Life Insurance Stacking

Life insurance staking is also known as life insurance laddering. It is the most efficient way to only pay for what you need. You buy different amounts of life insurance with different durations. It avoids over-insurance, saving you money while maximizing the protection of your family when it is needed.

Instant quotes for term, whole life and final expense

Let’s start with the life stages.

  1. Full nest 1: on the beginning of a life of a family, the spouse and children depend on you to cover certain expenses:
  • Living expenses
  • Mortgage
  • Auto loans
  • Credit card

2. Full nest 2: when your children are older and mortgage probably paid-off you have different expenses. Your spouse and children depend on you for:

  • Living expenses
  • Auto loans
  • College tuition

3. Empty nest: at the end of your life, your children are working and living by themselves. Your spouse might still need your income to keep the same lifestyle and you have to plan for the funeral and medical bills.

Different Types of Life Insurance Used for Stacking

You should mix some term life insurance at different lengths with some permanent life insurance, and possibly some final expense life insurance.

Term Life Insurance: for the early stages of your life. Cheaper with a specified duration. It does not build cash value.

Whole-life insurance: it is cheaper if you get it earlier and it builds cash value that may act like emergency liquidity.

Final Expense insurance: it is a simplified issue whole-life life insurance with a smaller cash benefit. It is easier to get approved with immediate coverage that may start during a phone call. The claims are processed and paid faster than a term or regular whole-life insurance. It is the recommended life insurance to cover burial, cremation, and funeral expenses. The funeral home may be the beneficiary.

Other Types of Life Insurance that Can be Used:

Fixed Indexed Universal Life: It has flexible premium and potentially higher interest on the cash value with the guarantee of never losing money. The flexible premium allows for higher accumulation if there is extra income and the minimum premium is lower than the premium on whole-life life insurance. It has the highest cash value growth potential and can be used for retirement planning. Consider as an insurance-investment hybrid. Contact us to request additional information, quotes and illustrations.

Term life insurance with cashback: This is a term life insurance that returns 75% to 100% of the premiums paid after 15, 20, 25 or 30 years. The total amount of premiums paid is returned to the insured if still alive at the end of the term. The cashback can be converted into a paid-up whole-life life insurance or turned into an annuity. It may take care of protecting your family in regards to your mid-life and end-of-life expenses.

Accidental life insurance: It is the cheapest life insurance, but it only covers accidental death. Normally the death has to occur within 3 months after the accident to be considered accidental. It also expires, normally at 80 years of age, so it is not permanent. You may add an accidental death rider on whole-life or final-expense life insurance that are permanent or universal-life that may be permanent. An accidental death may be very traumatic for the family and it may make sense to add this extra protection.

Call (888) 966-1625 to schedule a free consultation from a licensed specialist, that will help you with your financial plan, provide brochures, illustrations and guides, and walk you over the approval process when you are ready.

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