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.