What You Need To Know About Increasing Term Life Insurance

Life insurance is designed to protect the financial future of your loved ones — and there’s no better feeling than knowing that you’ve taken care of those closest to you, even after you’re gone. But choosing the best life insurance for you can be confusing. How do you find coverage that fits your current — and future — needs? Maybe you know you’ll need more coverage in the future but aren’t quite ready to pay the higher premiums. 

Luckily, there’s a solution. Farm Bureau’s Increasing Term Life Insurance product might be the right solution to provide the coverage you need now, while also allowing you the opportunity to obtain more coverage over the next five years. 

Interested? Here’s what you need to know about increasing term life insurance, and how to know if it’s right for you and your family’s needs. Remember, you can learn more anytime by reaching out to a Farm Bureau agent.

What Is Increasing Term Life Insurance?

Farm Bureau’s Increasing Term Life Insurance functions like a standard life insurance policy: You pay a premium every month, and if you pass away during the term of the policy, your designated beneficiaries will receive a death benefit.

But more specifically, our Increasing Term Life Insurance product is designed for people who want coverage now, but also know they’ll need more coverage in the future. With an Increasing Term Life Insurance, you’ll have the opportunity to increase coverage – up to double the face value of your original policy – over the first five years. 

Why might this apply to you? Consider this: In the next few years, do you plan to expand your family, earn a higher salary, buy a new house, start a business or make some other big life change? If so, increasing term life insurance may be a good fit for you. It allows you to purchase a lesser amount of coverage for a lower premium now and then increase that coverage at set increments over the first five years of the policy.

In total, you can double your policy’s death benefit amount over five years with no additional underwriting. In this way, you can plan ahead while also taking your current situation into account.

Consider Optional Increasing Term Riders

With an Increasing Term Life Insurance policy, you also can choose to add several optional riders. A rider (commonly known as an add-on to your life insurance policy) can enhance your life insurance coverage. Adding a rider can help you tailor your coverage to your specific needs.

These increasing term riders can help you customize your coverage, making sure that your policy fits your needs:

• Daily Living Rider: This rider accelerates a portion of your policy’s death benefit to help with needs resulting from a chronic illness. This rider is only available to add when your policy is issued. It’s important to note that with this rider, any benefit paid from the rider will reduce the death benefit payable on the policy.
• Living Benefit: Provided on Farm Bureau term life insurance policies for no extra cost, this rider allows you to use part of your policy’s death benefit if you are diagnosed with a qualifying terminal illness. 
• Children’s Term Life: This rider adds your children to your policy. It’s a great way to help ensure your children have the coverage they need, too.
• Waiver of Premium: This rider waives your premiums if you experience a total disability that continues for 90 consecutive days.  With this rider, your premiums may be waived while you are disabled.

If you’re not sure if you need or want to add a rider to your policy, talk to your Farm Bureau agent.

Extended Protection Options

If you decide you want coverage beyond the 20 years an increasing term policy offers, you have options. You can choose to convert your policy to a permanent life insurance policy prior to your 70th birthday. (Note that conversions are not allowed within the first policy year.)

Both full and partial conversions are allowed, and you may be eligible for a conversion credit when you convert your term coverage to a permanent life policy.

Protecting Your Future

Choosing a life insurance policy to protect you today and in the years to come is a big decision. To learn more about the life insurance options available to you — including our Increasing Term product — reach out to Farm Bureau today.