When you buy life insurance, you create a contract with the insurance company to financially protect your family in the event of your death.
Life insurance is a contract you purchase that is an agreement with the insurance company that basically states they will provide a specific sum of money in the event of your death, and in return, you pay premiums. But life insurance is not so straight forward and can be a confusing policy to purchase if you don’t have the know-how. If you want to provide your family with financial support in the event of your death, it pays to know what to look for when purchasing life insurance.
How Much Life Insurance Do You Need?
In order to properly support your family, you have to think of all the expenses they have now and may have in the future. The present debts and expenses may include things like the funeral cost, mortgage, student loans, car payments, credit card debt, child expenses, and other things of the sort. Future expenses, like college tuition, also need to be thought of in order to relieve your family of financial uncertainty as best you can.
Term or Whole Life Insurance?
There are two kinds of life insurance policies that you have to know: term life insurance and whole life insurance. Each one gives your family a death benefit sum, but has different stipulations in its specifics.
Term life insurance only lasts a certain amount of time, and will only provide your family with the death benefit within that time. Terms usually last five to thirty years.
Whole life insurance lasts your entire life and accrues cash value as you pay the premiums.
Make sure that you have the right life insurance policy in place in order to protect your family against the worst-case scenario. For all of your insurance needs, contact VGW Walker Insurance in the entire state of Texas.
