What Is One Unit Of Life Insurance? 
I guess a `` Unit '' of life insurance is a term that can have a number of different meanings . The answers given above here by Peggy and Tim , both saying that a `` unit '' is $ 1000 must be accurate , but in the policies I 've read where costs are being analyzed it clearly says , `` per $ 1000 '' etc. . In sales I 've never heard or read of someone referring to 100 units or 500 units of insurance when they mean a $ 100,000 or $ 500,000 policy . I 've always understood a `` unit '' of life insurance to mean a one Million dollar policy . A `` half Unit '' policy would then be a $ 500,000 policy and so on . So when an agent is talking to you about `` one Unit '' of life insurance I 'm relatively sure they mean a $ 1,000,000 policy . `` One Unit '' sounds like just a little thing whereas `` a Million Dollar '' policy sounds like quite a bit to most people ! 