Laddering in life insurance

“Laddering” in the context of life insurance typically refers to a strategy where an individual or a family purchases multiple life insurance policies with varying coverage amounts and term lengths. This strategy is often used to provide sufficient coverage during different stages of life while also managing costs.

Laddering Strategy

  1. Here’s how the laddering strategy works:

    1. Multiple Policies: Instead of purchasing a single large life insurance policy, you purchase multiple policies with different coverage amounts and term lengths. Each policy is designed to meet specific needs at different points in time.

    2. Term Lengths: The policies are chosen with varying term lengths, such as 10, 20, or 30 years. Shorter terms might be used to cover specific financial obligations that are temporary, while longer terms might be used for more permanent needs.

    3. Coverage Amounts: The coverage amounts for each policy are determined based on financial obligations and responsibilities. As time passes, certain obligations (like a mortgage or children’s education expenses) might decrease, allowing you to reduce coverage and save on premiums.

    4. Cost Management: Laddering helps manage costs since shorter-term policies generally have lower premiums than longer-term policies with higher coverage. As shorter-term policies expire, the need for coverage might decrease, resulting in cost savings.

    5. Transitioning: As each policy reaches the end of its term, you can reassess your financial situation and decide whether you still need the coverage or if you can reduce it. You might also consider converting some of the policies to permanent life insurance if your needs change.

    Laddering can provide flexibility and cost-effectiveness while ensuring that your life insurance coverage aligns with your changing financial responsibilities over time. However, it requires careful planning and periodic reviews to ensure that the coverage remains appropriate for your circumstances.

An Example of Laddering in Life Insurance ?

Let’s say you have a 10-year policy to cover your mortgage, a 20-year policy for your children’s education, and a 30-year policy for income replacement. As these needs change or are fulfilled, you can adjust or let policies expire accordingly.

The Bottom Line

Laddering your life insurance is like having a financial plan that grows and adapts with you. It’s a smart way to manage costs and coverage over time. However, before embarking on this strategy, it’s essential to consult with a financial advisor or insurance expert. They can help you fine-tune your toolbox, making sure you have the right tools for every stage of your life.


While it’s not mandatory, consulting a financial advisor or insurance expert can help you create a well-designed laddering strategy that meets your specific goals. They can provide guidance and ensure you make informed decisions.

Laddering involves managing multiple policies, which can be a bit more complex than having one policy. However, the benefits of tailored coverage and cost savings often outweigh the added management.

Absolutely. Laddering is designed for flexibility. As your needs evolve, you can adjust your coverage by letting policies expire, reducing coverage amounts if the carrier allows, or adding new policies to address new needs.

Yes, you can start laddering at any age, but the best time depends on your life stage and financial goals. It’s advisable to begin when you have clear financial responsibilities that require coverage.

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Life Insurance Quotes

Here is a quick comparison of premiums between term life and whole life and guaranteed permanent  universal life. To create these quotes, carefully selected, highly competitive carriers are used. This table below is able to offer some clarity on what to expect from various guaranteed life plans. I offered these options to a real client of mine. See the rounded premiums below.

Life Insurance Premiums

Insure in MInutesReal-time Life Insurance Rates

Face amount: $1000,000
10 Years Term
(convertible to guaranteed universal and whole life)
$19 monthly
20 Years Term
(convertible to guaranteed universal and whole life)
$34 monthly
30 Years Term
$64 monthly
30 years
Refund of Premium Term
$132 monthly
Universal Life (pay only till 65)
(Lifetime of coverage without cash values)
$583 monthly
Whole Life (pay only till 65)
(Lifetime of coverage with cash values)
$1,446 monthly
Please note: The rates quoted are estimates and are subject to underwriting by the insurance carrier.
Rates do not include optional riders. For a no-obligation consultation, call us at 1.866.526.7264.

The lowest premium term life plan may not be the best option for you.

