Ah, life! Life is full of wonderful memories, sunny days, and good times, but it also comes with its fair share of surprises. At G&G Independent Insurance, we’re here to help you prepare for those surprises and unexpected changes. Whether you’re shopping for life insurance in Arkansas or simply learning more about your options, these tips will help guide you in making the best decision for you and your family.
Understand Why Life Insurance is Necessary
Life insurance may feel overwhelming at first, but understanding why it’s necessary is the first step. Simply put, life insurance provides financial support for your dependents if you are no longer around to support them. If there’s someone in your life who relies on your income, it’s worth considering a life insurance policy. By taking stock of your personal and financial situation, you’ll be in a better position to shop for a policy that meets your needs.
Know The Difference Between Term and Permanent Life Insurance
Navigating life insurance lingo can feel like a challenge, but don’t worry—we’ve got you covered! The two main types of life insurance policies you’ll encounter are permanent and term life insurance.
As our expert Account Specialist Stacy Wineland puts it:
“A permanent life policy is like buying a house, while a term life policy is more like renting.”
Permanent Life Insurance:
A permanent life policy provides long-term coverage. It’s designed to last for your entire life, as long as you continue paying your premiums. The added benefit is that a portion of your premium may be invested, helping you meet financial goals. In some cases, you can even take out a loan against your policy if you face financial challenges.
Term Life Insurance:
On the other hand, term life insurance offers temporary protection for a specified period. If you pass away during the term, your beneficiaries receive the death benefit. However, if you outlive the term, your coverage expires, and you’ll need to find a new policy. The major benefit of term life is that it is usually more affordable than permanent life insurance. However, it doesn’t allow you to invest or borrow against the policy like a permanent plan does.
Not Sure Which Is Right for You? Compare Term and Whole Life Insurance!
Confused about whether term life insurance or whole life insurance is right for you? Check out our detailed comparison on term vs whole life insurance to learn more about the pros and cons of each. This guide will help you decide which one fits your lifestyle, goals, and budget.
Compare the Life Insurance Policies that Are Best for You
Now that you’re familiar with the basic terms of life insurance, it’s time to dive into choosing the right policy. Ideally, your need for life insurance will be greater early in your career and when you’re starting a family. Over time, as you accumulate assets and liabilities decrease, your need for life insurance may lessen.
Additionally, you might want to consider a term life policy if you anticipate that your dependents will become financially independent in the near future. You can tailor your term policy to expire around the time your children no longer rely on your support.
Decide How Much Life Insurance to Buy
As a general rule, life insurance coverage is typically recommended to be 6-10 times your annual salary, but your actual needs may vary based on your dependents, debts, and financial goals. For example, if you’re 50 years old, make $40,000 per year, and plan to retire at 65, you might need around $600,000 in coverage to ensure your loved ones are financially supported.
Still Feeling Overwhelmed? Let’s Chat!
We know this can be a lot to process. If you’re ready to take the next step and want to discuss your life insurance options, don’t hesitate to reach out to one of our Insurance Advisors at (479) 289-8399 for personalized advice and quotes.
Ready to find the right life insurance policy for you? Get a free quote today!
Last updated on May 7, 2025.
