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Protecting Your Money: Finding a life insurance policy

Posted at 4:51 PM, Sep 15, 2021
and last updated 2021-09-15 17:52:10-04

CORPUS CHRISTI, Texas — There are four different types of life insurance.

  1. Whole Life
  2. Term
  3. Guaranteed Universal Life.
  4. Final Expense

Luis and Rita Garza have been advising people on these options for more than ten years.

"Basically, a whole life is a type of insurance that not only gives an individual protection for the life of that individual, but it also accrues cash value," said Luis Garza with Skyview Insurance Services.

Garza adds that whole life insurance is designed to last you for the rest of your life, and as the cash value of a whole life policy grows, you can borrow from it. That's why it's more expensive.

Then there's guaranteed universal life insurance.

"The difference between whole life and universal life is with universal life we're subtracting the cash value," said Garza.

He says that's what makes it more affordable. Your rate can be locked in till age 120 based on your current age and health.

Term life insurance is like renting insurance, according to Garza. But, your premium increases substantially as you renew the term of coverage. A prevalent topic in the Coastal Bend is pre-existing conditions, particularly for individuals who are overweight, have diabetes and may be on insulin, high blood pressure, and cholesterol.

You can be covered from day one depending on the insurance carrier. For individuals with more serious conditions, there are plans for you as well.

"Let's say an individual had within the last two years, had a heart attack, stroke, or cancer, well than an individual, with such diagnoses could still qualify for life insurance, but only a graded plan."

Only after the first two full years with a graded type life insurance policy will one qualify for the full benefit.

Now it's time to talk about the final days, a final expense policy.

"If we have a $10,000 policy that we buy, and it's been in place for 35 years, well, whatever premium the policy was issued at, well you can expect to pay that same premium," said Garza.

Keep on following these tips to Protect Your Money.