What’s the Difference Between Term and Permanent Life Insurance? | Allstate Life Insurance


Life doesn’t come with any guarantees… that’s why there’s life insurance. Life insurance can help provide financial security for the people you care about if you are gone. If you pass away, a life insurance payment can help your loved ones cover medical bills, funeral costs, mortgage or rent, college tuition, and many other living expenses. Life insurance policies typically fall into two categories: term insurance or permanent insurance. Which type of life insurance policy is right for you? A term life insurance policy is like renting a home.

You choose the length of time – the ‘term’ of the policy – and the amount of coverage, and your payments stay the same until the end of your term. Once your term policy expires, you may have the option to renew your policy with higher premiums or apply for a new life policy. Some policies even allow you to convert to a permanent policy.

A permanent life insurance policy is more like buying a home. It offers lifelong protection, the ability to build cash value, and the flexibility to adjust your policy if needed. With each payment you make to a permanent life insurance policy, part of your premium goes toward insuring your life, and part goes toward building cash value… that can be used to take out a loan, make a withdrawal, or even skip a payment. Loans or partial withdrawals can reduce the policy’s cash value and death benefit, increase the possibility of policy lapse and may result in a tax liability.

Consult a tax advisor for more information on the tax treatment of loans or withdrawals from a life insurance policy.

Have questions about which life insurance policy is right for you? Contact your local Allstate agent today..

As found on Youtube

What's Your Reaction?

Cry Cry
0
Cry
Dislike Dislike
0
Dislike
Like Like
0
Like
hate hate
0
hate
confused confused
0
confused
fail fail
0
fail
fun fun
0
fun
geeky geeky
0
geeky
love love
0
love
lol lol
0
lol
omg omg
0
omg
win win
0
win

You may also like

More From: Uncategorized

DON'T MISS

Share this
Choose A Format
Personality quiz
Series of questions that intends to reveal something about the personality
Trivia quiz
Series of questions with right and wrong answers that intends to check knowledge
Poll
Voting to make decisions or determine opinions
Story
Formatted Text with Embeds and Visuals
List
The Classic Internet Listicles
Countdown
The Classic Internet Countdowns
Open List
Submit your own item and vote up for the best submission
Ranked List
Upvote or downvote to decide the best list item
Meme
Upload your own images to make custom memes
Video
Youtube, Vimeo or Vine Embeds
Audio
Soundcloud or Mixcloud Embeds
Image
Photo or GIF
Gif
GIF format