In difficult economic times, it's more important than ever to maintain appropriate levels of life insurance coverage as an essential part of one's overall risk management strategy.
Louisville, KY (Vocus) September 19, 2009
When times are tough and margins tight, cutting costs is essential. However Amy Jackson, Vice President of Insurance for Farm Credit Services of Mid-America, stresses that cutting back on one's life insurance isn't a good option.
"Our customers have worked hard to build their farm operations, homes, and plans for their families' futures," said Jackson. "In difficult economic times, it's more important than ever to maintain appropriate levels of life insurance coverage as an essential part of one's overall risk management strategy."
With September being Life Insurance Awareness Month, Jackson said that now is a good time for customers to take stock of their provisions for protecting their loved ones or for securing the future of their businesses. Many factors -- marriage, children, grandchildren, debt, employment changes, aging parents, business structure, retirement -- can create changing needs for insurance. And while no one likes to think about death, she said that sooner or later nearly everyone needs life insurance for things like:
- Replacing income for your family's living expenses
- Paying off debt or other obligations
- Cover final expenses (funeral, medical, long-term care, etc.)
- College funding for your children or grandchildren
- Estate transfer and tax obligations
Jackson said that FCS offers many products to meet the life insurance needs of its customers, from the most competitive and financially sound insurance companies in the market -- A-rated companies like Minnesota Life, Prudential, Banner Life, West Coast Life and more.
While FCS offers a complete line of products to meet differing needs, Jackson said that in today's tough and volatile economic climate, customers seeking the maximum coverage for their insurance dollar might want to consider term life insurance.
"Term life insurance typically offers the highest benefit at the lowest cost to the customer, and all death benefits are tax free to the beneficiaries," said Jackson. "Our term products are individually written for amounts ranging from $75,000 up to $10 million or more, depending on your needs. Term life is a key component in many customers' overall life insurance coverage today."
FCS provides terms of five to 30 years, with the coverage and premiums remaining level for the term selected. For an additional cost, customers may also choose to add optional benefits such as:
- Return of Premium - Rider provides 100 percent of the premium paid back to the insured, if still living at the end of the term. A great investment tool for younger folks.
- Child Rider - Provides coverage to all children under age 17, can be purchased in $1,000 units.
- Convertibility Options - Allows customers to convert their term policy to a permanent policy without having to prove insurability. A great option in the event of a life change such as failing health or the need for coverage beyond the original term.
Farm Credit Services of Mid-America currently provides life insurance coverage for one of every six customers, with over $1 billion in customer lives insured. Other popular options include group life insurance for FCS loans, and disability coverage for mortgage loans.
FCS has a number of calculators and other resources available to help customers determine their insurance needs. To access them, visit http://www.e-farmcredit.com (click on Farm Loans, then Insurance). You may also contact your local FCS office to request a free custom quote at no obligation.
About Farm Credit Services of Mid-America
Farm Credit Services of Mid-America is an ag lending cooperative managing over $15.5 billion in assets and serving over 85,500 farmers, agribusinesses and rural residents in Kentucky, Ohio, Indiana and Tennessee. The association provides loans for all farm and rural living purposes including real estate, operating, equipment and housing and related services such as crop insurance and life insurance and vehicle, equipment and building leases. For more information about Farm Credit or the nearest FCS office, call 1-800-444-FARM (3276) or visit them on the web at http://www.e-farmcredit.com .