For most parents, life insurance may not cross your mind until a child comes knocking on the door. You start preparing for your child and worry about the future. Well, the best way to secure the future of your loved one is merely getting covered. Chastain Agency Inc., serving Gainesville, GA, is committed to walking the path with you. To start the journey, here are five factors you need to consider:
Life Insurance Working Mechanism
Life insurance pays a sum of money to a named beneficiary who can be a spouse or your child in case the insured dies. The payment is commonly referred to as a death benefit. When taking the policy, you will be required to list the name of your beneficiary(s).
Types of Life Insurance
There are two major types of life insurance:
- Term life insurance
- Whole life insurance
Term life insurance covers a specified period, for instance, 10, 15, or 30 years. If you die during this period of coverage, the insurer pays the beneficiary. On the other hand, whole life insurance covers you throughout your lifetime. You will be obliged to pay a certain amount of premiums to your insurer. The whole life policy has more uses than term life because it comes with cash value and you can borrow against it.
Both Parents Require Life Insurance
Studies have indicated that it is beneficial for both parents to have life insurance even if one is stay-at-home. While you may be working, your spouse provides essential child care services. Moreover, in case of demise, your spouse can comfortably take some time off to grieve, adjust, and regain footing with the coverage.
Amount of Life Insurance
To decide on how much coverage to buy, you need to base it on your family’s financial need when you are away. Chastain Agency Inc. will guide you through the process.
Beneficiary to List
When you take a life insurance policy, naming a beneficiary can be difficult, especially when your children are young. You can choose your spouse or appoint a trustee.
Chastain Agency Inc. takes pride in providing Gainesville, GA parents with life insurance. Contact us today for more information!