Farm Bureau Life Insurance: Is It Worth The Hype?

Life insurance is an important part of any financial plan, offering peace of mind and protecting your family or business in the event of your premature death. Farm Bureau Insurance offers a range of life insurance products, including whole life and term life insurance policies, to meet the diverse needs of its customers. With over 70 years of experience, local agents and adjusters are dedicated to serving communities and providing fast, friendly service. Farm Bureau's mission is to be the life insurance company of choice for its policyholders, offering competitive products, superior customer service, and observing the highest ethical standards. This article will explore the features and benefits of Farm Bureau life insurance, including its financial stability, customer service, and the customisation options available to meet individual needs and budgets.

Farm Bureau's customer service and ethical standards

Farm Bureau's local agents and adjusters are dedicated to serving their communities and live and work in the same areas as their customers. This proximity allows them to be invested in the community and provide fast, friendly, and efficient service. Farm Bureau's mission is to serve its members and policyholders, considering them part of their family. They offer various options for communication, including virtual meetings, phone calls, and a mobile app, ensuring accessibility and convenience for their customers.

The company provides a wide range of insurance products, including life insurance, auto insurance, home insurance, and more, catering to the diverse needs of individuals, families, and businesses. Their life insurance policies, in particular, offer essential financial protection and peace of mind for loved ones in the event of an unexpected death. Farm Bureau understands the importance of choosing the right product and a financially secure company for life insurance, and their agents work closely with customers to customize plans tailored to their individual needs and budgets.

Farm Bureau also prioritizes helping customers save money through various discounts and safe driving initiatives. Their DriveDown program allows customers to reduce their deductible by driving safely. Additionally, they offer convenient payment methods, such as electronic funds transfers, making it easy and secure for customers to make payments. Overall, Farm Bureau's customer service and ethical standards are reflected in their commitment to their customers, their community focus, and their dedication to providing valuable insurance products and services.

The types of life insurance offered

Farm Bureau Financial Services offers three types of life insurance: term life, whole life, and universal life. Each type of coverage serves as protection for your loved ones but differs in price and coverage characteristics.

Term life insurance is one of the most affordable types of life insurance. It provides level term coverage for a specific period, often between 10 and 30 years. If you pass away during the term period, your beneficiaries will receive a death benefit. If you don’t, you’ll lose coverage when the term ends unless you renew or convert it to permanent coverage. Farm Bureau offers several term policy options, including Choice Term, Income Guard Term Life, Return of Premium Term, and Increasing Term.

Whole life insurance provides you with coverage for your entire life, as long as you make fixed premium payments. When you pass away, your beneficiary receives a predetermined death benefit. The policy also builds cash value that you can borrow against or withdraw during your life. Farm Bureau offers several premium payment options for whole life applicants, including the option to have premium payments remain the same until age 100, after which no additional payments are required.

Universal life insurance is a type of permanent insurance that also offers a cash value component. Indexed Universal Life (IUL) insurance policies allow you to allocate your cash value to an equity-indexed account, meaning your cash value tracks the performance of a market index like the S&P 500. As a result, IUL policies have the potential to grow more quickly than traditional universal life policies.

The benefits of life insurance

Life insurance is an essential part of your financial well-being. It provides peace of mind for the future, but it can also offer so much more. Here are some of the key benefits of life insurance:

Financial Protection for Your Loved Ones

The primary benefit of life insurance is that it provides financial security for your loved ones in the event of your death. It ensures your family will have the resources to carry on without you, helping to pay off debts, cover living expenses, and handle any medical or final expenses. This includes funeral costs, which can be a substantial financial burden, with the national median cost of a funeral and burial being $7,848 as of 2021.

Income Replacement

Life insurance can replace lost income for your family, helping them to maintain their standard of living. This can include covering expenses such as childcare, healthcare, tuition fees, and other daily living costs.

Tax-Free Payouts

Life insurance payouts are generally tax-free, meaning your beneficiaries will receive the full amount without having to pay income tax on it. This is a significant advantage, as it ensures your loved ones get the maximum benefit from the policy.

