Life Insurance in the North Dallas, TX Area

To be certain that your family will be protected in the event of your death, you need a life insurance policy that offers complete coverage for your needs. You also need an insurance agency that will work closely with you to plan for your family’s future. In the North Dallas, Plano and Frisco areas, that agency is Tri-Star Insurance Professionals, Inc. John Coyle of Tri-Star Insurance has been in the insurance business for nearly 20 years and specializes in serving customers in North Dallas, Plano and Frisco, TX. Contact Tri-Star Insurance Professionals today at 214-387-0600 or call toll-free at 1-800-990-4600. They will work with you to make sure your life insurance needs are handled professionally and with the utmost in customer service. 

One of the first things to consider when choosing life insurance is whether you have enough insurance. While you don’t want to pay larger premiums than necessary, you don’t want to settle for too little life insurance either. To determine the amount of life insurance you need, there are several factors to consider:

·         How much is the annual income that needs to be replaced should the insured die prematurely?

·         How many years do the beneficiaries and/or dependents need to live on the replacement income?

·         What is the annual interest rate that the invested proceeds of the life insurance payout will earn?

·         What is the estimated rate of inflation for the time frame being considered?

There are several different types of life insurance and you need a basic understanding of each in order to choose your best option. You can choose between term life insurance, whole life insurance, universal life insurance and variable life insurance.

Term life insurance provides guaranteed level premiums and a specified amount of coverage for a specific period of time - as short as one year, or in duration's of 5, 10, 15, 20, 25 or even 30 years. Term life insurance does not does not accumulate cash value like whole life, universal life and variable life insurance policies. The premium rates will increase with age, after your initial term rate so you are best off if you buy term insurance at the youngest age possible and usually for the longest term possible. If your life insurance needs change before the end of the policy’s term, it can usually be cancelled or the face value of the policy can be reduced.

Whole life insurance policies maintain a level premium and also have a cash value that is guaranteed by the life insurance company. Whole life insurance has guaranteed death benefits, guaranteed cash value, and regular fixed premiums.

Universal life insurance is permanent life insurance based on a cash value. The insured pays premiums that are higher than the actual cost of the insurance and this extra premium provides the cash value of the policy. With a universal life insurance policy, the premium rate and the death benefit are flexible. You can pay smaller or larger premiums based on your current financial circumstances and the death benefit can be based either on the cash value of the policy or on the amount stated on the policy. The flexibility of a universal life insurance policy can be important, especially for growing families with fluctuating expenses. It is important to remember, though, that if the premiums are not paid or are too small for too long, the policy can lapse, leaving you without benefits.

Variable life insurance is a form of whole life in which you can assign a portion of your premium to be used in other investments with the insurance company such as a money market fund, bonds or an equity fund. Variable life insurance carries the risk of these investments performing poorly, leaving you with higher premiums to pay, less cash value and/or smaller death benefits. You cannot draw on the cash value of a variable life insurance policy.