Life insurance in Houston TX is something no one likes to discuss. However, no matter how long we live, the financial security of our loved ones should not be overlooked. Paying final expenses can be burdensome on your family especially if you are the main earner. A life insurance policy will help your family avoid this situation by providing them with financial compensation. You can choose from various types of policies.
Term life insurance insures you for a certain time period as long as you do not miss paying premiums. Term No benefits will be paid if you remain alive at the end of the term. If you die within this period, the beneficiary receives the face value of the policy. They do not have to pay income tax on the benefit. You have the option of renewing the policy at the end of the term. It is more affordable than other types of life insurance. However, the premiums increase with each renewal.It does not build cash value.
Whole life insurance insures you for the rest of your life. It does not need renewing and the premiums remain unchanged. Whole life polices build a cash value that you can withdraw while you are alive. However, if you borrow against the policy, it counts as taxable income. The death benefit is non-taxable which can be received in a lump sum or monthly payments.
Universal life insurance is similar to whole life except it offers more flexibility. You have more control over how the policy operates. The provider places the premiums into a savings account. The savings is tax-exempt and may be withdrawn. These policies commonly must be active for fifteen years before you see any return. The premiums are higher, but they remain the same. In some cases, the rates may decrease as you get older.
Providers use various factors to determine rates for life insurance in Houston TX. A provider will charge higher rates for customers who are overweight and use tobacco products. Age and certain high-risk hobbies like sky diving may also influence rates. Before you look for life insurance, consider ways to lower your risk. The cost should not deter you from doing the best thing for your family.
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