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Securing Your Future Today

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Life Insurance

With so many carriers out there offering different types of life insurance products and various coverage options, it can be a challenge to pick the one that’s right for you. Trust TruePursue in Macon, Georgia to guide you in choosing the best term life insurance plan for your needs and your budget. Contact us to request a free quote or estimate.

What Is Life Insurance?

A life insurance policy involves paying premiums to an insurance firm over time, and, in return, they will pay a lump sum amount to a designated beneficiary in the event of your death. The money from your policy can help pay bills and augment the living expenses of your surviving family members.

You may need to adjust the amount of your policy in relation to major life events, such as purchasing a home, getting married, or having a child.

Different Types of Life Insurance

There are two main types of life insurance policies: Whole or Term Life.

Whole (or Universal) Life Insurance Policies

These policies are considered permanent. As long as you are paying the premium, the policy is in effect. Apart from paying a benefit upon your death, whole life insurance policies also have an investment or savings component. This means you are accumulating cash value over the life of the policy, so you can borrow money from these types of policies if you need to.

Term Life Insurance Policies

These types of policies are in effect for a certain period of time or term. If you have this policy and pass away during the term it is in effect, the insurance firm will pay a benefit. If you live past the time the policy is in effect, the insurance firm won’t pay a benefit or give you a refund.

Term life insurance policies usually cost less than whole life insurance policies. This is because term life insurance only covers a set amount of time, while whole life insurance policies are meant to be permanent and because part of the money you pay is set aside for savings.

Things to Think About When Selecting a Life Insurance Policy 

When you buy a life insurance plan, you choose an amount of money that will be payable at the time of your death and you name the person or persons (known as your “beneficiaries”) who are going to receive that money. It is also up to you to determine whether the money will be paid in a lump sum or in a series of payments.

These choices will depend on what you prefer the insurance to do for you and your dependents. For example, most people buy life insurance to give financial security for their families upon their death. If this is your reason, the first step in calculating how much insurance to purchase is to identify your dependents’ possible financial needs.

If you are married, in a civil union, or have a significant other, you will want enough coverage to lessen the financial need of your spouse or partner after you are gone.

If you have dependent children, you may want to help pay for their college fees and other expenses. If you have fairly high annual living expenses due to mortgage on your home, personal or car loans, or property taxes, you will need more insurance than someone whose home mortgage is fully paid for.

You may also want enough coverage to make sure your dependents do not have to worry about your final expenses, such as hospital bills and burial costs.

Determine all the sources of income and assets your family would have if they were without you right now. This list may include cash in checking and savings accounts, the value of any stocks and bonds you own, your home equity, and benefits from social security. 

Check if you are already qualified for group insurance. If you are, take advantage of it and add the face amount to your current assets. Remember to include the ability of other members of your family to earn a living.

The final step is to compare the total of your income and assets with the total of your dependents’ expected expenses. Ideally, you should buy enough life insurance to cover the difference between what your dependents would have if you died today and what they actually would need. 

However, it is important to purchase only as much life insurance as you can afford. Buying an insurance plan you cannot afford and then losing it due to your inability to pay the premiums is good money thrown away.

One final consideration: the amount of coverage you need to protect you and your family while in your younger years is different from the amount you need later in life. If you already have a policy that you bought years ago, you may want to take another look at the policy as well as at your own needs.

It is probable that your circumstances have changed considerably since the policy was purchased. You may need to buy additional insurance or may be able to reduce coverage to meet your present needs. Review your life insurance policy regularly to ensure it still applicable to you. 

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