Farmer's Premier Whole Life
If you are like most people, you're probably concerned about the safety of your Life
insurance funds and the policy's guarantees.
Farmer's New World Life Insurance Company has a product that can alleviate those
concerns. It's called Farmers Premier Whole Life
Farmers Premier Whole Life
combines the safety of guarantees found in traditional Whole Life insurance plans
with the flexibility our One-Year Term and Single Premium riders offer. This
creates a dynamic Life insurance product that may be the right solution for:
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young adults just beginning an insurance program who need a basic plan to
build upon.
-
families needing Life insurance protection while saving for a down payment
on a home, building funds for their child's education, or to supplement retirement
income.
-
professionals or small businesses needing a large amount of protection for
a limited period of time.
Farmers Premier Whole Life is a permanent Life insurance plan with guarantees.
The base Premier Whole Life plan guarantees:
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level premiums for as long as the policy is in-force
-
level death benefit
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cash value
To further enhance this product, we have developed two riders which allow
you the flexibility to customize a plan to suit the particular needs of your
family.
One Year Term Rider (OYT)
The One-Year Term Rider enables you to design a "blended" plan, a
combination of permanent and temporary coverage (the base plan plus
the One-Year Term Rider). This rider allows you to add coverage on
yourself, and is renewable to age 70. It may be converted before your
age 65 to a permanent plan.
Single Premium Paid-Up Rider
Similar to the One-Year Term Rider, the Single Premium Paid-Up Rider
provides additional Whole Life insurance and builds its own cash value.
Adding it can dramatically:
-
increase the policy's cash values in the early years
-
reduce the time it takes to "offset" the premiums
Issue limits range from a maximum of what $200 premium will buy
to a maximum of the amount of your base Premier Whole Life policy.
NOTE:
Depending on the amount of premium you pay in relation to the sizes
of your base Premier Whole Life policy and the SP Rider, the SP
Rider could produce a violation of the IRS "7-Pay test" and cause
the entire policy to be designated as a Modified Endowment
Contract (MEC). MECs enjoy the same advantages of tax-deferred
cash value growth and tax-free death benefit to your beneficiary as
other Life Insurance products. However, any pre-death distribution
will be taxed as ordinary income. Distributions prior to age 59 and
one-half may be subject to additional tax penalty. You may wish to
seek counsel from a tax advisor.
What sets Premier Whole Life apart from similar plans is the
possibility future premiums could be offset. How?
Excess Credits.
Excess Credits
An Excess Credit, put simply, is money. Each year, based on our future
expectations of investment, mortality and expense experience, we may
declare excess credits on your policy. These excess credits belong to you
and can be used one of four different ways:
-
Purchase Paid-Up Additions (PUA) - A Paid-Up Addition is Life
insurance paid in full by the amount of the Excess Credits. PUAs
have a level death benefit, cash value and earn excess credits. Put
another way, we may provide the funds for you to buy more insurance.
Then, we may provide funds on that insurance to buy
even more insurance - without evidence of insurability!
You can imagine the compounding effect on your original policy. This
option is automatic, unless you request another option.
-
Paid in cash - Choosing this option allows you to use the cash
however you choose.
-
Reduce future premiums - If you choose this option, we will apply
the amount of the excess credit to the premium. Your policy's death
benefit, cash value and excess credits will not increase as rapidly
as if you purchase PUAs. Instead, your excess credits will be used to
reduce premiums each year. Eventually, the excess credits may become
large enough to offset the entire premium due each year.
-
*Add to the Deposit Fund - This option is similar to the second option
in that the excess credits are not applied to the policy. However, they are
not paid directly to you, but instead are paid directly into your Deposit
Fund. If there is a policy loan, it must be paid off before an excess credit
can be deposited into the Deposit Fund.
Excess Credits are not guaranteed.
* Because the Deposit Fund is not available in Tennessee, Option 4
does not apply there.
Optional Riders
(Available at additional cost)
Waiver of Premium - This rider waives all premiums (except
SP Rider premium) during your total disability. The disability must
begin before you are age 60 and last at least six consecutive months.
If you add both the Waiver of Premium and the One-Year Term Rider,
the premium will increase every year the One-Year Term Rider is in
force.
Accidental Death Benefit -
This benefit is payable to the policy's death benefit upon your accidental
death due to most bodily injuries before age 70.
Additional Insured Rider* -
Provides level term insurance on one additional immediate family member
or other individual with an insurable interest. Coverage is convertible to
any available permanent plan, through the additional insured's age 59 or
within 60 days after the base insured's death through the additional
insured's age 70.
Minimum face amount is 25,000 and the maximum is base policy's principal sum,
plus One-Year Term Rider an Single Premium Rider.
Coverage terminates at the additional insured's age 70.
Issue ages 18-60.
*Not available if Family Insurance Rider is selected.
Chidren's Rider -
This rider provides level term insurance on your children age 15 to 19 years
as well as any children you may have in the future. The coverage is to the child's
age 22, or your age 65, if earlier and may be converted to a permanent plan.
Family Insurance Rider* -
This rider provides level term insurance on your spouse, plus a monthly income
benefit to the surviving family if your spouse dies before age 50. