When you’re searching for life insurance in Kingwood, TX the two major types of life insurance you need to consider are term life insurance and whole life insurance. Here’s what you need to know about these types of life insurance policies and their benefits.
What Is Whole Life Insurance?
Whole life insurance is insurance that provides coverage for your entire life. The premium for whole life insurance will remain the same, but the premium for this insurance is higher than the premium for term life insurance. There is an investment component in whole life insurance policies known as "cash value". The cash value of this type of policy grows at a steady, guaranteed rate throughout the life of the policy. Over time, you can borrow money against this policy or surrender the policy for its cash value.
What Should You Consider When You Are Shopping for Whole Life Insurance?
When you are shopping for whole life insurance, there are a few factors you need to take into consideration:
- How much money your family will need to maintain their current lifestyle if something were to happen to you
- The amount of cash value each policy will accrue over time
- Considering if you have a beneficiary who will require the security of the death benefit throughout your life
With whole life insurance, you will be able to receive annual dividends from your insurance companies, such as Boss Insurance Agency.
What Is Term Life Insurance?
Term life insurance is an insurance policy that provides a death benefit payment to the beneficiary if the policyholder passes away within the insurance policy term. The terms of this type of life insurance policy are 10, 20, or 30 years.
One of the benefits of term life insurance is that this type of insurance premium is inexpensive, making it easier to purchase more coverage at once. Like whole life insurance, the premium for term life insurance will remain the same throughout the policy term.
What Should You Consider When You Are Shopping for Term Life Insurance?
When you are shopping for term life insurance, consider these three factors:
- The length of term that best fits your family’s needs
- The amount your family would need to maintain their current lifestyle if you passed away
- What you will do once your insurance policy expires
In Kingwood, TX, it is important to have a life insurance plan in place to cover funeral expenses and provide for your family when you pass away. At Boss Insurance Agency, we provide a variety of insurance policies. Contact us to learn about our insurance policies and how we can help you.