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Life insurance, in plain language
Financial protection for the people who depend on your income.
What it typically covers
- A tax-favored payout to your beneficiaries
- Income replacement for dependents
- Paying off debts and a mortgage
- Future costs like education (with enough coverage)
Watch out: Term covers a set number of years; permanent lasts for life and can build cash value, at higher cost.
Key terms
BeneficiaryThe person or entity who receives the payout.
Term lifeCoverage for a fixed period such as 10–30 years.
Whole lifePermanent coverage that can accumulate cash value.
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