John Jenkinson speaks with the president of the United Insurance Services Mike Durnil on the options farmers have for life insurance.
There are two main options when it comes to life insurance: term and permanent.
Term life insurance, according to Durnil, “is like renting a house. You pay premiums for many years, there is no cash value that builds up in those contracts and it ends in 10 or 15 years.” Term life is attractive to some individuals because of its lower cost. A couple of insurance companies have offered rich benefits to term life insurance for certain medical situations.
In regard to permanent life insurance, Durnil states, “They normally pay a death benefit all the way up to age 121. These policy’s cash value grows with each premium payment. This is sometimes compares to owning a house.” Farmers can borrow from these policies as the cash value grows.
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