Choosing the right coverage does not have to be difficult. Here, a $ 2 million life insurance policy may be the right choice for you.
None of us want to think about the worst that is happening, but it is important to plan for the future. And one of the best ways to plan financially for an unexpected future is to have life insurance. A policy provides a financial safety net that can be used by your loved ones to cover expenses, such as funeral, mortgage, child care … the list goes on. This
So if you have financial subordinates, you know you need life insurance. But how much do you need? The right amount of life insurance depends on your income, expenses, family structure and some other factors.
Which brings us to the life insurance you were interested in learning more about: $ 2 million. It can seem like a huge amount of money because it is. Still, think about how much of a financial gap you would leave in your loved ones' lives if something were to happen to you. There are many years to think about, from your own funeral to your mortgage to college education along the way. Everything adds up. And if you think "I can not afford the monthly premiums on such a large insurance", you may be surprised at how affordable a million dollar + policy actually is.
Read on to learn if so much coverage is right for you.
In this article:
Who needs life insurance?
Let's start here: For most people, life insurance is an important part of a responsible financial plan for the future, especially if you & # 39; You are in a stage of life where other people depend on you to pay for their expenses. This often means a partner, spouse and / or child. But it can also mean a sick or aging family member you help care for. Think about this: If you were not there, would there be other people who would struggle financially in your absence? If so, you probably need life insurance as part of your financial planning.
You may be wondering what exactly life insurance covers. The answer is: Whatever you need. With a life insurance policy, you pay a monthly fee, so-called premium, throughout your period (often 10, 15, 20 or even 30 years). In exchange, if something happens to you before the end of that period, your beneficiaries will receive the full amount of the policy, which they can use to cover bills or other expenses. It includes major things like funeral expenses, mortgage or rent and education. It can also contain minor but still important things like groceries or electricity bills.
You know when people talk about backup scenarios – security schools, other string quarterbacks, your Plan B restaurant if the Plan A restaurant is too full – like insurance? Well, insurance is like that, your back-up if plan A does not go as expected for your family.
Types of Life Insurance You Can Buy
You also have different types of life insurance options for a $ 2 million. There is a whole life insurance policy, also known as a permanent life insurance policy. With this type of life insurance, you pay for coverage literally for the rest of your life. That coverage also has a cash value that acts as a financial planning tool and can be borrowed from to help pay for expenses such as education or even to supplement retirement. Keep in mind that loans from the policy can also reduce the death benefit paid to your loved ones. All of this is to say that permanent insurance can be a bit complicated and is more expensive than time-limited insurance.
A term life insurance, true to its name, covers your family for a certain period of time ("the term"). You usually have a retirement policy that lasts until retirement, your mortgage is paid and / or when your children are financially independent. You usually pay a guaranteed premium, which is another way of saying that your monthly premium remains the same throughout your insurance. A term life insurance policy tends to be the most affordable way to get coverage, even for a $ 2 million insurance policy. For example: a healthy 35-year-old woman can buy a 20-year life insurance policy of $ 2 million for about $ 63 a month. A $ 2 million life insurance policy will usually be 5-10 times more per month, which is costly for many families.
How much life insurance do you need?
Prepare for some words you might not expect to hear from a life insurance company: Yes, there is too much life insurance. More is not always better. The important thing is to get enough coverage for your loved ones if something happens to you without getting so much that the premiums do not make sense within your budget.
So a $ 2 million life insurance policy is the right amount for you? It is generally recommended that you get a policy for about 5 to 10 times what you earn per year (with a few exceptions in both directions). This means that a policy of 2 million dollars can be suitable for someone whose annual salary is 200,000 to 400,000 dollars. You may also want to consider so much coverage if you have an extensive mortgage or other debt, or if you are the main breadwinner in your family. Fortunately, thanks to simple online calculators like this one from Haven Life, it's easier than ever to find the right amount of life insurance for your family.
Am I eligible for a $ 2 million life insurance policy?
Just as not everyone needs $ 2 million in coverage, not everyone is entitled to that much coverage, either.
Insurance companies consider a combination of factors including your age, your health and your annual salary when deciding how much coverage you can qualify for. Usually, the maximum coverage you can buy is between 10 and 30 times your annual income, but this can vary depending on your age and your health. In this case, it means that a healthy 30-year-old would need to earn at least $ 67,000 a year to qualify.
How much does a $ 2 million life insurance policy cost?
The cost of a lifetime $ 2 million insurance policy depends on a number of variables, such as your age, your health, and the term of your coverage. It also depends on the type of coverage you get, with a life insurance policy of $ 2 million that costs much less than the entire life insurance policy.
The younger and healthier you are, the cheaper your monthly insurance premiums will be. And locking in that interest rate under a 30-year policy can provide significant savings over time. For example, a 30-year-old man in excellent health would pay $ 127.03 a month for a $ 2 million 30-year policy. If the same man was only two years older and his health went from "excellent" to "good" (it happens), he would pay $ 171.82 per month – a difference of almost $ 45, which amounts to more than $ 16,000 during the course of the term.
