Texas Life Insurance

Whether you have recently moved to the Lone Star State to enjoy your retirement or you are just starting school at the University of Texas, it is never too early to start thinking about life insurance.

Buying a policy while you are young enables you to lock in great rates for life, while buying a policy later in life can help to ensure that your family can afford your estate settlement and burial expenses.

When you are shopping for life insurance, independent agents can help. These experienced agents can answer your questions, offer information and advice, and can even provide you with a variety of customized quotes from competing providers. Find an insurance agent near you to get started.

Why Should Residents of Texas Buy Life Insurance?

Chances are good that you will live a long life. Indeed, the life expectancy in Texas is 79.1 years. However, nearly 10,000 people in this state die unexpectedly from accidental causes every year.

Nobody likes to think about the possibility of an untimely death, but if you have loved ones who are dependent on you, this is something that must be considered. Life insurance can ensure your family will be able to cope financially if you are no longer there.

The average cost of a funeral in the US is about $10,000. If you are older, you may want to have a policy that is just enough to cover your final expenses. That way, your passing will not cause a financial hardship for the family you leave behind.

If you are younger and have dependents who rely on you for income, life insurance can provide them with a safety net if you are no longer there. It can help you be certain that your kids will be able to afford higher education and that your spouse will be able to manage financially.

If you are a stay-at-home parent, life insurance can help in ways you may not have considered. In Texas, the cost of daycare is about $600 a month per child. Hiring a nanny costs about twice as much. Without the help of life insurance, this may be too much of a financial burden for your partner to handle alone.

How Much Does Life Insurance Cost in Texas?

The cost of your life insurance policy will depend on many factors. These can include the following.

Most insurers will require you to answer a health questionnaire. Some will also ask you to undergo a medical exam, including bloodwork and a drug test, before you can be approved for a policy or quoted an accurate cost.

Buying a policy while you are still young and healthy can enable you to have coverage at a great rate for the rest of your life. Unfortunately, if you are older and have been diagnosed with a fatal or chronic disease, you may find it difficult or impossible to find an affordable life insurance policy.

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What Are the Different Kinds of Life Insurance You Can Buy in Texas?

There are two main types of life insurance policies you can choose from.

• Term Life Insurance
• Permanent Life Insurance

Each will be explained in further detail below. In addition to term life and permanent life, you can often find hybrid policies or customized policies, such as insurance that will provide coverage only in the case of accidental death.

What Are the Pros and Cons of Term Life Insurance in Texas?

Term life insurance can provide you will a lot of coverage for a very low rate. These polices are last for a given length of time (or “term”) that typically ranges between 5 to 30 years in duration.

If you pass away during the course of your term, the people you have designated as recipients of your life insurance payout (referred to as “beneficiaries”) will receive funds in the amount of coverage that you purchased.

• Pros: Term life policies are the least expensive way to obtain a high amount of coverage.
• Cons: Term life policies have no cash value and leave policy holders without any coverage once they expire. At that time, depending on your age and health, it may be very expensive, or even impossible, to purchase a new policy.

Most people who buy term policies do so in order to have a large amount of coverage during the times in their lives that they need it most, such as when their children are still financially dependent on them or when they still owe on a mortgage.

What Are the Pros and Cons of Permanent Life Insurance in Texas?

Permanent life insurance, as the name suggests, will stay in effect for as long as you continue to pay your premiums. Permanent life insurance policies accrue a cash value and can be cashed out or borrowed against if your financial circumstances necessitate it.

Under the permanent life insurance umbrella, you will find different kinds of policies like whole life insurance, universal life insurance, and hybrids like variable rate life insurance policies.

• Pros: These policies hold cash value and can be used as investment vehicles. Unlike term policies, permanent policies can last for your entire life.
• Cons: Whole life insurance costs a lot more than term life. In many cases, it is about ten times more expensive.

Although permanent policies cost a lot more than term policies, they can be quite valuable if you buy into them while you are still young and healthy. This can enable you to have all the benefits of these policies while enjoying an affordable rate for life.

Which Type of Policy Is the Right Choice for Me?

The type of policy that is right for you will depend on several factors such as your financial health, your current and expected life circumstances, and your personal preference.

You can request guidance from a financial planner, lawyer, or independent agent. These people can help you assess your current financial situation and can provide advice about how each type of policy can help you.

Ultimately, however, the decision is yours. There really are no right or wrong answers. You have to go with the type of coverage that make the most sense to you.

Why Work with an Independent Insurance Agent in Texas?

When you are ready to purchase a life insurance policy, you can get help from a local independent agent. Your agent can help you assess your coverage needs and can explain the details of your many policy options.

Because independent agents are not captive to a particular insurance provider, they can present you with customized quotes from a variety of competing insurers. That way, you can be sure you are getting the coverage you want at a reasonable price.

When you are ready to begin your search for the best life insurance policy in Texas, contact an insurance agent near you to get started.