What Is A Life Insurance Unit? 
A life insurance unit is $ 1,000 . Life insurance is priced per unit . So if you wanted to purchase a $ 500,000 life insurance policy that costs $ 2.00 per unit , the cost of the policy would be $ 1000 per year , plus policy fee . Most people do not see the unit price when purchasing life insurance , but buying a child rider is a time when the unit price is often shown and you are given the chance to pick how many units you want you want in the rider . 