Choosing the right type of life insurance policy is an important part of good financial planning. To make an informed choice, you need to understand what Term and Permanent policies have to offer.
Term policies require making two simple decisions: how much coverage you want and how long you want it to last. Term policies offer the flexibility of coverage from one to 30 years, and while many policies require a medical exam, there are some options that do not. But Term policies only provide a death benefit to beneficiaries if you pass away and offer no savings benefit like permanent life insurance.
Permanent life insurance policies, by law, build value tax free over time, unless you cash out early and there is a gain in the policy.
Any income taken, within life insurance guidelines, is tax free, and the payment of a death benefit is always tax free to your beneficiaries. You can use that cash for the down payment on a house, college tuition, or retirement. And there are permanent life policies with some intriguing options. For example, some policies offer a fixed rate of return, while others let you choose the mix of investments to take advantage of market opportunities.
For help choosing the right insurance coverage, call us today.