What You Must Know About One Million Dollar Life Insurance Policy
Usually, the great advice to give regarding buying life insurance is to choose the right amount of coverage; not too small and not too big, rather just what your family needs. However, there are certain ways where in a high amount of coverage can secure the future of your family and your estate. It is actually not simple to buy a million dollar policy because a little number of agencies are willing to take so much risk without charging you the appropriate rates.
How to buy a million dollar life insurance policy?
You probably know already that are various factors affecting insurance rates but among all of them, the most important are your age and health. One million dollar is a big amount of money hence, it is important that you get the trust of the agency. This means that you have to be young and healthy as much as possible. Your job is also a factor that can influence the rates hence, if you are a construction worker, you are more likely expected to pay more than a shop-assistant.
How much will a million dollar life insurance policy cost?
It depends on where you buy it and on the kind of policy you choose. Term life coverage cost cheaper rates whereas a 30-year policy will require you to pay monthly premiums of around $600 to $1000, if like you do not smoke. Smoking can increase the rates that is why it is better if you quit smoking before you apply for this life insurancr policy.
What can you do with this insurance?
The main reason why you should get this type of life insurance is so that you can provide your family with a better life, but you can actually make your family rich too. This policy can be treated as an inheritance. If you really put effort on paying for higher policies, then you can be sure that once you pass away, your legitimes will have a better life, financially speaking.
In addition to that, life insurance is not an asset which means that you do not need to pay estate taxes for it. During the liquidation of your assets, your heirs can save a lot on inheritance tax because your life insurance policy is tax-free. The taxable value of your assets will be minimized too if ever you transfer the ownership or you make an irrevocable insurance trust fund.
In conclusion, a million dollar life insurance policy could be of great help to you but you have to make sure that you have money to pay for the premiums. You can search for agencies with good rates and compare them through quotes.