Some types of insurance are required by the state or lenders, but some types are optional. One of these is life insurance. Boss Insurance Agency assists the greater Kingwood, TX area residents with this vital coverage.
How do you know if you should get life insurance? Below is the answer to that and more common questions about life insurance.
Life Insurance FAQs
Do I need life insurance?
It depends on a few factors. If you are the main income provider and your family or dependents will suffer financially if you die, it would be a good idea to get life insurance. If you do not largely contribute to your household’s income, it doesn’t make sense to get a policy.
What is the difference between term and permanent life insurance?
There are a few different types of life insurance. The most common types are term and permanent life insurance. Term life insurance means you are insured for a certain period of years before it expires. Permanent life insurance lasts for the rest of your life until you die and has the option of cash value.
How much life insurance should I get?
It depends on your income and your net worth. People use a few different formulas to determine how much life insurance to get. You can multiply your annual salary by ten. Another way is to multiply your salary by ten and add college for each child. Some people use another formula called DIME. DIME stands for debt, income, mortgage, and education.
What types of life insurance are there?
There are three types of life insurance. These include term, permanent, and universal.
Give Us A Call
If you are in the market for life insurance, give us a call at Boss Insurance Agency in Kingwood, TX.
Life changes, and with it, your life insurance needs may change as well. Reviewing and updating your policy regularly ensures your family is always taken care of in Kingwood, TX.
There are a few critical life situations that require changes to your life insurance policy:
Getting Married or Divorced
If you get married, you will probably want to increase your life insurance coverage to ensure your spouse is taken care of financially during your death. If you get divorced, you may wish to remove your ex-spouse from your policy, so they are no longer covered. Also, if you are the primary breadwinner in your family, you may want to increase your coverage so your spouse and children can maintain their current lifestyle if you pass away unexpectedly.
Having a Baby
When you have a baby, you will want to increase your life insurance coverage to ensure your child is taken care of financially should something happen to you. A benefit of life insurance is that it can also be used as a savings vehicle for your child’s future education.
Your Boss Insurance Agency can help you with any changes you need to make to your Kingwood, TX life insurance policy.
If you change jobs, your life insurance needs may change as well. For example, if you leave employment providing life insurance coverage, you will want to consider purchasing a policy on your own. Alternatively, if you take a new job that offers life insurance coverage, you may want to decrease your coverage since you will now have some coverage through your employer.
A Boss Insurance Agency expert can help you assess your life insurance needs based on any life changes.
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.
Have you ever wondered what would happen to your dependents if you weren’t there? It would be difficult, but life insurance would help them manage their financial obligations. Unfortunately, most people think that they don’t need life insurance — but they are wrong. Others think that life insurance is for the old and those with chronic illnesses — they are wrong, too.
Given that life insurance is one of the most misunderstood topics, Boss Insurance Agency of Kingwood, TX has taken time to dissect life insurance to its basics. Here is what you need to know about life insurance.
Types of life insurance
There are different types of life insurance policies, but they are broadly categorized into two, namely:
- Term life insurance: This coverage protects for a limited period. It could be 10, 15, 20, or 30 years. Most people start with this policy because it’s the most straightforward and affordable policy.
- Whole life insurance: This coverage is for a lifetime and has other subcategories. Your beneficiaries get death benefits when you pass on. However, you can still benefit from this coverage when you are alive. It accumulates a cash value that you can borrow against or supplement your retirement income.
Who needs life insurance?
Life insurance isn’t about dependents only — other categories of people need it too. You need life insurance if:
- You have debts
- Own a business
- Want to live an inheritance
- Love peace of mind
- Want to finance your final expenses
The best time to buy life insurance is now
Don’t wait to buy life insurance when you are old and weary — it will be expensive and won’t accumulate as many benefits. The best time to purchase life insurance is today — and if you are young, it’s even better because the premiums are more affordable.
Buy life insurance in Kingwood, TX
Would you like to buy life insurance to protect what matters most? Why don’t you get in touch with Boss Insurance Agency? We will choose for you a life insurance plan that suits your budget and other needs.
When you think about your future, you may not think about your own death. It may be uncomfortable to plan for it in advance, but you should be prepared for it, especially if you have people who depend on you financially. The best way to prepare for it is to get life insurance. If you still doubt whether you need to buy a life insurance policy or not, Boss Insurance Agency, serving Kingwood, TX, has prepared a list of reasons why life insurance is important:
Reasons To Have Life Insurance
- Paying off your debts. If you have any debts, including your mortgage or car loan, life insurance will help pay them off. That means that your loved ones will not be left with unaffordable bills.
- Covering funeral expenses. Funerals are expensive. Today, the median cost comes in at $7,640, and this figure does not even include ceremony preparations and cemetery costs. If you do not want your family members to worry about affording your burial, then getting life insurance is the right thing to do.
- Funding your spouse’s retirement. Most likely, your spouse has their own retirement account. However, if you were a breadwinner, your retirement savings may not be enough to live a comfortable retired life after your death. Therefore, a death benefit can become great financial support.
If you are currently looking for the right life insurance policy but do not know where to start, Boss Insurance Agency, serving Kingwood, TX, and other surrounding towns will be glad to help you. Our insurance company offers various insurance options, and our qualified insurance agents are ready to answer all your questions. All you need to do is visit our website or give us a call.