Co-Founder, TermInsuranceBrokers.com, Goldenzweig Financial Group, Las Vegas, Nevada
There's not really any "maximum" to the face amount that can be put on a life insurance policy. There are limits to what a person can purchase however.
In general, the maximum a carrier will allow for the face amount of a policy is usually 20x income - some carriers may go up to 30x income. For example, a person making $100,000 a year could request a coverage amount up to $2,000,000. Whether or not they will get approved at this amount is another issue. A policy has to be suitable to a person's need for the coverage. You also have to be able to write the check (and you want to make sure you can write it comfortably).
If someone is making $50,000 a year and requests a policy for $5,000,000 of coverage, the carrier is going to ask why you need it and will likely decline it even if you're in perfect health, or they may come back and say we will approve you for coverage, but only up to a face amount of $1,000,000.
Recruiter/Manager, Cole Insurance Investments, Charlotte N.C.
Most families are thinking life insurance is high and expensive ,so we really can't define highest it depends on risk that the insurer will be taking if the client should pass. For the client the only way to know what is best for you is a financial needs analysis which is formulated to ask questions to put your investments in order. Such as a 401k, IRA , stocks, any income, dividends which could change your tax status so with that said never buy without a consultation. John Cole Virtual Financial Group Recruiter / Manager
The highest life insurance policy ever written was written in the spring of 2014 to a California billionaire. It was written for $201 million dollars. It was actually underwritten by 19 life insurance companies to share the massive risk. This policy is so large that had one life insurance carrier would have written the whole plan and had to pay the death claim it would have bankrupted the company. The owners name is withheld for privacy. the undisclosed premiums were said to be in the low single millions. Great question!
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In general, the maximum a carrier will allow for the face amount of a policy is usually 20x income - some carriers may go up to 30x income. For example, a person making $100,000 a year could request a coverage amount up to $2,000,000. Whether or not they will get approved at this amount is another issue. A policy has to be suitable to a person's need for the coverage. You also have to be able to write the check (and you want to make sure you can write it comfortably).
If someone is making $50,000 a year and requests a policy for $5,000,000 of coverage, the carrier is going to ask why you need it and will likely decline it even if you're in perfect health, or they may come back and say we will approve you for coverage, but only up to a face amount of $1,000,000.