Life insurance is designed to protect your loved ones in the event of your passing. It’s often a morbid conversation to have, but a very important one. You insure things like your car and your home, why wouldn’t you insure the most important thing – your life?!
There are many types of life insurance (in a nutshell):
- Whole Life – permanent insurance in which you pay a set amount of premium for a set amount of time, and when you die, the benefit pays out to your beneficiary(ies); these policies are composed of a cash value component that allows for growth and some types offer dividends (not guaranteed)
- Term Life – non-permanent insurance in which you pay a set amount of premium for a set amount of time (say 10-30 years), and if you die during that term, the benefit pays out to your beneficiary(ies); this is typically the lowest cost of life insurance, because the death benefit is only guaranteed for a certain period of time
- Universal Life – permanent insurance in which the premium and the death benefit amount can change based on various factors; variable forms of this type of life insurance can contain investment risk(s), but generally, universal life has more flexibility than traditional whole life insurance
- Long-Term Care – can be a separate policy or a rider on certain life insurance policies; long-term care is designed to provide a maximum dollar amount for a set period of time for costs associated with long-term care, nursing homes, in-home care, adult daycare and other costs associated with certain forms of terminal illnesses
There are many components to every type of life insurance policy, so it’s important that you speak to us so we can get a good understanding of your needs and wants, and a strong picture of your current and desired financial state and goals. That way, we can build a type of policy that gives you exactly what you want (and can afford).
Texas Independent Insurance & Risk Management 