Offer for a life insurance of 2 million dollars
|AGE||GENDER||HEALTH||TERM LENGTH||FACE AMOUNT||PREMIUM|
|30||Male 19659027] Excellent  30 years||$ 2 million||$ 127.03|
|Female||Excellent||30 years||$ 2 million||$ 102.92|
|35||Male||Excellent||20 years||$ 2 million||$ 75.35|
|Female||Excellent||20 years||$ 2 million||$ 63.30  40||Male||Excellent||19659027] 15 years||2 million dollars||73.63 dollars|
|Female||Excellent||15 years||2 million dollars  $ 71.92|
|45||Male||Excellent||9027] 10 years||$ 2 million||$ 102.92|
|Women||Excellent||10 year||$ 2 million down||$ 89.13|
|Source: Life Insurance Period for the medically subscribed Haven Term issued by MassMutual. Coverage is up to $ 3 million.|
How to Buy $ 2 Million Life Insurance
Applying for life insurance online is easy with digital agencies like Haven Life. To start the process, you will receive a cost estimate for your coverage and then fill in an online application. If you apply for a $ 2 million policy, you will usually receive detailed health and lifestyle issues during the application process. All this can be easily answered online in about 20 minutes. Most life insurance policies over $ 1 million will also require a medical examination. The test itself is quick and easy – often takes place at home or any other place of your choice. The end result? Peace of mind supported by MassMutual, a leading life insurer. It
One thing to keep in mind when buying life insurance is to choose a life insurance company you can trust and which has a long history of financial strength. MassMutual, which issues insurance sold by Haven Life, is ranked, for example, by A ++ by one of the most respected independent credit rating agencies, A.M. Best. A ++ is the highest possible rating, which means that it "has a superior ability to fulfill its obligations." (We have to say that "superior capability" is always a nice thing to hear.)
Another third-party source to consider is TrustPilot. Haven Life has received a 4.8 star rating (out of 5) from real customers. Not too bad, if we say so ourselves.
I received a quote from 3 different companies. HavenLife does not deviate from the offer until it was issued.
1. The process was simple and fast
2. Received continuous support
3. The decision was quick
4. Filling online was not offered by other two companies.
The website was easy to use. Good price for my insurance
The Haven Life company offers a good price and a very easy to use process with an easy website to access. This is one of the best sites to use. I highly recommend this company.
Helped answer my question. I can not believe what a good course I get too!
Unbeatable speed. Intuitive website. Overall great experience
Leave a financial safety net for your loved ones
If you decide you need a life insurance of $ 2 million, or less coverage, or more coverage, it is important to make the decision sooner rather than later . By adding the cost of life insurance to your overall financial plan, you can help ensure that your family is supported in the event of your death. Do not forget that both your income and family expenses are likely to increase over the years, so it is often worth going for a little more coverage instead of risking being underinsured. , in the end, it's about knowing that you'll take action to protect your loved ones financially should the worst happen. It is peace of mind and it is invaluable.
About Emily Fowler
Emily Fowler left her career in finance almost 10 years ago to pursue their ambition to write, and have never looked back. Since then, her work has appeared on The Billfold, FinTech Futures, The Dubs and more. She gets tremendous satisfaction by making financial topics accessible and engaging, but her other writing specialty is pets.
Read more by Emily Fowler
Our Editorial Policy
Haven Life is a customer-centric life insurance agency supported and wholly owned by the Massachusetts Mutual Life Insurance Company (MassMutual). We believe that navigating life insurance decisions, your personal finances and your general well-being can be refreshingly easy. ). We believe that navigating life insurance decisions, your personal finances and your general well-being can be refreshingly easy.
Our content is created for educational purposes only. Haven Life does not support the companies, products, services or strategies discussed here, but we hope they can make your life a little less difficult if they suit your situation.
Haven Life is not authorized to provide tax, legal or investment advice. This material is not intended to provide and should not be relied upon for tax advice, legal advice or investment advice. Individuals are encouraged to seek advice from their own tax or legal counsel.
Haven Term is a term Life Insurance Policy (DTC and ICC17DTC in certain states, including NC) issued by Massachusetts Mutual. Life Insurance Company (MassMutual), Springfield, MA 01111-0001 and offered exclusively through Haven Life Insurance Agency, LLC. In NY, Haven Term is DTC-NY 1017. In CA, Haven Term is DTC-CA 042017. Haven Term Simplified is a simplified Life Insurance Policy Issue (ICC19PCM-SI 0819 in certain states, including NC) issued by C.M. Life Insurance Companies, Enfield, CT 06082. Numbers and functions for insurance forms and riders may vary by state and may not be available in all states. Our California agency license number is OK71922 and in Arkansas 100139527.
MassMutual is rated by A.M. Best company as A ++ (Superior; top category 15). The rating is from Aril 1, 2020 and may change. MassMutual has received different ratings from other rating companies.
Haven Life Plus (Plus) is the marketing name of the Plus Rider, which is part of the Haven Term policy and offers access to additional services and benefits free of charge or at a discount. The driver is not available in all states and is subject to change at any time. Neither Haven Life nor MassMutual is responsible for the provision of the benefits and services made available under Plus Rider, provided by third party providers (partners). For more information about Haven Life Plus, visit: https://havenlife.com/plus.html  Read our information