Consumers buying life insurance need to do their homework. First, it is a good idea to buy insurance when you are young and in good health. Insurance premiums are more affordable than waiting for middle age.
Why Do You Need Insurance?
Life insurance is purchased for many reasons. First, families need to be protected in the event of an untimely death. Consider whether the family would be able to live comfortably with the loss of an income. Meanwhile, others buy life insurance to make sure the family has a place to live.
Mortgage term Life Insurance in Austin TX pays off a mortgage in the event of a death. Individuals select a 15 or 30-year policy based on the mortgage balance.
Benefits Of Term Policies
Term insurance is one of the types of Life Insurance in Austin TX. Term life insurance is purchased for a certain number of years and premiums are affordable. Many insurers have online calculators to help consumers figure out how much coverage they need. Further, premiums can be paid monthly or annually.
Select Term Life Insurance
Select Term is a hybrid of term insurance. Consumers purchase a policy with a guaranteed benefit for 10, 20 or 30 years. The minimum policy amount is $100,000 and premiums remain the same for the policy period. Unfortunately, premiums start to increase annually after the benefit period. However, many insurers allow the consumer to renegotiate the policy.
The average person pays about $200 a year for a 10-year policy with a value of $250,000. The premiums only increase slightly for 20 and 30-year policies. Return of Premium Term Life Insurance is another hybrid that rewards people for longevity. The customer is refunded all their premiums if they outlive the 20 or 30-year term life of the policy.
Whole Life Insurance
Many consumers choose whole life insurance because it is an investment vehicle. Premiums build up as tax-deferred money. Further, the money can be used while the policyholder is alive. The downside is withdrawals are considered loans with interest and penalties. If the loan is not repaid, the money is deducted from the policy value. Visit Agent Patrick Court to learn more about life insurance.