1. Peggy MacePRO
    President and Senior Agent, Outlook Life, Most of the U.S.
    One unit of life insurance is $1,000. The term if often used when adding a child rider to a life insurance policy. If you add a child rider of 10 units, at a cost of $8.00 per unit, you are adding a $10,000 child rider at a cost of $80 per year.
    Answered on May 28, 2013
  2. Tim WilhoitPRO
    Owner, Your Friend 4 Life, Brentwood TN
    In almost all life insurance companies, a unit is referring to $1,000 of face amount. This is common in smaller life insurance policies and group life insurance. It is used as an easy method to select your face amount without underwriting. It is also common on additional life insurance riders such as spouse and child riders.
    Answered on October 19, 2014
  3. Stan Cox IIPRO
    Insurance Adviser - Broker, SC Insurance Services, Oahu, Hawaii
    I guess a "Unit" of life insurance is a term that can have a number of different meanings. The answers given above here by Peggy and Tim, both saying that a "unit" is $1000 must be accurate, but in the policies I've read where costs are being analyzed it clearly says, "per $1000" etc.

    In sales I've never heard or read of someone referring to 100 units or 500 units of insurance when they mean a $100,000 or $500,000 policy. I've always understood a "unit" of life insurance to mean a one Million dollar policy. A "half Unit" policy would then be a $500,000 policy and so on. So when an agent is talking to you about "one Unit" of life insurance I'm relatively sure they mean a $1,000,000 policy. "One Unit" sounds like just a little thing whereas "a Million Dollar" policy sounds like quite a bit to most people!
    Answered on October 21, 2015
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