Life insurance might not be a requirement, but it’s a smart decision to have at any age. At Cross Creek Insurance Inc., serving Hope Mills, NC and the surrounding area, we offer homeowner’s, auto, commercial and life insurance policies to keep you, your family and business protected in every way we can. When you’re inquiring about life insurance and receiving a quote, there are a few aspects regarding this type of insurance you should know in order to make an informed decision. 

1. More Than One Type

Not all life insurance policies are the same type of policy. They classify as either a term or cash-value policy. A term insurance policy doesn’t have any investment component. You decide on the amount of coverage you need as well as how long you desire the coverage to stay in effect. Financial planners typically recommend purchasing a term policy and investing the difference between the cost of a cash-value premium and a term-insurance policy into a cash-value premium.  

A cash-value plan is a bit more confusing. The policy pays out upon your death, but during your life, it increases in value. This particular investment isn’t taxable, and you’re able to borrow against it or use it as a means to pay off policy premiums later in life. You’re also able to pass it to your heirs.  

2. How Much You Need Varies

The amount of insurance you need varies based on if the money will be used to replace your income upon your passing, if it’s going to be used to take care of your children and send them to college or if your spouse will require the money to pay off the mortgage. Basically, you’ll want to take into consideration how much of an impact your death will have on your family financially. 

To get a quote for a life insurance policy from Cross Creek Insurance Inc., serving Hope Mills, NC and the surrounding region, call us today at 910-423-2900.