You’ve heard the question before: how would your family cope financially if you died tomorrow? Whether you want to think about it or not, life insurance is a serious issue that needs to be considered. If you are in your forties, a recent retiree, or even a young, newly-married adult, life insurance is something that should not be pushed under the rug.
What Options are Available?
When it comes to life insurance, Carlisle PA insurance agents offer different packages and levels of service to their customers. When it comes down to basics, however, there are essentially two types of life insurance policies: term life insurance and whole life insurance. Be sure that you understand the differences between the types of coverage when you sit down to purchase life insurance in Carlisle PA. An insurance agents in Carlisle PA use their knowledge and experience to make sure you are informed about your options and will assist you in making your decision.
Term Life Insurance
The first option to consider is a term policy. While this policy is coverage only, it pays the face amount of the policy to the named beneficiary, whether it is a spouse, child, parent, etc. Term policies come in periods of one to thirty years and can be purchased for the number of years which you choose. Premiums for term life insurance are typically very reasonable for those under the age of fifty who are in good health. It is important to remember, however, that once you stop paying the premiums in a term life insurance policy, or if your term coverage is up and you do not renew, you are no longer covered. On the other hand, term life insurance typically requires lower monthly payments than whole life insurance, thus requiring less of the policy holder from a financial perspective.
Whole Life Insurance
The second option is whole life insurance, which combines a term policy with an investment component. The investment can take a variety of forms, including bonds, stock holdings, and money-market endeavors. While this type of insurance policy can include significant fees, many find this worth their while due to the type of coverage it provides. Many people view this option as a long-term investment, which it truly is. The entire point of whole life insurance is to cover you for the duration of your entire life, and it does just that while also providing for those you care about when you are unable to do so.