How Much Does A Million Dollar Life Insurance Policy Cost?

Learn how much a million dollar life insurance policy would cost you and why it might seem like the right choice to make.

Are You Even Suited For A Million Dollar Life Insurance Policy?

If it has ever crossed your mind to buy a million dollar life insurance policy, it is essential to know whether you’re even suited for it or not. Data regarding your age, salary, and other such factors helps a company in figuring out if you even need that much insurance. In most cases, the highest coverage provided is almost 10 to 30 times more than your yearly income. However, this amount can vary depending on factors such as your age. Usually, if you are younger, it means that you can get higher insurance.

Moreover, getting coverage should not be an issue if you have a job.

If you are still confused as to whether you are eligible for such a high insurance policy or not, then it is better to use an online calculator. In this way, you can exactly know how much insurance you need on the basis of your family income.

How Much Does A Million Dollar Life Insurance Policy Cost?

The sound of a million dollars can instantly make your heart stop for a second let alone the thought of even buying a million dollar life insurance policy. Such a big number makes you think twice. You start to wonder if it’s even worth it or not? Let me ease your mind and tell you that a million dollar life insurance policy is actually pretty feasible.

If something bad was to ever happen to you, it is important to leave your family with something to get them through. A life insurance policy ensures your family’s financial security. Ideally you should have insurance that is roughly 10 times your average yearly pay. Thus, an annual income of $100,000 means that a one million dollar life insurance policy is great for your family. Other factors like debt, student loans, and mortgage also mean that such a life insurance policy could be suitable for you.

You might have never thought about how reasonable a million dollar life insurance policy could actually be. An active 30 – 35 year old woman can purchase a 20-year, one million dollar life insurance policy from Haven Life for almost $35 per month, which is a little more than $1 daily. Pretty cheap right?

Things To Keep In Mind Before Calculating The Right Amount For You

Given below is a list of all the factors you need to consider before you calculate the right insurance amount for your family. It is important for you to look at all aspects to decide what is best for your family in case of your demise.

  • Your annual income
  • Debts that you want to pay off (medical debts, personal debts, mortgage)
  • Assets that you own
  • College expenses for your children
  • Final expenses
  • Life insurance policies that you may have at that time
  • Business obligations
  • Other factors that you often overlook

Once you figure out all these things, you can use an online calculator to find out if the million dollar life insurance policy fits your needs or not? If not, then you may find another policy that is equally worth it and suits your requirements even better.

Choosing The Right Policy For You

A 35 year old man would typically have to pay around $53 monthly for a million dollar life insurance policy for twenty years. However this is not a fixed rate. The insurance amount is often altered by factors such as gender, age, and health.

The internet is the best place to search for different policies to see which one works for you. Thus, do your online research so that you know what you are looking for. It is always smart to look up on three to four different insurance companies. Each company may have their own policy. So, it is better to have some options before you select the best.

Purchasing A Million Dollar Policy

The reason why you buy a million dollar life insurance policy is to make sure that your family is financially secure in troubling times. Hence, you must choose a company that you completely trust. Go for a company that you are comfortable in dealing with and whose policy aligns with your needs. In this way your family too can live a comfortable life.

Modern day technology has made things quite simple for you. Now, instead of personally visiting a company, you can look up their policies online, calculate your overall needs, and see what works best for you.

If you apply for the million dollar insurance policy through an online channel, the application will mostly ask you about questions regarding your income, family structure, and your health. It is of paramount importance to answer every question clearly and sincerely so that you can get the most accurate and true results.

Conclusion

Getting a life insurance does get you thinking about things like your death which can be pretty gloomy at times. However, you need to think about your family and are you leaving them secure or not. After looking at all the factors, you might be surprised to find out the final results. As it turns out, a million dollar life insurance policy may cost you very little and could actually be the best choice for you.

Nabeel Ahmad

Nabeel Ahmad

Nabeel Ahmad is the founder and editor-in-chief of Insurance Noon. Apart from Insurance Noon, he is a serial entrepreneur, and has founded multiple successful companies in different industries.

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