There are two amounts of money that are important to know about when you have a whole life insurance policy. These are the cash value that the policy and the death benefit amount have amassed. These can also affect each other in some cases. Understanding how each works is important when you have this type of life insurance policy. Call us today at Outdoor Insurance Services in Houston, TX to get started with life insurance.

Your Policy’s Cash Value

When you pay your premiums for your whole life policy, the insurance company makes a profit through investing in those payments. A small percentage of that profit is made available to policyholders in the form of a cash value of their policies. It takes a few years for this value to start to build up, but when it does, it can add up to a considerable amount that you can borrow someday if you need to. Many people feel peace of mind knowing that this amount is available to them just in case. 

The Death Benefit

The death benefit is the set amount that is specified when you get your policy that will be given to your beneficiaries. It’s a good idea to know how much your death benefit is so that you know how well your loved ones are protected. If you borrowed any portion of your policy’s cash value, that loan must be repaid. The amount of money still owed on the loan is deducted from your death benefit until it’s paid back. 

Get Whole Life Insurance 

If you’re interested in a whole-life policy, we can help. Contact us at Outdoor Insurance Services in Houston, TX, to learn more and get started with a policy.

Talking about end-of-life preparations can be uncomfortable and sad. Many people altogether avoid these types of conversations for these reasons. Here at Outdoor Insurance Services, serving Houston, TX, and the surrounding areas, we want to help clients face these types of conversations with their families. Keep reading to learn more on talking about life insurance with aging parents. 

Do I Need To Talk To My Parents About Life Insurance?

Suppose your parents have not already shared their plans for end-of-life expenses and life insurance with you or another trusted family member. In that case, you need to attempt to have this conversation. This is important because when families are not aware of preparations that have been made or policies that are in place, it makes it very difficult and stressful to pay for and plan final arrangements.

When a parent passes away, the family will already be distraught, and any confusion about life insurance policies or how to pay for expenses will significantly add to that stress. Talking about these things now will bring peace of mind, even if it is initially awkward and uncomfortable. 

How Do I Start This Conversation?

When it is time to start this conversation, be sure to approach it gently. Make sure you explain to your parents that you want to be able to carry out all of their final arrangements precisely as they wish, and to do that you need to know what plans have already been made, what expenses have already been paid for, and what type of insurance policies are already in place. 

If you want to learn more about life insurance, please contact us at Outdoor Insurance Services, serving Houston, TX, and the surrounding areas. 

As the name implies, term life insurance is a policy that provides coverage for a specific period – usually between 10 and 30 years. If, during that time, the policyholder passes away, then any beneficiaries are entitled to receive the totality of the policy’s payout. 

Outside of term life insurance, the other most popular type of coverage is whole life which lasts your entire life – assuming that the policy premiums continue to be paid. Unlike term life insurance, a whole life policy also includes a cash value where a portion of your premium cost is invested with the sum growing on a tax-deferred basis and available to withdrawal in a hardship. 

Since term life insurance only covers the policyholder for a specific period and does not contain a cash benefit, it is less expensive than whole life insurance. Benefits offered with a term life insurance policy include the following:

• Lower premium costs
• Flexible coverage timelines
• Guaranteed death benefit
• Accelerated death benefit

When determining how much coverage to purchase, you’ll want to consider your current and future expenditures. For example, you’ll want to purchase a term life insurance policy with a high enough death benefit to pay off your debt obligations such as a mortgage or student loans. In addition, if you are funding college savings accounts for your kids or other large purchases, then opt for a premium that will provide enough coverage to pay for that. 

At Outdoor Insurance Services in Houston, TX, our dedicated team of insurance professionals can answer all your questions and help you decide if a term life insurance policy is right for you. Give us a call today to schedule a no-obligation appointment to learn more.