Looking for a quote for life insurance or burial insurance? Click here and send me a message with details of what you’re wanting to accomplish. If you’d prefer to talk live, call 888-626-0439 to speak with me directly.
I’m Going To Talk About The Process In Which To Apply For The Best Possible Available $2 Million Dollar Life Insurance Plan
You’re looking for life insurance coverage for yourself or a loved one. Why would you need $2 million in coverage? Here we will spell out all the common reasons why somebody would purchase $2,000,000 in life insurance. We will also talk about how to qualify for $2,000,000 in life insurance and what your options are within those policies.
I’m going to give you my personal take on some strategies for purchasing $2,000,000 in life insurance. We’ll look at the most effective ways to ensure that we’re getting the best value for our money.
To give you an idea of what you may have to pay at certain ages, we will end with some rates of some common life insurance options available to you.
NOTE: Would you prefer me to present this information to you in video format? Watch the video below for the complete presentation. Enjoy!
Today’s Topic Overview:
- Reasons For Purchasing $2,000,000 In Life Insurance
- Case Study Examples
- How To Qualify For $2,000,000 In Life Insurance
- Top 5 FAQ For People Buying $2,000,000 In Life Insurance
- Stories From The Field
- The Best Strategies For Buying $2,000,000 In Life Insurance
- Rates And Types Of Life Insurance For $2,000,000 In Coverage
- Next Steps
Why is $2,000,000 in life insurance commonly purchased?
There are several reasons. They vary from person to person. But there’s one main core to all of them. Why do people buy $2,000,000 in life insurance?
They love whoever it is that they’re leaving behind if they happen to die earlier than expected.
$2,000,000 in life insurance can cover a variety of different scenarios. Upon yours or a loved one’s passing, it can greatly mitigate the economic and financial pain that your family would experience.
Many times this need to take care of your family comes from experience.
A close loved one dies unexpectedly, their death is not insured, their family suffers greatly.
They have to downsize their lifestyle. They lose out on the things that they love. Their children can’t participate in the activities that they want. Income replacement is a huge reason to buy $2,000,000 in insurance.
Many people who want $2,000,000 in coverage generally make a low six-figure salary. They want and they get $2,000,000 because it provides not for just one, but multiple years of coverage.
Buy enough. The surviving family needs to take care of final expenses, any lasting debts, and then live off the proceeds of the policy. They had economically comfortable lives when the insured person who passed was still alive. Make sure that they’ve got everything that they need in order to carry on living the best economic value.
The 10x Income Rule
This is a very simple rule that many financial planners and life insurance agents use to determine how much life insurance to buy. The concept is simple.
Take your annual income and multiply it by 10. That will give you a very rough estimate as to how much coverage you should consider purchasing.
For $2,000,000 in coverage, my suggestion would be to have at least $150,000 to $200,000 in income. That would justify the purchase of such a large amount of coverage. If your income is lower then you may want to look at less coverage.
ome is higher, I would highly recommend that you look at 3 or 4 million or greater.
What we’re trying to do is make the life of your surviving family as easy as possible in the case of death occurring. We don’t want to underfund your family. We want them to have what they’re accustomed to in their lifestyle.
We are committed to helping people like you get affordable life insurance coverage, whether you use it to cover final expenses or to replace your income to provide a sense of security to the people who mean the most in your life.
It’s easy to get a free quote. Simply call us at (888) 626-0439 today. You can also send us a message and we will reach out to you within the next 24 business hours.
You have some sort of business debt or obligation outstanding. Businesses obligations are paid off through the life of the person responsible for them. Hopefully, you live long enough to satisfy the loan and repay it. It’s very hard to collect on a dead person.
In a worst-case scenario, the creditors may target your family’s estate and assets in order to remedy their losses.
A Cross-purchase Agreement For Business Continuity
This particular reason why people buy $2,000,000 in life insurance is more about how business owners, specifically partners, interact. You’re a business owner. You have a partner. Most likely you both play a key role in how the business is run. You may have wondered what would happen if your partner died.
What would happen next?
If you’re like most businesses, you don’t have a succession plan. Your partner’s family would come in and begin to manage the business.
Therein lies a problem. Many families are not involved in the business. You may have to deal with somebody that is entirely different from your partner, such as their spouse. They may feel entitled to a certain level of proceeds from the business. They’ll have the voting rights to take over the business the way they see fit.
