Life Insurance – Frisco, McKinney, Prosper, Celina, Allen, Plano
The team at Sweetness Insurance serves Frisco, McKinney, Prosper, Celina, Plano and Allen Texas area. Our goal is to make insurance easy to understand so you can make the best insurance decisions to meet your needs.
What is Term Life Insurance?
Term life insurance takes care of your family in the event of your death. Policies are written for an agreed upon time coverage, anywhere from one year to thirty years. When the policy owner dies the policy will pay the benefit to your family.
There are a few life insurance options available. Each have different benefits that we can discuss with you.
Level Term or Level Premium Policy
These policies run anywhere from 10 to 30 years. The premium is fixed, as well as the death benefit. The pricing is a little higher on these policies because of the timeframe covered.
Yearly Renewable Term Policy
Only one year is covered with these policies, but can be renewed yearly. In your younger years the policy premiums are low. The premiums go up as you get older..
Decreasing Term Policy
This term policy is often connected to a policy holders mortgage. The premium is fixed throughout the life of the policy. However, the amount of coverage decreases as the homeowners mortgage declines. The intent is to make sure you have enough coverage to cover your home if something should happen to you.
Why Should I Buy Term Life Insurance?
There is no cash benefit that accumulates. A term life insurance policy can usually be canceled without losing any money.These policies are less expensive as you are paying only for the insurance.
When the contract expires a new policy is initiated. A term life insurance policy assumes the policy owner will accumulate more wealth through their lifetime and will not be needing cash value from the policy.
What is Whole Life Insurance?
Whole life insurance is another way to take care of your family in the event of your death. This policy accumulates cash value throughout the policy owners lifetime. The policy stays in effect as long as you continue to make payments into it.
There are quite a few options available for whole life insurance. Below are some of the options to consider when choosing a whole life insurance policy:
Ordinary Whole Life
Premiums are a set amount for the life of the policy as the policy builds cash value. The premiums will be substantially higher compared to term insurance.
Limited Payment Whole Life
This policy sets the length of time premiums will be paid. For example, 20 years, or until you turn 65. However, the policy stays valid throughout the life of the policy holder.
Single Premium Whole Life
The premium is paid in one single payment.
Modified Premium Whole Life
This policy has a moderate cash value with a lower premium. It will accrue cash value through the life of the policy.
Survivorship Whole Life Insurance
This policy covers two people, usually married. The death benefit pays out after the second individual has passed away. It is a less expensive way to take care of specified beneficiaries.
Why Should I Buy Whole Life Insurance?
While the policy is active your payments cover not only the insurance but also a portion goes into savings. Initially, most of the payment goes towards the death benefit portion. Over time more of your payment applies to the cash value until eventually, it will become entirely cash value.
The savings portion can be withdrawn by loan, cashed out, or used for retirement later. Rates are higher on whole life insurance policies as there are no time limits applied and you are covering both the policy and the savings.
Call Sweetness Insurance
Our team at Sweetness Insurance wants to provide you with great insurance that meets your needs. Contact us today to schedule a Free Consultation in Frisco, Mckinney, Prosper, Plano, Celina, and Allen, Texas area.