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 insurance 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.
  • Premiums 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:

  • Provides benefits while you’re alive.
  • Can remain in force as long as you live.
  • Is typically more expensive than Term Life insurance because premiums generally do not increase during the life of the policy and may build cash value.
  • This means the cash value accumulation can help pay your premiums in the future, you can borrow the cash value, or if the policy is cancelled, any cash value is sent to the policy owner.

Permanent Life insurance includes:

  • Whole life insurance - one of the most common types of Permanent life insurance. Premiums on Whole life are guaranteed never to increase as long as the policy remains in force, offers 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 premiums and benefits while possibly 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
  • Renewable or 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 protection while saving for the future
  • Cash value of a whole life policy is guaranteed

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 is the best solution.

Choose a Farmers agent to help you find the right coverage for your individual circumstance.

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