Important Things to Understand About Life Insurance

Do you think about ways that you can protect your family if something happens to you? There are several important things to understand about life insurance policies. First off, you may want to have a discussion with your family about what kind of protection might be needed if you pass on. Of course, nobody wants to talk about these issues, but if you do want to see the best for your family, then it might be something that you want to discuss with them.

Also, you should take some time to think about the kind of quality of life and care that your family should receive once you do pass on. There are more than one type of policy, so take the time with an agent to discuss what type of policy might be best for your current situation, then periodically see if changes need to be made to your coverage to reflect needs. 

Term Life Policies

Term life insurance is different from permanent life insurance. It usually means that there is a living benefit. Also, the premiums differ from permanent life policies. As its name implies, term life insurance provides coverage for a certain period of time. It could be 10, 15, 20, or even 30 years per policy. The policy can then be renewed after such time if nothing happens. Term life payouts only occur during the policy period. 

Permanent Life Policies

Permanent or whole, life Insurance policies differ because sometimes you can borrow against your policy in times of need. Also, the major difference is that you usually pay more in premiums for permanent life insurance because the coverage lasts a lifetime. Also, you don’t need to pay tax on cash value accumulation. For more questions, refer to your agent at Koda Insurance Group in Abilene, TX.