Any disadvantages to having two (20 & 30 yr) term life insurance policies for half the amount each?
Any disadvantages to having two (20 & 30 yr) term life insurance policies for half the amount each?
This is in place of one 30 yr term life policy for the entire amount. We have quotes that show a lower combined premium when we split the policies; by about $ 200 a year. Insurance is for 41 year old male, preferred plus category.
Best answer:
Answer by finadv2002
I don’t see a significant disadvantage. I have clients who do this a lot. The only disadvantage being if you need both policies beyond 20 years. Then the premium on the 20 year term will start increasing in year 21. However, as you get older you need less coverage in most cases so it might not be an issue.
What do you think? Answer below!
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This sounds like an outstanding idea if you are providing for all of your life insurance needs beyond the 20 year period.
It sounds like it meets your needs at the lowest cost to you.
It’s nice to see consumers developing a hybrid approach to meet their needs. Obviously you have taken into consideration your long term needs for life insurance protection. By the time the 20 year period ends, you will probably have built other assets that take the place of part of that 20 year policy.
Overall, this sounds like a very good idea. Also, it helps to be in the preferred plus category - Keep it up. Good health = lower rates for life insurance.
Sounds like a great idea!!