Qualifying for $750,000 Term Life Insurance
It’s no secret that your health is a major factor in determining your eligibility for coverage. If you are in great health with no foreseeable issues or preexisting conditions, you get the best rates. However, your financial situation is also important both to justify the amount of coverage and to make sure you can pay the premiums.
Here is a brief a guide for the financial requirements needed to qualify for a $750,000 policy:
- Ages 18 to 40: 25 Times Annual Income. So, you would need to make at least $30,000 a year to qualify for a $750,000 policy.
- Ages 41 to 50: 20 Times Annual Income – You would need to earn $37,500 a year.
- Ages 51 to 55: 15 Times Annual Income – You would need to earn $50,000 a year.
- Ages 56 to 65: 10 Times Annual Income – You would need to earn $75,000 a year.
- Ages 66 to 70: 5 Times Annual Income – You would need to earn $150,000 a year.
Now, if you are 71 or older, you are most likely retired. If this is the case, your eligibility for a term policy will be primarily based on your overall financial situation. You shouldn’t run into too much trouble qualifying if you are able to afford the monthly/annual rates.
The biggest hurdle for older applicants is the availability of companies. After age 70, there aren’t as many companies offering coverage.
Many companies do not offer term after certain age brackets and you may only have permanent insurance available.
For example, some companies stop offering term life policies after age 65.
Even some of the best companies will limit the term length available after certain ages. A company may offer insurance at age 65 or age 70, but they may only offer it for 10 year term. Permanent policies such as Whole Life or Universal Life insurance can provide lifetime coverage. (See our article, Best life insurance for seniors over 60 for more information.)