In planning for the future security of yourself and your loved ones, it would be unfortunate if term life insurance is not part of the plan. Choosing a life insurance policy can be a complex decision. Is the right decision term life insurance, permanent life insurance or a combination of both?

Term life insurance provides death protection for a stated time period, or term. Term insurance with a cheaper premium enables the owner to invest the left over money. Term life policies only offer death benefits. When death occurs of the policy holder, the plan pays the benefits to your designated beneficiary.

Permanent life insurance policies not only offer death benefits, but you can also earn money until that time, much as you would an investment. A portion of your premium will be deposited in a savings account, often called a "cash value" account, so that over time, you accrue cash value on the policy. You may borrow against this value or should you discontinue or “cash in” the plan, you would be paid for its cash value.

Permanent life insurance premiums traditionally are more expensive than term life insurance policies, because some of the money is placed into the savings program. The longer the policy has been in force, the higher cash value, since more money has been paid in and the cash value has earned interest, dividends or both.

The decision to be made is regarding cash value. If you buy a policy today, the first annual premium is usually much higher for a permanent life policy than for term. However, the premiums for permanent life insurance policies usually stay the same over the years, while the premiums for term life insurance policies tend to increase. That extra premium paid in the early years of the permanent policy gets invested and grows. The positive aspect is that the increase is tax-deferred if the policy is cashed in during your life. When the policy holder passes away, the proceeds are usually tax-free to your beneficiary.

Many of us have heard, “buy term and invest the difference”. The fact is the right decision is a telephone call away. Our qualified agents are able to assist with determining the best plan for you, your family and your future. Remember, when shopping for term life insurance in Texas, that insurance companies offer many plans at varying prices to fit your specific goals and needs. If you are ready to make a decision about your term life insurance, please call (877) 859-4981 for a free, no-obligation life insurance quote. Or, if you have additional questions regarding which type of policy is right for you, we are here to help!

Call 800-779-4403 for your free insurance assessment today!