Life Insurance
At Farm Bureau Insurance, we understand the importance of protecting what matters most – the well-being of your family.
Common questions about life insurance
Why do you need life insurance?
Life insurance provides a safety net for your loved ones after your death. This type of coverage is essential if you have dependents who rely on your income, such as a spouse, children, or aging parents. It can help cover everyday expenses, mortgage or rent payments, education costs, and even outstanding debts or loans.
How much life insurance coverage do you need?
One of the most common questions people ask when choosing a life insurance plan is, 'How much coverage do I need?' The answer to this question depends on individual circumstances and financial goals. Typically, people opt for coverage that is equal to 5-10 times their annual income. However, it's important to take into account other factors such as outstanding debts, future expenses, and income replacement needs. Your Farm Bureau Insurance agent can help you determine the right amount of coverage to fit your needs.
Why should I have life insurance in addition to my employer benefits?
Employer group life insurance is great as supplemental coverage, but ask yourself this: What happens to my employer coverage when I retire, change jobs, or get laid off? Group coverage is only good when you are part of the group. We have all heard the saying “Don’t put all your eggs in one basket.” Make sure you have planned ahead and bought individual life insurance so no matter what happens, your family will be protected.
What is term life insurance?
Term life insurance is temporary and is purchased for a set length of time, a term. We offer policies lasting one, 10, 20 or 30 years. Term life insurance is a way to get the most amount of coverage for the lowest cost. It has a low initial premium and the cost stays level for a specified period of time. Term insurance is most often used to take care of temporary needs like replacing your lost income or paying off the mortgage. The main drawback to term insurance is that after the specified term, the cost will increase. The good news is that all of our term products can be converted to permanent insurance. Depending on your age, you may not have to complete any medical exams or answer any health questions to convert to a permanent plan.
What is whole life insurance?
Whole life insurance is meant to last your whole lifetime, as long as you keep paying the premium, and it increases in cash value as time passes. The amount of the premium stays the same, and policies guarantee a set death benefit. The policies’ cash value accounts can grow each year and are tax deferred. The cash value can even be borrowed against to help with emergencies or when times get tough. Another valuable feature of whole life insurance is the opportunity to receive policy dividends.* Dividends can be used to increase your death benefit, increase your cash value, or even help reduce your premium. We can proudly say that we have paid a dividend every year since the company’s inception. *Not all whole life policies pay dividends and dividends are not guaranteed.
What is universal life insurance?
Universal life insurance is a flexible form of insurance that can last your lifetime and can also increase in cash value over time. Flexibility means that you can change different aspects of the policy – the size of the premiums, whether the death benefit increases with time or stays level – which allows you to change your coverage as your needs change. Another important feature of universal life is that it can also build up cash value as your premiums are paid. The cash value account earns interest and is tax deferred. With so many products and coverage options, universal life insurance is easily included in budgets of any size.
