When you decide that you need to purchase life insurance, you may be unsure about the type you need since there are different policies available. This type of insurance is important to protect your loved ones, so you’ll want to make sure that you get the right kind of policy. Below are the various types of Life Insurance in Katy and what they cover.
Term Life Insurance
When you purchase term life insurance in TX, you request the amount of time that you want the policy. This is often for 10, 20 or 30 years and if you die during this time period, your beneficiary will be paid the benefits. The premium stays the same each month and when the term runs out, you always have the option to renew the policy. Since you’ll be older when it’s time to renew the policy, your premium will be higher than it was previously.
Whole Life Insurance
With this type of Life Insurance in Katy, you pay a set premium every month and your policy gains a certain amount of interest over time. The interest is made through investments that the life insurance company makes and the dividends are passed on to you. As long as you pay your premium each month, you’ll have this policy for a lifetime.
Universal Life Insurance
In addition to paying your monthly premium for this type of life insurance in TX, you’ll also pay an extra designated amount each month. This extra money is used by the insurance company to make investments and the policy will have a cash value. You can choose to use the cash value funds to partially pay your premiums or you can add it to the value of the policy. When it’s added to your policy, your beneficiary will receive the accumulated funds plus the value of the policy upon your death.
Variable Life Insurance
This type of Life Insurance works the same as a universal policy except that you choose your own investments. Since you have the authority to decide how you want your money invested, you’ll have a greater variety of investment options.
Contact the Insurance professionals for more information on the different types of life insurance policies in TX. In addition to life insurance, they also offer home, auto and commercial insurance.
