​​Whether term or whole life is better depends on your specific financial goals, personal needs and the stage of life you’re in. So the real question isn’t “Which policy is better?” but “Which policy fits your situation better?”​ 

Term life insurance covers you for some number of years — say 20 years — at a fixed cost. That’s the level premium period of your insurance. Premiums stay level and usually are much lower than other types of life insurance. When your level premium period ends, your policy may stay in force, but as you age, your risk of dying goes up and the cost of term insurance goes up each year as well. Term insurance can stay in force until the term ends when you’re 90 years old, but few people would choose to keep a policy for that long because of the cost later in life. 

People often buy term ​life insurance ​for that lower initial cost. That can make a lot of sense if you’re looking at a financial concern ​with ​an end date. For example, say you have a 10-year-old, and you’re saving for her college education. You want to leave money to help pay​ ​​her tuition ​if you’re gone. An inexpensive 10-year term policy may be a good option. It provides low-cost coverage long enough to meet that need if you die. 

Permanent life insurance is designed so you can keep it in force for the rest of your life. It costs more at first, sometimes a lot more. But that higher premium can build cash value within the policy. As you get older and your risk goes up, that cash value can help keep your insurance in force and affordable. Plus, with many policies, you can make use of that cash value while you’re still alive. 

​​Let’s say instead of saving for college, you’re worried about providing lifelong support for your special-needs child. You may want that benefit available no matter how old you are. Permanent life insurance policies can stay in force until you’re 121 years old​, and can build cash value​. A ​whole life policy​​, which is a type of permanent insurance, ​will have ​fixed ​premiums ​and a​ guaranteed ​death benefit​. A ​universal life policy​ is a more flexible kind of permanent life insurance, allowing you to adjust premiums and the amount of coverage within contract limits. Either one could provide the lifetime coverage you’d want in this situation.​​​​​​     ​ 

​​Interested in learning more? ​​Contact a ​Farmers agent​ ​to help you evaluate your choices. Because really, the best policy is one you’re comfortable keeping in force until you need it

The information contained in this page is provided for general informational purposes only. The information is provided by Farmers^® and while we endeavor to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to this article or the information, products, services or related graphics, if any, contained in this article for any purpose. The information is not meant as professional or expert advice, and any reliance you place on such information is therefore strictly at your own risk. 

FCS-0187-25       07/25 

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