How Does Whole Life Insurance Work?

If you have dependents, a life insurance policy isn’t just an option; it’s a necessity. Two main types of life insurance exist. The term life policy and the whole life policy. Whole life insurance is a popular choice with numerous advantages, albeit a few drawbacks. Understanding the different types of life insurance policies and how they function is vital. To explore your whole life insurance opportunities, contact us at the Melvin Gessner Insurance Agency in Willis, TX.

Continuous Coverage

A term life insurance policy comes with a specific expiration date. Once your term ceases, you’ll need to secure new insurance. However, whole life insurance is fundamentally different. This policy offers perpetual coverage without an expiry date. As long as you are willing and able to make payments, your coverage will continue for the remainder of your life. This benefit is a major advantage and the main reason why many choose whole life insurance.

Acquiring Cash Value

Another significant advantage of whole life insurance is the accrued cash value. Its cash value will gradually grow over the years of holding the policy. You could borrow funds against this value in a financial emergency. This facility can greatly ease financial stress, creating a lifeline for unexpected situations. The borrowed funds can be repaid as any other loan would be.

Securing Whole Life Insurance

Insufficient or lack of life insurance can expose you to significant risks. Don’t put off getting covered. Contact us at Melvin Gessner Insurance Agency in Willis, TX, to initiate your life insurance policy.

Four rules to follow when you buy life insurance

Getting life insurance is important for your family’s financial future. At Melvin Gessner Insurance Agency, we sell consumers in Willis, TX life insurance policies that allow them to be prepared for the uncertainties of the future.

When consumers buy life insurance, It’s important for them to avoid mistakes that could lead to negative consequences for their families down the road.

The following are four rules to follow when you buy life insurance:

Learn about the different kinds of life insurance before choosing one

Understanding different types of life insurance is crucial before buying a policy. When you understand the features of different policy types like term and whole life insurance, you can decide what type of policy is best for your family’s unique financial situation.

Take the time to assess your life insurance needs

You need to calculate the right amount of coverage for your family. Making the right decision about how much coverage you need requires you to calculate the future expenses of your beneficiaries.

You want to purchase a policy with enough coverage to allow your surviving beneficiaries to maintain their lifestyle and stay comfortable financially for as long as they are dependent on your income.

Provide accurate information when applying for life insurance

Make sure that all the information you put on life insurance applications is accurate and truthful. Leaving out important information or including misleading information could make it so that a claim on your policy is rejected down the road.

Discuss life insurance with beneficiaries

If there are adult beneficiaries on your policy, you should inform them when you take out a life insurance policy. This way, they’ll know that a claim needs to be filed if you pass away unexpectedly.

Consult With Us

We’re here to assist you with all your life insurance questions. Call us at Melvin Gessner Insurance Agency to learn more about life insurance and to get a quote on a policy that will protect your family in Willis, TX.

What do I need to think about when getting life insurance?

If you are in the Willis, TX area, there are various types of insurance that you will need to have. One of the most important forms of coverage that someone here will need to get is life insurance. This type of insurance is important as it can be used to provide long-term financial protection and support for your dependents.

When you are building a life insurance plan, there are various factors to consider.

Amount of Coverage

An important factor to consider is the amount of coverage you need. Ultimately, you should have life insurance that will help to provide financial support for your dependents. You should consider their long-term housing, education, retirement, and other costs and then compare them to your current savings. This can be a good guide to determine how much insurance you should have in place.

Length of Coverage

You also should consider how long you will need to have life insurance. Life insurance plans are long-term and can be in place for 25 years or longer. There are also whole life insurance plans that can be in place for the rest of your life. It is important to assess how long of a plan you need. Longer-term plans offer coverage for longer but may have higher premiums.

Give Us A Call

Choosing a life insurance plan in the Willis, TX area is always a good idea and a big decision. If you are going to evaluate your options, calling the team with the Melvin Gessner Insurance Agency is a good way to start. The professionals with the Melvin Gessner Insurance Agency can give the guidance you need to build a plan. We can help you determine how much coverage you need and the type of policy that is right for your situation.

Two Types of Life Insurance

If you need life insurance, there are two main types to choose from. These are term life and whole life. Each of them works very differently, so it’s important to know the differences between them. When you need to get a life insurance policy of your own, call us at Melvin Gessner Insurance Agency in Willis, TX. 

Two Types of Life Insurance

Whole Life Insurance

Whole life is a type of policy that stays in effect for the rest of your life as long as you keep paying the insurance premiums. When you keep the policy, it doesn’t expire. It keeps protecting you no matter what your age. This type of life insurance is more expensive, but it comes with a helpful benefit. When you keep the policy for a few years, a small amount of the part that you pay in premiums will accrue a cash value. When this happens, the cash value continues to grow over the years. When there is a cash value there, you can borrow against that amount if there is a need for it. This can help you in financial emergencies. 

Term Life Insurance

When you have a term life insurance policy, the insurance is only good for that term. This may be 20, 25, 30 years, etc. Once this term is completed, the insurance expires. When this happens, you have to reapply for insurance in order to be covered again. One of the benefits of this type of life insurance is that is less expensive than whole life policies. Many people choose it because it can be very reasonably priced for those who are in good health. And, the policy price stays the same throughout the term. 

Get Your Policy

When you have a family, it’s important to have life insurance. Call us at Melvin Gessner Insurance Agency in Willis, TX.