Life Insurance Policies Can Protect the Farm
Farming is more than a business that takes ingenuity, hard work and risk tolerance. Often it's a way of life that's handed down for generations. If it’s your way of life, you can help make sure the tradition continues.
Not only can the right life insurance policies provide affordable protection for your loved ones should the unthinkable happen in the near-term, but life insurance also can provide a solid foundation to help transition the farm to future generations.
Protecting your family first
Because many farm operations are family-run, the loss of a key family member can be devastating. A farming operation can be left vulnerable and profitability can quickly suffer. Close-knit rural communities often come together in times of need, but owning adequate life insurance can buy your family time to recover. Enough coverage can relieve operating debt and replace lost income for years to come, allowing the family to maintain the farm.
Allowing the heritage to continue
If the farm has multiple owners, life insurance policies can protect individual families as well as the extended business family. Additional life insurance can fund a business continuation plan that allows surviving owners to maintain control of the farm without depleting cash reserves or taking out a loan.
For family members not directly involved in the farming operation, additional life insurance policies can create a business succession strategy that treats all heirs fairly while giving active family members more operating freedom. Older generations can enjoy a more secure retirement knowing the future of the farm is safe.
Additional tax benefits for life insurance policies
When life insurance is used as a business benefit paid on owners or key employees, it is not subject to corporate income tax.1,2 The cash value of policies are an asset on your balance sheet, and you can access those policy cash values and any related dividends.3
On the farm, life insurance can be a strategic tool for future generations. Talk with a local Farm Bureau agent to explore your options.
1Key person strategy life insurance death proceeds may be subject to AMT for a C corporation.
2Neither the Company nor its agents give tax, accounting or legal advice. Please consult your professional adviser in these areas.
3The life insurance policy cash values may be subject to surrender charges, and the death benefit will be reduced by any loans or withdrawals.
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.
See how one farm family developed a strategy to transition a business that's been in the family for generations. Watch the video.