What is life insurance?
Life insurance provides financial support for your family or other loved ones — anyone you choose — if you pass away. The simplest way to explain how life insurance works: you pay premiums, and, in exchange, your insurance company will pay a death benefit to your qualified beneficiaries after your death.
What are the different types of life insurance?
Farmers Life® offers several types of life insurance coverage:
- Term Life Insurance: Often the least expensive life insurance to start, it provides coverage for a specific period of time without increasing cost and provides a death benefit as long as you keep paying premiums until the policy term expires.
- Whole Life Insurance: Permanent life insurance with guaranteed level premiums, guaranteed level death benefit2, and guaranteed cash value accumulation.
- Universal Life Insurance: Permanent life insurance with additional flexibility to change with your priorities.
What type of life insurance do I need?
No single type of life insurance policy is the best for everyone. You can choose a policy to address your own financial and personal situation.
You may want to consider term life insurance if:
- Affordable coverage is a primary goal.
- You want coverage for a specific period of time. For example, to provide for your loved ones if you die while your children are in college (to pay tuition) or while you have a mortgage (to help pay the loan).
- You want to leave an inheritance or money for funeral costs or other final expenses.
You may want to consider permanent (whole or universal) life insurance if:
- You have a lifelong dependent, such as a child with disabilities.
You want to leave a legacy for your heirs to help pay estate or inheritance taxes.
You want the option of using the available cash value to help:
Pay for large purchases or settle expensive debts
Pay medical bills during an illness
Save or pay for college
Provide financial support to loved ones in a time of need, or
Cover caregiving expenses, like time off work to help a family member