Life is full of unpredictable moments, both good and bad. If anything were to happen to you, would your loved ones be left with financial problems? You may have heard about life insurance and how it can protect your loved ones if you were to suddenly die. However, there are a few questions you may need answered before you can make a smart decision about whether life insurance is right for you.
1. Why is life insurance important?
Life insurance can protect your loved ones in the case of your sudden death. If you are the main source of income in your family, a payout from life insurance can act as a replacement for your income until another stable source of income is found. Life insurance can also pay off any debts you leave behind and can allow you to leave an inheritance for your children or younger relatives. It's important to figure out how large of a policy you need to be able to support your family after your death, so you can rest assured that they'll be able to afford to keep up their current lifestyle.
2. What type of life insurance should I get?
When you're shopping for life insurance, you may hear about term life insurance and whole life insurance, and are wondering about the difference. Term life insurance is a great option for most people. The coverage lasts for a certain number of years, and if you don't die within the timeframe outlined in your policy, it will expire with no payout.
Whole life insurance is permanent and includes a "cash value" account, which will build up over time. You may eventually save up enough cash value to take out a loan against the policy. The type of policy you choose will depend on your specific needs.
3. Why is it better to get a life insurance policy when you're young?
Often times, you can get lower premiums at a younger age, and lock them in. When you're younger, there's a statistically smaller chance that your insurance will need to pay out, so premiums will be cheaper. A great age to take out a policy is as soon as you have dependents. That way, you can be sure they'll be taken care of in the event of your death.
4. What is mortgage life insurance?
Simply put, mortgage life insurance will pay off your mortgage when you die. The beneficiary of this type of policy is nearly always the mortgage company, and its purpose is to pay off your mortgage so it isn't left for your family to pay off, allowing your family to remain in their home.
5. How does life insurance protect a mortgage?
Mortgage life insurance will always pay out straight to the mortgage company, while a regular life insurance policy can be used however your family sees fit. A mortgage life insurance policy lacks flexibility, but it will assure you that your home will be paid off.
6. Does life insurance cover funeral costs?
While your life insurance can be used to cover funeral costs, funerals can be surprisingly expensive. You want your life insurance policy to be around to support your family, and not to be used solely to pay for your funeral, so it's important to make sure you buy a large enough policy.
7. What is the average cost of life insurance for a 30 year old?
While premiums vary from policy to policy depending on the specifics, you can get away with paying less than $20 a month for life insurance. The peace of mind can be worth the extra cash. Of course, you'll want to contact an insurance broker for exact premiums. Texan Insurance is happy to offer you a quote.
8. Where do you buy life insurance?
There are so many places to buy life insurance online, it can be overwhelming. The simplest thing to do is to give Texan Insurance a call at 281-998-2500, or contact us online. Texas Insurance is proudly based in Houston, Texas, and is happy to answer all your life insurance questions.