Life Insurance In McKinney TX:  3 Things To Know

Life Insurance McKinney TXThe words “life insurance” conjure up about as many pleasant thoughts as “funeral planning” and “last will and testament.”  Regardless of how distressing it is to think about, purchasing life insurance in McKinney TX is something every one of us needs to consider, especially if we have families who may depend on income from an insurance policy.  In addition to making us think about our own mortality, many of us put off buying life insurance for two reasons: the cost and the idea that it’s too complicated to figure out.  To make it simple, here are the three basic things you need to know about life insurance:

Keep These Items in Mind When Buying Life Insurance in McKinney TX

  1. Not everyone needs life insurance.  If you are young and don’t have any dependents, buying life insurance can be a waste of money.  If you get married or have children, that’s the time to take the plunge and purchase a policy.  You may hear people say that it’s best to buy a life insurance policy when you’re young, regardless of dependents, because you can lock in a good premium rate; but, that’s not true.  No matter what your premiums are when you buy the policy, as you age and your risk classifications change, your premiums will go up.  Also, if you are older and have saved enough money so your spouse won’t need life insurance when you die, then don’t spend money on life insurance in McKinney TX that isn’t necessary.   
  2. You must determine how much life insurance you really need.  There are two ways to go about figuring out how much life insurance to buy. The first way is strictly income-based.  You must determine how many years after you buy the policy your family will need to rely on income from your insurance.  Multiply that number by your current yearly income and buy a policy in that amount.  The second way is needs-based and takes into account more factors than an income-based determination.  The amount of the policy you buy is based on the amount of money your family will need to get by, the cost of a college education for children you leave behind, any mortgage on your home, the amount of money you have in savings and investments and more.
  1. You must determine the type of insurance you want.  The two basic types of life insurance are whole life and term life. Whole life is also called permanent insurance because it stays in effect for the rest of your life, regardless of your health, as long as you pay your premiums.  Whole life policies give you added benefits like the ability to accumulate cash value and the ability to borrow against them.  Term life insurance remains in effect for a finite amount of time and the premiums are based on the amount of time you want to hold the policy and your age. Term life insurance is generally less expensive than whole life and is a good choice when you have a specific period of time in your life – like when your children are young – during which you need more insurance.

Purchasing any kind of insurance can be confusing.  That’s why you need real answers from real insurance experts.  To find out what you need to know contact us at the James Flynn Insurance Agency at

Texas Insurance Expert
7850 Collin McKinney Parkway
McKinney, Texas
(972) 521-3880

Photo Credit:  © lucianmilasan

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