Many people think that life insurance is something they don’t need to worry about for a long time. But the financial protection and peace of mind that the right life insurance policy can offer are priceless. It is never too soon to start to consider your options when it comes to what life insurance policy is right for you and your family.
The most common types of life insurance are term life insurance and whole life insurance. If you need assistance with life insurance and live in the state of Texas, Evans, Ewan & Brady Insurance Agency in Georgetown, Texas can help.
What is term life insurance?
A term life insurance policy offers the insured coverage only during a specific period of time. A typical span of time for a term life insurance policy is 20 or 30 years. Should the insured person die during that time period, their beneficiary will receive the amount of their policy. However, if the person lives past the term, there is no benefit upon their death. There is no cash value that accrues with a term life insurance policy, either. A term policy can be renewed or converted to a whole life policy.
Comparing term life and whole life insurance
How do you know which type of life insurance is right for you? The most obvious advantage of a term life policy is it is more affordable than a whole life policy. A term life policy has no value unless the insured dies during the term. A whole life policy has a cash value, and it will pay out to your designated beneficiary no matter when you die.
The cost of a term life policy is determined by your age and health, as well as the amount of coverage you want and the length of the policy’s term. Simply put, the sooner you get a life insurance policy and the healthier you are at the time you apply, the less you will pay.
There are three main types of term life insurance:
- Level term policy
- Yearly renewable policy
- Decreasing term policy
The level term is the most well-known, lasting for a specific period of time, usually 10 to 30 years. The yearly renewable option has no specific end date and can be renewed every year as long as the insured provides evidence of insurability. The final option, a decreasing term, has benefits that decline in amount each year, usually in concert with a mortgage, to provide coverage for the principal of that home loan should something happen to the insured.
Evans, Ewan & Brady is ready and willing to answer any questions you may have about your personal situation to help you determine the best policy for you and your needs.
If you have people who are dependent on your income — children or a spouse or partner — you should consider a term life insurance policy. Even if you don’t have dependents, a term policy can help cover any expenses when you die, from paying outstanding debts to covering the costs of a funeral.
Contact Evans, Ewan & Brady to Learn More About Term Life Insurance
Evans, Ewan & Brady is located in the greater Austin area, encompassing Travis, Bell, and Williamson counties, but we serve the insurance needs of the entire state of Texas. At Evans, Ewan & Brady, we make sure our clients are educated about all their insurance options and help them understand what policy is right for them. We will find the best coverage and rates available.
Call Evans, Ewan & Brady today at 512-869-1511 and see how we can help protect you and meet all your insurance needs.