As you can imagine, there are a lot of problems that could stem from this arrangement. It could be costly for the business as well as your economic livelihood. The solution is to insure both yourself and your partner.
Create a business succession strategy.
With that in place, the surviving family can have some sort of proceeds. They continue to survive.
The money paid off of the insurance deal will help to keep your business afloat without your key man available. It can continue to operate. You’ll have the time to hire somebody without crashing the business in a big way.
As A Mortgage Payoff
Your mortgage could eat up your surviving family members’ economic capability to the point where they fear losing the house. You don’t want that. A $2,000,000 plan is great to cover a portion of the mortgage, if not pay it off entirely.
A Supplemental Life Insurance Retirement Plan
What is a supplemental life insurance retirement plan? It helps you advance your retirement goals to a real life insurance policy. It’s a way to supplement the retirement plan that you have through work or your own self-funded retirement plan. This is how most agents recommend these policies. It’s not an end all to your retirement planning.
People use supplemental life insurance retirement plans through what’s called whole life insurance plans or index universal life plans.
These plans allow for dividends and factors related to the stock market to credit towards the cash value of the plan to grow it over time.
On retirement, you have the option to have a very large death benefit payout or to have the ability to withdraw cash from the policy, tax-free. A lot of agents sell this these days and it can be a great supplement to your overall retirement strategy.
If you like what you’ve read so far and are interested in seeing what you may qualify for get in touch today at (888) 626-0439 to get your free, no obligation quote.
You’ll talk to one of our friendly brokers who are experts in the life insurance field. If you prefer, you can also send us a message via our message board found on this page and we will get in touch within 24 business hours.
Case study examples
New Mortgage and Weight Concern
A middle aged man and woman reached out to me because they had just purchased a home and along with the purchase of the home came a large, six-figure mortgage for the next 30 years. This couple realized that if either of them were to pass away, the surviving spouse would be responsible for not only the mortgage, but any other expenses.
The only thing my clients were worried about was that the husband had a bit of a weight issue.
He was concerned that his weight would have an affect on his application for life insurance and that he would either be turned down or receive a high premium.
The good news is that we were able to shop a number of competitive providers and find a term policy that was affordable and met this couple’s goals. They were very happy with the offer and took us up on it immediately.
While no one can guarantee that you will be eligible for coverage, we do our best to find a policy that meets your individual needs and concerns. Buy Life Insurance for Burial works with a number of providers, enabling us to shop around for the best price and coverage.
Promotion at Work with a History of Bipolar Disorder
A young woman recently reached out to me because she had been told she was going to be getting a significant promotion at work. She had thought things over and decided it would be wise to cover her additional income from the promotion with a life insurance policy.
This talented woman confided though that she was really concerned about the underwriting process because she had a history of mental health problems.
She was doing much better and taking medication to help with her depression and bipolar disorder, but she worried what impact this health issue would have on her application.
Buy Life Insurance for Burial offers a broker service, which means we were able to shop among a number of providers to find this young woman coverage. She was very happy with the premium and the quality of coverage.
How to qualify for $2,000,000 in life insurance
Exam Or No Exam?
One question you may have is whether you should have to take an exam to qualify for life insurance. There are policies out there that will require you to take an exam.
This requires you to have blood withdrawn, take a urinalysis test, and do a physical exam.
It takes several weeks longer than normal to get an approval or a decision on this type of product. However, generally speaking, your price point will be better.
In some cases, your medical records are requested by the insurance company. They investigate those records and then determine your insurability based on them. This non-exam process with no medical is simpler and gets a decision faster. However, your price point won’t be as good.
Add An Insurance Rider
When you apply for life insurance, you may also have the opportunity to add additional benefits to it. They are above and beyond what the life insurance plan is designed to do. These are called riders.
Riders are designed to enhance the value of the policy for an additional monthly fee.
Common riders include:
- Waiver of premium riders – These allow you to stop making payments if you cannot work due to becoming disabled.
- Return of premium riders – This returns the premiums paid in over the period of time which the life insurance policy dictates. You can get your money back once you satisfy the requirements of the payout.
- Living benefits riders – Some life insurance plans offer additional benefit payouts if you are diagnosed with cancer, have a coronary issue, are hospitalized, or placed in a long-term care scenario.
