THE CHALLENGE:

A planner presented us with a client that required $3,000,000 of level term life insurance today with the need for life insurance going down as the client aged.  The planner requested we provide pricing estimates for various terms and death benefits to help the planner design the optimal laddered term insurance recommendation.

THE ANALYSIS:

The client completed our informal inquiry, which is a one page medical questionnaire.  This allowed us to go out and retrieve estimates for pricing from all of the life insurance carriers for different term periods. In this case, we looked at 10, 15, 20, 25, and 30 year, and death benefit amounts ranging from $500,000 to $3,000,000.  We provided the planner with the pricing for review.

THE RECOMMENDATION:

The planner came back to us with a laddered term life insurance recommendation consisting of three policies:

  • 15-year Term - $1,000,000
  • 20-year Term - $1,000,000
  • 30-year Term - $1,000,000

Once we received the recommendation we worked with the client through underwriting until policy delivery.  Through this process the planner was able to design a laddered term insurance approach before underwriting versus having the client be underwritten for a 30 year term policy for $3,000,000.  This saved the client close to 40% in premiums.

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