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Life insurance myths revealed

Posted June 25, 2014 in Advice Column, Bondurant

Don’t let common misconceptions about life insurance keep you from securing adequate coverage. Here, we dispel the myths and uncover the truths about the need for life insurance.

• Myth 1. Life insurance is expensive. If you think you can’t afford life insurance, imagine how your family would make ends meet without your income. The cost of life insurance depends on the type and amount of coverage. Term life insurance is generally more afford- able than permanent life insurance, and provides coverage for a specfied period of time. Permanent life insurance provides guaranteed (1) protection for your lifetime, while building cash value (2) you can bor- row against for your financial needs.

• Myth 2. Only families with young children need life insurance. Families with young children have a need for life insurance, but other reasons for having life insurance include taking care of costs associated with your death, such as funeral expenses or outstanding debts. Life insurance proceeds can also provide income for a spouse or financial support for family members.

• Myth 3. Children don’t need life insurance. There are several good reasons to buy life insurance for children. It guarantees insurability and, in some cases, provides opportunities to purchase additional coverage in the future. Premiums are also generally lower. Your Farm Bureau life insurance policy may offer a children’s term rider, which provides term life insurance for each qualifying child, age 7 days to 23 years.

• Myth 4. Term life insurance can’t be converted to permanent life insurance. Some term policies are renewable up to a certain age, but the cost of renewing or purchasing term coverage increases as you age or experience health problems. Most term policies allow you to convert coverage to a permanent policy after a certain time period, and often without additional health assessment. Your Farm Bureau agent can help you select the right type and amount of life insurance to meet your needs. Contact your agent today or visit www.fbfs.com for more information.

The guarantees expressed here are based on the claims-paying abil- ity of Farm Bureau Life Insurance Company.

Universal Life with Secondary Guarantee insurance is not designed for cash value accumulation.

Securities & services offered through FBL Marketing Services, LLC+, 5400 University Ave., West Des Moines, IA 50266, 877/860- 2904, Member SIPC. Farm Bureau Property & Casualty Insurance Company+*, Western Agricultural Insurance Company+*, Farm Bureau Life Insurance Company+*/West Des Moines, IA. +Affiliates *Company providers of Farm Bureau Financial Services.

Information provided by Craig McCoid, Farm Bureau agent, 14 Main St. S.E., Bondurant, 515-957-0533, Craig.mccoid@fbfs.com.





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