Policy Laddering Strategy with Term Insurance

A laddering strategy involves buying multiple term policies with different durations, providing maximum coverage when it’s needed most:

• Decreasing Coverage Over Time: For example, you might buy a 10-year, 20-year, and 30-year term policy. As financial obligations like your mortgage decrease, so does your coverage, which helps save on premiums.
• Cost Efficiency: Laddering term policies is usually cheaper than purchasing one large, long-term policy, especially if you only need high coverage temporarily.
• Flexibility: This strategy allows you to adapt your coverage to specific financial milestones (like paying off a mortgage or funding college) without overpaying for coverage you no longer need.