Buying life insurance is, at its core, a way to buy yourself peace of mind. How many times have you found yourself worried about what your loved ones will do after you’re gone? Adding financial troubles to their grief can be horrible, and life insurance offers you a way to ensure that they can go on paying bills and making ends meet in the ….
event of your death. If you’re thinking of buying North Carolina life insurance, you’ll have two basic options. Term life insurance and whole life insurance both offer unique advantages and disadvantages, and deciding between the two will really depend upon your needs and situation.
When most people think about life insurance policies, they think of term life insurance. It’s the most basic type, and the most popular form of North Carolina life insurance. A term life policy essentially insures you for a specified ‘term’, hence the name. In most cases an insurance company will offer you a set monthly premium, benefit amount, and duration. As long as you make the monthly payments, your family will receive the benefit amount if you die within the time frame laid out by your policy. In some cases the benefit amount may decrease or your premiums can change, but most companies offer fixed plans that can never change.
Whole life insurance policies have no term limits and will pay out a set amount in the event of your death. The premiums may fluctuate greatly, but the payout amount will remain constant. Many people opt for this type of North Carolina life insurance because with term life policies, once the term is over your investment is lost. Since a whole life policy doesn’t end after a set number of years, the money you put into it remains constant. And in emergencies, you may be able to borrow against the value of the policy or take money out of it. It’s an investment that can pay out while you’re alive as well as giving your family a financial break after you’re gone.
Most people choose term life policies when they buy North Carolina life insurance. They’re simple to understand and offer lower premiums in most cases. But whole life policies do have their advantages, and can offer you a way to invest your money as well as protecting your family. Whichever option you decide to go with, buying a life insurance policy will help you rest easier at night knowing that your family will be well taken care of after you’ve left this world.