All About Life Insurance Laddering

​Throughout your life, the amount of life insurance protection that you have may change. With this, it’s essential to ensure that you’re only spending on the right coverage that you need. To guide you, this article will highlight an effective strategy in saving money on life insurance.

​How Life Insurance Policies are Priced
Life insurance premiums involve three foremost variables such as the following:

• The lifespan of the policy: For example, a plan with a 10-year term is less costly compared with the one with a 20-year term.
• Your preferred coverage:  Depending on your lifestyle, you can choose your desired coverage to secure your future. Your considerations should include the degree of risk that your occupation or hobbies have.
• Status of your “personal health”: Expect that you’ll pay less when you have no complicated health record.

The Essence of Life Insurance Ladder Strategy
This technique that every policyholder can take advantage of has a fundamental principle: as you get older and settle bills, your financial duties decline; hence you need less life insurance coverage. When you ladder multiple life insurance policies on top of each other, you can achieve spending less on premium payments. How? Since these life insurance plans will expire at different times, laddering them leaves you only with the coverage that you need. Through this, you can lock in low rates for each premium while you’re in good health condition while just paying for the cost of the necessary insurance coverage.

Example of a Life Insurance Laddering
For instance, if you’re planning to target a $1 million worth of coverage for thirty years, the coverage may cost you $75.91 every month (just an estimate). And for all those years, the total amount that you need to spend on this policy would be $27,327.60. Would you believe that there’s a way for you to decrease the total spending? Here’s how —get help from a life insurance agent to purchase three separate plans:

• Policy 1 ($14.76 per month): a life insurance plan worth $500,000 which is suitable for ten years.
• Policy 2 ($16.69 per month): a life insurance policy with $300,000 worth which is valid within twenty years
• Policy 3 ($21.56 per month): a life insurance plan worth $200,000 which you can utilize within thirty years.

Even though you’ll be paying three separate policies at the same time, you just need to settle a total amount of $13,538.40 for all those premiums over the next thirty years. So, from $27,327.60 for a single policy, you’ll be able to cut the total cost to half.

One More Thing Before You Go
Laddering your insurance policies are available for you to obtain the best protection possible in a convenient manner. To satisfy all your needs, it’s a smarter way to obtain the necessary life insurance premiums now to secure your future.

At Berlin & Denys Insurance, we do our best in making sure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (800) 946-3303 or Click Here to request a free quote.