Life Insurance Options – Are Two Policies the Way to Go?

Jul 30, 2013

life insurance optionsThere are some interesting options out there in life insurance, including the option to choose two policies instead of one. This strategy is being used especially by those who are older than 60 but need significant coverage. This may be because they have a spouse who’s much younger, or because they have children who will be going through college and need considerable cash for tuition. Because it is very expensive to ensure someone of this age for a term or whole life policy, some find that the strategy of taking on both types of policies is the most cost effective option.


Let’s use one example to show how these life insurance options work. Say you have a 60 year old man who wants $1,000,000 worth of coverage. To get this type of coverage in a 30 year term would cost him around $900 a month. Another option is to get less coverage for a 30 year term with additional coverage for a fixed term. If he outlives in the 30 year term he’ll lose that coverage, but he will have had more time to save additional money. On the other hand, if he doesn’t outlive that coverage then his spouse and/or children will get the full amount of both policies.

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