Life Insurance Policy
Life Insurance Atlanta GA
A life insurance policy is designed to eliminate the financial burden placed on your family after you pass away. As you know, the death of a loved one is a very difficult and emotional time for any family to deal with. The last thing they’ll want to worry about is how they’re going to pay for funeral expenses, memorials, and other expenses related to your passing.
By securing an active life insurance policy, all of these expenses will be paid for. Your family won’t need to worry about any of them. Instead, they can just focus on grieving for their loss and trying to find a way to move forward into the future. Who wouldn’t want to offer that kind of comfort to their family after they pass away?
Remember that health insurance is not the same as life insurance. Health insurance only covers your medical expenses for when you’re alive. They don’t cover the expenses of burying or cremating you after you’re deceased. However, do not assume all life insurance policies are the same. There are actually two different life insurance policies you can choose from. They offer different amounts of coverage and for different lengths of time.
Let’s take a look at the two main types of life insurance policies:
Term Life Insurance
Term life insurance plans offer coverage for a specific period of time only. On the upside, they offer lower monthly premiums and the freedom for you to choose how much coverage you want. The term of the policy could last anywhere from 10 years to 30 years. You get to determine the length of the terms based on your current financial situation. If you’re interested in continuing coverage at the end of the term, you’ll have to take out a whole new policy with different conditions and payment terms.
Whole Life Insurance
Whole life insurance plans offer coverage for the remainder of your life. The monthly premiums are higher, but you also get a lot more coverage too. People who want to plan for the end of their life will usually choose a whole life insurance policy. It is a way to financially secure your family forever in the event that you pass away. The death benefit provided is suitable for paying off a mortgage, transferring wealth, survivor needs, and more.
In addition, the whole life insurance policy can earn you a cash value or dividends over a period of time. As you keep making your fixed payments to the insurer, you will build up a cash value that you can borrow from at any time for a low rate. This is meant to encourage you to take out the policy when you’re younger and keep it for decades until the end of your life.