Understanding how life insurance works and what type would be best can be confusing. Our North Georgia Insurance Center team understands that many Commerce, GA residents may find life insurance hard to understand. We’re here to take the confusion out of life insurance.
What is Life Insurance?
Life insurance pays a beneficiary an agreed-upon sum of money in the event of death or illness. Life insurance can be an investment for a pre-set amount of time or your whole life. Term life insurance is a policy that exists for a specific amount of time and terminates after that time has elapsed. Whole life insurance exists for your entire life as long as you pay the premiums.
Term-Life vs. Whole-Life Insurance
Most people invest in term life insurance, particularly when they have minors or children they are caring for. Term life insurance is the most common life insurance. People typically invest in this form of life insurance because it’s more affordable than whole life insurance, and the coverage provided is usually adequate enough to meet your needs. Most people get term life insurance to cover the number of years a child and a loved one would be dependent on their income. The lump sum paid out for beneficiaries is typically ten-plus times your income.
Conversely, whole life insurance is typically more expensive and is designed to last for your entire natural life. However, remember that how much you pay for life insurance is somewhat dependent on your age and the type of insurance you’re investing in. If you have questions about term life or whole life insurance, we can help. Call us. We’d be happy to explore the benefits of both.