The Best of Both Worlds: Term and Perm Insurance
March 29, 2023
For the majority of families, life insurance needs will change over time. Typically, more coverage is required while a family is still young and growing, with a decreasing amount required as the family finances mature. However, when it comes to insurance, permanent life insurance policies are designed to provide a level amount of coverage with level premiums for the lifetime of the policy. If you buy permanent insurance to cover all your needs, there’s a possibility you’ll be paying for more coverage than you need in the later years. Another option is term insurance, which is much less expensive in the early years, but becomes more costly than permanent insurance down the road, eventually surpassing the cost of permanent insurance. If you’re looking for the best overall solution for insurance protection, why not choose both?
Oftentimes, the best insurance protection can come from a Term/Perm combination – that is, a small amount of permanent insurance, PLUS a term rider to cover the remaining amount. With this Term/Perm blend, you can ensure that coverage is tailored to your lifestyle over a period of time and within your initial budget. So, you get lots of coverage in the initial years of your policy, while knowing that you have some amount of coverage for the duration of your life – for maximum flexibility.
Some of the benefits of using a Term/Perm blend of insurance coverage include:
Coverage is aligned to your fluctuating needs over time
Potential for a lower total cost over time
At renewal for the term portion, you have the option to renew, convert, drop, reduce and/or add other coverages – options are great!
It allows you to lock in permanent rates TODAY to guarantee the cost of the permanent coverage for life
Some plans allow you to build cash values to support “premium vacations”. The fact is that the earlier in life that you purchase permanent coverage, the greater impact it can have as a financial instrument in your overall financial plan. So be sure to set yourself up for success from the start!
Want to know more about the Term/Perm insurance strategy, be sure to contact our office.