Shh...Life Insurance at Work
Published: 10 June 2015
Wouldn't it be nice to rest easy at night knowing that your loved ones will always be protected if something unexpectedly happened to you? This peace of mind can be found through many means, but one of your best options is life insurance.
As grim of a topic as this may be, life insurance protects the wellbeing of the those who could suffer a financial hardship caused by your death. It can be used to meet your family’s future needs by replacing your income or more specific needs such as making sure the mortgage is paid off, leaving your family with a debt-free home. Farm Bureau Insurance is one of the largest writers of individual life insurance in Tennessee, offering competetive rates for term, whole and universal life coverage. Now is the time to learn more about these coverages and how you can protect the ones you love.
Term life is a temporary insurance that you purchase for a set length of time—aka. a "term." Ranging from one to 10, 20 and 30 years, term life is a way to get the most coverage for the lowest cost. It has a low initial premium which 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 if you find yourself unemployed or paying off a mortgage. However, there are drawbacks—the main one being that after the specified term, the cost will increase.
Whole life insurance is meant to last your entire lifetime (as long as you keep paying the premium, of course) and increases in cash value over the years. The amount of the premium will always remain 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 to our Farm Bureau Insurance customers every year since 1951.
*Not all whole life policies pay dividends and dividends are not guaranteed.
Universal life 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 has the ability to increase in cash value, depending on how it is funded. The cash value account earns interest and the taxes are deferred (paid at a later date). With so many products and coverage options, universal life insurance can easily be included in a budget of any size.