Do I Need A Million-Dollar Life Insurance Policy?

Who couldn’t do with a million dollars, right? You might dream of making that much money, or of leaving that amount to your family so they won’t have to worry about money after you’re gone – and if you’re shopping for life insurance policies, you’ll find that million-dollar policies exist so that you can provide that to them. But is a policy that big right for you and your situation? Before considering a million-dollar life insurance policy, you’ll need to consider your needs and your eligibility.

Who Should Get A Million-Dollar Life Insurance Policy?

Million-dollar life insurance policies are just what they sound like – policies that promise a $1,000,000 death benefit to your family members in the event of your passing. As long as you pay your monthly premiums and do not let your policy lapse, or lie during the application process, your family is guaranteed a million dollars when you pass. 

In general, your life insurance policy should cover 5-10 times your salary, so if you earn about $100,000 a year, then a million-dollar policy might be the right choice for you. However, a million-dollar life insurance can also work for you if you earn less and want to cover:

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  • Large debts, such as a mortgage and student loans
  • Child care and dependent expenses
  • Funeral expenses
  • Your children’s education

 You will need to factor in all of the above and estimate your future expenses to see how much coverage your family will need further down the line

How Much Does A Million-Dollar Life Insurance Policy Cost?

Life insurance premium rates are always dependent on a number of factors, including your age, health history, smoking habits, and more, but you might be surprised to know that even million-dollar policies can be very affordable. If you are young and healthy, a policy can cost you as little as $35 a month, or a little over $1 a day.

Another factor that will help determine the price of your premiums is the type of policy that you choose, whether it be term, whole life, or universal life insurance. Term life insurance will be the least expensive choice of the 3 types because there is no cash value included with the policy. The benefits of term life insurance include:

  • Lower premiums
  • Guaranteed death benefit (as long as premiums are paid)
  • Choice of 10, 15, 20, 25, and 30-year policy term
  • Premium prices are locked in for the entire policy term 
  • Renewable at the end of the initial term

But if you choose to go with a whole life or universal life insurance policy, you will have cash value that builds over time, which you will have access to at any time.

What Are The Eligibility Requirements for a Million-Dollar Policy?

If you are considering a million-dollar life insurance policy, be prepared to give some information to the life insurance company you have chosen; they will want to assess your risk to determine if you will qualify for that large of a policy. Not only will you have to pass medical underwriting, but the company will also look at:

  • Your age– Most insurance companies will issue a million-dollar policy that is 40 times your annual income for applicants under 40, 25 times for people ages 40-60, and 10 times for people ages 60-70.calculator with a pen near it
  • Your income– Most insurers, though, will offer benefits that are anywhere between 10 and 30 times your annual salary, with some variation based on your age.
  • Your health– Any current and past health conditions will be considered.

Looking For A Life Insurance Policy?

If you are looking for a million-dollar life insurance policy to help protect your family’s financial future, you might find that you are eligible for one, and that it is more affordable than you thought it would be. But if you do find that a million-dollar policy is not the right fit for you, don’t worry: you can find another affordable plan with great coverage with the help of a life insurance agent. 

There are many different life insurance companies with different coverage options and prices, which is why it is important to compare all of your options, and the best way to do this is by working with an agent who specializes in life insurance. We have provided the top life insurance companies in the nation below; each offers hassle-free assistance and the most competitive rates. Always check multiple sites to make sure you have bargaining power and know the advantages of each company. Make sure a hard time isn’t made harder by a financial burden, check life insurance rates today.

About The Author:
Cassandra Love

With over a decade of helpful content experience Cassandra has dedicated her career to making sure people have access to relevant, easy to understand, and valuable information. After realizing a huge knowledge gap Cassandra spent years researching and working with health insurance companies to create accessible guides and articles to walk anyone through every aspect of the insurance process.

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