The usual way of purchasing life insurance is to determine how much coverage you need, how many years you need it for, then get one product. For example, you might purchase a $400,000 policy with coverage for 20 years.
The drawback is that insurance needs typically decrease over the years. Thus, you can end up paying for coverage that you don’t need.
How insurance needs can decrease over time
You need life insurance to protect your family. But after 10 years have gone by, that’s 10 fewer years you need to pay for.
The same is true for your mortgage. Over time, your mortgage balance diminishes and you don’t need as much insurance. Education costs are another example. The amount of coverage needed goes down as you build up education savings.
Spend less over time
We can help you reduce your cost of insurance throughout your lifetime by matching the amount of life insurance coverage to your decreasing insurance need. It works by using two or more coverages of different durations – 10 years, 20 years, 30 years or lifetime coverage, and as the years go by, some coverage ends.
We would be happy to meet with you and determine if this approach is right for you.