There are four primary types of life insurance, and each has a place in any sound financial plan. The four variations of life insurance are:
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Term Life Insurance โ fixed premiums for a fixed period, like 10 or 20 years
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Whole Life Insurance โ permanent insurance, as long as premiums are paid, with fixed premiums and cash value benefits
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Universal Life Insurance โ permanent insurance with options to change premiums and death benefits
Variable Life Insurance โ similar to Universal Life but with the flexibility to choose investment risks to maximize cash value benefit