<img loading="lazy" decoding="async" class="alignnone size-full wp-image-3549" src="https://static.zanderins.com/wp-content/uploads/2024/11/27181754/Can-I-Have-Multiple-Life-Insurance-Policies-at-the-Same-Time-1.png" alt="" width="1110" height="411" srcset="https://static.zanderins.com/wp-content/uploads/2024/11/27181754/Can-I-Have-Multiple-Life-Insurance-Policies-at-the-Same-Time-1.png 1110w, https://static.zanderins.com/wp-content/uploads/2024/11/27181754/Can-I-Have-Multiple-Life-Insurance-Policies-at-the-Same-Time-1-300x111.png 300w, https://static.zanderins.com/wp-content/uploads/2024/11/27181754/Can-I-Have-Multiple-Life-Insurance-Policies-at-the-Same-Time-1-1024x379.png 1024w, https://static.zanderins.com/wp-content/uploads/2024/11/27181754/Can-I-Have-Multiple-Life-Insurance-Policies-at-the-Same-Time-1-768x284.png 768w" sizes="auto, (max-width: 1110px) 100vw, 1110px" />
Yes, you can. However, it is important to understand that the total amount of coverage that you have in place or are applying for must be justifiable based on your income and net worth. If you already have a significant amount of insurance in place and apply for another policy, the insurance company could limit the amount for which you are approved in order to keep you from being over insured. Remember, <a href="https://www.zanderins.com/blog/how-much" target="_blank" rel="noopener">Dave recommends</a> having 10-12 times your annual income in term life coverage, whether it is in one policy or split between multiple policies.

Yes, you can. However, it is important to understand that the total amount of coverage that you have in place or are applying for must be justifiable based on your income and net worth. If you already have a significant amount of insurance in place and apply for another policy, the insurance company could limit [&hellip;]


Can I Have Multiple Life Insurance Policies at the Same Time?

<img loading="lazy" decoding="async" class="alignnone size-full wp-image-3550" src="https://static.zanderins.com/wp-content/uploads/2024/11/27181757/Do-I-Base-the-Amount-of-Life-Insurance-I-Get-on-My-Gross-or-Net-Income-1.png" alt="" width="1110" height="411" srcset="https://static.zanderins.com/wp-content/uploads/2024/11/27181757/Do-I-Base-the-Amount-of-Life-Insurance-I-Get-on-My-Gross-or-Net-Income-1.png 1110w, https://static.zanderins.com/wp-content/uploads/2024/11/27181757/Do-I-Base-the-Amount-of-Life-Insurance-I-Get-on-My-Gross-or-Net-Income-1-300x111.png 300w, https://static.zanderins.com/wp-content/uploads/2024/11/27181757/Do-I-Base-the-Amount-of-Life-Insurance-I-Get-on-My-Gross-or-Net-Income-1-1024x379.png 1024w, https://static.zanderins.com/wp-content/uploads/2024/11/27181757/Do-I-Base-the-Amount-of-Life-Insurance-I-Get-on-My-Gross-or-Net-Income-1-768x284.png 768w" sizes="auto, (max-width: 1110px) 100vw, 1110px" />
When Dave recommends that families carry 10 to 12 times their income in term life insurance protection, he is referring to gross annual income.  The reason is that, although the death benefit of a life insurance policy is received tax free, once those funds are invested to generate an income for the surviving family members those earnings will still be taxed as a form of income, reducing their overall purchasing power.
The amount of tax may vary from based on earned or unearned income but, with taxes expected to stay level or increase over time (and factoring in the overall low cost of term life insurance), the best approach is to insure to the gross value.

When Dave recommends that families carry 10 to 12 times their income in term life insurance protection, he is referring to gross annual income.  The reason is that, although the death benefit of a life insurance policy is received tax free, once those funds are invested to generate an income for the surviving family members [&hellip;]


Do I Base the Amount of Life Insurance I Get on My Gross or Net Income?

