1. COO and Senior Agent, Outlook Life, All 50 States
    "Life insurance per unit" is the cost of life insurance per thousand dollars of coverage.

    Child Riders are priced per unit. E.g. a $10,000 child rider may cost $60 per year, or $6.00 per unit.

    Flat extras are also charged by unit. The insurance company may add on $7.50 per unit of life insurance for 3 years after having surgery for prostate cancer. For a $100,000 policy, that would add on $750 per year, but then the flat extra would drop off after three years and the policy would cost $750 less.

    You can also price your own policy if you know the cost of one unit of life insurance. E.g. If you are buying a final expense policy that costs $50 per unit, a $10,000 policy will cost $500 per year.
    Answered on July 31, 2013

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