lot, but it could be more affordable than you think. It can provide the coverage your family needs. Use our term life insurance calculator to see how much coverage you could qualify for and get started on your quotes today.