Life insurance plays a pivotal role in wealth management. Beyond its basic function of providing your beneficiaries with a death benefit, it serves as a powerful financial planning tool. There are primarily two types of life insurance: term life insurance, which offers coverage for a specific period, and whole life insurance, which includes an investment component that builds cash value over time.
Term life insurance is an excellent choice for those looking for affordable coverage to protect their family’s financial future in the event of an untimely death. On the other hand, whole life insurance, while more expensive, can be a valuable part of your wealth management strategy. The cash value it accumulates can be borrowed against for various purposes, such as funding a child’s education, supplementing retirement income, or investing in opportunities that arise.