Term Laddering involves purchasing multiple term life insurance policies with different coverage periods to address different financial needs over time. That might sound like a complicated process, but you can add a ladder with just one application, one premium payment, and one policy.

For instance, instead of purchasing a single 30-year term, the insured might opt for a 20-year term policy that covers them until the children are financially independent and a 10-year policy to align with a shorter term financial commitment. Benefits to term laddering include:

• Cost Efficiency: Shorter term riders generally have lower premiums that help your client effectively manage costs.
• Phased Coverage: As each rider expires, your client can reevaluate his or her financial situation and insurance needs. The built in conversion options provide guaranteed permanent coverage down the road.
• Adjusted Coverage: Over time, as your client accumulates assets and financial obligations decrease (such as paying off a mortgage), the coverage adjusts as riders expire.
• Adaptable Strategy: Laddering policies can help your client adapt coverage as family and financial situations evolve.

Turn a comprehensive strategy into an easy outcome for your client. Talk with them to determine if a laddering strategy makes sense for their coverage needs.