Securing your family's financial future often starts with life insurance, which provides a building block of stability after your death. For most people, a standard policy provides adequate protection.

But for those looking to build a solid legacy, there are policies that can transform the lives of beneficiaries with payouts of more than $1 million.

In this blog post, we look at 6 life insurance policies that pay out $1 million. These huge expenditures open up possibilities.

They pay down outstanding debt, fund education, support businesses or open up investment opportunities to accelerate growth. For your heirs, that million has the power to change everything.

Why should you consider life insurance?

The goal of life insurance is to provide peace of mind amidst the unknowns we all face. An effective policy can eliminate worries about lost income, outstanding debts, estate taxes and other liabilities in the event of the policyholder's unexpected death. For survivors, large settlements ease the burden of managing these expenses alone.

However, a broad death benefit not only enhances financial support but also enhances commitment to the family. They arise from the desire to support spouses, children, and other relatives during our lifetimes.

If carefully designed, life insurance can provide space for a grieving person without causing financial hardship and restore stability over time.

6 Life Insurance Policies with 7-Figure Potential

Not all policies are likely to pay out millions. While term life insurance is affordable, it only pays out if a death occurs during the policy term (usually 10 to 30 years).

However, a permanent policy lasts for life and allows the cash value to grow over time. The latter also offers greater flexibility when building services in the seven-figure range.

The following types of permanent insurance are known for their potential to provide death benefits of $1 million or more.

Take the time to understand their intricacies, as professional advice is key to determining whether they fit your budget, timeline, and prior goals.

1. Life insurance

Comprehensive insurance offers lifetime protection with predictable premiums, making it a reliable choice. Premiums remain the same, while the cash value of available savings increases.

Possible benefits

● Guaranteed death benefit during the validity period of the policy

● Accumulation of cash assets and potential borrowings

● Fixed, consistent premium payments

Precautions

● Monthly premiums are higher than term insurance

● Sparse strategy customization options

● A health assessment is required to qualify

For long-lasting, reliable protection, the entire life cycle must be considered. Contact a broker to weigh in on the more flexible permanent policies listed below.

2. Variable life insurance

Variable life insurance is designed to increase cash value and allow the policyholder to invest their savings in markets appropriate to their risk tolerance. As the market is strong, this option is suitable for large future expenditures.

Possible benefits

● Market driven cash value and death benefit growth

● Investments controlled by the policyholder

● Deferred income tax

Precautions

● Cash value not guaranteed

● Potential investment losses

● Requires ongoing investment management

Variable policies require policyholders to be accountable and aware of market factors, but in return they provide control over funds to ensure seven-figure payouts.

3. Survival or Second Death Policy

As a double policy for both parties in a marriage or partnership, they permanently cover the lives of both parties and provide a benefit when the second policyholder dies. In principle, premiums only need to be paid before the first death occurs.

Possible benefits

● Dual income account before withdrawal

● Delay withdrawals to accumulate more cash value

● Premium payment ends after the first death

Precautions

● The insurability of the insurance depends on the health status of both applicants

● If both occur at the same time, there is a risk of coverage gaps

● Premiums may be higher than individual policies

For those seeking multi-million dollar shared coverage, survivor insurance policies reward patience with their structured payouts.

4. Universal life insurance

Universal life insurance, sometimes called flexible premium life insurance, offers adjustable coverage and premium flexibility.

If needs change after purchasing the policy, the policyholder can change the death benefit amount and redirect premium payments. Because of this adaptability, it makes sense to plan for big expenses.

Possible benefits

● Adjustable death benefit amount

● Ability to change premium payment method

● Present value as interest increases

Precautions

● Complex structures with multiple moving parts

● Risk of demise due to insufficient financing

● Requires close monitoring and management

For families looking for flexible permanent coverage, Universal Life's adaptability makes multi-million payouts possible.

5. Single premium life insurance

As the name suggests, lump sum insurance requires a one-time upfront payment. This means the policy is fully funded and no further payments are required even as lifetime coverage and cash value accumulation continue.

It's easier to reach high amounts on a single premium so you can get a seven-figure payout later.

Possible benefits

●Full advance payment within the policy period

● Free up future income for other goals

● Death benefits may be higher than ongoing premiums

Precautions

● Requires a substantial one-time premium

● Very little post-purchase flexibility

● Best for specific groups of people

Although the upfront cost is high, a single-premium policy can simplify planning for policyholders who want long-lasting, effective benefits.

6. Life insurance in case of death

Unlike survivor life insurance, death insurance pays out when the first partner in a joint insurance policy dies.

They are designed to be the breadwinner of the family and provide support in the event of loss of income and eventual expenses. The accumulation of cash value also proceeds more quickly.

Possible benefits

● Pay in advance to support budget

● Cash value grows faster than survivorship insurance

● Income replacement as needed

Precautions

● Benefits end after first payment

● Accumulation potential is lower than survival risk

● Usually only the death benefit is paid

First-to-die coverage meets different needs than dual coverage, but is still an option that can provide millions of dollars in benefits for the right family.

Choose the policy that will determine your loved one’s future

With so many life insurance options available, finding a policy with seven-figure benefits can be daunting. When evaluating permanent insurance based on your family's unique needs, consider the advice of a trusted financial advisor.

Most importantly, keep your beneficiaries in mind when developing your plan. A well-chosen policy can go a long way in easing the financial burden while you're away from home.

For her, peace of mind starts today by making the right choices.