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Texas Department of Insurance
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September 23, 2021

Need life insurance? Young Texans should consider it too

COVID-19 concerns are driving an increase in life insurance purchases by younger Americans. Applications were up 8% for those under 45 years old. In our new video, TDI’s Life and Health section explains what Texans need to know about life insurance.

Anyone with a family business, assets, or people to protect should think about buying life insurance. Here are some important questions to ask yourself:

  • If I were to die, how would that affect the people in my life?
  • Would there be money to pay for a funeral?
  • How much money would people in my life need to make ends meet without me?
  • Would they lose their homes?
  • If you have children, who’s going to pay for their education?

Write those questions down, and it will help you determine how much life insurance you need.

You’ll also need to decide between term life and whole life insurance.

Term life is the least expensive. It’s based on a time period or your age. When you get to the end of the term period, or reach the age, the insurance ends. There may never be a payout, because you're just covering yourself for a portion of your life when others rely on your income.

Whole life insurance, also called permanent insurance, is there for your entire life. Whole life can be expensive, but that’s because it lasts until you die and the policy pays out. Unlike term life, a whole life policy will accumulate cash value over the years.

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