Our Texas clients come to the Kathye Carpenter Agency, LLC for their insurance needs because we're a locally owned small business, but also because they know we always have their best interests at heart. We want you to trust us when we make a recommendation. So, when an individual asks us about what type of life insurance would best fit his or her needs, our answer is never a short one. We sit down to learn as much as we can about the person's situation.
The first thing we point out is that they will never reap the benefits of life insurance, other than peace of mind, that is. This is because a life insurance policy is meant to secure the lives of those left behind, be that a spouse, children, or elderly parents; in other words, whomever the insured person named as beneficiary. However, whether they decide to purchase whole life insurance or term life insurance, the insured individual will get a few fringe benefits.
Most of our clients know the difference between term and whole life insurance. But if they don't, we explain that while term life insurance is less expensive than whole life insurance, if they go with term insurance, as the name implies, they are purchasing short term protection for their family, be that ten, twenty, or thirty years. Depending on the individual's age when the purchase is made, he or she may very well live longer than the term. And when that term expires, even though they have faithfully paid their monthly premiums, the family is no longer uninsured.
However, term life is a good choice as a place holder if the person expects to be making more money when they get older and, therefore, able to afford whole life insurance. And since most mortgage lenders require that mortgagees be insured, term life satisfies that need and is also the cheaper alternative to whole life.
When a person purchases whole life insurance, their spouse or whomever, they name as the beneficiary is protected no matter how long he or she lives. As we pointed out, the premiums they pay for the rest of their lives cost more than term life premiums. But many tell us the peace of mind is worth it. Another good thing about whole life insurance is that a portion goes into a savings account that accumulates as they age. For this reason, whole life insurance policies are said to have cash value, so should they ever need to dip into it for an emergency need, the money is there for them.
These are but a few of the things we discuss with our Texas clients. But no matter how many questions they have, we take the time to answer each, since buying life insurance is not a step to be taken without knowing what you're getting into. So, if you're presently uninsured or have a term insurance policy nearing its expiration, Kathye Carpenter Agency, LLC invites you to call for an appointment to come in and speak to one of our agents. We'll be waiting for you!