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Life Insurance:

Life insurance is a financial backup plan which protects your family or loved once in the event of the death of a family member, especially the breadwinner.  The death benefit can be use to:

  1. Replace lost income for dependents
  2. Pay for outstanding mortgage balance
  3. Pay for final expenses on funeral expense, burial cost, and medical bill
  4. Pay for inherent tax
  5. Create a source of savings and education fund.

Types of Insurance:

  1. Term Life Insurance (usually 20 or 30 years): Term Life Insurance is the simplest and least expensive type of life insurance, since it pays your beneficiaries only if you die while the policy is in force. Premiums increase according to your age and overall health, but several other features can also affect the cost and benefits received.
  2. Cash value or Permanent life insurance: This type of life insurance lets you build cash value that grows tax-free.  Frequently, these types of policy also allow you to borrow money against the policy. Common varieties include whole life insurance, universal life insurance and variable universal life insurance.

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