Term Vs. Permanent Life Insurance: How Your Insurance Needs Change header image

Term Vs. Permanent Life Insurance: How Your Insurance Needs Change

No matter what kind of life insurance you have, its purpose is to protect the financial future of your family or business upon your death. But how do you know whether a term or permanent policy is right for you? 

Term life insurance provides protection for a set period of time, generally 10, 15, 20 or 30 years, or the number of years left until you turn 65. It is typically the least expensive type of life insurance because when the time period is up, the coverage expires.

Permanent life insurance, also called whole life insurance, provides guaranteedprotection for your entire lifetime. It also gains cash value you can borrow against to cover financial needs while you’re living. Your beneficiaries may receive the policy’s benefits tax free.

Choose Term Life Insurance if…

You’re raising a family. The loss of a parent can cause serious financial hardship. Term coverage can offer affordable protection while your children heavily depend on you.

You need coverage for a set time. Maybe you only want coverage until you reach retirement or until your mortgage is paid off. Term life insurance allows you to set these guidelines.

You’re a caregiver. Low-cost coverage could help pay for replacing the time and energy you give when caring for a loved one.

Choose Permanent Life Insurance if…

You’re single. You can lock in lower rates when you’re young and guarantee insurability in the event your health changes. Your premiums will remain the same throughout your whole life.

You own a business. Your business family depends on you, and life insurance can provide economic protection for the company’s future. In this type of coverage, your business is one beneficiary of the permanent life insurance policy.

You’re retired or nearing retirement. You can leave a legacy with life insurance — for your grandchildren, your favorite charity or your alma mater. Your whole life insurance plan can also help heirs pay estate taxes, funeral expenses and other debts2.

We Can Help

Both term and permanent life insurance have their advantages during the various stages of your life. Your local agent can help you understand the difference between term and permanent life insurance and select the option that fits your needs.


1 The guarantees expressed in this article are based on the claims-paying ability of Farm Bureau Life Insurance Company.

2 Neither the Company nor its agents give tax, accounting or legal advice. Please consult your professional advisor in these areas.


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