The life insurance policy in Texas should be brought by considering your age and the assets that you have. It is very important to buy adequate coverage ( HarrinGroup.com/Life-Insurance ) so that those who are dependent on you can continue with the same living standard when you are no more.
The life policies are broadly classified into two types.
Term life insurance
The term insurance plans in Texas offer pure insurance cover and this does not let you create or grow your wealth. The policy is fairly simple to understand and the premium that you pay towards the term plan is also low. The term plans are further categorized as under:
• The annual renewable term plan is a one-year term plan and here the premium keeps getting adjusted every year based on the age at which you renew the policy.
• The level term plan is sold in term periods of 5,10,15,20 or more years. While some policies do not change the premium all through the term there are others that change the premium amount after a certain number of years.
The term plans in Texas only offers death benefit. Your beneficiaries get the sum assured value in case you die within the term of the insurance policy. If you survive the term then you do not get anything. There is no saving component that is attached to the term plan.
Permanent life insurance
The permanent life insurance policy in Texas offers you coverage for a longer period of time and these also come with some additional benefits. The premium amount is also higher in a permanent insurance plan.
The plan offers insurance as well as a saving component. The amount can be withdrawn or borrowed.
The permanent life policies are further divided into two categories:
• Whole life insurance plan stays effective all through your life until you cash in the sum assured value or stop paying the premium towards the policy. The premium amount is fixed when you buy the policy and the policy gets renewed by itself.
• The universal life insurance policy lets you choose the coverage amount, the premium amount and the cash value that you aim to build up. The policy offers the flexibility to change the payments towards the premium and lets you make withdrawals or take loans. Take care to note that the change that you make to the policy will change the coverage amount that it offers.
It is recommended that you buy the permanent insurance policy ( HarrinGroup ) at a younger age. This lets you benefit from a lower premium amount.
The permanent life insurance policy charges a higher premium than the term insurance policy. This is because of the additional benefits that the permanent life insurance policy offers.