Shopping for life insurance is challenging. The goal is to find the most comprehensive coverage at a competitive rate. Learn how to compare life insurance policies in Burlington, NC to find the right one.

The Purpose of Life Insurance

After you die, life insurance provides money to help your beneficiaries take care of living expenses, funeral costs, and bills. Some policies provide benefits when the policyholder is still alive, in the event of a debilitating injury or illness. Factors to consider when choosing life insurance include age, assets, and people who rely on your income for support.

Permanent Life Insurance

Life insurance involves little or no financial risk. Paying the premiums on-time ensures a guaranteed death benefit. Permanent life insurance policies, such as variable, whole and universal, build cash value while the policyholder is alive. Buying a whole life insurance policy at a young age often means paying a lower rate. However, the cost can increase significantly with age.

Term Life Insurance

Term life insurance renews either annually or in term periods of five, 10, 15, 20, 25, 30 or more years. The premiums may increase after each term, based on the policyholder’s age. A term life insurance policy has no cash value. But term life insurance is often less costly than permanent life insurance. There are also policies that are a combination of term and permanent life.

Life Insurance Premiums

Much like any other type of insurance, the level of risk helps determine life insurance premiums. Factors to consider include age, gender, and medical condition. People who use tobacco and engage in risky hobbies or occupations may pay higher premiums.

An insurance professional at Don Allred Insurance can help people find the right level of coverage for their unique budgets and needs. Contact Don Allred Insurance to learn more about comparing life insurance policies.