1. 80 POINTS
    Stephen Barns
    Insurance Advisor, Hagan-Newkirk, Little Rock, Arkansas
    The amount of Life Insurance that each unit represents is set by the insurance company, one unit typically equals $1,000 of coverage. If you are purchasing life insurance, make sure that you understand the amount of coverage being taken out, the premium amount and frequency, how long your coverage will last, and the insurance companies ability to alter premium amounts.
    Answered on April 3, 2013
  2. 1000 POINTS
    Tyler MaddoxPRO
    Retirement Specialist, Cambridge Financial Group, Greenville, SC
    Most companies consider a "Unit" $1,000 in Death Benefit. Often you will see this in pricing tables where it will list the Premium as a certain dollar amount per "Unit" (example: $2 per Unit. This would be $2 for every $1000 in Death Benefit. So a $10,000 policy would cost $20.)
    Answered on April 3, 2013
  3. 365 POINTS
    Lee Martinez
    Owner, The Sentry Agency, California
    I love this question. I have been a Life Insurance agent for close to 30 years and I have no clue. I see commercials that say "Only 1$ per unit" Or "Only $1 per unit per day" Call the 800 # and you get the "well it depends...." If they do not know how is the public supposed to know?

    As an agent it can mean $1,000 of base coverage or it can mean $1,000, $5,000 or even $10,000 in child rider.

    The majority of Life Insurance is sold "per $1,000" The cost per thousand is determined by many factors such as age, sex, health and type and amount of coverage. While it is easy to use a calculator to come up with a monthly quote. It takes an experienced agent to come up with a quote that truly represents what you may qualify for. Not some low ball cost per unit.
    Answered on April 5, 2013
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