How Much Is a $500,000 Life Insurance Policy?

However, this isn’t a strict rule. Approvals are determined on a case-by-case basis and might be influenced by other factors like business ownership or educational expenses, which could potentially allow for higher coverage.

It’s also important to understand that these guidelines consider your total life insurance coverage. If you already have a policy and want to keep it, this could affect your eligibility for an additional $500,000 in coverage.

When Does $500,000 of Coverage Make Sense?

A $500,000 term life insurance policy makes sense in many scenarios. If something were to happen to you, this amount would provide financial support to your loved ones.

The house your family lives in is often both the largest asset you own and your biggest source of debt. If you plan to pay for your child’s college education, that’s another significant expense to consider.

With these figures in mind, a $500,000 life insurance policy could cover key financial goals like owning a home and paying for college. It can also help manage any end-of-life expenses, such as medical costs and funeral arrangements.

How Long Should a Term Life Insurance Policy Last?

When choosing the term length for a life insurance policy, it’s important to align it with the duration of your most long-term financial commitment.

For many people, this could be the length of their mortgage. For others, it might be the number of years until their youngest child is financially independent.

Using Quotacy’s quoting tool makes this decision easier. The tool is user-friendly and allows you to see pricing instantly without requiring any personal contact information. You can also adjust the coverage amount and term length to see how these changes affect your quote before submitting an application.