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LIFE INSURANCE

A life insurance policy is a contract with an insurance company. In exchange for regular premiums you pay over time, life insurance pays out after your death to the people you choose as beneficiaries — usually children, a spouse or other family members.

A life insurance payout can be used for debts such as a mortgage, to replace your income, or provide funds for college tuition.

There are two main types of life insurance: term and permanent. Within these two categories there are various types of policies. Understanding which type is right for you can help you build a robust life insurance plan.

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