Life Insurance
Life insurance can help provide financial support to your dependents or chosen beneficiaries if you pass away unexpectedly. Although it’s not legally required, a life insurance policy may be beneficial in numerous situations, for example, if you have a child, a business and/or a partner who depends on your salary.
We’re here to answer your insurance questions. Contact Cornerstone Insurance Agency in Fort Worth, Texas, to learn more about life insurance coverage.
What Is Life Insurance?
Your life insurance policy is a binding agreement between yourself and your insurance company. It can provide financial support to your loved ones who might otherwise face costly expenses associated with your death (e.g., funeral expenses, burial costs and estate taxes), or those who may be responsible for any outstanding loans or mortgage payments in your name. Depending on your policy, your life insurance coverage may also help with inheritance creation and help pay for your lost income.
How Does Life Insurance Work?
If you pass away while your policy is active, your life insurance company may pay out a death benefit to your chosen beneficiaries. As a policyholder, you will generally be able to choose between two primary types of coverage, which will affect the duration of your policy:
- Term life insurance is generally the less expensive of the two policies. It can provide coverage for a set amount of time. At the end of that term, your beneficiaries will no longer receive a death benefit when you pass away.
- Permanent life insurance can provide coverage for your whole life. Examples of permanent life insurance include whole life insurance, variable life insurance or universal life insurance. These policies may consist of a cash value component that can typically be withdrawn, borrowed against, or used to pay future premiums per your policy’s terms.
Some types of permanent and term life insurance may also offer a level premium with increasing coverage—this means your premiums stay the same while your coverage amount increases due to the accrued cash value increasing the policy’s death benefit.
Ask your insurance agent which life insurance policy could be right for you, or contact Cornerstone Insurance Agency to speak to an insurance agent.
How Much Is Coverage?
The cost of life insurance varies. Certain factors impacting your life insurance premiums may be out of your control, such as your age and family medical history. However, other criteria that affect your policy rates may be within your control, such as the following:
- Your lifestyle (e.g., smoker or nonsmoker) and hobbies
- Your policy type
- Your policy details and coverage amount
If your health or lifestyle improves, you may request to be reconsidered by your insurer for a lower risk class, which could positively affect your rates. Contact Cornerstone Insurance Agency for more information and to get a free life insurance quote today.