Types of Life Insurance-Texas

Posted on April 7, 2015 by

Types of Life Insurance 

Do you know the different types?

All insurance is not the same; nor are all agencies the same.  When choosing coverage to insure your life, it is important to understand the different types and how they would work for your lifestyle.  A trusted insurance agent can outline the various advantages for each insurance type.  This brief overview will present you with the basics. Allsure Insurance can give you specific information.

The purpose of insurance is to provide payment to a beneficiary in the event of your death.

The three major types of insurance are Whole Life (Straight or Permanent), Universal Life and Term Insurance.  The significant differences between the individual types of insurance are enough that they deserve closer inspection.

  •  Whole Life insurance, the insured pays a set premium payment.  The dollar amount of the policy is also a set amount. Payments are predictable and established.  The Whole Life Insurance policy accumulates cash value.  This cash value can be borrowed against; the insured can also  cancel the insurance policy and receive its surrendered value.
  •  Universal Life insurance, the insured gets a whole life policy with a lower net cost over the life of the policy and a non-fixed death benefit.   This insurance coverage also builds cash value and offers the insured a tax deferral advantage.  Universal Life insurance has three main criteria that determines the death benefits:  the insurer’s ability to make premiums, the insurer’s policy charges and the credit rating of the policy.
  • Term insurance, as its name implies, is limited to a specific time.  It is very similar to renting insurance as opposed to buying insurance.  Like the other insurance types, the policy’s beneficiary receives a  death benefit.  The premiums and benefits are fixed on a term insurance policy.

While researching the various types of insurance that might be beneficial for your life, become familiar with a trusted insurance agent who can give you more details.  A recommended agency, such as Allsure Insurance, will guide you through the selection process.  Having the resource of an established knowledgeable agent can give you the confidence to make an informed insurance selection.

For more detailed information, see our Life Insurance section.

 

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