All of the various forms of life insurance – whole life, term life, variable life, universal life and the dozens of variations of each – can be distilled down to just two types: Term and Permanent.
Life insurance is universally recognized as an essential pillar of a financial plan for providing much needed capital in the event of a breadwinner. It is also fundamental to other planning needs, such as estate planning to pay for settlement costs and taxes, and business planning for business continuation or key person protection. However, considering the remarkable tax properties of permanent life insurance, it should also be considered as foundational planning tool for an entire financial plan. Here are three reasons why: