Which Types of Life Insurance Fit My Needs?

You have more than one option when it comes to choosing a life insurance policy.

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Which Life Insurance Is Right For Me?

You have options when it comes to choosing a life insurance policy – term insurance and permanent insurance.

Determining which type of life insurance1 policy is the best option for you depends on your individual circumstances and financial goals.

Term life insurance:

Term life insurance may be a good choice for your temporary needs or if your funds are limited because it:

  • Provides coverage for a specific period of time.
  • Is generally less expensive than permanent life insurance.
  • Often provides the greatest amount of coverage for the lowest initial cost.
  • Has premiums that stay level for a set amount of time, usually 10, 20, or 30 years.
Permanent life insurance:

Permanent life insurance may be a good option if you have long-term needs like income for a spouse, an inheritance for children, or end-of-life expenses, because it:

  • Can remain in force as long as you live.2
  • Premiums generally do not increase during the life of the policy.
  • May build cash value3 which you can borrow for other uses or which you can use to help pay your premiums in the future. If the policy is cancelled, any cash value is sent to the policy owner.

Permanent life insurance includes:

  • Whole life insurance - is one of the most common types of permanent life insurance. Premiums on whole life policies are guaranteed never to increase as long as the policy remains in force; policies offer guaranteed cash value accumulation, and the policy owner may borrow against the cash value of the policy.
  • Universal life insurance - allows you to tailor your insurance to meet your changing needs with flexible premiums4 and benefits with potential for building cash value. The policy owner may also borrow against the cash value of the policy.

Learn more about:

Term life insurance

  • Affordable coverage
  • Temporary coverage for your personal or business needs
  • Convertible to permanent coverage

Learn more about term life insurance

Whole life insurance

  • Good for young adults just beginning an insurance program
  • For families needing life insurance protection while saving for the future
  • Guaranteed cash value accumulation

Learn more about whole life insurance

Universal life insurance

  • Flexible coverage
  • Options for timing and method of premium payment
  • Tailor coverage to your personal needs

Learn more about universal life insurance


It's often difficult to determine which life insurance policy is the better option because the type of coverage that is right for you depends on your individual circumstances and financial goals. For many individuals, a combination of term and permanent life insurance may be the best solution.

Choose a Farmers agent to help you understand your insurance options so you can select the coverage that best fits your needs.

2 Lifetime coverage is guaranteed as long as all premiums are paid to keep the policy in force.
3 Policy loans and withdrawals will reduce cash surrender value and death benefit. Policy loans are subject to interest charges. If your policy is a modified endowment contract, loans and withdrawals may be subject to taxes and penalties.
4 This policy may lapse if premiums are not paid or if premiums are not sufficient to continue coverage.

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