When you see an ad on TV promising hundreds of thousands of dollars worth of term life insurance for a ridiculously low price, you need to keep in mind that they are only throwing a bone at you to call them. These ads only promote a 10-year term plan for those in perfect health (super preferred risk class). Obviously, the low premium quoted makes it look like a breeze to buy life insurance. There are a lot of good life insurance advisors out there to serve your best interest. It is important to talk to them in detail before taking a life policy.

Life Insurance - Bottom Line

A man thinking

The premium difference is obviously huge. While there is no right or wrong life insurance plan, it is what you need and can afford that dictate the kind of life insurance plan you should go for. Life insurance can work as a mortgage protection vehicle, something to protect a loan, or an estate planning tool. Term life insurance plan can hardly take care of the death tax or estate tax issue. To take care of that, you must look into a guaranteed permanent life insurance option as a guaranteed financial legacy. Limited premium or single pay whole life and universal life insurance plans are very useful for those looking into covering estate tax through life insurance.

4 Truths about Life Insurance

  1. Premiums always remain level during the duration of a term in term life plan.
  2. Universal life and whole life plans are usually custom-designed to suit your needs and affordability.
  3. All quotes are subject to underwriting, age and state availability.
  4. Always ask for optional riders that may enhance the value of your life insurance policy.


Purchasing life insurance is a major financial decision. Let not a few sleek TV ads or aggressive marketing sway you. A quick comparison of premiums, and what a life insurance plan can or cannot do for you is very important. Talk about your current and future family protection needs to a professional before you buy one. In a remote work environment, always ask for a virtual meeting.


Term life insurance is a type of life insurance that provides coverage for a specified period of time, usually ranging from one to thirty years. If the policyholder passes away during the term of the policy, the beneficiaries will receive a death benefit payout.

Term life insurance is different from other types of life insurance such as whole life insurance or universal life insurance, which provide coverage for the policyholder’s entire life and may also have a savings or investment component.

The amount of term life insurance coverage you need will depend on a number of factors, including your income, debts, and the financial needs of your dependents. A financial advisor or insurance agent can help you determine the appropriate amount of coverage for your specific needs.

The cost of term life insurance will depend on a number of factors, including your age, health, and the amount of coverage you need. Generally, term life insurance is more affordable than other types of life insurance, especially for younger and healthier individuals.

Most term life insurance policies are renewable, but the premiums may increase as you get older. Some policies may also have the option to convert to a permanent life insurance policy.

If you outlive your term life insurance policy, the coverage will expire and you will not receive a death benefit payout. Some policies may have the option to renew or convert to a permanent life insurance policy.

There are several types of life insurance available, including term life insurance, whole life insurance, and universal life insurance. Each type of insurance has its own benefits and drawbacks, so it’s important to speak with a financial advisor or insurance agent who can help you determine which type of insurance is best for your needs.

If you’re single and don’t have any dependents, you may not need life insurance. However, if you have outstanding debts or want to leave a financial legacy for your loved ones or a charitable cause, life insurance may still be beneficial.

When choosing a life insurance policy, it’s important to consider your financial needs and goals, as well as the features and benefits of the policy. It’s a good idea to speak with a financial advisor or insurance agent who can help you understand your options and make an informed decision.

That means you give us a call at 1.866.526.7264.

It’s difficult to say which life insurance company is the best, as there are many factors to consider and the best company for one person may not be the best for another. Some of the factors to consider when choosing a life insurance company include:

  1. Financial strength and stability: Look for a company that has a strong financial rating from independent rating agencies such as A.M. Best or Standard & Poor’s.

  2. Product offerings: Choose a company that offers the types of life insurance policies that meet your needs and goals.

  3. Customer service: Look for a company that has a reputation for good customer service and responsiveness.

  4. Pricing: Compare quotes from several different companies to ensure that you’re getting a competitive price for the coverage you need.

  5. Company reputation: Consider the company’s reputation within the industry and among its customers.

We serve our customers with over 20 top-rated carefully selected insurance carriers. It would be unfair name a few a leave the others.

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