Life insurance is one of the most important investments you can make, but the purpose and benefits of this coverage are often misunderstood. Young, healthy people often view life insurance as something to worry about later in life. However, people of all ages can take advantage of these coverage plans.
4 FAQ About Life Insurance
What does life insurance do?
A life insurance policy protects those you love by providing them with the financial resources to carry on if something happens to you. This allows you to continue providing for your family after you’re gone, relieving the financial burden of your lost income.
Do I need coverage if I’m single with no children?
Even if no one currently relies on you for financial support, you should consider carrying life insurance. Premiums are lower when you’re young and healthy, but increase as you age and become more at risk for health complications. It’s important to have a policy when you’re single, so by the time you start a family, you’re not stuck paying higher premiums.
Purchase a plan that will cover your expenses and any outstanding debts, like credit cards and student loans. Otherwise, your family may be expected to take on thousands of dollars of debt, which can be a substantial financial burden.
How much life insurance do I need?
The amount of coverage depends on your obligations and goals. For instance, you may want to leave enough for your spouse to pay off the mortgage, start a college fund for your children, or permanently replace your income.
What’s the difference between whole & term life insurance?
Term insurance policies pay a death benefit to your beneficiaries if you pass away within a specific period of coverage time, usually between 20 to 30 years. Whole life policies never expire and typically include an investment component that builds wealth over time. Many companies allow you to withdraw or borrow against the value of the plan, which can give you the resources to weather emergencies as you age.
Choosing a life insurance policy can be confusing and overwhelming, but the agents at Stringer Insurance Agency are here to help you make the right choice. Their trusted agents serve families throughout Dahlonega and Gainesville, GA, providing exceptional service since 1931. Visit their website to learn more about their life insurance options, call (706) 864-3515 for a free quote, and follow them on Facebook for more tips and insight.