You love your farm just as much as your father loved it before he passed it to you. You have taken this family farm and have brought it to new heights just as your father wanted before he passed away. Unfortunately, your father didn’t leave you a blueprint on how to achieve this and it was even harder being that he didn’t have life insurance which would have saved you from many hard days you’ve already weathered. Father time waits on no one, and tomorrow is not promised to any of us. The time is now for you to get a life insurance policy for farmers to make sure the farm sees a 3rd generation of prosperity and before it is too late, and history repeats itself.
What is life insurance for farmers?
Life insurance for farmers consists of two main insurance types: term life and whole life. However, whole life goes by more names other than whole life. It is also referred to as permanent life and also a cash value policy. In the United States, term life is still king though as it is by far the most popular for its price and flexibility.
Term life insurance provides a death benefit to your beneficiary when you pass away within the term period. These periods can be 10 years, 20 years and 30 years.
Something about term life that separates it from whole life is that after the term period of 30 years has expired, and the policyholder is not deceased, the insurance company terminates the policy. Payments will be sent back to you even if you continue to make payments. If this were to occur, the best thing to do is for you to call your agent and take out another term policy if need be. The insurance company may not require a medical exam from you at that time. However, you are 30 years older now so the premium will be much higher and rightfully so.
Another benefit of term life, which makes it very popular is the fact it has low, and fixed monthly premium.
Whole life insurance will still provide a death benefit in the form of a check to any beneficiary of your choosing, but this policy will cover you for life (until they stop paying the premium) and it is far more expensive as a result. Note: When it comes to beneficiaries, you can choose anyone you want blood related or not. You can even choose a nonprofit you have loved your whole life (no pun intended). If you keep paying the premium, this policy will provide your family with a death benefit after your passing. These funds can be used to pay-off the farm, pay for your children’s college education, and pay off other large bills. In death, you could still give your child the wedding that you always promised them.
Whole life has a special feature that term life just can’t match. This policy has a living benefit. What does that mean? This means you could be alive to witness your family receive their death benefit and potentially have the farm paid off before you pass. Unfortunately, with the term life, someone would have to pass away for a benefit to be paid.
Now that you know the basics about term and whole life farmer’s insurance. You are on the right track to not letting history repeat itself and not leaving your family behind in financial turmoil as a result of your passing.