Reader question:

What happens if I die only a short while after I’ve taken out my Houston TX whole life insurance policy?

Jim

Glad you asked.

A Houston TX whole life insurance policy gives you life insurance protecton for the duration of your, well, life. As long as you are making your premium payments, you will remain covered by your insurance policy, and your payout will not be affected by how many years you have been paying into the policy.

Whether you have been paying into a $400,000 Houston TX whole life insurance policy for one year or forty, your beneficiaries will still receive the same amount upon your death: $400,000.

A Houston TX whole life insurance policy also has a cash value account which is different from a universal policy. While using the cash value does not reduce your orginal benefit for universal, with whole life it does. When you take money from the cash value account, it is more of a loan than anything else. You will have to return the money to the account before you die, or the whole benefits will not be paid out.

take care,

Fashun