<img loading="lazy" decoding="async" class="alignnone size-full wp-image-3552" src="https://static.zanderins.com/wp-content/uploads/2024/11/27181805/How-Long-Do-I-Need-to-Be-a-Non-Smoker-to-Qualify-for-Better-Rates-1.png" alt="" width="1110" height="411" srcset="https://static.zanderins.com/wp-content/uploads/2024/11/27181805/How-Long-Do-I-Need-to-Be-a-Non-Smoker-to-Qualify-for-Better-Rates-1.png 1110w, https://static.zanderins.com/wp-content/uploads/2024/11/27181805/How-Long-Do-I-Need-to-Be-a-Non-Smoker-to-Qualify-for-Better-Rates-1-300x111.png 300w, https://static.zanderins.com/wp-content/uploads/2024/11/27181805/How-Long-Do-I-Need-to-Be-a-Non-Smoker-to-Qualify-for-Better-Rates-1-1024x379.png 1024w, https://static.zanderins.com/wp-content/uploads/2024/11/27181805/How-Long-Do-I-Need-to-Be-a-Non-Smoker-to-Qualify-for-Better-Rates-1-768x284.png 768w" sizes="auto, (max-width: 1110px) 100vw, 1110px" />
Insurance companies typically only require that you be tobacco-free for 12 months before offering a non-tobacco rate. This is not their lowest Preferred Plus rate, but still represents a strong savings as compared to the smoker rates. If you have not gone a full year tobacco-free, it really depends on the time you have left to reach this accomplishment. Dave still recommends buying the longer term period, which is more expensive, but just for the one year. It locks in your rate at a younger age and is still beneficial in the event you do not complete the entire 12-month period. If at 12 months you are tobacco-free, you can apply for a new non-smoker plan and benefit from the lower rates. At the three-year point, you are eligible for the Preferred Plus health class (lowest rate), if you would otherwise qualify for it . Dave’s primary advice is that you get what your family needs now since we can’t predict the future, and then adjust as things improve. You can <a href="https://www.zanderins.com/term-life-insurance/instant-quotes" target="_blank" rel="noopener">compare term life insurance rates online</a> or call us toll free at 1-800-356-4282 for personal assistance.

Insurance companies typically only require that you be tobacco-free for 12 months before offering a non-tobacco rate. This is not their lowest Preferred Plus rate, but still represents a strong savings as compared to the smoker rates. If you have not gone a full year tobacco-free, it really depends on the time you have left [&hellip;]


How Long Do I Need to Be a Non-Smoker to Qualify for Better Rates?

<img loading="lazy" decoding="async" class="alignnone size-full wp-image-3553" src="https://static.zanderins.com/wp-content/uploads/2024/11/27181808/Is-A-Medical-Exam-Required-to-Get-Term-Life-Insurance-1.png" alt="" width="1110" height="411" srcset="https://static.zanderins.com/wp-content/uploads/2024/11/27181808/Is-A-Medical-Exam-Required-to-Get-Term-Life-Insurance-1.png 1110w, https://static.zanderins.com/wp-content/uploads/2024/11/27181808/Is-A-Medical-Exam-Required-to-Get-Term-Life-Insurance-1-300x111.png 300w, https://static.zanderins.com/wp-content/uploads/2024/11/27181808/Is-A-Medical-Exam-Required-to-Get-Term-Life-Insurance-1-1024x379.png 1024w, https://static.zanderins.com/wp-content/uploads/2024/11/27181808/Is-A-Medical-Exam-Required-to-Get-Term-Life-Insurance-1-768x284.png 768w" sizes="auto, (max-width: 1110px) 100vw, 1110px" /> Exam-free policy options are more prevalent now than ever before and can be just as affordable as exam-required coverage! However, applying without an exam is dependent on the insurance company with which you apply and can be limited by the amount of coverage you select, your age, and your current health status.



Dave recommends 10-12 times your income in life insurance coverage so, if you need more than what is allowable to go exam-free, you may need to opt for a policy with the traditional exam.  He does not recommend paying more to avoid the exam unless the price difference is minimal or there are other reasons to incur a higher cost over the time frame of the policy.



