Protect Your Family by Reviewing Your Life Insurance Policy
September 2020 is officially Life Insurance Awareness Month
Around 40% of adults do not have life insurance. As a result, millions of Americans, and hundreds of thousands of Arkansans, may leave their families in a difficult position if they were to pass away.
Does anyone financially depend on you? What would happen to them if you died?
Types of Life Insurance
Generally speaking, you can choose between two types of life insurance: whole life insurance and term life insurance.
Whole Life Insurance
Whole life insurance is permanent insurance that has level premiums and pays a guaranteed cash value until age 120. Whole life insurance may also pay dividends, offering a living benefit for policyholders. Farm Bureau Insurance offers three whole life insurance plans:
- 20 Pay Life: premiums are level and guaranteed for 20 years. At that time the coverage is paid up; no further premiums are required.
- 30 Pay Life: premiums are level and guaranteed for 30 years. At that time the coverage is paid up; no further premiums are required.
- Single Premium Whole Life: one premium in a lump sum is paid upfront at the beginning of the policy.
Living Benefits of Whole Life Insurance
Even though life insurance protects your family, it can still be frustrating to pay for something that you will never personally enjoy. However, there are some benefits to life insurance that help incentivize us taking the responsible leap: living benefits. These are useful financial benefits and offers you can use while you’re alive.
Dividends
After the first year of your policy, you may start earning dividends on your policy. These dividends are not guaranteed, but when you earn them, you choose how you use the money. These options include:
- Increasing your death benefit
- Leave it to earn more interest
- Get the dividend in cash paid directly to you
- Apply it to your premium
Accelerated Death Benefit
If you add the Accelerated Benefit Rider to your whole life insurance policy and get a terminal illness, you will be able to access a portion of your policy benefits.
Term Life Insurance
Term life insurance refers to insurance that is temporary and offers less protection, but the insurance has lower premiums. As long as the term has not expired, a term insurance policy pays a tax-free benefit to your beneficiary at your death. Farm Bureau Insurance offers three term plans:
- The 10 Year Term Premier policy offers a level death benefit at amounts of $100,000 or greater. Premiums are guaranteed and level for 10 years.
- The 20 Year Term Premier policy offers a level death benefit at amounts of $100,000 or greater. Premiums are guaranteed and level for 20 years.
- The 30 Year Term Premier policy offers a level death benefit at amounts of $100,000 or greater. Premiums are guaranteed and level for 30 years.
Start Protecting Your Family With Life Insurance
By conducting an insurance review with a Farm Bureau Insurance agent, you’ll be able to assess your insurance needs, start a new policy, or make any needed changes to your existing policy. To get started, find a local Farm Bureau Insurance agent near you by using our Agent Finder.