Different life insurance policies cover different needs and services. So, because there are no legal limits to the amount of life insurance policies you can maintain, you have the option to combine multiple policies to obtain the greatest benefits. Here’s a deeper look into how you can combine final expense with another life insurance policy.
What Is Laddering with Life Insurance Policies?
Laddering is the process of purchasing multiple life insurance policies with different amounts and term lengths, and it’s a fantastic way to get the most out of your insurance. Let us set up a scenario so that you may understand how this process works—let’s say you are an older individual hoping to set aside funds for your loved ones after you have passed away.
You’ll likely want to set up a policy for both your funeral service and inheritance to pass down to your children. For the inheritance, let’s say you have a whole life insurance plan—whole life insurance guarantees a death benefit to your beneficiaries after your passing.
You do not, however, want to use the funds from this plan for your funeral. You also do not want to leave the burden of planning the funeral on your family. In this and many other cases, you would benefit from the addition of a final expense plan.
These plans are far more suited for funeral preparations than another insurance plan would be on its own. Final expense plans have significantly lower premiums than other plans, and are incredibly helpful for setting up funds for something like a funeral—it can also, however, be used for other things as well.
If, for example, you wanted to use your whole life plan for your mortgage rather than inheritance, you may instead want a final life plan to cover future expenses for your child/children. Laddering your insurance policies, then, is not only possible but a great strategy for maximizing your potential benefits.
Alternatives to Insurance Laddering
However, what do you do if you cannot or do not want to ladder multiple insurance plans? You may be able to include a policy rider when you purchase a policy. Let’s say you are unable to purchase multiple insurance policies for health reasons. A guaranteed insurability rider could give you the option to purchase additional life insurance coverage at a later date, without undergoing a medical exam or providing any evidence of your insurability.
This gives you the option to wait and see if your health condition improves to get approved for the plan you want—but you also run the risk of your health worsening, lessening your chances for approval. This rider can allow you to buy additional insurance on your terms, whether that be every few years or at a certain age or life event. However, keep in mind that your age and health will affect your monthly premium.
Get the Insurance Advice You Need From a Company You Can Trust
From laddering to policy riders, life insurance can be very confusing. We here at Senior Life Services will do all that we can to ensure that you understand your policy options and get you the best deal on the market—if you’re ready to get started, contact us today.
