Could You Afford a Million Dollar Life Insurance Policy?
Could You Afford a Million Dollar Life Insurance Policy?
A million dollar life insurance policy.
It used to be that only the most wealthy had a need for it or perhaps could even afford it. It was to some degree a status symbol, the kind of thing movie plots revolved around. Today, million dollar life insurance policies are much more common. Should you have a million dollar life insurance policy and could you afford it?
The Need for a Million Dollar Life Insurance Policy
It doesn’t take long to realize why a million dollar life insurance policy could be a good idea, especially if you have a home and young family.
Pay Off Your Home. Let’s say you have a $200,000 mortgage on a home. You would certainly want that paid off.
Student Loans. Perhaps between you and your spouse, there are $50,000 in remaining student debts. Life insurance could come in handy in relieving that burden.
Car Loans. It would not be unusual for a young family to have $25,000 or more in car loans that will need to be paid.
Credit Card Debt. If you are like most, you may have $10,000 or more in credit card debt.
Living Expenses for Five Years. If you make $75,000 annually, it would be a good idea to leave behind at least five years of income so your family can continue to live their current lifestyle. That’s another $375,000.
Children’s College Fund. College will not be inexpensive whether you are here or not. Let’s set aside $100,000 for each of the two kids you may have.
Medical and Final Expenses. We’ll include a modest $40,000 figure for final medical, miscellaneous and burial expenses.
In case you haven’t been adding, this amounts to $900,000 without accounting for any savings accounts for a spouse, children or other debts you may have. It doesn’t take long to realize how quickly a family could go through a million dollars in life insurance proceeds, even if they are not “wealthy”.
Can You Afford It?
You probably can, especially if you are under 45 years old and in good health. The best way to find out is to contact one of our professional independent insurance agents. They can shop multiple insurance companies to find affordable coverage that may surprise you. The point is you won’t know unless you call. Are you ready for that $1 million policy? Contact us today.
Do you have questions about your insurance? Find an insurance agent near you with our Agent Finder
Search All Blogs
Search All Blogs
Read More Insurance Blogs
Things Your Kids Don’t Want to Inherit From You
Downsizing is Tough, But an Important Step to Take…For Your Adult Children
The Right Recipe For Your Life Insurance Program
What Are the Ingredients for Your Life Insurance Program?
Facing the Inevitable
Have You Had That Uncomfortable Conversation with Yourself Yet?
What Grandparents Should Understand About Their Children and Grandchildren
Shocker: Times Have Changed
Relationship Building: The Power of Questions
How Questions Can Be the Key to Valuable Conversations
Does Your Child Have These Critical Characteristics?
Most Parents View These Traits As Having Great Value
What Are The Odds?
A Look at the Chances of Various Events Happening to You
Discovering More About The World Around Us
What We Speak and Where We Eat Both Divide and Bring Us Together
Discovering Your Child’s Hidden Talents
Uncovering Your Child’s Potential
Six Things About Your Own Body You May Not Know
Some of These May Surprise You