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Most forms of life insurance (term, group, whole life, universal life) pay a tax-free sum to a named beneficiary, upon the death of the life insured. However the similarity ends there. Some insurance is needed to cover the risk of "premature" death or disability, only until the children are grown and debts are paid. Another type of insurance should continue for life, to provide ongoing income, emergency funds, estimated estate taxation, and payment of funeral expenses. Younger families with higher debts/mortgages and young children may need more life insurance in the first 20 years.

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