What happens if the unexpected happens? It’s not something we’d like to always think about it, but is important to prepare.
A loved one’s sudden passing is emotionally devastating. However, it could potentially be financially catastrophic as well. Paying for the mortgage may become difficult. Being able to pay for a child’s college education is suddenly thrown in doubt.
However, with a Katy life insurance policy, term or permanent, you can ensure that your loved ones are taken care of financially if they are faced with having to go on without you. A life insurance policy provides a lump-sum payment to beneficiaries upon your death. This payment is called a death benefit. In exchange, you make periodic payments called premiums.
There are many factors to determine your life insurance policy premium. Among them are age, gender, medical history, and the dollar value of the purchased policy. Moreover, you have certain wants, needs, and goals to consider.
In the event of your passing, the lump-sum payment of your Katy life insurance is distributed directly to the named beneficiaries in your policy. Your beneficiaries will be able to use the money however they wish. It could help towards:
- Replacing the income lost from your passing
- Paying living expenses
- Resolving debts and taxes
- Paying for funeral expenses
- Paying for college education
The Texas Insurance Agency can review available coverage options and tailor the right policy for you based upon your priorities and budget.
Available types of life insurance
Insurers typically offer two categories of life insurance policies: term and permanent.
Term life insurance guarantees a death benefit payout if the insured dies during the specified term. This policy has no other value than the dollar amount of the guaranteed health benefit. Premiums of term life insurance are lower than comparable permanent life insurance policies (such as whole life and universal life).
Term life insurance policies can last for various lengths, such as 10, 20, or 30 years. If the insured does not pass away before the expiration of the policy, there will be no payout. The insured has the option of renewing the policy or converting to a permanent insurance policy.
Permanent life insurance stays in effect throughout your lifetime (or until the policy matures), as long as you pay your monthly premiums. These policies accumulate a cash value.
Depending on your policy, your premiums may stay level and your benefits do not decrease. You can also select available policies that offers flexibility in regards to premiums and face value amounts of your policy. Moreover, depending on your policy, the accumulated cash value may be accessible for certain purposes while you’re still alive.
Texas Insurance Agency can help select the right policy for you
Life insurance completely depends on you. Policies have various forms and features available. Therefore, Texas Insurance Agency can tailor your Katy life insurance policy based upon your wants, needs and financial considerations.
Texas Insurance Agency works with numerous life insurance providers such as Farmers®, State Farm®, Fidelity®, Liberty Mutual®, and more. By working with numerous providers, Texas Insurance Agency can offer you the most fitting coverage at the best premiums available.