You can easily find out if an exam-free policy are available to you by visiting <a href="https://www.zanderins.com/term-life-insurance/instant-quotes">our website</a>. Once you complete the quick online quote, the companies offering an exam-free option will be clearly designated in your results. You are also welcome to give us a call at 800-356-4282 and let one of our agents help you find the best option for your needs!



Getting life insurance without an exam is easier than ever, and we look forward to helping you learn about these options to help keep your life simple and protected.

Exam-free policy options are more prevalent now than ever before and can be just as affordable as exam-required coverage! However, applying without an exam is dependent on the insurance company with which you apply and can be limited by the amount of coverage you select, your age, and your current health status. Dave recommends 10-12 [&hellip;]


Is A Medical Exam Required to Get Term Life Insurance?

<img loading="lazy" decoding="async" class="alignnone size-full wp-image-3554" src="https://static.zanderins.com/wp-content/uploads/2024/11/27181811/Is-There-a-Benefit-to-Having-Policies-with-Different-Term-Lengths-1.png" alt="" width="1110" height="411" srcset="https://static.zanderins.com/wp-content/uploads/2024/11/27181811/Is-There-a-Benefit-to-Having-Policies-with-Different-Term-Lengths-1.png 1110w, https://static.zanderins.com/wp-content/uploads/2024/11/27181811/Is-There-a-Benefit-to-Having-Policies-with-Different-Term-Lengths-1-300x111.png 300w, https://static.zanderins.com/wp-content/uploads/2024/11/27181811/Is-There-a-Benefit-to-Having-Policies-with-Different-Term-Lengths-1-1024x379.png 1024w, https://static.zanderins.com/wp-content/uploads/2024/11/27181811/Is-There-a-Benefit-to-Having-Policies-with-Different-Term-Lengths-1-768x284.png 768w" sizes="auto, (max-width: 1110px) 100vw, 1110px" />
“Laddering” policies is a common strategy, as many people anticipate needing less life insurance as they get older and are further along in their debt-free journey. This is where the Insured staggers policies at varying term lengths to cover specific needs, and is especially helpful if you have major financial obligations that end at different times. The face amount for each policy would reflect the amount of money needed to pay off a specific obligation. For instance, an Insured may have one 15-year policy to cover their mortgage, and a 20 or 30-year policy related to other needs such as income replacement until retirement and education expenses for their children. 
An additional benefit to laddering policies is the potential cost savings over buying one long-term policy with a high amount of coverage, as shorter term periods result in lower premiums.

“Laddering” policies is a common strategy, as many people anticipate needing less life insurance as they get older and are further along in their debt-free journey. This is where the Insured staggers policies at varying term lengths to cover specific needs, and is especially helpful if you have major financial obligations that end at different [&hellip;]


Is There a Benefit to Having Policies with Different Term Lengths?

<img loading="lazy" decoding="async" class="alignnone size-full wp-image-3555" src="https://static.zanderins.com/wp-content/uploads/2024/11/27181814/My-Term-Life-Policy-Expires-Soon-but-I-Still-Need-Coverage.-What-Do-I-Do-1.png" alt="" width="1110" height="411" srcset="https://static.zanderins.com/wp-content/uploads/2024/11/27181814/My-Term-Life-Policy-Expires-Soon-but-I-Still-Need-Coverage.-What-Do-I-Do-1.png 1110w, https://static.zanderins.com/wp-content/uploads/2024/11/27181814/My-Term-Life-Policy-Expires-Soon-but-I-Still-Need-Coverage.-What-Do-I-Do-1-300x111.png 300w, https://static.zanderins.com/wp-content/uploads/2024/11/27181814/My-Term-Life-Policy-Expires-Soon-but-I-Still-Need-Coverage.-What-Do-I-Do-1-1024x379.png 1024w, https://static.zanderins.com/wp-content/uploads/2024/11/27181814/My-Term-Life-Policy-Expires-Soon-but-I-Still-Need-Coverage.-What-Do-I-Do-1-768x284.png 768w" sizes="auto, (max-width: 1110px) 100vw, 1110px" />
If the amount of coverage you have right now is appropriate but you know you will need it past the expiration of your current plan, then Dave’s recommendation is to get a new policy now to lock in rates into the future and assure that you don’t lose eligibility (or have to pay a higher price) by waiting, due to a health condition or other issue arising. In some cases, you can keep the existing plan and only buy a smaller amount of coverage for the future if certain risk concerns are alleviated before the expiration of the existing term policy. If your mortgage is paid off, education expenses are no longer an issue, and you’ve increased your savings – these all help reduce one’s need for term life insurance. In that case, keeping an older, less expensive policy until its expiration can reduce your overall costs. But still <a href="https://www.zanderins.com/term-life-insurance/instant-quotes" target="_blank" rel="noopener">buy a new plan</a> now for any needs past the old policy’s expiration.
However, if your need for protection is more than the amount you currently have, or extends past the level guaranteed expiration period, then buying an entirely new policy now for the total amount you need, is the most advisable path to avoid high costs in the future.

