Life insurance can be tricky. There are so many different terms to sift through, finding the right coverage for you and your family can be difficult.
What about whole life vs. term life? Which one is right for you? Weve put together a list of each, to help you decide what coverage is best for you and your lifestyle.
Some features of term life insurance:
- Provides death benefits only
- Pays benefits only if you die when the policy is in effect
- Easiest and most affordable
- Becomes more expensive as you age
- Can be used as temporary additional coverage
- Purchased for a specific time (hence the term)
- Policies vary but in some instances term policies may be converted to permanent policies during a specific period
Some features of whole life insurance:
- Designed to provide coverage forlife
- Provides death benefits as well as cash value accumulation that builds during the life of the policy
- You typically must qualify with a health examination or at a higher cost without one
- Cash value builds with interest and possibly dividends
- Initially is more expensive than term life, but can potentially save you money over the life of the policy
What to consider when choosing between the two: age, state of health, financial needs, age of your children, mortgage and current debt.Your Farmers Union Agent can help you understand your options. Having a knowledgeable insurance agent is vital to evaluating each of the different aspects of both your circumstances and the available coverages.