What is the maximum amount of coverage for term life insurance?

The maximum amount of coverage for term life insurance varies depending on the insurance company and the policyholder’s age. While there is generally no specific maximum limit for term life insurance coverage, some insurance companies may have their own internal limits1. Some factors to consider when determining the amount of term life insurance to purchase include:

• Age: Insurance companies set a maximum age limit for term life insurance policies, usually ranging from 80 to 90 years old.
• Income: The amount of coverage you can buy relative to your income varies by age and insurer. For adults 40 and younger, coverage is limited to 25 to 35 times annual income, while for adults ages 40 to 50, coverage is limited to 20 to 25 times annual income.
• Net worth: For estate planning purposes, the maximum amount of coverage that can be purchased is usually limited to 80% to 85% of net worth.
• Policy term: The maximum term for term life insurance is typically 50 years.

It is essential to consider your financial needs and consult with an insurance professional to determine the appropriate amount of coverage for your situation.