Reasons to Buy Life Insurance in Houston, TX

June, 2014 by Alma Abell

While most people who buy life insurance only intend to use it as something that is going to benefit their family when they die, there are many other good reasons to have this coverage. For one thing, the money does not necessarily need to be used for this purpose. Many people count on their insurance to be retirement incomes. One could say that it is insurance toward a comfortable life after retirement, more like a savings plan.

Obviously, the main reason people buy Life Insurance in Houston TX is to ensure that loved ones will be financially secure. In addition to this, it is used for paying off final expenses, which can cost thousands of dollars. Other things that it is used for is to pay taxes owed on the estate. It can also be used to pay off debts. For instance, if someone has passed away and had outstanding debts such as mortgages and credit card expenses, these will be paid for so loved ones don’t have to worry about it. Many people use the funds to pay for children’s educations.

While most forms of income are subject to Federal and State taxes, there are no taxes on Life Insurance in Houston, TX. The premium payments, which have grown as cash value, are also not subject to taxes. When one borrows money against their insurance, they are not taxed. One thing to keep in mind is that if the amount of the policy causes the estate value to go over a certain amount, the estate can be taxed. It is best to make sure that the beneficiary is not named in your estate to be sure that this does not happen.

Insurance Company offers the Viva Life policy. There are three 20-year plans that can be used for living expenses, medical expenses, funeral expenses, and more. The different plans have different coverage, $25,000, $50,000, and $100,000. If the owner of the Life Insurance in Houston, TX is still alive when the policy expires, they will receive a refund of all the premiums they have paid.

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