If the amount of coverage you have right now is appropriate but you know you will need it past the expiration of your current plan, then Dave’s recommendation is to get a new policy now to lock in rates into the future and assure that you don’t lose eligibility (or have to pay a higher [&hellip;]


My Term Life Policy Expires Soon but I Still Need Coverage. What Do I Do?

<img loading="lazy" decoding="async" class="alignnone size-full wp-image-3556" src="https://static.zanderins.com/wp-content/uploads/2024/11/27181818/Purchasing-Life-Insurance-for-a-Dependent-with-Special-Needs-1.png" alt="" width="1110" height="411" srcset="https://static.zanderins.com/wp-content/uploads/2024/11/27181818/Purchasing-Life-Insurance-for-a-Dependent-with-Special-Needs-1.png 1110w, https://static.zanderins.com/wp-content/uploads/2024/11/27181818/Purchasing-Life-Insurance-for-a-Dependent-with-Special-Needs-1-300x111.png 300w, https://static.zanderins.com/wp-content/uploads/2024/11/27181818/Purchasing-Life-Insurance-for-a-Dependent-with-Special-Needs-1-1024x379.png 1024w, https://static.zanderins.com/wp-content/uploads/2024/11/27181818/Purchasing-Life-Insurance-for-a-Dependent-with-Special-Needs-1-768x284.png 768w" sizes="auto, (max-width: 1110px) 100vw, 1110px" />
Many families with special needs dependents consider using term life insurance in conjunction with a special needs trust. The special needs trust would be, in many cases, established by your will, funded initially by a term life policy. There is sometimes an argument of whether to buy a term life policy or cash value life insurance, and Dave still feels that term life is the only way to go. The basic premise for cash value plans is that you will need life insurance your whole life, so the plans overcharge you in the early years to pay the higher costs in the later years. Dave&#8217;s opinion is that, if you buy term life insurance, you avoid this overpayment period and use the savings to attack debt and to build savings. With 15 or 20-year level term insurance you have time to eliminate your debt and grow your savings, so you no longer need life insurance.
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Determining the amount of coverage would be similar to the regular process he discusses; in that you need to measure the amount of funds that would be needed to support your dependent per year and then multiply that amount (typically by 10) to represent the amount of coverage to purchase.  For example, if they needed $30k a year to maintain their assistance and address future needs, then an amount of $300k in life insurance (which invested at 10%) would generate those needed funds.  Some people utilize a lower interest rate return, which would increase the multiple of used.  Since Term life is so much cheaper than a cash value plan you would be investing/savings the difference for the 20 or 30 year period of the life insurance so, at the policy expiry, the savings is now used to address their ongoing needs.

