Million Dollar Life Insurance Policy: Cost, Coverage, Eligibility, and What You Need to Know • Benzinga

Understanding Million-Dollar Life Insurance Coverage

A million-dollar life insurance policy provides a death benefit of $1,000,000 to designated beneficiaries. This payout is typically used to replace income, cover debts, fund long-term expenses, and protect family financial stability. While the figure sounds large, many households—especially those with mortgages, dependents, and dual-income obligations—require coverage at or above this level to maintain their standard of living.

The simplicity of the structure does not reduce the importance of the amount. A $1 million death benefit must align with the policyholder’s obligations, future income projections, and long-term financial responsibilities. This alignment determines whether the coverage is adequate, excessive, or insufficient.

Mi