When you are shopping for coverage, investing in life insurance protects your loved ones and gives them the resources to continue living comfortably if something happens to you. However, these policies can be confusing if you have never purchased one before, so you may have trouble finding the right coverage for your needs. Below are answers to some common questions you might have.

What You Should Know About Life Insurance

What does it cover?

Life insurance pays the value of the policy to your named beneficiaries if you pass away while it’s in effect. This money can be used for anything your family needs, including paying for your funeral, the home's mortgage, college tuition, or any outstanding debts that you had. This ensures they don't have to pay out of pocket for these expenses.

What are the differences between term & whole life policies?

Term-life policies provide coverage for a specified period, usually 10 or 25 years. When the term passes, you can extend the policy at a higher premium or allow the coverage to expire. These policies only pay out if you die during the active term.

On the other hand, whole-life policies never expire as long as you pay the premium. While these policies tend to be more expensive, they also include a savings component that builds value over time. Every month, a portion of your premium is invested in an interest-bearing account. In the future, you may withdraw or borrow those proceeds to fund major purchases or cover emergencies.

When should I consider life insurance?

While everyone should carry some life insurance, the amount of coverage you need changes as your responsibilities grow. For example, if you’ve recently gotten married, bought a house, or had a child, you should increase your coverage so that you can provide for your family after you pass away. If you want a whole-life policy, purchasing coverage when you are young is the best option because your premiums will often be lower.

Do I need to buy a separate policy if my employer offers one?

Life insurance is a popular employee benefit, but the policy limits aren’t enough to meet most people’s needs. Most will only replace your income for one or two years, which can make it difficult for your family if you have outstanding debts. If you plan on leaving behind enough for your spouse to pay off the mortgage or send your kids to school, you’ll need a private, supplemental policy.

When you need a reliable life insurance policy, contact Hummel & Plum Insurance Agency in Chillicothe, OH. For over a century, they have been helping clients throughout Ohio protect what matters most. They work with a range of leading insurers, so they can shop around to compare options and find coverage tailored to your needs. Visit the website for more information about their services. Call (740) 773-1620 to request a quote.