Life Insurance in College Station Texas

If you are looking for life insurance, one of the most important decisions you must make is whether to buy term or whole life insurance . Although you can purchase either from most life insurance agencies, they are very different policies that provide different benefits. Before you buy any type of policy from a life insurance provider, learn about the differences to understand which one is best for you.

What Is Term Life Insurance?

Term life insurance is a policy that expires at the end of a pre-determined time period. During this term, you make payments on the policy. If you die, the purchased benefit is paid to your beneficiary. Term policies are available from a life insurance agency in varying term lengths and pay-out amounts. They are generally very affordable, as even larger policies have fairly low monthly payments.

Term insurance is an attractive option for many; however, it is important to understand the difference between term and whole life insurance so you understand exactly what you are purchasing. Term life is a temporary policy that pays its benefit if you die during its term. If you die after the term has ended, the policy no longer exists so no benefit is paid.

Who Should Buy A Term Policy?

Term policies purchased from a life insurance provider are great for those who want to protect their family and assets during a specific time period, such as while paying off a mortgage, raising children, or even paying for a college education. Anytime you want to ensure that the loss of your income due to an untimely passing will not affect these circumstances, a term policy with a low yearly premium can be worthwhile.

What Is Whole Life Insurance?

Whole life insurance is a policy that never expires as long as you keep making the premium payments. In addition to the death benefit it can pay out, these policies also appreciate in cash value over time from your premium payments. This cash can be borrowed against once it reaches a certain amount, can pay out dividends from the cash value as it grows through investment, and may even be paid out up to its cash value.

Whole life insurance is considered to be an asset, the benefits of which can be passed on in your estate planning. Because this type of policy sold by a life insurance agency offers you greater benefits, they can be more costly when compared to term policies.

Who Should Buy A Whole Life Policy?

Whole life policies sold by life insurance providers are best for anyone who wants to retain the benefits offered by their policy until they die. They are recommended for those interested in passing on assets to their heirs since the cash benefit can aid in the payment of sizable estate taxes. They are also recommended if there is a disabled dependent to protect, such as a spouse or child with special needs. You may want the freedom to enjoy your retirement savings while still having a benefit to pay to your loved ones upon your passing.

While both term and whole life insurance policies pay benefits when you die, they are different in many ways. Inexpensive term policies sold by a life insurance agency offer an affordable way to protect your family during a specific period of time. Whole life policies pay benefits and also act as an investment account in a number of ways. To fully understand the differences and decide which policy is best for you, discuss your needs with an experienced life insurance provider today!

Need Life Insurance In College Station Texas?

Jones & Associates - An Experienced Life Insurance Provider!

Call (979) 599-7532!