Coverage for Chronic and Terminal Illnesses

Some life insurance policies offer additional coverage for chronic and terminal illnesses. This means that if you become ill, you may be able to access a portion of your death benefit while you're still alive to help pay for your care or other expenses.

Supplemental Retirement Savings

Certain types of life insurance policies, such as whole, universal, or variable life insurance, can accumulate cash value over time. This cash value can supplement your retirement savings, providing additional financial security during your golden years.

Customizable Policies

Life insurance policies can be tailored to meet your individual needs. You can choose the type of policy, the coverage amount, and any additional riders or endorsements to ensure you have the right level of protection for yourself and your family.

In summary, life insurance provides financial peace of mind and security for you and your loved ones. By choosing the right policy and coverage, you can ensure that your family will be taken care of, both now and in the future.

How to choose the right life insurance coverage

Life insurance is an essential part of your financial well-being and can provide peace of mind for the future. However, choosing the right life insurance coverage can be confusing and challenging. Here are some detailed and direct instructions to help you make the right choice:

Identify the Type of Life Insurance You Need

There are two main types of life insurance: term life insurance and permanent life insurance. Term life insurance provides coverage for a specific period, typically between 10 and 30 years. It is designed to protect your dependents during your income-earning years and is generally more affordable. On the other hand, permanent life insurance provides lifelong coverage and typically includes a savings or investment component. It is more expensive but offers lifelong protection and can be useful for individuals with lifelong dependents or estate planning needs.

Calculate the Amount of Coverage You Need

Determining the right amount of life insurance depends on several factors. Consider your income, workplace benefits, and any services you provide that your dependents would need to replace. Multiply this amount by the number of years you need coverage, adjusting for inflation and subtracting any expected Social Security benefits. Also, factor in expenses such as your children's education and your spouse's retirement needs.

Assess How Long You Need the Coverage

Consider how long you intend to work, how long you expect to have dependents, and how long it will take to pay off debts and build sufficient savings. The coverage period should align with these factors, ensuring your dependents are protected during these critical years.

Evaluate Your Budget

Life insurance premiums can vary significantly, so it's essential to determine how much you can afford. Consider your monthly expenses and budget accordingly. If you desire permanent life insurance but find it costly, you can supplement it with a term policy to get the desired death benefit at a more affordable price.

Understand Riders and Policy Features

Life insurance riders provide additional benefits to your policy. Some riders allow you to access a portion of the death benefit while alive for health-related expenses, while others enable you to stop premium payments if you become disabled. When choosing a policy, consider which riders are essential to you and compare their costs across different companies.

Compare Life Insurance Companies

When selecting a life insurance company, consider their financial strength, customer satisfaction ratings, and the types of policies and riders they offer. Check independent ratings from agencies like AM Best and review customer complaints and satisfaction surveys to make an informed decision.

Get Quotes and Read the Fine Print

Collect quotes from multiple life insurance providers and compare their offers. Ensure you understand the policy details, exclusions, and the free-look period during which you can cancel the policy for a full refund.

Remember, choosing the right life insurance coverage depends on your unique circumstances, including your age, health, financial obligations, and future goals. Consult with a trusted financial advisor if needed to navigate the complexities and select the coverage that best suits your needs.

The Farm Bureau Promise

For over 70 years, Farm Bureau Insurance has served communities and families with dedication and a promise to protect their future. With a range of insurance products, including life insurance, Farm Bureau is committed to being there for its customers through all of life's ups and downs.

The company offers a wide range of life insurance products, including term life and whole life insurance, to meet the diverse needs of individuals and families. Life insurance is an essential part of financial planning, providing protection and peace of mind for loved ones in the event of an unexpected death. It can help maintain a family's standard of living, cover final expenses, pay for a child's education, and more.

Farm Bureau's life insurance policies are designed to grow with customers through all life stages, whether they are starting a new family, buying a home, or planning for retirement. With the right policy, customers can also access the cash value of their account to finance education, fill retirement income gaps, or pay other expenses.

In addition to life insurance, Farm Bureau offers a range of other insurance products, including auto, home, farm, and business insurance, demonstrating their commitment to being a one-stop shop for all their customers' insurance needs. With Farm Bureau, you can rest assured that you and your loved ones are protected from the unexpected.

Frequently asked questions