Caputo Insurance Services of San Jose California Insurance - Life Insurance, Permanent Life Insurance, Term Life Insurance, Universal Life Insurance

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.