“Don't you think we should ask for *more* than a million dollars? A million dollars isn't exactly a lot of money these days. Virtucon alone makes over 9 billion dollars a year!”
“Really? That’s a lot of money.”
- Wagner, Robert, & Mike Myers perf. Austin Powers: International Man of Mystery. New Line Cinema. 1997.
What can one million dollars even get you in this economy? A carton of eggs? One ticket to see your favorite popstar and a room temperature churro? Let’s be real, one million dollars just can’t be stretched like in the good ole’ days.
Jokes aside, I’m sure there’s plenty of us who’d kill to have one million dollars at the ready. Well, maybe not kill. But that amount of money would be transformative.
Especially when it comes to financial support for your family. So let’s say you have a term life policy for $1 million dollars — will it be enough for your family?
- What can $1 million cover?
- Can you retire with $1 million?
- $1 million life insurance policy
- TL;DR
What can $1 million cover?
Loss is hard. It’s even harder when those left behind have to consider all the expenses that death can bring. From medical expenses, to funerary costs and additional debts, the money can add up. But can $1 million cover all that?
Let’s look at the averages.
The average amount of credit card debt in the US is $5,525.
If you’ve got small kids you know how expensive childcare is. Parents pay an average of $10,000 per year for preschool, alone. Not to mention everything else that goes into raising a child.
The average rate of tuition at a private 4-year university is $39,723. For public in-state schools, that cost is $10,423.
The average mortgage size in the US is $431,000 as of February 2023. Monthly mortgage payments average to around $3,975.
If you leave your loved ones with $1 million dollars in a policy payout, they could blow through that pretty quickly, depending on how they want to use that money. The above is just some of the debt stuff we encounter as we go through life.
Important financial areas to consider:
Can you retire with $1 million?
Let’s say you get far enough into your term length that questions of childcare and education aren’t as relevant. You’re thinking of the possibility of ✨ retirement ✨. (Retirement? In this economy? Don’t laugh).
Is it possible with just the $1 million? Depends on the state where you live.
$1 million in Minnesota would last you 20 years, give or take, according to an analysis from GOBanking Rates. But that same $1 million would probably only last you 10 years in Hawaii. If you receive that payout in your 50s, you might be able to stretch it, but adding in those costs from above, it may not be the best idea.
$1 million life insurance policy
Is a $1 million life insurance policy enough money? The important thing to remember is that it all depends on your unique needs.
If you’re not sure what your needs are, you can try out our free Wysh Builder tool. Compile all your financial wyshes to see if $1 million will be able to cover some or all of it. And if you’re reading and are unprotected financially, apply for great term life coverage today. Applying is easy and you can cancel within the first 30 days. See you on the other side.
TL;DR
- $1 million may be able to last 20 years for your retirement
- Average mortgage size in the US is $431,000
- Average amount of credit card debt in the US is $5,525
