Combining Policies

Policies may be combined to reduce costs and suit other customer’s needs. One popular feature is the addition of an inexpensive term rider to cover the insured’s children. Another technique is to have both spouses insured by the same policy, thereby reducing the policy administrative costs.

Types of coverage may also be combined. For example, suppose a person wanted to have the flexibility of variable life insurance with its ability to increase or reduce the premiums and to shift the investments around within the accounts offered by the insurer. But also imagine that the amount of coverage required dictated the use of term insurance. Both objectives can be achieved by adding a term rider to a variable life policy. The term premium would be low, and the coverage could be converted. This approach also works with traditional whole life and universal interest sensitive policies.

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Combining Policies How Much Do I Need? Second-To-Die Life Insurance Life Insurance and Estate Plan

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