At one time, insurance agents would never have thought they would sell a policy in the multi-million-dollar range, but now these plans are sold every day to different consumers across the United States. For the average person, a 5 million dollar life insurance policy might be excessive. But, for a lot of individuals, that exactly what they need.
There are certain demographics of Americans that need larger insurance policies for a variety of reasons. Policies as large as $5 million aren’t sold very often, but some applicants need this amount of coverage, and it’s important that they get it. Not having enough insurance coverage could leave a family stranded without enough funds to pay off any excess expenses.
In this article, we are going to look at the type of clients that should consider getting this large of a plan, and also how much you’re going to pay for the coverage. It’s important that you understand all of the different aspects of a life insurance policy before you make the decision to buy a plan.
Who Needs A 5 Million Dollar Life Insurance Policy?
There are not too many people that fall into the category of needing this much life insurance. However, there are some applicants that will require a policy this large, but not realize it.
The largest demographic of applicants that need this size policy are business owners. If you were to pass away, your family or co-owners could be left scrambling to pay off business expenses or have problems finding ways to replace your skills, which could mean the business suffers. Having an insurance policy can negate those complications and ensure your business doesn’t go bankrupt if anything were to happen to you.
There is another, smaller demographic that could benefit from a policy of this size, and that’s any household that has a much higher mortgage or amount of debt. There are families with million dollar mortgages and high expenses that would need this large of a policy to replace lost income if a spouse were to pass away.
Not having enough life insurance coverage is one of the worst mistakes that you could make for your loved ones. There are several different categories that you should consider when you’re calculating your life insurance needs. Above we mentioned a few of the demographics that would need to pay a plan this large, there could be any number of different reasons why you would need $5 million of life insurance.
Before you buy life insurance, or if you’ve had your life insurance policy for several years, it’s important that you calculate how much insurance coverage that your family would need if something tragic were to happen to you. Determining how much life insurance you need is easy. If you have any questions or you need assistance, please contact one of our agents today. We can walk you through the process and ensure that you’re getting the best plan possible.
How Much Does A $5 Million Policy Cost?
For anyone that needs a 5 million dollar life insurance policy, the most important factor is the cost of the coverage. Because you’re dealing with a much larger insurance plan, the monthly premiums are going to reflect the size, but there are still affordable options.
Several different variables can impact how much the monthly premiums are for the insurance policy. The biggest ones are age and the company that you purchase the policy from.
Every company is different, and they all have various methods for rating clients and calculating insurance rates, which means that you could receive quotes that are drastically different for the same amount of coverage. This is why it’s vital that you receive quotes from multiple companies before you choose one that works for you.
The other factor that is going to play a significant role in deciding your monthly payments is your age. The older that an applicant is, the more risk they are to ensure for the insurance company, which means they will pay higher premiums. If you want to get the lowest rates for your coverage, it’s better to apply sooner rather than later.
Because several variables go into determining your monthly premiums, we can’t give you exact premiums, but we can give you a general idea of what you would pay for a $5 million policy. The rates below are for a non-smoking male that received preferred rates:
If you want quotes that are tailored to your specific situation, contact us today toll free at 800-866-8780, and we can show you what you would pay for this coverage.In most cases, applicants are surprised to see how affordable the monthly premiums are for this size of a plan. Every ten years makes a significant difference in how much you’ll pay for the coverage.
As we mentioned, these are only example quotes. There are dozens and dozens of different factors that will impact how much you pay every month for your insurance policy. While these are only estimates, we can deliver a personalized set of quotes directly to you in a matter of minutes.
$5 Million Life Insurance Policy Requirements
There are a few requirements that you have to meet to show that you qualify for a $5 million policy. The insurance companies don’t accept anybody that wants a policy this size. To prevent any insurance fraud, the company needs to know that there are legitimate reasons to insure someone for several millions of dollars. You can’t be worth more dead than you are alive.
Each company will have their own requirements, but most are going to ensure that your annual salary is high enough to warrant the request for this insurance policy. For anyone that is age 18 – 40, the income has to be within 35 times the amount of insurance you’re applying for, otherwise, you’ll be declined for coverage.
With the insurance policies that are valued over a million dollars, the insurance companies are much more interested in your health. The medical underwriting is going to become stricter than it would be with a mere $300,000 plan. They are going to take a much closer look at any pre-existing conditions that you have, but that doesn’t mean you can’t get coverage if you’re in less than perfect health.
Getting Affordable $5 Million Life Insurance Coverage
The more life insurance coverage that you buy, the higher that your premiums are going to be, but that doesn’t mean that you have to pay for an expensive policy. There are several ways that you can secure better insurance premiums. Making a few simple changes could help you save hundreds of dollars every year on your life insurance plan.
The first thing that you should consider doing is cutting out any tobacco that you currently use. If you’re listed as a smoker on your million-dollar life insurance application, you’re going to be facing much higher premiums for your coverage. In fact, smokers are going to pay around twice as much for life insurance coverage versus what a non-smoker is going to pay for the same sized plan. If you want to get the most affordable plan, regardless of how much coverage that you’re buying, you’ll need to kick those bad habits to the curb.
As we mentioned, your health is going to play a major role in how much you pay for your insurance coverage. If you want to save money on your life insurance policy, you’ll need to get better results from the insurance company. Improving your overall health could save you hundreds of dollars every year on your insurance plan.
There are two main things that you should do before you apply for life insurance coverage, start a healthy diet and start getting regular exercise. If you’re carrying around any extra weight, you will pay 50% or more for your life insurance plan. Because you’re getting a large plan, being overweight could get you declined for life insurance. Losing those extra pounds is a great way to get affordable life insurance.
The best way to ensure that you’re getting the best premiums is to work with an independent insurance agent. Unlike a traditional insurance agent, independent insurance agents work with dozens of highly rated companies across the nation, which means that can bring all of the best insurance rates directly to you.
As we mentioned, every insurance company is different, which means that the quotes that you get are going to vary drastically. It’s important that you find the company that will offer you the lowest insurance rates available. There are hundreds of companies on the market, and you could spend days calling those companies. Instead, let one of our independent insurance agents do all of that dirty work for you.
Obtaining Life Insurance Coverage
Having life insurance is the most important investment that you’ll ever make for your loved ones, but it’s vital that you have enough coverage. If your family is left with too little coverage, they could find themselves with bills left over and no resources to pay for them, which can create additional financial stress to an already stressful situation.
If you have any questions about life insurance or getting a $5 million policy, please contact us today, we would be happy to connect you with the perfect policy at an affordable rate. Our independent agents have years of experience working with all kinds of different applicants across the country. Our agents can help you calculate how much life insurance you’ll need and help you find the bets plan to meet your needs.
You can’t predict the future, but you can always protect your loved ones from the worst. Don’t wait any longer to get the insurance protection that your family deserves. Don’t let your family become one of the countless stories of losing a loved one, and having thousands of dollars of debt.
We know that finding the best life insurance policy can be a long and difficult process, but it doesn’t have to be. Our independent insurance agents have years of experience helping clients get the best insurance plans to meet their needs. Don’t wait any longer to get the insurance coverage that your family will need. Contact one of our agents today and we would be happy to answer those questions and get the process started.