Life insurance
Life insurance provides a lump-sum payment free of tax to the person of your choice upon your death, as long as you continue paying your premiums. There are different types of life insurance, each offering unique benefits. Life insurance isn’t just about protecting your family; it can also be part of your financial plan and provide access to funds from your policy while you’re alive.
There are two main types of life insurance: term and permanent. Each type has distinct features designed to meet different needs.
Term Life Insurance
- Temporary protection
- Low cost
- Fixed payments
- Option to convert to permanent life insurance
Permanent Life Insurance
- Lifetime protection
- Higher cost
- Flexible payments
- Ability to build a cash value
It’s crucial to ensure that your debts are covered, so important expenses won’t burden your loved ones upon your passing. Take into account factors like your income, net worth, family needs, debts, and other insurances you have.
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