So they can't buy 50 to 100k of whole life and some level term to meet the current need and the future one?
I mean nothing wrong with what you're suggesting except whole life doesn't get any cheaper as time goes by. Holding off on the purchase of some whole life simply for the majority of people out there as they age prices it out of reach.
I run into this all the time. They had enough money to buy all sorts of crap during their earning years and then as they retire, they have no money and are stuck, or should I say their spouse is stuck with not much.
Nothing wrong with 500k term, but nothing wrong with 100k wl and 400 term either. Waiting later to make a whole life purchase usually isn't a good idea.
It's not an all or nothing scenario, it's a find a combination that works short and long term. Cheers.
That's why it's always nice to have convertible term or an RdPu option on an ROP policy.
Yes they pay more at conversion (or for the life of the policy in the case of the ROP) but it is all about having options.
Personally, I feel that Protective has solved this issue largely for most folks. Level term with a decreasing DB with the same premiums after the level premium.
I love writing a 55yo who still needs 300k to pay off his mortgage but a Protective policy bought today solves that problem for today's 35yo.