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If you are searching for a Houston TX Basic Life Insurance, give the insurance agents at Best Life Insurance Houston Agency a call. Our team of agents has over fifteen years of combined experience helping clients find a life insurance policy that meets the financial needs of your loved ones once you are gone.
The right life insurance policy secures the future of your family or beneficiaries once you have left this Earth. A life insurance policy also means that if you unexpectedly pass, your family is able to pay off your remaining debts and cover funeral expenses. Best Life Insurance Houston Agency makes it easy to select a policy and get the coverage you deserve.
What is Life Insurance?
In basic terms, life insurance is a contractual agreement that the insured will pay premiums to the insurer in exchange for death benefits that are paid out to a named beneficiary when the insured dies. Insurance companies take on risks when they agree to insure a person’s life. Some individuals present a lower risk because they are healthy and young. On the other hand, this risk factor makes it difficult for others, like patients who are terminally or chronically ill, to get coverage without paying high premiums.
Over the past several decades, life insurance has evolved for the better, offering a greater variety of personalized policies that fit the covered individual’s needs. Houston TX Basic Life Insurance is designed to offer financial assistance to your beneficiary when you pass. This includes helping them pay for funeral expenses and remaining debts or mortgages.
Additionally, many family breadwinners will tack on an additional amount that replaces their income in the event of their passing. Most insurance agents will recommend that you start with a policy that is ten times your current income, factoring in any raises you expect to receive for the duration of your policy. By the time you add your debts and funeral expenses to this amount, you will likely have a $200k policy or higher.
What Factors Can Affect My Premium Amount?
- Age: Life expectancy will largely determine your premium amount. The older you get, the greater chance your premiums will increase. However, if an exam shows a lack of health crisis, then they may only go up a little bit.
- Gender: Statistically, women outlive men, and for this reason, their premiums are typically lower.
- Health: Although not all policies require a medical exam, these are often a great way to keep your premiums low.
- Lifestyle: Like to live life on the edge? Whether that means you are a regular skydiver or free climber, expect your life insurance premiums to be high.
- Medical History: If your family has a history of major medical issues like diabetes or cancer, premiums could go up.
- Driving Record: Have a history of DUIs or traffic violations? Your recklessness on the road can cause your life insurance premiums to skyrocket.
Types of Houston TX Basic Life Insurance
Whole or Permanent
Permanent life insurance policies provide you with coverage for the duration of your life, as long as you pay the premiums as they are due. There are several types of permanent life insurance policies, but the two most common are whole life and universal life.
Each one varies slightly in its benefits, premiums, and flexibility. Most permanent life insurance policies are also considered ‘cash value’ accounts. This means there is a savings account element built into the policy. This savings can be used to pay your premiums, or it can be borrowed against. Keep in mind that doing the latter can result in a decrease in death benefits.
Whole life insurance pays a death benefit to your beneficiaries when you pass. You pay a specified premium in exchange for a specified death benefit amount. As you get older and the risk of your passing increases, your premiums may go up.
Universal life also has a cash value element built into it. Additionally, the policyholder can adjust the death benefits and premiums amount. This is where the cash value portion of this policy comes in handy. It can be used to pay your premiums. At the end of your life, your beneficiaries will receive death benefits. However, the insurance company keeps any remaining cash value in the savings portion of this account.
A term life insurance policy is a relatively flexible one that only lasts for a specific term. Once that term has ended, you can either renew the policy or opt for a different one. There are different types of term life policies, but most of them last for ten, fifteen, or thirty years. Which one you choose depends on your life circumstances, financial obligations, and future goals.
If you or a family member have received a difficult medical diagnosis, then a term life policy can give you peace of mind over the future. A ten-year policy, for instance, would ensure that if you pass, your loved ones are taken care of.
The majority of insurance agents will help you select a policy term that is based on the following guidelines, although this list is by no means finite.
- 10-year term: If you have short-term loans, a terminal illness, or teenagers in your household.
- 15-year term: For families with middle-school children, long-term debts, and for those who are entering retirement.
- 30-year term: Ideal for those with young children and long-term debts, like a 30-year mortgage. This makes it a great option for new homeowners.
- Temporary term: For individuals with older teens that will soon be able to provide for themselves. Also, a good selection if you have short-term loans.
Give Best Life Insurance Houston Agency a Call!
You can get more information about our business, personal, and retirement plans by visiting our website! And, give us a call if you need assistance in any way. We are here to help you find Houston TX Basic Life Insurance!
Houston, TX Fun Facts:
- Downtown Houston has 9-miles of tunnels that sit beneath it.
- The Port of Houston is one of the busiest in the country.
- The City of Houston is named for Sam Houston, a Texas Revolution hero.
- For more information about Houston, TX, visit the city’s website!