Life insurance is a contract between you and an insurance company, where you pay premiums in exchange for a death benefit payout to your beneficiaries upon your passing. There are two main types of life insurance policies available in Texas: term life insurance and permanent life insurance.
Term life insurance policies provide coverage for a specific period of time, typically 10, 20, or 30 years. If you pass away during the policy term, your beneficiaries receive a lump sum payment. Term life insurance policies are usually more affordable than permanent life insurance policies.
Permanent life insurance policies, such as whole life insurance and universal life insurance, offer coverage for your entire life. These policies also have a cash value component that accumulates over time, which can be borrowed against or used to pay premiums. Permanent life insurance policies are generally more expensive than term life insurance policies.