Stacking life insurance policies
Sometimes it can be difficult to determine how long you will need your life insurance and how much you will need. One method you can use to help defray costs is to stack your term life insurance policies.
I had a client come see me last week. He is a practicing anesthesiologist here in Denver and is married with 2 children ages 10 and 7. After taking care of his disability insurance needs, we also discussed his life insurance needs. We determined he needed $2,000,000. Although he is healthy, the premiums were a little more than what he wanted to spend.
The best strategy for him was to stack the life insurance policies. In 15 years, his oldest child will be 25 and his student loans and most of his mortgage will be paid off. He will still have a few more years while his youngest is finishing college. As a result, we decided to proceed with a $1,000,000 15 year term and $1,000,000 10 year term. We made sure his policy had the conversion option to turn it into whole life if his needs, desires or insurability changed.