How to Choose the Right Life Insurance Plan for Houston Residents

Life insurance may help address future financial obligations for your family or beneficiaries. At Allstar National Insurance, we help Houston, TX residents review available options and determine what coverage may fit their needs.

Key Life Insurance Options

The following options may be worth considering based on your financial goals and stage of life:

• Term life insurance: Generally a budget-friendly option, term life can cover a specific period, such as 10, 20 or 30 years. It may be a practical choice for families who want their mortgage paid or their children’s education covered.
• Whole life insurance: This is a permanent policy that can remain in place for your entire life, as long as premiums are paid, with a cash value component that may grow over time.
• Final expense insurance: Also called burial insurance, these policies can cover funeral expenses and medical bills, so those costs may not fall on your loved ones.

Factors to Consider When Choosing a Policy

Financial factors such as current debts, annual income and dependent needs may all point to different coverage options. Estate planning goals and tax considerations can also be worth reviewing before choosing a policy.

How Much Life Insurance Coverage May Be Enough

Two common methods can help estimate the right amount. The income multiplier suggests coverage of several times your annual income. The DIME method breaks it down into four areas:

• Debts: Outstanding balances that may need to be paid off
• Income: Earnings that can help maintain household finances for a number of years
• Mortgage: The remaining balance on a home loan that may need to be covered
• Education: Costs for a child’s education that can factor into the total amount needed

We Can Help

Contact Allstar National Insurance today to discuss your life insurance options and get a free custom quote.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.