All About 1 Million Dollar Life Insurance Policy
Personally, the best advice for those people who want buy life insurance is to invest just the right amount of coverage, not too small and not too big, just enough to meet your needs and your family’s needs. However, for an insurance with a high amount of coverage, there are ways on securing the future needs of both your family and estate. Buying a million dollar policy is not easy because only a few agency is willing to take a risk for it without charging you the right rates.
How to obtain a million dollar life insurance policy?
As you probably already know, there are several factors that affect insurance rates, but most importantly, they are determined by your health and age. 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 can also greatly influence the rates of insurance which means that if you are a construction worker, you will pay more than a shop-assistant.
How much will it cost?
The cost varies depending on where you purchase it from and what type of policy you choose. A term life coverage generally has cheaper rates whereas for a 30-year policy, you are expected to pay monthly premiums between $600 to $1000, depending on whether you smoke or not. If you smoke, your rates will increase hence, it is better to quit smoking if you plan on getting an insurance policy.
What can you do with this insurance?
You can make your family rich although the purpose of buying this life insurance is to provide your family with a better life. This policy can be treated as an inheritance. Once you put extra effort in paying for a bigger policy, then you can be assured that when you die, your family 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. You can also reduce the taxable value of your assets if you will transfer the ownership of the policy or if you will create 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.
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