Types of life insurance
| Type | How it generally works | Often used for |
|---|---|---|
| Term life | Coverage for a set period, such as 10, 20 or 30 years. | Income replacement, a mortgage, raising kids |
| Whole life | Permanent coverage with level premiums and guaranteed cash value growth. | Lifelong protection, final expenses, legacy |
| Universal life | Permanent coverage with more flexibility in premiums and death benefit. | Long-term needs with changing budgets |
How much life insurance do I need?
A common starting point is to add up what your family would need to cover:
- Years of income your family depends on
- Your mortgage and other debts
- Childcare and future education costs
- Final expenses
- Any business obligations or partners
Then subtract savings and existing coverage, like a group policy through work. Group coverage often ends when you leave a job, so many families keep a personal policy too.
Life insurance through Farmers® is issued by Farmers New World Life Insurance Company. Products and features may not be available to all applicants. We'll explain the options you qualify for.
A conversation, not a sales pitch
Life insurance is personal. We'll sit down with you in our Old Town office or by phone, look at your goals and your budget, and help you compare options with no pressure.
Life insurance FAQs
What's the difference between term and whole life insurance?
Term life covers you for a set number of years. Whole life is permanent coverage that also builds cash value. Universal life offers permanent coverage with more flexibility.
Is life insurance through work enough?
It may not be. Group coverage is often a set multiple of your salary and usually ends if you leave the job. Many people add a personal policy.
Do I need a medical exam?
It depends on the policy, the amount of coverage and your age and health. Some options may not require a full exam.
Can stay-at-home parents get life insurance?
Yes. A stay-at-home parent provides childcare and household work that would be costly to replace, which is a good reason to consider coverage.
When should I review my life insurance?
After major life events like marriage, a new child, buying a home, starting a business or changing jobs — or every few years.