Houston TX Voluntary Term Life Insurance

If you are searching for Houston TX Voluntary Term Life Insurance, look no further. Best Life Insurance Houston Agency has a voluntary term life policy that will fit your budget and provide care for the workforce you rely on.

The agents at Best Life Insurance Houston Agency have a combined fifteen years of experience helping families find the coverage that is right for them. Life insurance is designed to cover the financial stress that comes with losing a loved one.

Death benefits are often used to cover funeral costs, leftover debts, and as an income replacement. These benefits can also be used to cover medical bills associated with the passing of a loved one. You can get the peace of mind you deserve by purchasing a life insurance policy.

Life Insurance Overview

Life insurance is a contract signed between an insured individual and an insurance company. In exchange for paying a monthly premium, the insurance company pays death benefits to beneficiaries of the insured when they pass.

Sounds straightforward, right? For the insurance company, it’s a little more complicated. When an individual applies for coverage, the insurance company must look at several factors in order to determine the risk of covering that person.

For instance, does their family medical history include diseases like cancer or diabetes? Are they a smoker? Do they have a terminal or chronic illness? These are questions that can determine whether a person is eligible for coverage and what their premiums will be.

The risk factor makes it difficult for some people to receive coverage. However, in the past decade, the life insurance market has changed for the better.

Most companies now offer guaranteed issue and special considerations policies that are for those who have previously been denied coverage. After all, those with a terminal or chronic illness deserve the same peace of mind as a healthy person, right?

What Is Houston TX Voluntary Term Life Insurance?

Houston TX Voluntary Term Life Insurance is an optional type of life insurance policy that an employer provides to their employees. Some employers will pay the full premium amount, but when you opt-in for this coverage, be ready to pay a portion of the premium yourself.

It is important to understand that, while employer-provided life insurance might be cheaper than individual policies, it does not always provide the coverage you need.

This is because voluntary term life is a guaranteed issue policy, which means they do not turn down anyone for coverage. As a result, the death benefits are more limited than if you were to purchase a policy specifically catered to your needs.

Fortunately, there are additional, supplemental insurance policies that you can attach to your employer-provided policy. Agents call this policy a ‘rider.’ Generally, you must purchase a rider alongside the primary life insurance policy. And, it is important to know that these are only supplementary policies.

Types of Voluntary Policies

There are two types of voluntary life insurance: term and whole. Term life insurance is a policy that provides coverage for a specific amount of time, usually ten, fifteen, or thirty years.

You can choose a term length based on things like age, debt, and family members. When the policy term comes to an end, you either opt for another policy or renew your current one. With a renewal, expect the premiums to go up.

Whole life insurance, on the other hand, is a type of permanent life insurance. This means it lasts for the entirety of your life, as long as you pay the premiums. There are instances where the premium amount will not increase, however, it is better to expect that it will as you age.

Whole life policies are also called ‘cash value’ policies because there is a savings account built into the policy. When you pay your premium, a portion of it goes into this account.

You can borrow against this account, and as long as you pay the loan back, your death benefits should not decrease.  However, know that any ‘cash value’ in your account when you pass goes to the insurance company, not your beneficiaries.

Riders for Voluntary Life Insurance

An insurance rider is basically a supplemental insurance policy. In the same way you might purchase flood insurance for your home, you can purchase additional life insurance policies. These amend your principle policy to include extra benefits. These supplemental policies tend to come at a low cost.

Accidental Death & Dismemberment (AD&D)

One example of a life insurance rider that pertains to Houston TX Voluntary Term Life Insurance is accelerated death and dismemberment (AD&D).

This type of policy provides its holder with a cash benefit amount in the instance that they lose a limb that keeps them from working. It also covers accidental death, which includes a death caused by: Fire, an auto or plane accident, or drowning. Typically, this policy does not include coverage for self-inflicted death, illness, or homicide.

Accelerated Death Benefit (ABD)

You can purchase this rider in addition to your voluntary life insurance policy. Primarily, those that will purchase this rider are terminal patients who do not have long to live.

Having an ABD rider allows the covered individual to withdraw cash advances against their principle policy so that they can pay medical bills and have a quality of life until the end. Agents sometimes refer to this rider as a living benefit, a terminal illness benefit, or an accelerated death benefit.

Houston TX Voluntary Term Life Insurance

For more information about our personal, retirement, or business policies, visit our website! You can also contact one of our friendly agents by calling our office today! We look forward to helping you find a life insurance policy that fits your budget and needs. Let Best Life Insurance Houston Agency help you determine whether Houston TX Voluntary Term Life Insurance is right for you.

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