Choosing a life insurance policy can seem like a daunting task. Not only are there multiple carriers to consider, but also different types of life insurance available. If you need some help choosing a life insurance policy, below are three tips to help guide your decision.

How to Choose the Right Life Insurance Policy

1. Understand the Two Main Policy Types

There are two main types of life insurance policies, term life, and whole life. Term life insurance stays in effect for a particular term, which is normally up to 30 years. You can choose the amount of coverage you need. When your term is up, your life insurance expires. Term life is generally much less expensive than whole life. However, your age and health will affect your premium. Term life is a great option if you’re only looking to be insured until you pay off your mortgage or until your children have become adults.

Whole life insurance is a type of permanent policy. Whole life will stay in effect as long as you continue to pay the premium. It provides a death benefit and also grows a cash value. Some types of whole life insurance come with investment options, as well. Whole life is a smart option if you’re looking for guaranteed, permanent coverage.

2. Consider the Amount of Coverage You Need

There are various reasons for getting a life insurance policy. Common reasons include leaving money to pay off debt, providing income to family for a certain period of time, leaving money for taxes, or providing your family money to cover funeral expenses.

Your needs are unique to everyone else’s. Think about what would happen if your family lost your income. How much money would you need to leave them? This is a strong basis for determining how much coverage to take out.

3. Compare Quotes 

When you start getting life insurance quotes, you need to compare the policies. A whole life insurance policy will be more expensive than a term life policy, but they come with different benefits. Likewise, different companies will offer different premiums. Make sure that when you make comparisons, you’re looking at the whole picture and not just the price. 

If you’re ready to take out a life insurance policy, the agents at Advantage Insurers, Inc. can help you determine the best type of policy for your needs and get you quotes from multiple carriers. Serving the Demorest, GA, area, the agents will work hard to find you a policy that you are satisfied with. You can visit their website for more information or call them at (706) 754-1590 to get a free quote.