Insurance Houston

Life Insurance

Insurance Houston

Term life or whole life insurance?

There are two main types of life insurance: term life and whole life.

It is common to question which type of insurance is right for you.

In the end, the question that should be answered is: Which one best meets your needs?

Why consider term life?

  • Cost-effective coverage compared to whole life
  • Ideal for coverage for a specific period of time
  • Supplement whole life insurance
  • Can be renewed at annually increasing rates without proving insurability
  • Option to convert to whole life insurance later
  • Income tax-free death benefit

Why consider whole life?

  • Lifetime coverage as long as premiums are paid
  • Tax-deferred growth of policy cash values
  • Liquidity through policy loans
  • Can help supplement retirement income
  • A stable financial asset on your balance sheet
  • Income tax-free death benefit

Term life provides the maximum amount of coverage for the minimum amount of cost compared to whole life and is ideal for those who need coverage for a specific period of time. Term life gives the beneficiary income replacement at a time when it's needed most and can be renewed without proving insurability.

Whole life insurance can be an excellent foundation for a strong financial plan because of its many advantages, including simplicity, predictability, and guarantees.

Though today’s financial marketplace can be precarious and change quickly, whole life insurance has remained a stable part of a financial plan that can combine three guarantees – death benefit, fixed premiums, and cash value – into one powerful and effective asset.

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Contact me to determine which type of life insurance is right for you.

Copyright © 2013. All Rights Reserved. Guarantees are dependent on the claims-paying ability of the issuing company.
This information is not intended as tax advice. Please consult with your Accountant prior to making any decisions.