Blend your Life Insurance for Best Protection at Lowest Cost
The good news is that life insurance rates continue to decline and people are buying more term life coverage than ever before. The bad news, is that many people are recognizing that the need for life insurance last a lot longer than most term policies. After the term policy expires, the cost to buy a new policy can get expensive. Worse, if you become uninsurable, you may not qualify for the coverage. But, premiums for permanent life insurance are a lot higher than term which may prevent some people from being able to afford it. The best solution for people who would like to maintain life insurance protection for the long haul may be a blended policy that combines permanent coverage with term coverage.
The idea behind the blended plan is to split the coverage between permanent coverage which increases over time, and term coverage which decreases over time, so that at some point, the life insurance coverage is 100% permanent. The initial premium is significantly lower than a regular permanent life policy, and, in most policies, it remains level. Depending on the performance of the cash values in the policy, a blended plan may, at some point in the future, be able to pay for itself either with the dividends that are generated or with the earnings from the cash value.