Life insurance may not be something you think about on a
daily basis but having a policy in place can positively affect you and your
loved ones every day.

Most people know that life insurance pays the beneficiary
upon the death of the policyholder to provide immediate assistance to the
family by covering any debts, taxes, or funeral expenses.

In addition, it also offers longer term financial protection
by replacing the deceased’s income. In the meantime, the policyholder and his
or her family benefit from the peace of mind that comes from the financial
security that life insurance will provide in the future.

Depending on what type of life insurance policy you select,
you may personally reap additional benefits.

Two Primary Options

The two main types of life insurance policies are term life
and whole life insurance.

Term life insurance has a time limit, usually in 10-year
increments, up to 30 years and only pays upon the policyholder’s death. The
premiums often are more affordable than a whole life policy’s monthly cost.

Although whole life has a higher premium rate than term life
insurance, it offers the added option of tax-free loans and withdrawals that
you can tap into while you’re still living. These policies do not have a cutoff
date provided that there are sufficient funds in your account, and you continue
to pay your monthly premiums.

Whole Life Insurance Benefits

If you choose a whole life insurance policy, you can use the
funds you accumulate in your account in a variety of ways.

A few examples include paying medical bills or hospice care
for an ill or aging family member, covering unexpected expenses, or investing
in your own business venture. Because the money you invest in this kind of
account is tax-deferred, you can amass value more quickly than you likely will with
other investments, such as stocks and bonds.

You can also use a whole life policy as collateral when you
are seeking to take out a mortgage or a business or personal loan.

If you are considering buying a life insurance policy, be
sure to review your options with your family members and your financial advisor
to determine which type makes the most sense for your individual circumstances.

Amuni Financial, Inc. is a Broker-Dealer and Registered Investment Advisor. Member FINRA/SIPC. Please see our website for the states in which we’re registered to do business.

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