Blended Insurance Program

What Does Blended Insurance Program Mean?

A blended insurance program is a type of life insurance that combines features of both whole life and term life insurance. Often referred to as an integrated insurance program, it is typically offered as an alternative to whole life or term life insurance when neither fully meets an individual’s specific needs.

If you’re weighing the differences between the two main categories these policies draw from, our guide on term vs. permanent life insurance walks through how each type handles premiums, coverage length, and cash value.

Insuranceopedia Explains Blended Insurance Program

Like term life insurance, blended life insurance has lower premiums. However, it also includes an investment component, which is typically only found in whole life insurance policies. If the investments perform well, the profits generated can be used to cover future premiums, giving the policy the potential to function as a pseudo-whole life insurance policy.

Blended programs are one of several hybrid structures sold under the broader umbrella of different types of life insurance, so it’s worth comparing how a few carriers price the same blended design before signing. Quotes from the best life insurance companies can show you whether the investment side of a blended policy is competitive with buying term and investing the difference yourself.