State Farm Term Life Insurance
Term life insurance is State Farm’s most basic life insurance product. You pay premiums on a month to month or annual basis and you are insured for that specific time, or “term.” State Farm offers several different types:
- Select Term Life Insurance is when you pay a premium on a monthly or annual basis and your family is protected for a term, or specific time. Start Farm has term insurance products for 10, 20 and 30 years. Insurance coverage usually starts at $100,000.
- Return of Premium Term Life Insurance is an excellent product for healthy individuals. If you outlive the term of the policy you purchase—say, 20 years—State Farm will return all of the premiums you paid.
- Mortgage Term Life Insurance will pay off a residential mortgage in the event of the policyholder’s death. It is available for a 15- or a 30-year period. The policy amount will diminish over time as your mortgage decreases.
- Instant Answer Term Insurance is designed to help pay off loans and funeral expenses. It provides up to $50,000 in coverage. This type of policy can be applied for and approved quickly, depending on your situation, thus the name, Instant Answer.
State Farm Whole Life Insurance
Whole life insurance covers you while you are living. It is different from term life insurance in that it includes a savings or investment component. State Farm has three primary types of whole life insurance:
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Limited Pay Life:
- Premium payments limited to 10, 15, or 20 years.
- Tax-deferred growth of cash value.
- Death benefits generally pass on tax-free to your beneficiaries (always consult with your tax advisor).
- Cash can be accessed during the insured’s lifetime.
- Eligible to earn dividends (dividends are not guaranteed).
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Single Premium Life:
- A lump sum of money is paid into the policy in return for a death benefit that is guaranteed until you die.
- Tax-deferred growth of cash value. Death benefits generally pass on tax-free to your beneficiaries.
- Eligible to earn dividends (dividends are not guaranteed).
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Final Expense Burial Insurance:
- Fixed death benefit of $10,000.
- Premiums guaranteed level up to age 100.
- Tax-deferred growth of cash value.
- Eligible to earn dividends (dividends are not guaranteed).
State Farm Universal Life
In simple terms, universal Life Insurance is whole life insurance with more options. State Farm has two main types:
- Survivorship Universal Life Insurance covers two people. The death benefit is paid when the last person insured under the policy dies. Survivor Universal Life insurance is typically less expense than if two individuals would have their own whole or universal life insurance policies.
- Joint Universal Life Insurance is also for two people, but it pays the death benefit when the first person dies. Like Survivorship Universal Life Insurance, Joint Universal Life Insurance typically is less expensive than two individual Whole Life or Universal Life policies.
