What are your New Year’s Resolutions? Do you plan on playing more games of golf or taking up a new hobby? Do you want to find ways to better yourself by being more mindful or stopping your procrastination habits? Are you looking for a method of protecting your family? The latter is always a good idea, and there’s no better way to do this than by securing a life insurance policy.
Whole or Term?
Before you start shopping around for a life insurance policy, there are a few things that you need to know, such as what type of policy works best for your needs.
Whole Life Insurance – One of the most popular options, whole life insurance stays with you throughout your life. You could take out a policy when you’re young, and as long as you keep paying the premiums, your payout amount won’t go away. Not only do you set the insurance limit at the time of taking out the policy, but you also set the monthly premium amounts, which usually do not go up. This is the type of life insurance that you can borrow from if needed as well.
Term Life Insurance – These policies tend to be cheaper because they only provide coverage for a certain period of time. For example, you could choose a 10-, 20-, or 30-year plan. Once the term is up, the coverage ends, unless you renew it for another term. You don’t get to keep any of the money that you put into the policy once it ends. However, if you die during the active term, your family will get the money from the policy.
There are other types of life insurance, including universal, which is like a whole life policy but is more flexible regarding amounts and premiums; indexed, where the payout amount is linked to the S & P 500; and variable, in which the money paid into the policy is invested in the stock market, making the payout amount go up and down over time.
In addition, you could go for final expense insurance. These policies provide coverage for burial and funeral expenses, allowing your loved ones to receive the full amounts of your other life insurance policies.
How Much Insurance Do You Need?
Another important thing to consider is how much life insurance you need. In general, the experts recommend an amount that’s around 15 or 29 times your annual salary. This will ensure that your family is able to get back on its feet should something happen to you, the breadwinner. However, your overall amount can also be determined by your budget, your age, your desired premium amounts, and more. What’s important is that you have a life insurance policy, just in case.
Reach Out to Spivey Insurance
Do you want to purchase life insurance, have questions about policy types and amounts, or want to increase or add to your existing policies? If so, contact Spivey Insurance. Our knowledgeable agents can help you make the right decisions to secure a solid financial future for your loved ones.
