Life Insurance Direct What Are The Pros And Cons Of Term Insurance | Page 7

Con – It’s taxable. Other forms of life insurance have considerably more protection from taxes,
whereas term insurance is taxable right from the get-go. This means that every dollar they pay
into the plan ends up being reduced a little come tax time.
Overall the benefits to term insurance are that people who simply need to take care of their
family, just-in-case, can get this insurance as a basic emergency fund should anything happen to
them, but that’s about the limits of what it does.