What kind of life insurance do I need?
Term life insurance provides coverage for a certain period of time. The term—the length of time which your premiums remain the same—is typically chosen based on the number of years your family would be vulnerable if you were no longer there to provide for them. Whether it’s during your working years, your kids’ college years, or the length of your mortgage, you buy a term policy for a specific period of time.
Whole life provides lifelong protection and includes a guaranteed cash value which accumulates tax-advantaged over time. You can borrow from the guaranteed cash value for any reason you choose, including paying for your kids’ tuition or as a supplemental source of retirement income for you and your spouse.
Differences at a glance
Term Life Insurance
- Term choices of 10, 15, 20, 25, or 30 years
- Very affordable premiums
- Premiums never change during entire term selected
- Option to convert to a permanent policy
Whole Life Insurance
- Coverage for life
- Premiums can be paid for limited time or for the life of the policy
- Premiums never change
- Policy has a cash value
- Eligible for dividends
- Cash value grows tax-advantaged
- Can borrow against the cash value for any reason
For more information on tailoring a policy to fit your unique needs, learn about policy riders.