Life Insurance

 Everyone should consider life insurance. Whether it is used to replace your income, pay off a debt, pay for final expenses or establish a legacy, there are many compelling reasons to purchase life insurance.

And also its a form of investments and has many tax benefits

 Here are four tax benefits:

• You pay no current federal income tax on potential cash value growth. As the cash value accumulates, it is not subject to current taxation.
• You pay no federal income tax if you borrow cash value from the policy through loans. As a general rule, loans are treated as debts, not taxable distributions, if structured properly. This can give you access to cash value on a tax-advantaged basis. After a sizable amount of cash value has built up, it can be borrowed against to help supplement retirement income as your need for life insurance decreases and in many cases, you’ll not income tax on the gain. (Keep in mind that these loans are charged interest and reduce the death benefit and cash value; if a policy lapses or is surrendered with an outstanding loan, a portion may be taxable; and there are certain polices that are subject to different tax laws.)
• Your beneficiaries generally pay no federal income tax on death benefits. Therefore, a $500,000 policy delivers $500,000 in benefits with no deductions and no withholding required.
• Avoid estate taxes on the death benefits. You can avoid potential estate taxes on life insurance death benefits by transferring ownership of the policy to another person or trust more than three years before your death. Your tax adviser or attorney can explain the particulars for your circumstances.

Term insurance is designed to meet temporary needs. It provides protection for a specific period of time (the "term") and generally pays a benefit only if you die during the term and with the Waiver of Premium you can use it while you are live if you become severely disabled. . This type of insurance often makes sense when you have a need for coverage that will disappear at a specific point in time. For instance, you may decide that you only need coverage until your children graduate from college or a particular debt is paid off, such as your mortgage.

In contrast, permanent insurance provides lifelong protection. As long as you pay the premiums, and no loans, withdrawals or surrenders are taken, the full face amount will be paid. Because it is designed to last a lifetime, permanent life insurance accumulates cash value and is priced for you to keep over a long period of time.

It's impossible to say which type of life insurance is better because the kind of coverage that's right for you depends on your unique circumstances and financial goals.

But remember, the best way to figure out the amount and type of life insurance that makes sense for your particular situation is to meet with a qualified and licensed life insurance professional. Call us at El Charro and we will guide you to the path that is right for you and your family

Coverage Features	Level Term	Waiver of Premium Term	Universal Life	Whole Life	Combination
Who is this for?
Length of your coverage	Up to 30 years	Up to 30 years	Your lifetime	Your lifetime	Both
You may purchase Coverage for your children
Your payment amount	Remains the same	Remains the same	Can be flexible	Remains the same	Can be flexible
$25,000 for severe injury benefit
You may purchase a benefit to pay premium if you become disabled
Cash Value
Free financial advice for your beneficiaries
Sample Rates
	$14.15 per month $250,000 10 Year	$19.15 per month $250,000 10 Year	$70.74 per month $100,000	$84.57 per month $100,000	$98.72 per month $250,000 10 Year $100,000 Whole Life