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What type
of life insurance policy is right for me?
The
answer to this question depends on your circumstances
and needs.
You
should consider the following:
- Are your life insurance needs temporary or
permanent?
- Considering your budget, is the premium affordable?
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The
two major types of life insurance you can choose are:
Here's
some information to help you decide which type is better
for you:
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There
are Two Basic Ways to
Pay for Life Insurance
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Both
Permanent and Term Life Insurance provide a death
benefit that is generally federal income tax free. |
Term Life Insurance: Usually pay increasing
premiums over time
Permanent Life Insurance: Usually pay level
premiums over time
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Both
types of life insurance have strong points that fit
different situations.
The
"best" policy for you depends on your objectives
and budget.
|
Term |
Permanent |
| Premiums
paid |
Usually
level premiums payable for specified time, premiums
increase if policy is renewed |
Usually
level premiums payable until insured dies |
| Death
benefit* |
Coverage
provided for specified time |
Coverage
provided until death |
| Overall
cost |
May
have the lowest premiums in the short term |
May
have the lowest premiums in the long term |
| Cash
value |
Usually
none |
Growth is generally federal income tax deferred |
*As
long as premiums are paid when due.
Depending
on your needs and budget, you may want to consider a
combination of some term insurance and some whole life
insurance.
Or
if you want flexibility in premium payments and death
benefit amounts, you may want to consider universal
life insurance, which is a type of permanent insurance.
Your
State Farm agent can help you find a policy that fits
your situation and your budget. For detailed policy
information, please contact a State Farm agent.
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