Life insurance provides you with coverage and a monetary benefit to your beneficiary named in the policy upon your death. The beneficiary usually is your spouse or child.
You pay monthly premiums to the insurer. The insurance company bases your premium on a combination of factors:
- your age at the time of policy purchase
- your gender
- medical history
- the value of the policy purchased
Types of Life Insurance
Discuss what type of life insurance best suits your needs with a representative from Alloy Insurance Partners of Dallas, TX. The essential question is term or perm?
Term policies provide coverage for a specific number of years. Policies range from one to 20 years in length, generally. The coverage remains active while you pay the premiums. Term policies do not accumulate cash value. Permanent policies do not expire as long as you pay the premiums. They can amass a cash value. You can borrow against some policies.
Reasons for Life Insurance Coverage
Many people think of life insurance only as a means to pay for their funeral expenses, but it provides for so much more. You can obtain coverage in the amount needed to cover any of a number of expenses, including:
- paying off the home loan
- paying for your child or children’s education
- income replacement for your earnings
- means to pay medical bills
While you can reference a life insurance chart for a quick notion of your insurance needs, come into Alloy Insurance Partners of Dallas, TX to have us sit down with you and calculate your replacement income. These calculations include your current salary, the value of your insurance benefits, your 401(k) and retirement savings, value of services you perform for your family such as cooking, cleaning, and home maintenance. After subtracting your annual personal consumption, we arrive at a figure. Contact us for more information.