One of the best ways to protect your dependents—whether it's children, a spouse, or aging parents—is to purchase life insurance in case something should happen to you. But which kind? The most common options are term life and whole life. If you are considering a policy but are unfamiliar with these plans, the information below will help you decide between them.

Term Life

Term life insurance covers you for a specified number of years—often 5, ten, twenty, or thirty. Premium rates do not rise during the term, but once the policy expires and you wish to renew, you must purchase coverage at a new, higher rate, based on your new age.

It offers basic coverage and is relatively inexpensive. You normally do not have to submit to a health screening to be approved. It is ideal for someone who needs only temporary coverage, such as until their kids are grown or until a spouse returns to the workforce.

Whole Life

Whole life insurance is permanent insurance. It covers you until you die or stop making premium payments, so you never need to worry about rising monthly rates. These plans often include bonus features, such as disability coverage and an investment arm that lets you accumulate wealth for retirement.

It is, therefore, more expensive than term life insurance and, because it guarantees a payout eventually, you must pass a health screen first. It is a smart choice for someone young, in good health, and in search of a risk management plan in case the unexpected should occur.

Need further guidance when it comes to choosing a life insurance policy? Contact Robert Rung Insurance, an independent agency serving clients in and around Lancaster County, NE. They have been in business since 1973 and, in addition to life insurance, they also specialize in homeowners, disability, and long term care insurance. Call them at (402) 483-2279 to work with an agent or request an online quote via their website.