When choosing a life insurance policy, your first major decision will be whether to get a whole life or a term life policy. These two options are unique, each with its own benefits and drawbacks. Read the following guide to understand what each policy offers so that you can decide which you would prefer. 

What Is Whole Life Insurance?

As the name suggests, this policy provides coverage for your entire life for as long as the premiums are paid. This permanent option has a higher premium, but in turn provides more financial protection with more benefits. A portion of the premium you pay is put into a cash-value account, which is available to borrow or cash out during your lifetime. This can help during retirement, and this withdrawal can be tax-free as long as you remain within the government guidelines for paying your premiums.

What Is Term Life Insurance?

Term life insurance is a simpler and more affordable option. When you choose your policy, you will choose its term, or how long it will provide coverage for you. Common terms include 10, 20, or 30 years. The longer the term, the more affordable the premium will be.

The only value of the policy occurs in the case of your death. The policy will pay out to your dependents in the amount and terms that the policy outlines. People typically choose a term that covers a time period in which they are responsible for their family’s financial needs, and which pays out an amount that would support their family’s needs by replacing their income.

Farm Bureau Financial Services – Joe Rickley Agency will help you choose the right life insurance policy for your budget and needs in Papillion, NE. Joe and his staff are experienced insurance agents who will take the time to explain your options and find any discounts that may apply. See their full range of insurance offerings on their website and call (402) 932-0322 to schedule an appointment.