Stacking Life Insurance Policies

Like many things in life, the amount of life insurance coverage you need can change with time. While it’s hard to predict the future, predicting your life insurance needs and stacking life insurance policies can help ensure you’re only paying for coverage you need. Additionally, it could lower the cost of your life insurance over time. Known as a life insurance ladder or life insurance laddering, learn how stacking multiple life insurance policies could be an option for you.

What is life insurance laddering?

Life insurance laddering is the stacking of multiple term life insurance policies of various lengths so that they expire over time, giving you coverage when you need it most and tapering off when you don’t need as much life insurance coverage. 

How to Ladder Life Insurance Policies

Before you explore your life insurance options, you’ll want to get a grasp on how much coverage you may need at certain points in your life. Understanding why you’re purchasing life insurance and your financial goals can help you tailor your life insurance coverage to only pay for what you truly need.

Who should use the ladder strategy for life insurance policies?

For those interested in saving money on premiums, purchasing multiple term policies of various lengths can be cheaper than purchasing one 30-year policy. If you can map out your future financial needs at different points in your life, laddering can be an effective tool to adjust the amount of coverage you have over certain periods of time. 

Benefits of Laddering Your Life Insurance Policies

Laddering gives you the opportunity to customize your life insurance coverage. You can address certain financial obligations and coverage needs that you’ll face at different stages of your life. In addition to adaptable life insurance coverage, laddering can be an effective way to lower the cost of your life insurance over time. 

Let SelectQuote help you better understand your options.

Getting the right amount of coverage at a price that works with your budget can be time consuming and confusing. At SelectQuote, we can do the legwork for you, working with some of the most highly rated life insurance companies* and comparing rates in just minutes. We’ll take the time to learn about your situation and what you need covered to find life insurance coverage that works for you.

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