Texas Life Insurance

The right amount depends on your specific financial obligations, family structure, and how long your income needs to be replaced. A common starting point is to add up your income replacement need (annual income multiplied by the number of years your family would need it), your outstanding mortgage, other debt, and anticipated future expenses like education — then subtract existing savings and life insurance you already carry. The gap is what new coverage should address. Our Life Insurance Needs Calculator can help you work through this calculation in a few minutes.

Term life provides coverage for a defined period — commonly 10, 20, or 30 years — at a fixed premium. It pays a death benefit if the insured dies during the term. If the term ends and the insured is still living, the coverage ends with no cash value. Whole life is permanent coverage that doesn’t expire, includes a cash value component that grows over time, and carries higher premiums. For most families focused on income protection during their working years, term life is the more practical and affordable choice. Whole life tends to make more sense for estate planning, legacy goals, or as a complement to a broader financial strategy. The right answer depends on what the coverage is meant to accomplish. Our term life vs. whole life guide covers this comparison in more depth.

Often, yes — though health conditions affect the terms. Some conditions result in higher premiums but not a denial. Others may limit the coverage types available or require working with carriers that specialize in higher-risk applicants. The impact depends on the specific condition, how well it is managed, and how long it has been present. Conditions like well-controlled hypertension, type 2 diabetes, or a history of depression — including certain medications like Lexapro — affect underwriting but do not automatically disqualify an applicant. Our article on Lexapro and life insurance walks through how antidepressant use is typically evaluated during the underwriting process. Working with an independent agent who has access to multiple carriers is particularly valuable in these situations, as underwriting standards vary meaningfully between companies.

Life insurance premiums are determined by age, health, coverage amount, policy type, and term length. A healthy 30-year-old can typically secure a $500,000 20-year term policy for $20–$30 per month. The same coverage for a 45-year-old in similar health often runs $60–$100 per month. Permanent policies carry significantly higher premiums than term for the same face value. The most reliable way to understand what coverage will cost for your specific situation is to get quotes — premiums vary more than most people expect between carriers for the same applicant.

The best time is typically when the need first arises — when you marry, buy a home, or have children — because coverage is most affordable at a younger age and in better health. The second-best time is now. Premiums increase with age, and health changes can limit options or increase cost in ways that are difficult to predict. Waiting for a “better time” — more income, a calmer season, a later life stage — usually means paying more for the same coverage. If someone depends on your income, the conversation is worth having sooner rather than later.

Yes, and more often than people realize. The economic value of a stay-at-home parent — childcare, household management, school logistics, and the daily coordination of family life — is real and significant. If that parent were to pass away, a surviving working spouse would need to pay for those services or reduce their own income to fill the gap. Life insurance on a non-earning spouse creates financial flexibility during a transition that is already emotionally difficult. Coverage amounts for stay-at-home parents are typically sized around the cost of replacing the services they provide, rather than income replacement.

If you outlive a term policy, the coverage ends and no benefit is paid — that is how term insurance is designed to work. Most policyholders in this situation find that their need for coverage has also changed: the mortgage is paid down, children are grown, debt is reduced, and accumulated savings provide a larger financial cushion. If that’s not the case and coverage is still needed, options include purchasing a new term policy (at current age and health), converting to a permanent policy if the original policy included a conversion privilege, or exploring whether a smaller final expense policy addresses remaining needs. Planning for the end of a term before it arrives is worth doing before health changes make the decision harder.