Investment Updates
Do You Know Life Insurance Basics?
Published Friday, November 16, 2012 at: 7:00 AM EST
Most breadwinners recognize the importance of life insurance. If you should die unexpectedly, your family could face a severe financial squeeze, perhaps having to sell the home and give up other lifestyle comforts. With an adequate policy, your beneficiaries may be able to pay off the mortgage (or make a sizable dent in it), take care of funeral expenses, and meet a wide variety of other financial obligations.
But do you really know all you need to know about life insurance? How about the differences between permanent and term insurance? What about other types of policies? What sorts of riders are available? What are the income tax and estate tax consequences?
It’s surprising how little some people truly understand about life insurance. How do you stack up? Here’s a brief quiz on several basic concepts:
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