Million Greenback Life Insurance Insurance policies: The whole lot You Want To Know
That number, a million, seems terribly large when you first look at it, especially when it comes to life insurance.
For most people who buy life insurance, the purpose of the insurance should be used to determine how large or small that number should actually be.
When you buy a mortgage repayment policy when you die unexpectedly, a Million dollar policy could probably be too much. If you want to make sure the funds are available to send three kids through an Ivy League college, a million dollars can easily be missing out.
Easy article navigation
- What is Million Dollar Life Insurance??
- Who Should Get Million Dollar Life Insurance?
- What is Covered in Million Dollar Life Insurance?
- How Much Does a Million Dollar Policy Cost?
- What are the conditions of participation?
- Can You Get Million Dollar Life Insurance With A Medical Exam?
- What Are the Best Companies for a Million Dollar Policy?
If you intend to leave enough cash to cover your family's living expenses for a few years, a million dollar policy might be enough.
However, if your life insurance need is to cover all of the above, then a million dollar life insurance policy is unlikely to get you there. Read on to find out what million dollar life insurance may or may not do for your family when you're away.
What is Million Dollar Life Insurance?
Put simply, million dollar life insurance is a promise by an insurance company to pay a $ 1,000,000 death benefit for a premium.
That million dollar promise and your obligation to pay the required premium are always set out in the terms of your life insurance contract with the company.
The contract between the applicant and the insurer becomes effective when the application is approved (accepted) by the insurance company and the policy is issued.
Of course, the policy will only be issued after the insurance company has received your first payment requested by the company. Your policy will remain in effect as long as you make the agreed periodic payments. If you fail to do this, your policy will expire.
If you die during the insurance period (term of the policy), the insurance company will pay the death benefit to the beneficiary or beneficiaries listed in your policy. If you do not include at least one beneficiary (person or organization) in your policy, the death benefit will be paid out to your estate.
Who Should Get Million Dollar Life Insurance?
Surely not everyone needs million dollar insurance. In many cases, the insurance company will look for evidence to support why an applicant is requesting a death benefit of this size.
But when you think about it, in today's economy, it's not difficult for a family to need a large life insurance policy for the household breadwinners when you factor in the cost of a home, two or three vehicles, credit card debt, and savings for college expenses and savings for retirement. Not to mention the cost of a funeral and funeral service.
So if you want to replace the income that your family depends on, you will likely need $ 1 million coverage to deal with it.
What is Covered in Million Dollar Life Insurance?
Unless you have opted for some optional drivers that provide livelihood benefits, your million dollar policy will only pay off if you die during the term.
Shortly after your death, the insurance company pays the death benefit payment to the beneficiaries you have listed on your policy in the percentage or amount that you have specified.
Be warned, however, that your beneficiaries are free to spend this tax-free death benefit at their discretion and that the money is outside of will that you may have left behind.
If your life insurance is to replace your income after your death, the usual things that beneficiaries will spend it on are:
- Your funeral and funeral
- Excellent mortgage on the house
- Unpaid medical expenses
- Outstanding debts
- Monthly cost of living
- Childcare costs
- College savings fund
- Pension fund
Remember, if you have selected one or more insurance drivers who provide subsistence benefits, such as terminal, chronic, or critical illness drivers, and had to trigger that driver, the amount you will receive as an advance on your death benefit will be received from the deducted death benefit.
How Much Does a Million Dollar Policy Cost?
There are many things to consider when considering the cost of a million dollar life insurance policy:
- Policy type – term, full life or universal life
- Contract term – 10, 15, 20, 25 or 30 years or lifetime coverage
- Age and health of the applicant
- Job and lifestyle of the applicant
- Applicant's international travel plans (in some cases)
- Additional driver costs, if selected
Term life insurance is always the most cost-effective choice of the three types of insurance, as no cash value account is assigned to the policy.
Choosing term life insurance offers the following advantages:
- Lower periodic premiums (monthly, semi-annual or yearly)
- Guaranteed death benefit upon payment of the premiums
- Guaranteed premium level for the entire contract period
- Choice between 10, 15, 20, 25 and 30 years (some insurers offer 35 and 40 years)
- Renewable as an annually renewable policy at the end of the first term (prices increase every year on the anniversary)
However, if you prefer a cash account that has deferred tax rates attached to your policy, Universal Life is the more cost-effective choice compared to life as a whole.
