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The Big Picture. . . Life Insurance
Life insurance helps provide for your family if you die. You can buy several different types of insurance, some provide a payout only if you die, some serve as an enforced savings plan in addition to covering your income in case you die. There are special kinds of life insurance for the military. There are special rules about them, and paperwork you will need to fill out. There are separate rules for disabled veterans. How much insurance do you need to protect your family? There are different types of insurance, and you may choose more than one. Review your insurance coverage regularly to see if you need to change the policy. Umbrella coverage or personal coverage might be a good way to cover items that need separate insurance.
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Life insurance replaces the loss of your income to your family. Two main types of life insurance are term and whole life. If you plan to buy a large policy on your life, you will need to pass a medical test.
Term Life Insurance
provides death benefit protection for a specified period of
time. Term life insurance is a good choice if you are young,
can't afford the much-higher costs of whole life insurance,
and have financial obligations that will disappear in time,
such as a car loan or mortgage.
Whole Life (Ordinary
Life) Insurance provides protection for your
entire life. The premiums are much higher than for term insurance,
and they are stretched out over a period of time. Once your
policy is paid up, the insurance company invests excess dollars
for you. In addition to providing protection, the policy becomes
part of your savings plan.
Two online sources of information about life insurance are
http://www.lifeinsuranceindepth.com
and http://www.insure.com.
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