Not sure where to start? Fill out our unique form and we will find the best life insurance for you.
Sometimes you’ll need a Houston TX million dollar life insurance policy to ensure your family’s livelihood remains intact. Getting life insurance is a surefire way to grant you and your family peace of mind after you pass. Life insurance is a way to protect your family financially, so nothing drastic happens after you’re gone.
Find a suitable Houston TX Million Dollar Life Insurance Policy for you and your family.
When you decide on getting life insurance, you want a general estimate of how much you need. The general rule is to get at least ten times your annual income. This amount may not come up to a million dollars, but you’ll also need to factor in a few other circumstances to your total as well.
Ironically, even dying costs money. There are several bills your family will need to pay off after you pass. Usually, it’s funeral and burial expenses and any remaining medical bills. Other times, your family can use the remainder to pay for other finances like paying off debt, student loans, or mortgages.
If your family doesn’t need to pay off anything, they can choose to use the money for other needs. They can use your death benefits to maintain or buy a new house, send your children to college, buy a new car, or pay other medical bills. They may also use the payout to cover any income loss and essential childcare.
Therefore, you’ll need to factor in many circumstances, both present and potential future ones, while estimating how much insurance you need.
Deciding on a Houston TX Million Dollar Life Insurance Policy
Million-dollar life policies don’t sound so outlandish now that you include all the extraneous factors. You have two options for general life insurance: term or whole life insurance.
Term life insurance is temporary life insurance. They last for a period of time or term, if you will, usually between 10 to 30 years. Typically, they offer level premium and death benefit amounts, meaning you won’t pay differently throughout the term’s lifespan. Generally, term policies are the most affordable option.
However, they’re the most affordable because they don’t offer much besides the death benefit. Even then, if you don’t die within the term, you won’t receive the benefits. Most who buy term life insurance tend to live past the lifespan of their policy. There are options to convert or renew your term insurance, but you’ll need to make sure the policy you choose has those available.
Whole life insurance is a type of permanent life insurance. You’ll have protection for a lifetime. With level premium and death benefits, your policy will also be able to accumulate cash value. This type of policy can invest money into a cash-value account, so it grows over time.
You can access the cash value by withdrawing it directly or as a loan. With it, you can pay for any emergency funds, bills or supplement your retirement fund. This cash value won’t affect your premiums or death benefit.
Another Option: Universal Life Insurance
Although term or whole insurance are the two standard options, there are a few others. One of them is universal life insurance.
Like whole life policies, universal life policies are a type of permanent life insurance. The most significant difference, however, is in its flexible premium and death benefits. If necessary, you may be able to alter the amount of your premium later down the line.
Consider Best Life Insurance Houston Agency for your life insurance needs.
This flexibility is dependent on how much cash value your policy has. If it doesn’t have much cash value, you may not be able to change your premium amounts. The way it works is that you can use the cash value to pay all or a portion of your premium. And you can continue doing so as long as your account has enough cash value.
Depending on the policy you take out, there may be a difference in how your cash value accumulates. Examples of universal life policies like this are either index universal plans or variable universal plans.
Who Needs It and How Much It Usually Costs
Before you decide, you need to figure out if you’re eligible for a Houston TX million dollar life insurance policy. Life insurance companies usually use a combination of your age and income to determine if you can qualify for the amount you want. The amount is generally between ten to 30 times your annual income, with some variation depending on your age. Usually, the younger you are, the higher the chance you’re eligible.
As stated earlier, the general rule of thumb for estimating how much coverage you need is ten times your annual income. However, you’ll also need to factor in other personal circumstances. You’ll want to think about if you’re paying a mortgage or other large debts, childcare and education, healthcare, funeral costs, and other final expenses.
You don’t want to lowball it, just in case, your family will need the extra money to make it through. But you also don’t want to set it too high since that’d be a bit excessive.
If you decide that a million-dollar policy is appropriate for your situation, you’ll find they’re pretty affordable. The bottom line on how companies determine premiums are four things: your age, health, coverage amount, and policy length.
Usually, the healthier and younger you are, the cheaper the amount. Most policies require a medical exam to confirm your health and are the first step to determine your eligibility. The more extended and more extensive the coverage amount, the more expensive it can get.
Buying that Million Dollar Policy
Consider different types of life insurance to find the right one for you and your family.
Coming to a decision about how much life insurance coverage you want may be daunting. However, there are life insurance agents that can help determine the amount of coverage you need. They can narrow down the many choices before you and offer you advice on what you should look out for with their expertise.
If you think that you really need a million-dollar policy, you should sit down with an expert to review all your options. Contact the experts with Best Life Insurance Houston Agency to ask about your possible Houston TX million dollar life insurance policy options.
Houston, TX Fun Facts:
- Houston is the only major U.S. city without zoning ordinances, which allows for more flexibility in land use planning.
- Houston’s business district, known as the Energy Corridor, has offices and headquarters of over 300 companies.
- The tallest building in Texas is the JP Morgan Chase Tower, at 1,002 feet and 5 sides.
- Houston has an underground tunnel system for pedestrians that connects to many major stores and restaurants.
- For more information, visit Houston’s official site.