Whether or not to purchase life insurance is often a much debated subject at the dinner table. The young parents may think they are too young to purchase life insurance, and the older adult may think it’s a waste of his money, at this stage. Life insurance company Texas knows how this is, and can give you some valuable insight into whether or not you need life insurance, as what kind to purchase, if you do need it.

Insurance as an Investment

Some people, with the economy as it is, have turned to life insurance as an investment. Life insurance company Texas is familiar with this type of investor, because it offers one of the few genuine tax breaks for everybody.

If you have a whole life insurance policy, you can borrow against it tax free. Of course, it charges interest while the money is out, but as far as taxes go, you’re ok. In addition, life insurance benefits are not taxed by the government. For the middle-class worker, this can provide a way to leave your family with benefits that you couldn’t provide otherwise. For the wealthy, it’s a case of “it takes money to make money”. For instance, one 71 year old couple bought a life insurance policy of $10 million for a $1 million premium. It doesn’t take much to do the math on that one.

However, many insurance companies don’t want people to see insurance as anything but insurance. When insurance becomes classified as an asset, the rules start changing. The benefits are not taxed, and they want to keep it that way.

Insurance for What It Is

To keep insurance in the insurance market rather than the assets market may be a vain effort. But, you can still purchase life insurance based on your stage of life, health condition, and budget.

Whole life, which is the speculated investment asset, lasts for your whole life. You agree to pay a premium on your insurance until you have paid the agreed upon amount, and then you don’t have to pay any more. However, your death benefits still apply, and your beneficiaries can receive the benefits, even if you haven’t made premium payments for years. This is because you paid off the contract. You can also borrow the money back, if you want to, or even cash it in.

Term life is insurance that lasts for the term of the policy. If you have a 20 year term policy, you’ll pay premiums for 20 years, when the policy is either renewed or expires. It doesn’t build cash value, like the whole life policy does. Your life insurance company Texas agent can help you decide if this is the type of policy you need.

Most insurance policies, regardless of type, are available with custom-made premiums. You can choose level premiums that don’t change, decreasing premiums that get cheaper over the years, of increasing premiums that start off cheap and get more expensive.