Choosing universal life insurance offers the following advantages:
- The policy increases cash value over time and earns deferred tax interest
- Easy access to the present value account via policy loan
- Life insurance if the policy is properly funded
- Flexible death grants and bonus payments
All life insurance is very similar to general life, except that the death benefit and premiums are inflexible and the premiums are generally higher.
Million Dollar Life Insurance Eligibility Requirements
When considering a million dollar policy, most insurers need information about your risk to the company and whether or not your income and expenses justify this coverage.
Not only do you need to meet the medical signature requirement, but the insurance company wants to verify that you are an acceptable risk when it comes to:
- Your age – Most carriers agree to take out an insurance policy with a death benefit up to 40 times the annual income for applicants under 40 years of age. Up to 25 times the annual income for applicants between 40 and 60 years of age and up to 10 times the annual income for applicants between 60 and 70 years of age.
- Existing coverage – When you have established your need for a million dollar policy, the insurance company will want to know if you have any other life insurance and if you want to keep that coverage. If you are applying for $ 1 million death benefit but are already insured for $ 300,000 and plan to keep that policy, the insurer will likely make an offer for $ 700,000 coverage.
- Income – An insurance company is unlikely to offer a million dollar policy to someone whose income and assets do not justify the level of coverage. Applicants should expect proof of annual income as well as their current net worth.
- Health – All current and past health conditions will surely come into play when you apply for a $ 1 million coverage limit. Health is always a primary underwriting problem when taking out life insurance. In many cases, the insurer also inquires about the health of your parents and siblings.
Can You Get Million Dollar Life Insurance Without a Medical Exam?
Yes you can. With today's technology and innovative underwriting processes, some insurance companies will offer life insurance policies with a death benefit amounting to $ 1 million, while some airlines will offer even higher benefits.
Keep in mind that you will likely pay higher rates as the insurer has allowed you to forego the life insurance medical exam and blood / urinalysis.
For example, we know of nine life insurance companies we represent that offer $ 1 million life insurance without a medical exam. Of those nine insurers, four would charge less than $ 50 a month for a 30-year-old male non-smoker in excellent health.
More importantly, each of these companies is well known and has been rated “A” or better by the national rating services.
Best Companies for Million Dollar Life Insurance Policies
While tariffs are a priority for most people who buy life insurance, it is important to emphasize that the company you choose has the financial stability to deliver on its promise to pay the death benefit for the life of the insurance policy.
Additionally, if you'd rather forego the medical exam, you need to consider companies that offer one million coverage without the need for a medical exam.
The list of companies that we recommend and also represent is (in no particular order):
Rated A +
Banner's most sought-after life insurance product is this OPTerm life insurance product. OPTerm is offered to applicants with 10, 15, 20, 25, 30, 35 and 40 years Price guarantee. The policy can be extended up to the age of 95 Policy includes a conversion option.
Rated A +
The Protective Classic Choice Term product is a great solution for individuals and families looking to replace a breadwinner's income. With Low-cost risk insurance, Applicants can apply for substantial nominal amounts with a term of up to 40 years.
Rated A +
Lincoln National Life Term products are best for individuals and families You want to acquire a large death benefit that will provide the funds necessary for living expenses, debt relief, mortgage satisfaction, college funding, and final costs when the policyholder dies.
American General's Select-a-Term product is similar to other Term products on the market, except that the company issues annual guidelines. For example, if you only need 23 years of coverage, you don't need to take out a 25-year policy like you would with most other providers.
Rated A +
Pacific Life’s promise Term life insurance is available in contract periods of 10, 15, 20, 25 or 30 years with a minimum death benefit of USD 50,000 and the option to convert your contract period into a permanent one regardless of insurability.
Get a Free Quote Today
Finding great, affordable million dollar coverage can be quick and easy. Simply click the instant quote button on the right or call us at 866-868-0099 for more information and a free and confidential quote. There is no obligation to buy, but we can secure your coverage as soon as you are ready.
The Post Million Dollar Life Insurance Policies: Everything You Need to Know was first published on Lifeinsure.com.