No one enjoys thinking about the finality of death. As the old adage states, though, it is inevitable. The end of the road for us doesn’t mean the end of the road for the ones we care about. Our families are left to deal with funeral expenses, paying off assets, and trying to figure out how to pay the monthly bills with a loss of income looming. It seems like everyone has there hand out wanting money these days, so budgeting for a term life insurance plan is something that often gets put on the back burner. However, term life insurance can be affordable if you look in the right places. We are here to simplify the process for you and help answer any questions you may have.
Finding term life insurance in Texas can be a difficult, time consuming task. Long gone are the days of thumbing through the back of the phone book and calling different companies to compare quotes and options. In the age of the internet, information is available at the click of a mouse. This is a good thing–and a bad thing. With information comes misinformation, scams, and confusion. Don’t get caught up in the tangled web of the internet. Let us help you on your search for term life insurance.
In general, term life insurance policies are less expensive and easier to understand than their permanent counterparts. Most term life insurance policies can be classified into one of two categories:
Annual Renewable Term
Annual renewable term policies are generally one year in length. Based on how old you are at renewal, the premium changes every year in which you update the policy. One advantage of this type of term life insurance is cheaper premiums. If you are looking for a policy you can afford without being tied down to an expensive long term premium, this could be a good fit for you. This provides inexpensive asset protection in the event you should die during the period in which you are covered. Lastly, because you are classified as having term life insurance, there is no re-qualification upon renewal. If you develop a life-threatening disease, your new policy will not be rejected.
The second type of term life insurance policy is called level term. These policies are sold with terms from 5 to over 30 years, depending on what is the right fit for you. These policies are designed to have a set premium during the whole term. Some policies note that the premium will change after a certain amount of years, so it is important to know the ins and outs of your specific policy. In general, the longer the set term, the higher the premiums. Many policies also offer an option to convert to a whole life insurance policy once the term has ended. Again, it is important to read your contract so you know your options when the term period ends.
Finding out which type of term life insurance is right for you depends on a number of factors:
Your age is the leading contributing factor to the price of your term life insurance premium. In general, the older you are, the higher the price.
Do you have heart disease, high blood pressure, diabetes, or another condition? Are you overweight? Do you use tobacco products or consume alcohol regularly? All of these answers, and more, will be factored into your term life insurance premium. As stated before, a benefit of term life insurance is the ability to renew your policy without the possibility of rejection. Though your premium may increase, you have the peace of mind in knowing that as your life and the state of your health change, you will still have term life insurance coverage.
How much money does your family need to continue their way of living after you are gone?
What amount of money are you able to budget monthly, quarterly, or annually to insure that your family is properly handled after your death?
As you can see, buying term life insurance isn’t as easy as just writing a check every month and letting your family collect when you die. We want to treat this sensitive matter with the utmost respect to you and your family. Our goal is to make the process as simple and efficient as possible. We welcome your questions and look forward to sitting down and figuring out which type of term life insurance product is right for you.