Many families with special needs dependents consider using term life insurance in conjunction with a special needs trust. The special needs trust would be, in many cases, established by your will, funded initially by a term life policy. There is sometimes an argument of whether to buy a term life policy or cash value life [&hellip;]


Purchasing Life Insurance for a Dependent with Special Needs

<img loading="lazy" decoding="async" class="alignnone size-full wp-image-3557" src="https://static.zanderins.com/wp-content/uploads/2024/11/27181821/Should-I-Keep-My-Cash-Value-Plan-if-I-Wouldnt-Save-Money-by-Switching-to-a-Term-Policy-1.png" alt="" width="1110" height="411" srcset="https://static.zanderins.com/wp-content/uploads/2024/11/27181821/Should-I-Keep-My-Cash-Value-Plan-if-I-Wouldnt-Save-Money-by-Switching-to-a-Term-Policy-1.png 1110w, https://static.zanderins.com/wp-content/uploads/2024/11/27181821/Should-I-Keep-My-Cash-Value-Plan-if-I-Wouldnt-Save-Money-by-Switching-to-a-Term-Policy-1-300x111.png 300w, https://static.zanderins.com/wp-content/uploads/2024/11/27181821/Should-I-Keep-My-Cash-Value-Plan-if-I-Wouldnt-Save-Money-by-Switching-to-a-Term-Policy-1-1024x379.png 1024w, https://static.zanderins.com/wp-content/uploads/2024/11/27181821/Should-I-Keep-My-Cash-Value-Plan-if-I-Wouldnt-Save-Money-by-Switching-to-a-Term-Policy-1-768x284.png 768w" sizes="auto, (max-width: 1110px) 100vw, 1110px" />
If you would not save money by switching to a term life policy, we generally advise keeping your existing plan and factoring those expenses into your budget. You should, however, make sure your current plan is not underperforming (i.e. the dividends or interest are not keeping up with the increasing costs of insurance as you get older). If that is the case, then eventually you will have paid more for the existing policy than it is worth. You can also request an “in-force ledger” from your current insurance company, which will project the life of the policy at the current premium paid and the interest rate/dividends being paid to make sure the policy does not falter in the future.
Remember that as you pay down debt and increase your savings, your need for life insurance decreases, meaning you can slowly reduce the amount of cash value life insurance you have, then redirect those funds to better investments.
Not sure if you’d save by switching to a term life policy? <a href="https://www.zanderins.com/term-life-insurance/instant-quotes" target="_blank" rel="noopener">Compare quotes for free on our website.</a>

If you would not save money by switching to a term life policy, we generally advise keeping your existing plan and factoring those expenses into your budget. You should, however, make sure your current plan is not underperforming (i.e. the dividends or interest are not keeping up with the increasing costs of insurance as you [&hellip;]


Should I Keep My Cash Value Plan if I Wouldn’t Save Money by Switching to a Term Policy?

