Life Insurance

When is it Best to Get Term or Whole Life Insurance?

Life insurance policies are an essential investment in your family’s financial security. While it may be unpleasant to think about, accidents, illnesses and unexpected tragedies can occur at any moment, necessitating ample planning to ensure the stability of those left behind.

Fortunately, you can identify the right coverage options and secure suitable policies by working with a qualified insurance professional, such as those at Licona Insurance Group in El Paso, Texas.

What Types of Coverage Can I Get?

There are many types of insurance, but most policies can be classified as one of the following:

• Term life insurance is a type of policy that maintains coverage for a predetermined amount of time (e.g., 10, 20 or 30 years). If an insured dies during that period, their beneficiaries can submit a claim for a payout; however, should the policy lapse prior to the insured’s death, no death benefit will be available.

• Permanent life insurance includes many subsets of policies, such as whole life insurance. It establishes ongoing coverage for an insured throughout their lifespan, as long as premiums are paid. This type of coverage may also be attractive to those who want to expand their financial assets, as policies can accrue cash value over time.

Who Should Get Which Type of Life Insurance?

Term coverage may often be a suitable investment for those who require coverage until a projected date. For example, if you are a parent, you may want to take out a policy on yourself to ensure a means of supporting your children until they reach adulthood.

Similarly, if you have a mortgage, the right coverage could help establish financial security through the date it’s projected to be paid off.

You may also consider a permanent policy to be the ideal choice if you want to enjoy savings and wealth accrual opportunities.

Purchasing permanent life insurance can add to your investment portfolio and ensure that their loved ones can access financial support regardless of when an insured may pass.

The right type of permanent policy may vary significantly depending on your budget, financial goals and risk tolerance.

Life Insurance in El Paso, TX

Contact Licona Insurance Group today to learn more or compare personalized quotes.