Life insurance policies can do more today than ever before – including the option to use your life insurance while you’re still living. Life insurance policies are a vital piece of your financial plan. Over time, your financial goals will likely change, including your life insurance coverage needs. There may even come a time in your life when having a single policy is no longer enough to meet your specific needs. Fortunately, there are no legal limits as to how many life insurance policies you can own. In fact, most life insurance companies generally have very little concern over the number of policies you own and likely look more closely at the total amount of your benefits.
Different types of life insurance policies
There are multiple types of life insurance policies. Each serve as protection for your loved ones, but differs in price and coverage characteristics. Depending on your situation, a combination of one or more different policies might be best to meet your needs. Farm Bureau offers three types of insurance:
- Term Life Insurance
This type of policy is purchased for a predetermined length of time – often 10, 15, 20 or 30 years. It’s generally less expensive than whole life insurance, making it a popular choice for individuals and families in the prime of life. Term policies also provide opportunities along the way to convert your term policy to whole life insurance, giving you a way to extend your coverage.
- Whole Life Insurance
This policy provides you coverage for your whole life. Depending on the type of whole life policy, it provides you with a cash value you can borrow against for future financial needs like starting a business, buying a home, or funding retirement.
- Universal Life
This form of whole life insurance covers you throughout your lifetime, but with the option to adjust things like your premium payments and death benefits to meet your current needs and goals. As your policy builds accumulated value, based on the premium payments you make, you’re able to borrow against a Universal Life policy for things like purchasing a home, starting a business, or even funding your retirement.
Why would I need multiple policies?
It might sound strange to divide your coverage between multiple policies, but it’s quite common. Perhaps you have a small whole-life policy dating back to your childhood and, as an adult, you’d like to purchase an additional term policy as your main coverage to protect your family until your kids are grown. In this situation, you may choose to maintain your whole-life policy but also add a larger term policy to protect your family.
How much coverage do I need?
You already know that there are different types of policies and that you can, and, maybe need, more than one policy. But how much total coverage do you need? There is no such thing as a one-size fits all life insurance policy. So, before you begin shopping for a policy – or purchasing additional coverage – it’s important to understand that a variety of factors come into play, including age, salary, expenses, debts and future financial needs. Estimate your needs with our life insurance calculator.
An alternative to multiple policies
As your needs change overtime, you might have the option to purchase an insurance rider on an existing policy. A rider is a small additional policy that piggybacks on your main coverage. Farm Bureau has several riders that can be added onto your existing Farm Bureau policies. For example, a daily living rider can be a huge advantage when dealing with chronic illness. If you become unable to perform necessary daily activities, you can have access to your policy’s death benefit with the reminder going to your beneficiary.
Read more: Unexpected Uses for Life Insurance
Coverage that fits your needs
Whether you’re looking for a policy that will replace your income for your family, pay off your mortgage and send your children to college, a policy that will return your premium at the end of the term, or simple coverage for your children or grandchildren, Farm Bureau has you covered.