Understanding life insurance – and why it’s important [Video]

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Life insurance is a critical component of financial planning that helps ensure your family’s financial stability in the event of an untimely death. While often overlooked in financial portfolios, life insurance helps offer a safety net that can help cover housing, education, and retirement expenses, along with any outstanding debts. However, while life insurance is important for people at all life stages, there are several different types of insurance to consider based on your personal circumstances and goals.

The different types of life insurance

Term life insurance: the most straightforward and affordable types of life insurance, term insurance provides coverage for a specific period, typically 5, 10, 15 or 20 years. If the policyholder passes away during the term, the beneficiaries receive a lump-sum payment. However, once the term ends, the coverage expires unless the policy is renewed.

Permanent …