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There are four primary life insurance types, each having a place in any sound financial plan. The four variations of life insurance are:
Term Life Insuranceย โ fixed premiums for a fixed period, like 10 or 20 years
Whole Life Insuranceย โ permanent insurance, as long as premiums are paid, with fixed premiums and cash value benefits
Universal Life Insuranceย โ permanent insurance with options to change premiums and death benefits
Variable Life Insuranceย โ similar to Universal Life but with the flexibility to choose investment risks to maximize cash value benefit