What is the Difference Between Term and Permanent Life Insurance?

Life insurance is not a requirement from the state of Texas, though it is a provision that many people seek out, because it can help absorb expenses related to funerals. In addition, when a person is responsible for meeting others’ financial needs, life insurance can help offset the loss of income that impacts a family when that person dies. 

Term and Permanent Life Insurance

Term life, essentially, is a policy that is written to last for a set period of time. It is based upon the likelihood that the insured will or won’t die within 10, 20, or 30 years and is priced accordingly. Term life is typically less expensive than permanent, and after the term has expired, the cost will generally increase significantly, making it unaffordable for most people at that point. It is important to remember that a policy is actually a contract between someone or something, such as a trust, and the insurance company. 

Permanent life insurance carries the same death benefit component but also provides a means of savings, referred to as a ‘cash value’, and it is divided into three categories. Whole life typically has investment instruments, such as bonds or CDs, and Variable life tends to delve into investments like mutual funds. For individuals with a high net worth and who need to plan for their business assets, Universal life entails estate planning with a view to saving on taxes as well. 

Ty Lawrence Insurance Agency Serves Austin, TX Residents

At Ty Lawrence Insurance Agency, we aim to provide our clients with superior service and attention to their insurance needs. We have faithfully served the Austin, TX area and look forward to working with you. Reach out to us, and we can discuss any questions you may have regarding homeowners, commercial, automobile, or life insurance today!

Use Commercial Insurance to Protect Your Austin, TX Assets

Commercial insurance protects you and your family against lawsuits filed against your business. Without it, you could be personally liable for property damage or injuries caused by yourself or an employee during the normal course of running your business.

Why Choose Commercial Business Insurance?

Owning a business includes a lot of risks, such as investing in renovations, hiring employees, building up an inventory of sellable merchandise and other details. It takes time, effort and money to keep an enterprise going. You really don’t want to worry about getting the right commercial insurance, but it’s an essential part of securing your operations and removing your family and personal assets from the crosshairs in the event of a court case.

You can’t know in advance if the stockroom will catch fire or if a storm will damage your infrastructure any more than you can predict that a customer or business associate will decide to sue you.

Protect Your Family and Business Against the Unknown

Protect your slice of the universe with commercial insurance that pays for lawsuits, accidents and more. If your business depends on your ability to perform physical labor, or your presence is essential to move daily transactions forward, you could lose everything if you fall ill or hurt yourself. 

Business insurance has you covered, provided you’ve planned out these contingencies in your policy. 

Ask Your Ty Lawrence Insurance Agency Rep These Questions

Brainstorm your needs to protect your family and your business with commercial insurance. When you meet with your Ty Lawrence Insurance Agency representative in Austin, TX, here are some of the questions you should mention:

  • What are all the specific coverages available? Can I pick and choose what I need?
  • How you can tailor the policy to the needs of my industry and family circumstances?
  • What coverage is most frequently purchased?