Are you in the market for a life insurance policy, but not sure where to start? In this case, it helps to understand the most important aspect of this unique coverage. A Better Choice Insurance Company has been providing life insurance to residents of Concord, North Carolina, for years, including the Kannapolis, Mount Pleasant, and China Grove areas. Below, they answer three frequently asked questions about these policies. 

3 FAQs About Life Insurance

Is Life Insurance an Investment?

While some life insurance policies provide investment options, most are used as risk removal tools. As with auto insurance, your life insurance company assumes a certain amount of risk based on the chance you might pass away unexpectedly. If that were to happen without the right policy in place, your family might suffer loss of income and a significant lifestyle change. If you are looking for an investment opportunity, look to financial tools such as 401(k), IRA, and other investment accounts.

How Do I Know if I Need a Life Insurance Policy?

Consider what might happen to your spouse or children in the event of your sudden passing. Many families without appropriate coverage experience a steep loss of income, which accounts for mortgage payments, education costs, and medical necessities. The right life insurance policy will cover those expenses in the unfortunate event of your passing.

What Types of Life Insurance Are There?

Term life insurance provides coverage for a period of 10, 20, or 30 years, or until the insured individual retires and their dependents are out of the house. This coverage is considered less expensive and lapses if payments are not made on time. Permanent life insurance covers the insured for their whole life. This policy includes universal and whole-life policies, which come with payment flexibility and investment and savings options. 

If you are searching for a trustworthy insurance agency with exceptional customer service, look no further than A Better Choice Insurance Agency. Their expert insurance agents are on hand to answer all of your coverage-related questions. Call them today at (704) 782-2073 or visit their website for more information.