A Life Insurance policy can provide financial support to your family when you die. When seeing which plan works for you, you choose a term length, a payout amount and a beneficiary. Upon your death, your designated beneficiary will receive a sum of money from the insurance company in exchange for you regularly paying your premium.
Purchasing a Life Insurance policy is a big decision you shouldn't rush into. It's essential that you consider how much Life Insurance you and your loved ones require, what type of policy is best for you based on your needs and finances and choose an insurance company you can trust.
Whether you’re just starting out or you’re getting ready to retire, a Life Insurance policy can help you give your family financial peace of mind if you are no longer there to provide for them.
Different Types of Life Insurance
This type of Life Insurance is the most affordable option but only lasts a number of years, usually from 10 to 30 years. However, if you pass after the term length, your beneficiaries will not receive a payout.
Permanent Life Insurance lasts your entire life and pays out no matter when you pass away. Some types of Permanent Life Insurance allows you to withdraw funds early or change your payout amount over time. People that plan to leave their loved ones with an inheritance, choose this type of plan.
This type of Life Insurance is designed for end-of-life expenses, such as funeral and burial costs, medical bills, credit card debt and other expenses. Those who worry about burdening family members with outstanding bills or funeral costs, choose this type of plan.
What can Life Insurance cover?
When you pass away, the beneficiary on your life insurance policy can receive the death benefit in one lump sum and can use it for a variety of expenses.
Life Insurance Benefits
Life Insurance can help your family pay off the mortgage on your home — which is essential if they've depended on you to cover the monthly mortgage payments.
Whether your children are already in college or it's years away, it's crucial to factor in the costs associated with tuition and other educational expenses when choosing a life insurance plan.
Final Expense Insurance is designed to cover funeral costs and other related expenses, such as cremation, interment, medical bills and outstanding bills.
A Life Insurance payout can help your family with day-to-day expenses, such as utility and grocery bills, credit card balances and daycare costs.
Which Life Insurance policy is right for me?
In terms of coverage, experts recommend carrying Life Insurance that's 10 to 15 times your annual income if you can afford to do so. If you're trying to decide between a Term or Permanent Life Policy, this guide can help you decide.
Consider a 10-year term if you're looking to supplement another policy, are close to retiring or your finances are tight, but you want to provide your family some protection.
Consider a 20-year term if you've started a family or plan to soon, to provide a financial safeguard for your children until they reach the age of 18.
Consider a 30-year term if you don't have children or you have a child with special needs who will rely on your care even after they become an adult. Also, if you're carrying a mortgage or are the primary breadwinner, this may be the right option for you.
Consider a permanent policy if you prefer ongoing coverage, as well as the option to withdraw or borrow against your policy's built-up cash value.
Keep in mind that a Permanent Life Policy will cost more than a Term Life Policy. Also, the longer a Term Life Policy lasts, the more you'll pay.
Have additional questions? Call us (915) 585-8080 and let us help you choose the right plan for you.
CALL US TO GET YOUR
LICENSED IN TEXAS AND NEW MEXICO