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.
American National Insurance
Company, Galveston, TX
American National Property and Casualty Company,
Springfield, MO
These
brief descriptions of coverages available are for illustrative purposes
only, and are not intended as a statement of contract. For actual terms
and conditions of coverage provided, refer to your insurance policy,
or, for more information about coverage options and availability, talk
to your American National agent. All products, coverages, and options
are not available in all states, and eligibility guidelines apply. American
National Family of Companies reserves the right to discontinue programs
at any time.
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