Life insurance is a contract between you and an insurance company. In exchange for paying premiums, the company will pay out a lump sum to any beneficiaries upon your death. This sum, called a death benefit, acts as an income replacement for your loved ones. Life insurance is a safety net that helps ensure your family can stay in their home and pay their bills.
A life insurance policy may be right for you if:
- You have people in your life who are dependent on your income.
- You cosigned a mortgage, credit card or auto loan with your spouse or partner.
- You have children.
- You have student loans.
- You own a business.
No one wants to think about the end of their life, but the reality is that it’s important to prepare for the worst-case scenario, be that an unexpected illness or an accident. A life insurance policy provides peace of mind and security by protecting your loved ones from becoming responsible for your debts after you’ve passed. You’ll be able to focus on the time spent together now, rather than worrying about what the future may hold for your family.
There are two main types of life insurance: term and permanent. As the name implies, term life insurance is active for a set amount of time. Permanent life insurance lasts for your entire life. Because permanent is more expensive, 70% of policy holders choose term life insurance.
Most people benefit from purchasing a term life insurance policy. Permanent life insurance policies are more expensive, and the cash value often reverts back to the insurance policy upon death. A term life insurance policy is the right choice if you only need coverage for a certain amount of time (i.e., your “working years”) or if you have a limited budget. As your needs change, you can likely convert your term policy to a permanent one. You won’t be required to take a new medical exam or re-apply.
However, if you make the maximum contributions to your retirement plan and are looking for ways to increase your money, a permanent policy may be the right choice for you.
Find Your Perfect Policy With True Texas Benefits
If you’re interested in a life insurance policy but are unsure where to start, True Texas Benefits can help. We are here to help you decide which types of coverage are right for you and your loved ones. You can trust our team’s knowledge and expertise as we create the right policy based on your goals and financial situation.
When you work with True Texas Benefits, you’ll have an expert working with you every step of the way. In order to ensure that our clients have the best support, we offer:
- Creative benefits planning and design
- A dedicated account manager
- Platinum benefits communication
- A centralized, cloud-based enrollment platform
Deciding on a life insurance policy can be a sensitive subject, but with True Texas Benefits by your side, you can feel confident that your planning now will help support and take care of your loved ones in the years to come.