If you have loved ones who depend on you financially, you need life insurance. But what type – term or permanent?

Both forms of insurance provide a death benefit, but permanent insurance, such as universal life, also offers an investment component, so you can build cash value. Because of this, permanent insurance premiums are generally higher.

So, you may have heard that it’s a good idea to purchase term insurance and use your savings to invest in stocks or bonds. But this may not always be the right move.

For one thing, many people simply don’t use the savings to invest. Also, when it’s time to renew a term insurance policy, the premiums can be substantially higher, so there might not be such a big difference between the costs of term and permanent. Plus, the investments within a permanent insurance policy can grow tax-deferred.

Still, everyone’s situation is different, so you’ll want to explore your insurance and investment options carefully. Doing so can pay off for you and your family.

This article was written by Edward Jones for use by your local Edward Jones Financial Advisor.

Edward Jones Trust Company and Edward Jones, and their employees and financial advisors, are not estate planners and cannot provide tax or legal advice. You should consult your estate-planning attorney or qualified tax advisor regarding your situation.

Edward Jones, Member SIPC.

Local Edward Jones financial advisors include Vicky Kirby (256-845-2610), Matt Guice (256-844-6726) and John T. Davis (256-845-4560).

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