Are there any other considerations for multiple whole life insurance vs just one?

Hi anon,

Premiums do generally scale accordingly, so a $150K whole life plan would be 1.5x more expensive than a $100K whole life plan.

However, there will be so called 'break points' (to borrow a gaming term here) whereby getting more than a certain sum assured will get you a small discount, and getting too little will cause the premiums to go up as well.

For example, as a base reference, a $100K x 2 plan might cost $2000/yr, but a $50K x 2 plan would cost maybe, $1100/yr and not $1000/yr as you might imagine. Likewise, a $200K x 2 plan would cost something like $3800/yr and not $4000/yr as you would think.

Generally, for whole life plans, you're looking at $50K, $100K and $200K as the point where the discounts (or price increase) would take effect. Anything in between (eg. between $100K and $200K) would just be proportional.

And if it may interest you, for term plans it tends to be $250K, $500K, $1M and $2M.

Ultimately, whatever you end up getting, just make sure that you get the right amount of coverage. There's no point getting a $2M term plan for a discount when you really only need, say, $1.5M. But if you needed $1.8M, then consider the $2M instead, it might be the same price or close. Same thing goes for Whole Life plans.

Generally, it will be cheaper to buy a single policy than to splie the policy into two or more separate policies. And there are many reasons for this, e.g. large sum discount, underwriting risk, administrative cost

We will need to know your needs in detail before we give you the most accurate advice. For instance, does the policy allow you to reduce the coverage after a number of years? And how much coverage do you need in that case? This is alongside with other factors such as your cashflow.

Altogether, this will help us to determine your needs before we derive at the correct solution.

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