Insurance Houston
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.
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.