<img loading="lazy" decoding="async" class="alignnone size-full wp-image-3558" src="https://static.zanderins.com/wp-content/uploads/2024/11/27181824/Should-I-Keep-My-Cash-Value-Policy-If-It-Is-Paid-Up-1.png" alt="" width="1110" height="411" srcset="https://static.zanderins.com/wp-content/uploads/2024/11/27181824/Should-I-Keep-My-Cash-Value-Policy-If-It-Is-Paid-Up-1.png 1110w, https://static.zanderins.com/wp-content/uploads/2024/11/27181824/Should-I-Keep-My-Cash-Value-Policy-If-It-Is-Paid-Up-1-300x111.png 300w, https://static.zanderins.com/wp-content/uploads/2024/11/27181824/Should-I-Keep-My-Cash-Value-Policy-If-It-Is-Paid-Up-1-1024x379.png 1024w, https://static.zanderins.com/wp-content/uploads/2024/11/27181824/Should-I-Keep-My-Cash-Value-Policy-If-It-Is-Paid-Up-1-768x284.png 768w" sizes="auto, (max-width: 1110px) 100vw, 1110px" />
Dave never recommends keeping a cash value policy, regardless of how long or short you have had it, unless you are unable to qualify for a new <a href="https://www.zanderins.com/term-life-insurance/instant-quotes" target="_blank" rel="noopener">competitively priced term life policy</a>. However, you should never cancel an existing plan until you have received the new policy and reviewed it to make sure it meets your specific needs. Most people don’t realize there is still a cost to paid-up policies in that you are paying a higher price for the cost of insurance and administrative fees than a term life policy. That means you are receiving a poor rate of return on money that could be used to pay down debt or be invested more wisely.
The basic premise for cash value plans is that you will need life insurance your whole life (hence the name “whole life” insurance). This means that you are overcharged in the early years to cover the higher costs in the later years. Dave’s opinion is that if you buy term life insurance, you avoid this over-payment period entirely, leaving you free to use your money instead to attack debt and increase your savings. With a 15 or 20-year level term policy, you have time to reach the point in your financial journey at which you no longer need life insurance.
The cash value in your plan is available to you subject to the surrender penalties of the policy. These surrender charges decrease over each year you have had the plan and typically are gone after 10-15 years. Dave would typically recommend using the remaining cash value to intensify your debt reduction efforts, help establish your emergency fund, and take advantage of better investment options.  Wherever you are in the Baby Steps is where you should focus this money. Whether your debt is related to mortgage, school, health expenses, or something else, Dave’s Baby Steps address how you should prioritize your existing savings. It just doesn’t make sense to maintain a savings plan of any kind at a poor rate of return while paying out higher expenses for credit card and other debt instead of addressing more important financial objectives. Oftentimes, companies try to dissuade you from cancelling your cash value policy by implying that you will face serious tax consequences if you do. It is uncommon for a tax to be due, however. In the rare cases when you may owe taxes, it is based only on the refund you receive that is in excess of your paid premium, although you will need to include any dividends you received during the term in addition to the cash value. Regardless of the tax situation, Dave recommends cancelling your cash value policy and opting for term life instead (but don’t cancel until your new policy is active).

Dave never recommends keeping a cash value policy, regardless of how long or short you have had it, unless you are unable to qualify for a new competitively priced term life policy. However, you should never cancel an existing plan until you have received the new policy and reviewed it to make sure it meets [&hellip;]


Should I Keep My Cash Value Policy If It Is Paid Up?

<img loading="lazy" decoding="async" class="alignnone size-full wp-image-3559" src="https://static.zanderins.com/wp-content/uploads/2024/11/27181827/Should-I-Use-Life-Insurance-to-Leave-an-Inheritance-1.png" alt="" width="1110" height="411" srcset="https://static.zanderins.com/wp-content/uploads/2024/11/27181827/Should-I-Use-Life-Insurance-to-Leave-an-Inheritance-1.png 1110w, https://static.zanderins.com/wp-content/uploads/2024/11/27181827/Should-I-Use-Life-Insurance-to-Leave-an-Inheritance-1-300x111.png 300w, https://static.zanderins.com/wp-content/uploads/2024/11/27181827/Should-I-Use-Life-Insurance-to-Leave-an-Inheritance-1-1024x379.png 1024w, https://static.zanderins.com/wp-content/uploads/2024/11/27181827/Should-I-Use-Life-Insurance-to-Leave-an-Inheritance-1-768x284.png 768w" sizes="auto, (max-width: 1110px) 100vw, 1110px" />
Dave does not recommend using life insurance strictly for financial inheritance purposes. Life insurance should be used to address any debts you may have upon your death, and to replace your lost income so that your family can maintain their financial lifestyle.
This is because, with term life policies, you can outlive the coverage, meaning you spent dollars on a goal that may not even be accomplished. And with cash-value plans – such as whole, universal, and variable life policies – they are overpriced, poorly designed programs, and are a lousy long-term investment even while you are alive, let alone as an inheritance tool.
Dave’s advice is to get out of debt and grow your savings in order to leave an inheritance, using much smarter methods than a life insurance policy. With this approach, you can give like no one else while you’re living, then leave the remainder to your family as a debt-free, investment-rich estate upon your death.

Dave does not recommend using life insurance strictly for financial inheritance purposes. Life insurance should be used to address any debts you may have upon your death, and to replace your lost income so that your family can maintain their financial lifestyle. This is because, with term life policies, you can outlive the coverage, meaning [&hellip;]


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