Why can't I select any amount of Life Insurance I want if I can afford it?
Term Life Insurance Applications
Most life insurance companies only allow you to purchase a specific amount of life insurance coverage. This amount is determined by the amount of financial loss you or your family would sustain in the event of your death. In most cases, the amount of life insurance needed will be determined by analyzing any debt you may have, the income replacement you will need, and an analysis of your estate.
Life insurance and term life insurance companies want to make sure that there is a purpose to the life insurance coverage you are purchasing. That is why they do not always let you select any amount of insurance you would like, even if you can afford to pay for it.
