Life Insurance Laddering

​Life is unpredictable, and no one knows what their life will look like a month from now, not to speak of what their future, twenty years from today, will look like. You might decide to get married, start a family, change career paths, move to a different country, or buy a house. Any of these could significantly affect your life and financial standing.

With so many changing factors, planning for tomorrow might be complicated as your needs and responsibilities change with every milestone, meaning your insurance needs will also change.

You've probably heard that buying life insurance when you're young and healthy is a good idea, but with so many unknowns in the future, signing up for a monthly premium for the next three decades can feel like a big commitment.

What is Insurance Laddering and How Does It Work?
Laddering is a financial management concept that entails purchasing multiple life insurance policies with varying maturities and expiration dates. The approach allows you to buy the protection needed for where you are in life that fits your various needs. As your assets and responsibilities vary over time, laddering is cost-effective to protect yourself from being over-or under-insured.

You'll most likely benefit from insurance laddering if you relate to any of the following scenarios:

• Clearing your college loans.
• Coverage to assist in protecting your children from the time they're born until they can complete their education and become financially self-sufficient.
• Paying off your mortgage's amortization time.
• Covering everyday costs so that your partner isn't forced to return to work immediately after your death.
• Expenses for your children's higher education.
• Expenses for your children's weddings.

The Advantages of a Ladder Strategy
A multipolicy life insurance ladder might help you save money while giving you more options. The following are some of the advantages:

• Purchasing the same aggregate death benefits for lower premiums.
• For policyholders, designating an objective for every insurance coverage.
• Purchasing your insurance coverage at a lower cost since the standard policyholder's insurance coverage needs tend to decrease with time.
• Minimizing the financial impact of pre-existing conditions or lifestyles. (like smoking)
• Maintaining flexibility allows you to acquire extra coverage in the future.

Conclusion 
Laddering is founded on the idea that your need for insurance coverage will decrease as you get older. That isn't the case for everyone, so it's important to remember that life insurance is acquired to safeguard against the unforeseeable.

At Arnold, Bruce & Doerfler Insurance, we put our clients first by offering them policies that they can afford. Having insurance is a necessity nowadays, and we're here to help you out. Learn more about our products and services by calling our agency at (503) 222-1951. You can also request a free quote by CLICKING HERE. The coverage discussed in this article is not guaranteed. Please call our agents, we are happy to help you learn more about your plan and make sure you have the coverage you need.