Life Insurance in Dallas, TX
Life insurance can help provide financial security for you or your loved ones by replacing lost income and covering various expenses after your death or when the policy’s term is up. If you’re looking for life insurance, we’re here to help. Our agency is ready to discuss your insurance needs and help find a policy that’s right for you.
What Is Life Insurance?
Life policies are a contractual agreement between you (the policyholder) and the insurance company. In exchange for paying the insurer a regular premium, your beneficiaries will receive a lump-sum death benefit when you pass away or after a specific amount of time has passed.
What Are the Types of Life Insurance?
There are two primary types of life policies, including:
- Term life insurance—A term life policy provides a death benefit to your loved ones if you die during the policy’s term. This term might be a period of 10, 20, 30 or more years, depending on the expiration date of the policy. If you do not die during this time, the policy does not pay and will expire when the term ends. You will also have to reapply for a new policy if you want to continue to have coverage.
- Whole life insurance—A whole life policy will last for the remainder of your life once you enroll. It will not expire unless you stop paying for it. Additionally, such a policy offers cash value investment opportunities. This cash value component can enable you to receive a source of income during your lifetime (in addition to the eventual death benefit).
Several other types of insurance also exist. Speak to one of our agents to determine which type of coverage suits your particular needs.
How Much Life Insurance Do You Need?
Determining the right amount of insurance involves assessing your financial obligations and resources. The following steps can help in your assessment:
- Calculate your financial obligations. Add up your current and future financial responsibilities, such as debt (e.g., mortgage, loans), everyday household expenses, children’s tuition, childcare costs and funeral expenses. One way to make this calculation is by multiplying your annual salary by the number of years you want to replace that income.
- Subtract your liquid assets. Consider savings, retirement accounts and existing life policies. Subtract these liquid assets from your total financial obligations.
- Analyze the result. The remaining amount is the coverage you’ll need for life insurance. While this method can offer a reasonable estimate, speaking with an insurance provider can offer a more precise assessment.
How to Get Coverage
If you’re in need of a life policy, we’re here to help. Give Northwest Insurance Agency a call or request a quote online to get started.