Choosing a life insurance policy isn’t necessarily the funnest of all tasks because it requires people to think about an inevitable yet uncomfortable topic – their death. With that said, while the loss of a loved one is an incredibly emotional event it can also have devastating financial ramifications for anyone that is left behind. Consequently, having a life insurance policy that helps to cover costly events such as college, the balance remaining on a mortgage, retirement, and more can help lessen the burden on loved ones.
When it comes to choosing a life insurance policy, there are three main types – term, whole, and universal. Term, as the name implies, has a shelf life whereby the policy is active and pays out the amount of money that the benefactor originally purchased but once the policy term has expired it is no longer valid. Conversely, whole life insurance is more expensive but the premium is valid for as long as a person continues to pay the premium. Lastly, universal life insurance offers investment options whereby the premium can be increased or decreased based on how it is managed.
As a general rule of thumb, most experts recommend purchasing a life insurance policy that is 6 to 10 times higher than your annual salary. However, this may not be sufficient for your needs so another way of determining how much life insurance you need is to add up your debts such as mortgage and credit card payments and comparing it to other costs you may incur like college.
When it comes to choosing a life insurance policy in Dalton, GA come to the place that the professional’s trust – AWARD Insurance Group. Our friendly and professional staff will help you find the perfect policy that offers peace of mind for you and your loved one