Three things you need to know about a $1 million life insurance policy

If you are considering a $1 million life insurance policy, you might have a lot of questions. We understand: Shopping for life insurance isn’t something you do every day!

So, where do you start when looking for a $1 million life insurance policy? What questions should you ask? And is it going to be too much – or not enough?

Here are three things you need to know. Read on:

What do you hope a $1 million life insurance policy will cover?

Before you start shopping, it’s best to understand what your needs are, so you can estimate how much coverage you require. This depends on many factors: Your age, marital status, how many children you have (and how old they are) any medical conditions, your mortgage, other debts…It’s a lot!

For some people, a $1 million life insurance policy is too much. They simply do not need that much coverage. But for some people, it might be just right. So, it pays to know what you need covered.

Who needs a policy this big?

For many folks, this much coverage is too much and the premiums would be too high. But for many families (especially those with younger children who might need to go to college one day), a $1 million policy is about what they need for financial security if the worst happens. Think about it: Mortgage payments, insurance, cars, living expenses, funeral expenses, health care costs. It all adds up.

For families who want to rest assured that should one partner pass away unexpectedly the other person – and any children – are taken care of, it might make sense to look at a large policy.

How much does a policy this size cost?

This one is a little hard to estimate, and talking to your trusted insurance agent can give you a better idea. It really depends on several factors, such as the type of policy (term, whole life or universal life), the term or number of years it’s good for, the age and health of the applicant (and sometimes, the occupation and lifestyle as well!) and other riders you might want to add (long-term disability or illness, to name a few).

Crumrine Financial Services

At Crumrine Financial Services, we can help you decide if a $1 million life insurance policy is the right fit for your family. Call us for a quote.