Top 5 FAQ for people buying $2,000,000 in life insurance
1.Can I qualify for $2,000,000 in life insurance coverage?
The amount you can qualify for depends on your health and age.
Typically the older you are and the more health problems you have, the harder it is to qualify for higher amounts.
However if you just want to get enough coverage for final expenses this rule doesn’t always apply. There is some flexibility when it comes to lower amounts of coverage.
2.Why is $2,000,000 dollars in coverage a good amount?
It depends on your personal goals. If you have financial obligations that amount to $2,000,000 then it makes sense to get this amount of coverage. If you are looking to cover income, it’s always a good idea to get ten times your annual income.
3.What if I need more coverage?
There is no need to worry about additional coverage if you can’t afford it at the moment. A lot of people don’t realize you can always add to your current plan later when you can afford to do so.
Personally I believe the most important thing is to get some kind of coverage on the books. Something is always better than nothing.
4.What type of life insurance is best to buy?
If you have long term goals then a whole or guaranteed life insurance is best. For short term goals, like covering a 30 year mortgage, term insurance works well.
5.Hard to cover health issues
When a chronic health issue or age causes a denied application, garanteed acceptance life insurance is a good choice.
The best strategies for buying $2,000,000 in life insurance
Here are some tidbits of advice I’ve picked up over the years. They’ll help you to maximize your ability to get the best deal for life insurance that you can qualify for.
Take the exam
I do highly recommend that you take a life insurance examination. The non-medical application process described earlier may sound appealing to you.
However, the biggest challenge with the non-medical policy is that the insurance company has to factor in a higher price.
They don’t have the most up to date information on your health status. They only have your records from your last visit to the doctor, maybe in the last year or two. Things may have changed a lot since then. They want to make sure that they factor in a higher price across the board with non-medical applications.
It’s not too different for smaller amounts of coverage such as $100,000 or $200,000. But for $2,000,000 in life insurance, there’s a substantial difference between a non-medical based price point and that based on full underwriting.
Do as I did when I applied for my life insurance. I made sure to take an exam. I wanted to make sure that the money that I invested in the policy was the best fit to maximize my amount of coverage.
Eat healthily and relax before the exam
You’re buying a large policy. There’s most likely a substantial premium involved. The night before you take the exam, make sure to take the time to get yourself in the right mindset and physical setup. I’ve heard of agents putting clients who were buying substantial amounts of life insurance up in a hotel to relax and take it easy. They wake up refreshed and ready to go the next morning.
If you can’t spend the night in a luxury resort, at least make sure that you eat healthily. Make sure that you get a bit of exercise in the morning or the night before.
What you eat and how you act beforehand can have a dramatic effect on a lot of your blood work.
When you go to the doctor for your report, your vitals may show a better outcome than if you hadn’t made that effort.
Discuss carrier options with a broker
This is important, especially as you start to look for $2,000,000 in life insurance.
Don’t work with an insurance agent that only represents one carrier. He’s a one trick pony. His options are limited by design.
Make sure that you work with a broker like us here at BuyLifeInsuranceForBurial.com. We can shop the most competitive, highly rated carriers. We figure out which of these policies is going to give you the best overall deal.
I routinely see price differences of hundreds of dollars between policies with different carriers.
I request multiple quotes in most cases when I’m trying to find coverage for a client. This is commonplace. It’s the reason why you should work with a broker to find the best deal for a life insurance rate.
Stories from the field
Back in 2014, I met a nice gentleman for whom I wrote up a small burial plan. He mentioned that his mother was in desperate need of burial insurance too, more so even than him. His mother, Mrs. Sanders, was 81 years old and had just recently had heart surgery.
My client was concerned about whether or not she had enough coverage and wanted to make sure she was properly taken care of.
A couple of days later I arrived at Mrs. Sanders home. I found out she had worked all her life up to age 80 at a dry cleaner before being forced into retirement due to her heart condition.
Interestingly enough, what happened was that she actually had life insurance which covered a good portion of her concerns but there was an unexpected twist as to how her coverage was taking effect.
The client had a term insurance product, which goes up periodically in price or just flat out cancels at a certain age. Mrs. Sanders plan was what we call specifically an annual renewable insurance plan, which was designed to not cancel until the age of 90.
Not only would it cancel at age 90, it also had a price that increased each year. This came into effect at around age 70, about 11 years prior to this meeting.
