LIFE INSURANCE

There’s nothing more important than providing for and protecting your loved ones. It's a labor of love that extends through all phases of life and one many of us would continue after we're gone if it were possible. At Farm Bureau Insurance we're proud to provide peace of mind that comes with a Life Insurance policy.

A Life Insurance policy will provide beneficiaries with payment when the insured party passes away. This can help cover funeral expenses, lost income and more when a loved one passes.

Our trusted advisors are here to help you determine the best policy to protect you and your family. We welcome you to enjoy the security provided by a policy from Michigan’s Insurance Company.

LIFE INSURANCE FAQ'S

  1. How much life insurance do I need? 
    This is one of the most often asked questions related to life insurance. Unfortunately, there's not a single clear-cut answer - everyone's case is different, so everyone needs different coverage. Luckily our Agents can serve as your Trusted Advisor and help answer this question with you. Some factors to consider are: your annual income, your debt, the amount of your mortgage, the age of your children and how much you intend to contribute to their college funds.

  2. How is life insurance paid out? 
    Life Insurance benefits are income tax-free and you can choose whether the entire amount is paid to beneficiaries in a single lump sum, or over a period of time.

  3. Do my children need life insurance? 
    It’s not a pleasant thing to consider in the least – but it’s an important area to evaluate. The fact is - the younger and healthier the covered party is the cheaper a Life Insurance policy will be. Learn more about covering your children in our “Do My Children Need Life Insurance?” blog.

  4. What do I need to change my beneficiary 
    The easiest way to do this is to reach out to your Durga Insurance Group agents! They will give you the appropriate forms to complete and help walk you through the process. You cannot change your beneficiary with a phone call or email alone. You must complete and sign the applicable form which your agents can direct you to.

PERMANENT LIFE INSURANCE

Permanent life insurance is an unrivaled value because it's versatile enough to resolve many of life's complex financial obstacles. Just a few of the objectives that permanent insurance can meet are: building an estate; paying death taxes; supplementing a retirement income; funding for children's or grandchildren's college education; safeguarding a business from the loss of a key employee; subsidizing a business transfer; providing a charitable gift; or equalizing inheritances.

Well-known varieties of permanent insurance are universal life and whole life. As the word permanent implies, a typical universal life or whole life policy is intended to cover the insured for his or her entire life and pays a death benefit to beneficiaries whenever the insured dies.

The premium the policy owner pays generally is split three ways. A portion goes to fund the cost of the future death benefit, part is used to cover the company's administrative costs, and the remainder goes into the policy's reserve account, better known as the policy's cash value.

The policy cash value is an attractive feature of permanent insurance that can provide important tax-favored living benefits to the policy owner. Cash value earnings grow on a tax-deferred basis. The cash value can provide a source of cash for emergency or planned needs. If at some future date the policy owner no longer has the need for life insurance, the policy can be surrendered for its cash value. Better yet, the cash value could purchase an annuity for continued tax-favored treatment!

TERM LIFE INSURANCE

Term life insurance typically offers relatively low-cost protection for anything from one, five, ten, twenty, or, in some cases, thirty years. Term insurance can be compared to renting a death benefit, because it pays a benefit only if the insured dies during the period specified in the policy. If the insured is still alive at the end of the period, coverage ceases. Term insurance doesn't provide such "living benefits" as cash values, and if premiums are not paid coverage lapses.

 

As the name implies, level term life insurance offers a level death benefit for a certain period of time, often anywhere from one year to age 95 or 100. In addition, the policy owner can pay level premiums for a certain specified period of years, depending on the company and insurance policy offered -- anywhere from one to 30 years. Today, level premiums for the first 10 or 20 policy years are the most common options. Once the level premium paying period expires, premiums will increase annually. Many policy owners will find the cost of the annually increasing premiums to be quite prohibitive.

 

Term insurance's strongest appeal is its early affordability. It is initially less expensive to purchase than is permanent insurance, so an individual can purchase larger amounts of protection per dollar of expenditure. It can be an especially suitable purchase for those who have a limited budget but need large amounts of coverage for a specific period of time. Examples include young parents with small children, people with high current obligations, or those who wish to use term insurance as an interim measure before converting to some form of permanent insurance.

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