What Is A Unit Of Life Insurance? 
Video Transcript : What is a unit of life insurance ? Generally , most people will buy their insurance , they 'll say , `` I need $ 1/2 million or $ 100,000 . '' Sometimes , you 'll look at children or spousal attachments . Instead of doing a term writers , some people buy their extra insurance for children and spouses based on unit . Those units could be as small as $ 2000 , $ 5000 , $ 10,000 in units , and they buy them in price tags . They 've already homogenized and made a standardized price tag for each one of these units . Those units then are attached to the policy and become part of the contract . In case something happens , those units would pay out according to the death benefit amount . 