Colorado Farm Bureau Insurance agents offer a variety of life insurance, financial, health and disability products through Farm Bureau Financial Services. Call your Colorado Farm Bureau Insurance agent to receive more information.
| What is Life Insurance? |
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A life insurance policy is an agreement between you as the policyowner and an insurance company. You pay a set amount of money, called a premium, for a specified level of protection and, in turn, the Company will pay a certain amount of money upon your death to the persons you specify (beneficiaries). |
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| There are 2 Types of Life Insurance |
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Term Life Insurance
Term Life insurance coverage is purchased for a specified period of time, based on your individual needs, which may include buying a home, raising a family, sending children to college or purchasing a business. Since it is for a specific period of time, term insurance can provide larger amounts of insurance at lower premiums than permanent life insurance. For example, you could buy a term policy for 10, 15, 20 or 30 years. |
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Permanent Life Insurance (Includes Universal Life & Variable Universal Life products)
Permanent Life insurance provides protection throughout your lifetime and builds cash value you can borrow against, according to the terms of the policy. You have several options, whereby you can choose a set amount of insurance protection for your lifetime or have the ability to allocate your premium dollars among several stock and bond investment options, giving you greater growth potential in your policy, based on the performance of the investment options you select. |
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Why Purchase Life Insurance? |
| Take a moment to identify the financial needs your family may have if the unexpected should happen. |
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Final expenses (i.e. funeral, medical) |
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Estate taxes and settlement costs |
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Income for your spouse |
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Outstanding debt (i.e. credit card, car payments, mortgage payments etc.) |
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Education funding for children or grandchildren |
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Daycare expenses |
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Elderly care expenses |
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Business transition expenses |
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How Much Life Insurance Do You Need? |
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Life insurance can provide protection from financial hardship for your loved ones in the event of your death. You want to have insurance to help provide a stable financial future for your family, but how do you determine how much? Many financial planning experts recommend that people purchase life insurance coverage equal to six to eight times their income. 1However, many factors should be taken into account in determining a more precise estimate of coverage needed. Farm Bureau Financial Services understands that everyone’s situation is different, which is why we provide a variety of life insurance products to fit your specific needs. |
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What are Some Uses of Life Insurance? |
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While You’re Living – You can access funds through the cash value account of a permanent life policy. 2You may wish to use the money in this account for purchasing a home, financing a child’s education, supplementing retirement income or paying for unexpected expenses. |
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Upon Your Death – Your beneficiaries will receive a specific amount of money. You name the individuals who will receive these benefits. You may change your beneficiaries as your needs or situation change. |
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Living Benefits – 3Provides for an advance of a portion of the face amount of the policy paid to the owner if the insured’s death is anticipated within 12 months. More information regarding the specific details can be provided by a Farm Bureau agent. |
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| Can a Life Insurance Policy be a Source of Income for You or Your Family? |
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Yes. Proceeds from your term or permanent life insurance policy can be paid to your beneficiaries through income payment options upon your death. In addition, if you decide that you don’t want to continue your life insurance policy, the cash value of a permanent life policy may be paid to you as retirement income through income payment options. A Farm Bureau agent can provide information about the various options available. |
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| What Are Some Tax Advantages of Life Insurance Policies? |
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The money in your cash value account earns interest on a tax-deferred basis. |
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The life insurance proceeds paid to your beneficiaries upon your death may be fully excludable from federal income tax (for term and permanent life policies). |
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Benefits from your policy are paid directly to your beneficiaries upon your death, so there should not be any additional costs or delays in receiving the policy proceeds. |
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How Much Life Insurance Should You Own? http://insurance.yahoo.com/lh/faq1.html visited 7/6/06 |
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The life insurance proceeds paid to your beneficiaries upon your death may be fully excludable from federal income tax (for term and permanent life policies). |
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Benefits from your policy are paid directly to your beneficiaries upon your death, so there should not be any additional costs or delays in receiving the policy proceeds. |
IMPORTANT: The information and material contained on this Web site is not an offer to sell or a solicitation to buy any security or any insurance product in any jurisdiction. No security or other insurance product is offered or will be sold in any jurisdiction in which such offer or solicitation purchase or sale would be unlawful under the securities, insurance or other laws of such jurisdiction. Not all products are available in all states. Exclusions, limitations and reductions may apply. This Web site briefly highlights Farm Bureau's insurance policies and their benefits. The contract is contained only in the policy. Farm Bureau products are offered by Farm Bureau agents -- for more information about any Farm Bureau product, please contact your local agent or nearest office using the Agent Locator.
Variable products, subaccounts, mutual funds and municipal fund securities are subject to market risk and possible loss of principal. This and other important information is contained in the prospectus and in the issuer's official statement, which can be obtained from a registered representative and should be read carefully before you invest or pay money. Investors should consider the investment objectives, risks, charges and expenses carefully before investing.
Variable products are comprised of insurance-related features including, but not limited to, a death benefit; optional riders; payment options at death, maturity or upon complete surrender or partial withdrawal; and fees and charges. A 10% tax applies to most withdrawals made from a variable annuity prior to age 59-1/2
Life insurance and annuity products offered through Farm Bureau Life Insurance Company +/West Des Moines, IA.
Securities and services offered through registered representatives of EquiTrust Marketing Services, LLC, + 5400 University Ave., West Des Moines, IA 50266, 877/860-2904, Member SIPC
Products offered through the companies of Farm Bureau Financial Services are not available in all states.
+Affiliated, and companies of Farm Bureau Financial Services
*Not affiliated |
