Jeremy David Financial and Insurance Services

What Kind of Life Insurance?

There are two basic types of life insurance: term and permanent. Each should be considered carefully to determine which best fits your individual needs.

Advantages
of Term

Advantages
of Permanent

Lower cost protection in early years

Customized for coverage to last for a specific number of years

The option to exchange the policy for permanent coverage without having to show evidence of good health

Lower cost in later years

Permanent protection

Level premiums

Accumulation of cash for emergencies, college education, retirement supplement

Tax-deferred wealth accumulation

Tax-free income distribution*

Flexibility Coverage without paying premiums by using various options

Disadvantages
of Term

Disadvantages
of Permanent

Higher cost protection in later years

Increasing premiums

No equity or cash value savings

Failure to pay premiums ends coverage

Higher initial cost

Future dividends and current interest rates not guaranteed

Tax Notes: Proceeds from an insurance policy paid because of the death of the insured are generally excludable from the beneficiary's gross income for tax purposes. (IRC Sec. 101(a)(1).) Income and growth on accumulated cash values have been held by the Tax Court to be generally taxable only upon withdrawal. (IRC Sec. 72.) Consult your tax adivsor or attorney on your specific situation.

Jeremy David Insurance and Financial Services is licensed to do business only within the state of Texas.