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1 million dollar term life insurance

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How Much Does a Million Dollar Life Insurance Policy Cost?

How Much Is One Million Dollars of Life Insurance?

Let’s face it. When considering your life insurance cost, large policies cost money. Being a millionaire is something most people only dream of becoming. Most never realistically think they’ll have a million dollars, so why are million-dollar life insurance policies so commonplace? And how much does a million-dollar policy for life insurance cost? Do you need that much coverage?

» Compare million dollar term policy prices: Term life insurance quotes

Can Anyone Get a Million Dollar Life Insurance Policy?

Not everyone can justify owning one million dollars worth of life insurance. Insurance companies require a financial justification for large policies because life insurance is designed to replace wealth, not increase it. However, a million dollars in life insurance coverage is actually fairly common.

Purchasing a million-dollar life insurance policy doesn’t seem far-fetched when you consider how much it costs to replace your income, pay off the house, send children to college, and relieve your family’s financial burdens after you’re gone.

How Much Does a Million Dollar Life Insurance Policy Cost?

First, let’s look at a common situation in which one million dollars’ worth of life insurance makes sense and then we will breakdown the costs.

Example:

John and Jane Smith each make approximately $60,000 annually. They have four children and live in a five-bedroom home with a $400,000 mortgage. If either John or Jane died, their wish would be to ensure the children be able to stay in their childhood home and not have to move out of their school district. Essentially, disrupt their lives as little as possible upon the death of a parent.

Using the life insurance needs calculator on Quotacy, you can see in the screenshot below that a $700,000 policy would be a good start to ensure that the mortgage is able to be paid off, to replace the lost income, and cover a funeral.

This number does not include college tuition costs for four children, which can range from an average total of $154,400 to $535,660, depending on the state and whether it’s public or private. Suddenly, that $700,000 policy doesn’t seem like that much money. After taking tuition into account, John and Jane would each be more suited to buying $854,400 to $1,235,660 in life insurance.

If you have a family and make a decent income, owning one million dollars of term life insurance is actually not that far-fetched. This is because term insurance is quite affordable, even one million dollars’ worth.

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SOURCE:

http://insurances.remmont.com/2020/04/06/1-million-dollar-term-life-insurance-life-insurance-cost-for-a-million-dollar-policy-quotacy/