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Just recently I was helping a client with bipolar disorder get life insurance for his young family. He had been declined before and told me that he wanted $500,000 of term insurance.

After shopping the case we got an offer of potential preferred best rates from one company. Based on their potential good rates I also quoted him $1,000,000 of 20 year term. The price was actually very close to what he expected he would have to pay for $500,000, if he got approved at all.

Once the approval came through at the best rate class I again gave him the option of how much insurance he wanted to have issued and, even though the difference was fairly minor in monthly outlay he and his wife chose to accept the $500,000.

You should know that I never, ever suggest that someone put a budget buster in force. If I know anything for a fact in this business, I know that life insurance somehow becomes expendable in a tight budget. It’s almost like when the bill comes due and it doesn’t look like it will be a good fit with this month’s budget, they check their pulse and decide they are immortal for a while and drop the insurance.

But in this case both amounts of insurance were easily budgeted. They said the reason they didn’t choose the higher amount was that they believed they wouldn’t need the higher amount down the road. And maybe they do and I didn’t fuss with them about it, but here is my advice if this situation comes up for you.

If there truly is very little difference in cost between one half and one million in coverage and it is easily budgeted, take two $500,000 policies and down the road if things really work out the way you expected them to, drop one. If things don’t go as planned, kind of the way it did for almost everyone in the country last year, you have the extra coverage at an excellent premium.

Bottom line. Value can come in a lot of forms. When presented with a true value, consider whether doing the minimum is truly prudent.