Not everybody in Texas knows that insurance is one among the financial plans that will help during the rainy days. An Education insurance policy for your child education will see to it that your child will finish school even in times of financial crisis and a medical insurance makes sure there’s money to pay off medical bills. For your family’s future, a life insurance is one of the best financial plans that could make your loved ones financial fit when death occurs.
Life insurance has different policies that can suit your protection needs. A term life insurance is a policy where beneficiary receives a designated sum of money upon the death of the insured. It is also one of the cheapest as you can get protection with a low monthly premium based on the amount of the policy. You can also choose how long you would like to be protected as term insurance policy coverage has a short term coverage from 1 to 5, 10 ,15 or 20 years. You can either renew or stop your coverage based on your needs. Unlike other life policy, term life policy is simple but without any accumulated cash value.
On the other hand, a permanent life insurance gives coverage for life or as long as the insured lives. While a term policy is cheap and simple, a permanent life policy is quite expensive and a little bit complex. This is because there is a saving option involved in a permanent life insurance while a whole life insurance; a variation of permanent life policy has investment components to facilitate financial growth for the insured.
In permanent life policy, there is the accumulation of cash through the saving options that the insured can withdraw, borrow against or access it by surrendering the policy. The cash value can be also accessed through policy loan that is income tax free. When the insured dies, the unpaid loan is deducted from the benefits and the remainder is paid to the beneficiaries.
Everybody is always on the lookout on how to become financial fit even in tough times. Taking time to make financial plans intended for the rainy days is the first step. Jumping into action like having an instant term life insurance quote and buying a policy that suits your financial plans is the next step. So when the rainy days come, you’ll have the peace of mind that you’re financial fit to face and survive the tough times ahead.