It’s easy to see why health insurance is important: medical bills can quickly spiral out of control, causing financial hardships and even bankruptcy. Health insurance prevents that from happening by limiting your liability. But when it comes to life insurance, sometimes people have a hard time figuring out why they should have it.
It’s simple, really: life insurance protects the ones you love from financial peril after you’ve left. We talk about why you should have life insurance in detail in another article, but let’s focus here on what kind of life insurance you need.
When it comes to Georgia life insurance, you’ve got two main options: term and whole life. Universal life, a more complicated product, will be discussed in its own article later.
Our first Georgia life insurance option is term life insurance.
Term life is the simplest type of Georgia life insurance to understand: you select a face value (the amount that the policy will pay out in the event of your death), and you select a term (the length of time your policy will be effective). If you pass away during the term that your Georgia life insurance is effective, then the policy will pay the full face amount. Term is the cheapest type of Georgia life insurance – hundreds of thousands of dollars of coverage can be purchased for very low rates. The downside, however, is that once your Georgia life insurance term policy’s term expires, you’ll either have to renew your policy at significantly higher rates or convert to a new plan.
Term Georgia life insurance is best for young individuals looking to cheaply insure their lives as they build a solid economic foundation. Buying a term Georgia life insurance policy at a young age can lock in a great rate for twenty or thirty years and guarantee that you’ll be able to get another Georgia life insurance policy down the road. It’s also great in addition to another type of Georgia life insurance policy when you want to add a little extra protection for a set amount of time – for instance, adding an extra $100,000 of Georgia life insurance to your coverage for ten years to make sure that, should something happen to you, your child would undoubtedly be able to afford college.
However, when you get into your forties and fifties, it’s a good idea to explore whole Georgia life insurance. This is because term Georgia life insurance may only be renewable to 75 or 85 (depending on the company) years of age – outliving your Georgia life insurance means that your protection won’t be there when you need it. Converting to whole Georgia life insurance guarantees that your plan will be there and in-force when your family needs the protection.
Whole Georgia life insurance works a little differently than term Georgia life insurance. Here, your only concern is the face value of the policy. Whole Georgia life insurance comes with a higher investment than term Georgia life insurance, but you’ll have protection that lasts your entire life and that builds cash value. Whole life insurance is what most people mean when they talk about “final expense” or “burial insurance” – these policies are smaller, but guaranteed and more stable than term policies.
Within these two types of Georgia life insurance policies, you’ve got two “sub-options:” medically underwritten and non-medical Georgia life insurance.
Medically underwritten policies are policies with a longer application, a more rigorous set of health criteria, rates dependent on health status, and often a requirement for a paramedical examination. These Georgia life insurance policies generally have higher face values at lower premiums because the company issuing the policy is better informed about your health status. Medically underwritten policies are the best Georgia life insurance option for healthy individuals who have had a physical within the last one or two years and who don’t mind the slight inconvenience of filling out a slightly longer Georgia life insurance application and submitting to an examination.
Non-medical Georgia life insurance policies are slightly more expensive, but much easier to obtain. Applications for non-medical Georgia life insurance policies have few or no health questions, do not require a lengthy application, do not require a medical examination, and can be issued much more quickly than medically underwritten Georgia life insurance plans. Non-medically underwritten Georgia life insurance policies are best for individuals who haven’t had a physical within the past couple of years or for individuals who have a few health issues that would drive the rates of medically underwritten policies too high.
Georgia life insurance is offered by many, many different insurance companies, and it’s not always easy to figure out which one is the best for you. However, you’re in luck – as a Georgia life insurance expert, it’s my job to help you figure out what type of Georgia life insurance you need, how much coverage you should have, and which company will offer you the best rates. Now that you’ve learned a little bit about Georgia life insurance, take a second to let me know how I can help you protect your family by filling out this short form. As always, your information will be held in the strictest confidence, never shared or sold. My only goal is to help you find the Georgia life insurance policy that will best insure your family’s financial future.