Understanding how long you need life insurance can feel daunting, but it’s a crucial part of planning for the future. Here at SBLI, we offer a variety of options to ensure your life insurance effectively meets your evolving needs over time.
Choosing your term
When considering term life insurance, think about the key milestones ahead:
- When will your children be self-sufficient?
- How many years until your mortgage is fully paid?
- When is your spouse or partner planning to retire?
Selecting the right term is about ensuring that your loved ones have financial protection during the times they’ll need it most. Financial experts often recommend a term that covers you until your children are independent, your mortgage is satisfied, and your partner has retired. With SBLI, you can choose from terms like 10, 15, 20, 25, or 30 years. For lifelong coverage, our Whole Life policies are designed to last a lifetime without a set term.
Why you might extend your term
While it may be tempting to save initial costs with a shorter term, consider the long-term implications. Applying for a new policy later in life can be costly, as premiums increase with age and health changes. Opting for a longer term from the start locks in your rate, ensuring cost savings over time.
When to consider whole life insurance
Whole life insurance is more than just a safety net. It’s an investment in your family’s future and your financial legacy, offering the ability to:
- Cover final expenses seamlessly
- Leave a meaningful legacy to your children
- Build cash value that you can borrow against if needed
If whole life insurance seems out of reach financially, starting with a term policy and converting later can be a strategic choice.
The benefits of laddering your policies
Laddering life insurance involves using multiple policies with different terms to align coverage closely with your financial obligations as they decrease over time. This strategy can significantly reduce your overall premium costs. By matching shorter terms with specific needs—like childcare, educational expenses, or early years of a mortgage—you ensure you’re not over-insured as your liabilities diminish.
This laddering approach can save you significantly compared to a traditional long-term policy because you pay for the coverage you need when you need it most.
Is laddering right for you?
Laddering isn’t widely discussed because it often means lower revenues for insurers, but it could be a financially savvy strategy for you. To see if laddering or another insurance strategy fits your life plan, talk to an SBLI Life Insurance Professional today.
By choosing the right duration and type of life insurance, you’re not just planning for the unknown—you’re actively shaping a secure financial future for those you love the most.
24-4131 (4/24)