Laddered Life Insurance – A Great Option for Young Families with Growing Insurance Needs.

Laddered Life Insurance – A Great Option for Young Families with Growing Insurance Needs.

Life insurance isn’t for you, it’s for the loved ones in your care. For young families on a tight budget, term life insurance is an ideal option. It’s simple, customizable, and affordable, especially for young parents without any health issues.

It lasts for a specified period—5 to 40 years—and your premiums will not increase during that time. The younger and healthier you are, the lower your monthly payments will be.

You can purchase additional term life insurance policies as needed, to cover your growing family and the additional expenses of, for example, a larger home. This is commonly called laddering. It can keep your payments lower than with permanent insurance which lasts throughout your lifetime.

There is no savings component to it, as is the case with permanent, or whole life, insurance. It’s intended for a specific purpose—protecting your loved ones from financial struggle, replacing your income, so that your family can pay for everyday things such as food, schooling and living expenses if you should die.

Married, but different. If one of you is earning a higher salary—or one of you is a stay-at-home parent–you might want different levels of coverage. Each working parent’s policy needs to cover the loss of their specific salary. The loss of a stay-at-home parent should also be covered in consideration of expenses like daycare, transportation, housekeeping and other valuable services.

The goal is protecting your children, and the contributions of both parents are important for them to have a happy and fulfilled life. Protecting them from this loss means both parents need insurance.

Divorced parents. Term life insurance is a great option for ensuring your responsibilities are met, such as alimony and child support. If you are the one making these payments, then you could purchase the insurance and name your ex-spouse as the beneficiary. If you name your children, the money will be held in trust for them.

Blended Families. If your blended family includes a wide age range of children, laddering term policies will provide coverage for the differing financial needs of children who are maturing at different times.

An insurance specialist can help you determine how long the term of your life insurance policy should be, what options are best for you, and the right amount of coverage for your situation. So, give us a call to discuss life insurance that grows with your growing family.

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