Whole Life Strategies - The Blended Policy

One of the most common reasons people cringe when considering the purchase of a whole life insurance policy usually comes from the initial ‘sticker-shock’ experienced when viewing the product’s relatively high premiums. Such concerns certainly should not dissuade one from the benefits only permanent insurance can provide. Rest assured, there is a type of policy that exists which combines both the qualities of a whole life product with the lower costs associated with term products – the blended whole life policy.

These policies can be very attractive because of its structure which offers a much larger amount of death benefit coverage at a lower cost than a straight whole life policy might provide. Many insurance agents are hesitant to offer this option because the commissions are typically much lower that pure whole life policies. However, more and more companies are offering them as the life insurance industry becomes much more competitive and geared toward internet sales.

The policy specifically works by having a base amount of whole life coverage with an additional amount of term insurance included to reach an overall target benefit of coverage. The policy each year converts its term component over to whole life by using the annual dividends earned to purchase more whole life. Eventually, the policy becomes a straight whole life policy, providing a guaranteed death benefit to the policyowner.

To view an example, please request a blended policy from our quote request form or contact Thomas Lloyd at 1-888-513-2300 ext.26