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What
Kind of Life Insurance
There are two
basic types of life insurance: term and permanent.
Each should be considered carefully to determine which best fits
your individual needs.
Advantages of Term
-
Lower
cost protection in early years
-
Customized
for coverage to last for a specific number of years
-
The
option to exchange the policy for permanent coverage without
having to show evidence of good health
Advantages of Permanent
- Lower cost
in later years
- Permanent
protection
- Level premiums
- Accumulation
of cash for emergencies, college education, retirement supplement
- Tax-deferred
wealth accumulation
- Tax-free
income distribution
- Flexibility
- Coverage
without paying premiums by using various options
Disadvantages of Term
Disadvantages of Permanent
- Higher initial
cost
- Future dividends
and current interest rates not guaranteed
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