Life insurance is a diverse policy that offers your family financial protection after your death. Upon the policyholder’s death, their corresponding beneficiaries receive a cumulative sum of money that’s tax-free. This is what we refer to as a death benefit. It’s essential to bear in mind that a life insurance policy will not pay out a death benefit if the cause of death was suicide within the first 2 years of the policyholder acquiring the policy. In 2020 insurance agencies across the state of Texas saw a rise in adults seeking advice on purchasing life insurance. This is because the COVID-19 pandemic has lead to a reality check, where people begin to wonder that “if the primary provider of a home were to die, how would their family be supported?”
How Much Does Life Insurance Cost in Fort Worth, Texas?
There are a few key factors that will impact how much you pay for insurance premiums. These factors are as follows:
- Age and gender: The premium set by the insurance agency will depend on your age and gender. Statistically, women live longer than men. Hence the premium for their policy will be lower. Also, age plays a crucial role as well! The older you are, the more pricey the premiums will be.
- Coverage: If you require extensive coverage, i.e., $750,000 rather than $250,000, then the cost of your premium will increase. Similarly, if you are on a term-based insurance plan and request a more extended policy i.e. 30 years rather than 10 years, then premium costs will increase.
- Health: The health of the policyholder plays a significant role when determining the cost of annual premiums. The insurer may request policyholders to undertake a physical examination to determine how healthy an individual may be. In addition, insurers will take into account your lifestyle and habits. For example, a smoker will be subject to higher premiums when compared to a non-smoker.
What are the 3 types of life insurance?
There are 3 types of life insurance policies offered by insurance agencies in Fort Worth, Texas. These are whole, term life, and universal life insurance. When choosing a policy, we urge you to view your finances and way out the pros and cons’ of each policy available to you.
Whole Life Insurance
Whole life policies offer its policyholder death benefits and cash value in the form of dividends. As there are opportunities to invest your cash value throughout your life, whole life policies are often quite beneficial to users of any age. The cost of yearly premiums is high, especially compared to term life policies, but premiums remain at a fixed cost throughout one’s life. Overall, the major advantage of whole life policy is that the person insured receives dividends throughout their life and has the opportunity to invest their guaranteed cash value.
Universal Life Insurance
Universal life policies will offer its policyholder both death benefits and added cash value, which can be withdrawn and invested. With a whole life policy, the cash value earns interest where the rate is fixed and set by the insurer. But, with universal insurance, the interest rate is subject to change throughout the years.
Term Life Insurance
Permanent life insurance in the form of either whole life or universal life policies can be expensive for the average person. An alternative to the more permanent options is term life insurance. In Texas, a term life policy is relatively straightforward, upon paying your scheduled payments, your insurer agrees to pay your death benefit should you pass within the policy term.
As the name suggests, the policyholder can purchase insurance on a term basis; this means you can either purchase a term life policy for 10 years, 20 years, or even 30 years. So, why would you choose term life policy in Texas over the more permanent options?
This form of insurance allows policyholders to purchase large quantities of insurance at a relatively low-cost premium. But, its affordability isn’t the only thing driving Texans towards term life insurance. If you change your mind and require something more permanent, then that’s no issue! A term life policy in Texas can be converted to a whole life policy.
Getting Affordable Life Insurance in Fort Worth, Texas
At James Little, our team of agents works one-on-one with you to determine which policy best suits the policyholder’s lifestyle. As an independent agency, we represent many of the top-rated insurance agencies in Fort Worth, Texas. This means that we can compare multiple insurers’ policies and costs and provide you with the best unbiased opinion.
It’s never to late to get insurance, talk to us today to see how you can get life insurance in Fort Worth, Texas.