Houston TX Term or Whole Life Insurance

If you are in the process of comparing Houston TX Term or Whole Life Insurance policies, let the agents at Best Life Insurance Houston Agency help you find the right one for your needs. Our agents have over fifteen years of experience providing exceptional service to clients from all walks of life. Our goal is to help you find the policy that gives your family financial freedom when you’re gone.

What Exactly is Life Insurance?

Ask yourself: Houston TX Term or Whole Life Insurance?

Life insurance is a contract between two parties: the insured and the insurance company. The covered individual pays an agreed-upon premium and, in return, expects the guarantee that beneficiaries will be given certain death benefits. Best Life Insurance Houston Agency is dedicated to making it affordable and straightforward to select a life insurance policy that takes care of your family when you are gone.

Life insurance is designed to provide your loved ones with financial security when you pass. Death benefits are typically used to cover funeral expenses and remaining debts. It can also be used to replace your income, pay off medical bills, or for childcare expenses.

This sounds like a relatively simple process; however, it is actually quite complicated on the side of the insurance company. The bottom line is that insurance companies take on a significant amount of risk when they insure a person’s life.

The majority of individuals will have no issue getting coverage, and their premiums will be low as a result. However, for cancer patients and terminally or chronically ill individuals, coverage is a different story. In fact, having a life-threatening illness is grounds for an insurance company to deny you coverage.

Over the past decades, life insurance has experienced significant changes, and for the better. There are alternative policies that are geared toward individuals that have been denied coverage in the past due to a health condition. After all, doesn’t everyone deserve the same peace of mind that comes with knowing your family is taken care of?

Are There Things that Affect My Premium Rates?

Think about the way your car insurance works. You pay a premium for coverage, and if you get a traffic violation or are in a wreck, your they might go up. In this same way, a life insurance company must base its offer of coverage and premiums on a number of factors, including the person’s health, family medical history, age, and so forth.

The following are several factors that can affect your premiums and coverage acceptance:

• Age: Life expectancy will determine your premium amount. The older you become, the greater chance your premiums will increase. However, if your medical 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 almost always lower.
• Health: Not every policy requires a medical exam. However, 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 drag racer, expect your life insurance premiums to be high.
• Medical History: If your family has a history of significant 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.

Comparing Term or Whole Life Insurance Policies

Term Life Insurance

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This is a type of life insurance policy that lasts for a specific number of years. Usually, this time frame is either ten, fifteen, or thirty years. However, some companies will work with you to customize a policy based on your needs. When the term of your policy ends, you can either renew or opt for another type of policy.

Most people prefer a term life policy because it is more flexible than a permanent or whole life one. The majority of insurance agents will recommend that you base your policy term on several factors: current life situation, financial obligations, future goals, and health. If you’re wondering which term might be right for you, here are some basic guidelines:

• 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 an excellent 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.

Whole Life Insurance

If you choose to purchase a whole life insurance policy, there are several key things you will want to know. First, this type of policy lasts your entire life, or as long as you pay your premiums. Allowing a lapse in coverage can affect your death benefits and premium rates. Before you let that happen, discuss concerns with your insurance agent.

Second, you will often hear agents refer to a whole life policy as a ‘cash value’ account. This means that a savings account is built into the policy. When you pay your premium, most of it goes to your life insurance benefits, while the rest goes to the cash value account.

You can borrow against this cash value, and as long as you repay the loan, it won’t count against you. Furthermore, it is essential to realize that the cash value savings is not part of your death benefits. When you pass, anything left in this account will go to the insurance company, not your beneficiaries.

Houston TX Term or Whole Life Insurance?

If you need help determining which account is right for you, don’t hesitate to contact the agents at Best Life Insurance Houston Agency. We are here to help you plan for the future.

We’ll Help You Choose Between Houston TX Term or Whole Life Insurance

For more information about our retirement, personal, and business plans, visit our website. You can also reach a friendly team member with questions by calling us today. Let our team help you answer the question: Houston TX Term or Whole Life Insurance?

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