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In episode 8 of the Insurance Pro Blog Podcast we're talking about whole life insurance policy blending. Sounds exciting right?
It might be to those of you who've been listening to and/or reading our stuff for a while and have heard us bring up the term “blending” but never really understood what we actually meant. Being true to form…we like to talk about things ad nauseam but never actually explain what they mean.
It's not a great business strategy.
But we're coming back to it (blending) in this podcast. Blending is simply the process of using a combination of term insurance coupled inside of whole life insurance policy with a heavy use of paid-up additions (crucial ingredient). That's crystal clear right?
The concept isn't difficult to understand. The execution of the concept is a tad more complicated (but that's mainly because every company has a different approach).
We're not trying to detail exactly how to do it with every life insurance company and every policy. That would be impossibly long and incredibly difficult to explain clearly.
Instead, our goal of today's episode is give you some functional understanding–along with the pros and cons.
If you want more written detail on the subject of policy blending, check out these articles that we've published on the topic:
Whole Blending: Does Design Really Matter?
Historical Proof that Blended Whole Life Insurance Really Works
Why the Blended Whole Life Idea is Conceptually Perfect, but sometimes Practically Flawed
And if you'd like to see how a blended policy might work out for you, please feel free to contact us, we're always happy to help.
