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Texas Whole Life Insurance

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Whole life insurance coverage can offer a death benefit for the rest of
your life. In Texas, your whole life policy can also be part of your
retirement plan.

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Before you decide to buy whole life insurance over its counterpart, Term
Life Insurance, it is crucial for you to understand the basics about
Whole Life Insurance in Texas.

The first type of whole life insurance is non-par or non-participating,
whereas the second type is participating. The major difference between
these two types of whole life insurance policies is that you cannot
change them. In terms of a participating type of whole life insurance,
the insurance firm will share the dividends with you.

While term life insurance only offers death benefits, whole life
insurance creates money value and therefore, offers benefits while you
are still alive. Usually, it takes around 10 years or more for whole life
insurance to create a money value (also referred to as cash value) for
the insurance buyer.

Another advantage of whole life insurance is that, you can lock the price
of premiums, thereby paying the same for the coverage annually. Like term
life insurance, you have a death benefit which will be given to your
beneficiaries in the event of your death. However, with whole life, your
cash value increases with time and can barrowed, barrowed against, or
withdrawn for your retirement.

Further, depending on the type of whole life insurance that you select,
your insurance premium may be able to be paid out of the monthly earnings
of the cash value account attached to the whole life insurance policy.

Whole life insurance has higher premiums and offers higher pay out.
Premiums are paid for the entire duration for which the person holds the
insurance. However, there are certain types of whole life insurances that
offer a set amount of payments, whereas the insurance continues for a
lifetime, but the premium does not.

The best place to start is a life insurance agent who can explain in
detail the differences between whole life insurance and term life
insurance. It’s also helpful to have an agent in Texas that is a phone
call away and locally positioned to answer your questions after you
purchase the policy.