3 Reasons Why Million Dollar Life Insurance Policies Make Sense

3 Reasons Why Million Dollar Life Insurance Policies Make Sense

You might think your insurance agent had lost his mind if he suggested you needed million dollar life insurance policies. You should step back and think about the statement a little further. A million dollar policy seems extreme to most of us, but is it? Let us take a look at a few facts.million dollar life insurance policy

The median income in the USA is over $50,000 per year. The average size of a home mortgage exceeds $200,000. The average cost of a college education exceeds $20,000 per year. These are just a few of the expenses your family will deal with after an untimely death.

Imagine a home with 2 children. The family would need to replace your income for many years. Just 10 years would by $500,000. When you add the enough money to pay off the mortgage, you are suddenly at $700,000. Adding in four years of college for both children raises the needs to $860,000. This still does not account for additional needs the family may incur over those same years to replace cars, medical expenses, and even the cost of the funeral.

Why Choose a One Million Dollar Life Insurance Policy?

Million dollar life insurance policies were an extravagance in the past, but today they are quickly becoming a necessity. Losing an income earner in a household can devastate a family financially if they are not prepared. The biggest objection to large policies has always been the cost. Frequently, the reason for this belief is because insurance agents quote policies offering investment opportunities embedded in the policy instead of simple coverage. Million dollar term life insurance policies are very reasonable for younger families who are in good health.

While it may sound extreme at the moment, one million dollar life insurance policies are the only way you can ensure your family’s financial security. Prices of homes, income requirement, and costs of education are almost guaranteed to rise, making a million dollar policy common sense.