At the time when she had taken the plan out 20 years ago, she was paying $50-$60 per month, for $40,000 life insurance coverage. She was happy with it, however, due to the fact that she was forced out of work, her income changed dramatically.
She had to look at her budget carefully and make some decisions because her premium over the course of 11 years had risen from $50 a month to $300 a month. This was a shocker to me that anyone was paying this kind of premium price, especially at retirement. It was amazing to me how much the price had gone up.
Clearly, with a nice older lady like Mrs. Sanders being in a position of not working and not having a fixed income, she had to make real choices about what her money should be spent on. She simply couldn’t afford $300 a month anymore without her regular job at the cleaners.
Unfortunately, to add insult to injury, she had a history of heart problems, so she was in a position where she could not qualify for anything like what I would prefer, which would be a whole life insurance plan, because of her heart condition being so recent.
What she could qualify for would require a 2-year wait, meaning she would have been out of coverage for 2 years as opposed to having coverage, even at the high price she was currently at.
This is a tough position that you don’t want to be in if you can help it. This is why I shared this story with you. Mrs. Sanders made a good decision to buy life insurance. She could have died at any point and she would have been fully covered.
However, the long-term damage done with the wrong kind of life insurance can cause dramatic effects. You’ve got to be very cognizant of this and make sure any life insurance purchase you make is carefully considered. The moral of these two stories is to make sure when you are buying life insurance to always match it up with your goals and make sure you get the best value for what you buy.
This is why we here at Buy Life Insurance for Burial broker with different life insurance companies so we can do the shopping for you and figure out which one is going to give you the best price for the best amount of coverage.
We also make sure we do good work to establish what your goals are and what you are looking to accomplish to make sure we recommend a plan that is the best fit for what your goals are, whether it be final expense coverage, income replacement, or some combination thereof.
Rates and types of life insurance for $2,000,000 in coverage
Let me briefly describe to you your options when searching for a $2,000,000 plan. Take note of these and figure out which one of these works best.
Term Life Insurance Coverage
Term insurance is temporary insurance. It typically lasts between 10, 20, and 30 years. The premiums remain level. At the end of the term, the coverage either cancels or goes up in price to the point where it makes no sense to keep it.
People buy term insurance to insure against temporary obligations. The most common of these is a mortgage or income replacement plan.
Let me describe it this way. You’re saving your money for a period of time before retiring. You don’t need a permanent life insurance plan if your retirement is 20 years from now.
You’re ensuring that the money is there that you’d like to have if you happen to die earlier than expected. Therefore, a temporary plan that lasts 20 years is the best option. If you’re 45 and you’re going to retire at 65, it makes perfect sense.
10-Year Term Life Insurance, Best Price On Quoter
Permanent Life Insurance Coverage
Permanent coverage is usually referred to as whole life or universal life insurance. These plans are designed to be permanent in nature. They last your whole life. In most cases, there are no rate increases, although this is not necessarily the case with universal life.
Most people buy a permanent plan in the $2,000,000 range because they’re looking for a supplemental life insurance retirement plan.
They want to buy a plan through a life insurance policy that allows them to accumulate cash value. Once they retire they can withdraw it tax-free and still retain a death benefit associated with it. This is a great strategy for an overall comprehensive retirement plan.
Whole Life Insurance Rates, Life Pay
Universal Life Rates, UL to 100
We can help you with everything discussed today. If you have questions about the options, you can always contact us and we’ll be happy to give you more information about which of these plans would work best for you.
If you’re interested in qualifying for life insurance, visit my website. You can go to buylifeinsuranceforburial.com and grab a free quote.
I do ask that you message me first. You can do that by clicking the contact box; the one at the top or the bottom, and send me a quick message. Or just call me. The best way to reach me is (888) 626 0439, and speak with me live.
I hope you have found this article useful and that it has increased your desire to get life insurance on the books whether you want to replace your income, cover final expenses, or leave a charitable gift when you pass away.
For a hassle free quote you can call us at (888) 626-0439 to speak with a knowledgeable expert in the field who can provide more information on what you might qualify for. It takes 10 minutes or less and does not require any commitment to buy.
Alternatively you can send us a message using the quick and easy message board on this page. Simply tell us what you are looking for and we will be in touch within 24 business hours.
Thanks for your interest and thanks for reading..