For many individuals, term insurance is an affordable way to protect their income during their working years, or to protect a financial obligation, such as a loan or mortgage.
What do these insurable interests have in common?
As time passes, the need for the insurance decreases – as policy owners have fewer years of income to replace, or as they pay down their loan or mortgage, the amount needed to pay-off the note decreases.
In other instances, a client may need to cover multiple obligations with different time horizons – attempting to do this with one policy is not the most efficient method.
There is a way to ensure your clients maintain an adequate amount of term life insurance, with a potentially lower cumulative premium outlay – laddering.
Multiple term policies of varying durations can be structured to provide a decreasing amount of coverage as a client moves through different stages of their life.
This can result in considerable cost savings, versus purchasing only one policy of the longest duration that will satisfy the total initial insurance need.
We can show you how to effectively ladder multiple term polices, and do a comparison of the costs versus a single policy sale. Even if you have previously sold a term policy – this is a great reason to contact clients and offer to do a review.
Call us today for more information.
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