Get A Policy helps you find the Texas insurance policy to best suit your needs. If you have an interest in getting a quote, then read our introduction to the basics of life insurance, then answer a few questions about yourself in the form to get a life insurance quote.
Term Life Insurance
If you’re looking for a basic life insurance package, you probably want to get a life policy which includes term life insurance. This covers the all the essentials and is also the cheapest type of life insurance.
You pay a fixed rate over a specific time-frame (ex. 10/20/30 years) and the insurance company will pay out a lump sum if you die within that time-frame. These policies insure your life, but do not provide any additional form of investment.
If you want to guarantee a payout until age 100 or longer, perhaps a form of permanent life insurance is best for you. These poilcies do not expire and they also build up savings. There are two popular types of permanent life insurance:
Whole Life Insurance
You’ll get a guaranteed payout on your death, as long as you continue to make your payments, so these plans are sometimes known as ‘whole of life insurance’. In addition, your payments also build an investment fund which can be withdrawn or borrowed against. This cash value remains tax-deferred until you take advantage of it.
As your beneficiaries are certain to get an insurance payout and you will be creating an investment fund, whole life policies are usually more expensive than term insurance.
Universal Life Insurance
Universal life insurance is a permanent life insurance with added flexibility. As with whole life, it also invests a part of your premium in a tax-deferred, interest accumulating savings account, but additionally it allows you to use the interest from this to pay your monthly premiums. The policy will cover your whole life too, not just a fixed term.
You can review the allocation of your payments into the death benefit and into the savings portion of the policy at any time, and can also move money between the two. This flexibility means universal life insurance is more advantageous for those who are looking for a longer term plan, because your premium will start high and it will take time for the investment to start paying for itself.
Hopefully this overview of life insurance helps you and your family in making the best choice.
Multi-Policy Discounts Available
Our life home insurance discounts offer extra advantages when you want to get a life policy and combine that with your Texas home insurance coverage. We have the most affordable rates on insurance in Texas.