Usually, but that's usually a 2x current yearly pay rate and it's usually capped at 100k.
A 5 million dollar life insurance is a "key person" policy... if it's some important to the business that I be on site during a health emergency, they can keep half of the max 10 million and my family can get the rest.
That's a pretty crappy life insurance policy. I wouldn't want my wife having to recreate an independent life on a runway of just 100k.
I'm not a big shot, but I'm set up so that if I die my wife won't have to worry about work for a very long time. These policies probably aren't as expensive as you think they are.
The company provided life insurance policies are usually group policies that will cover people regardless of condition--which is why they are so low in value.
A 10 mil life insurance policy would require underwriting and, assuming you are healthy, will run between $60k and $120k a year. As a faceless corporate board member, why not just let you flounder while instructing management to find an engineer that is not as expensive?
I think inflation is gonna bite a lotta people in the near future
No, that sounds about right - maybe you are looking at a different kind of life insurance. Just take the SSA yearly chance of dying (the real chance of dying is likely less if you are healthy, but on average this should be the price) from [0] and multiply by 10 million. Only 16k for a 25 year old but around 160k for an average 65 year old.
A term policy is more, I’m not sure what the rates are for non-term but I wouldn’t buy a non term policy. That’s literally throwing away money, but I guess from a business perspective it’s just a cost so you may be “more” right :)
