Life insurance can be used for many things. One of which is creating a legacy for your heirs, that is leaving behind a sum of money for them tax free even if you spend every penny you saved for retirement. There are many different types of life insurance and your purpose for buying a policy will play a large role in determining what type is right for you and your needs.
Whole Life Insurance is a type of life insurance policy that will remain in effect, assuming all premiums are paid, for the insured person’s entire life. Many of these policies build cash value over the years which can be used to create a source of tax-free income in retirement.
Term Life Insurance is life insurance that will cover the insured for a period during their life generally between 10 and 30 years.
Final Expense Insurance is another type of whole life policy that is designed to have a smaller death benefit that is intended to only cover the costs of final arrangements such as funeral expenses. These policies generally require very little underwriting, and some are even guaranteed issue, meaning that regardless of your health you will be approved.