Universal life insurance provides flexible life insurance protection that can change as your needs, circumstances and goals change through life’s stages. A universal life insurance policy offers you:
Flexible protection ― you can tailor the policy to your changing needs and receive coverage up to age 115 (age 95 in Utah). You may also adjust your policy’s death benefits after the first policy year. An increase in coverage requires evidence of insurability.1
Flexible payments ― you may pay any amount at any time within the maximum limit set by tax law, provided that it is sufficient to maintain the coverage.2
Access to your money ― as you pay premiums, your policy earns interest in an accumulated value account, which you have access to through partial withdrawals3 and loans.4
Faster rate of growth ― the funds in your policy’s accumulated value earn interest on a tax-deferred basis, which means your money can grow at a faster rate.
Financial protection for others ― upon your death, your beneficiaries may receive benefits from the policy income tax-free.
Income options ― upon your death, the policy’s proceeds can be paid to your loved ones or business partners as a lump sum or through guaranteed5 income payment options. Or, while you are living, the money in your policy’s cash value account may be paid to you if the insurance protection is no longer needed.
Lower costs ― Preferred cost-of-insurance rates are available if you meet certain requirements, including acceptable blood pressure and cholesterol levels, whether or not you use tobacco products. If you do not use tobacco products and meet further requirements, even lower Super Preferred rates are available.
No-cost Living Benefit6 coverage ― allows the policy owner to receive money by using a portion of the policy’s death benefit if the insured is diagnosed with a qualifying terminal illness.
No-cost no-lapse guarantee ― insurance coverage will continue for the specified period, provided that premium amounts meet the premium requirement test, even if the policy would have otherwise entered its grace period due to insufficient accumulated value to pay the policy charges.
Optional protection available at an additional cost:
Guaranteed Insurability Option Rider allows you to periodically increase your insurance protection by a specific amount at current rates without a medical review.
Universal Children’s Term Life Insurance Rider provides term life insurance for each of your qualifying children, age 7 days to 23 years.
Universal Cost-of-Living Increase Rider increases your insurance protection every three years to keep pace with inflation (based on the Consumer Price Index and subject to certain limitations).
Universal Waiver of Charges Rider if you experience a total disability, monthly insurance charges will be discontinued after 90 days.
U-Term Life Insurance Rider allows you to acquire additional term life insurance for you and/or one other person ― available in 10-, 15- and 20-year periods. Coverage may be converted to permanent life insurance prior to age 75 and before the end of the specified term.
Daily Living Rider7 accelerates a portion of your policy death benefit if the insured has been chronically ill8 for 90 days and is expected to be for another 90 days or longer. The maximum policy rider amount is $250,000 for all life policies with this rider combined, not to exceed the death benefit of the policies. This rider is available at issue only, and the benefit may only be elected once during the life of the policy. Any benefit paid from the rider will reduce the death benefit payable on the policy.
As a policy owner, you will receive an annual report listing your policy transactions, current accumulated value, amount of premium payments and charges deducted, as well as a record of any policy loans or partial withdrawals.
Universal Life insurance from Farm Bureau provides financial security and flexibility to keep up with your changing lifestyle. Find a Farm Bureau agent now.
1 Additional costs are associated with an increase in coverage.
2 This is a flexible premium policy. It is important that your premium payments are sufficient to maintain coverage. In the event that premium payments are insufficient to maintain the insurance, coverage under the policy will terminate.
3 Partial withdrawals are subject to a fee of $25 or 2 percent of the accumulated value withdrawn, whichever is less. For the first 10 years of the Universal Life policy, and for 10 years following an increase in coverage, full surrenders are subject to a current surrender charge based on policy year, age, sex and underwriting category. Surrender charges may be waived if eligibility can be established due to the insured’s terminal illness, total disability or stay in a qualified nursing care center for 90 consecutive days (after the first policy year).
4 Any loans from the policy’s accumulated value will reduce the policy’s accumulated value and death benefit if the borrowed funds, plus interest, are not repaid by the time of your death. For the Universal Life insurance policy, the Company currently offers a Zero Net Cost Loan feature after 10 years on the gain in the policy. Zero Net Cost means that the credited interest rate will equal the loan rate on the portion of the loan that equals the gain in the policy.
5 The guarantees expressed here are based on the claims-paying ability of Farm Bureau Life Insurance Company.
6 The Living Benefit Rider is known as the Accelerated Benefit Rider in some states.
7 The Daily Living Rider is not to be purchased as a long-term care or health insurance policy, but can provide help with needs resulting in terminal or catastrophic illness. In most situations, canceling, reducing, surrendering or replacing a long-term care or health insurance policy for this rider would be considered unsuitable.
8 A chronically ill individual means any individual who has been certified by a licensed health-care practitioner as being unable to perform (without substantial assistance from another individual) at least two activities of daily living for a period of 90 days due to a loss of functional capacity and/or requiring substantial supervision to protect such individual from threats to health and safety due to severe cognitive impairment. In Kansas, chronically ill individual must also be confined in an eligible institution.