A life insurance policy is an agreement between an insurer and a policy holder. The policy holder pays the insurer a premium, and in exchange the policy holder’s beneficiary receives a sum of money following their death. One popular class of policies is investment policies, in which part of the premium goes into a cash value account. There are three types of investment Life Insurance in Austin TX available, including whole life, universal life, and variable life.
Whole Life Insurance
A whole life insurance policy is one for which the policy holder pays a set premium until their death or until endowment age in reached. The premium usually does not increase with time. As long as the payments are made, the death benefits are guaranteed to be paid out to the policy holder’s beneficiary. Both the death benefits and the premium are fixed. The benefits can be used for funeral expenses, as a source of income for the beneficiary, and as supplemental retirement income.
Universal Life Insurance
Universal life insurance is different from whole life insurance in that the death benefits and premium are not fixed. Instead they are flexible, making this type of policy more appealing to some customers. The death benefits can be increased or decreased by the policy holder whenever desired, and this will be accompanied by a change in the premium. A universal life insurance policy has the potential for greater cash value growth.
Variable Life Insurance
Like whole life and universal life policies, variable life insurance policies have an investment component. With variable life policies, the policy holder has the ability to invest the cash value in a variety of mutual fund-like accounts. In addition, variable life policies have a great deal of flexibility in premiums. There is no endowment age for variable life policies.
Turn to Patrick Court with State Farm when the need for Life Insurance in Austin TX arises. A variety of investment life insurance policies are available, including whole life, universal life, and variable life. The professional State Farm agent can assist in making the best choice. Helping people recover from the unexpected, reach their goals, and manage life’s everyday risks is the top priority.
