One million dollars. It can sound like a significant amount of money. When it comes to life insurance, however, you may be surprised with how quickly that million dollars may be spent. That’s why a million dollar life insurance policy may not be enough.
Paying off a mortgage, for example, can take 25% of that million dollars or more. It is not unusual today for homeowners to carry $250,000, $350,000 or more in a mortgage balance. If life insurance doesn’t cover this balance, the home may have to be sold.
Student loans are another significant debt. The average graduate has about $40,000 in student loans with some carrying significantly higher debt.
Some deaths, especially when a younger person is involved, may have large medical bills associated with them. Whether death is from an illness or accident, many rely on life insurance to cover those debts.
Car payments and credit card debt will also need to be addressed upon a death. These too, can run into the tens of thousands of dollars. Then, of course, you’ll have the final expenses involved with a burial or cremation. Even a less expensive cremation can costs thousands of dollars.
But paying off debts may not be the end of it. An insured may wish to cover living expenses for those left behind for a few years or cover college costs. It quickly becomes apparent that a million dollars may not be too much when it comes to life insurance.
The good news is that when purchased at a younger age, term insurance in an amount of one million dollars may be more affordable than you may believe. Finding out is simple. Just contact one of our independent insurance agents and answer a few questions. They will then do the shopping for you, comparing coverage and prices from multiple companies. You make the final choice for the coverage that is best for you.
There was a time when a million dollars worth of life insurance seemed excessive. That is just not the case anymore. Get started with your free quote today.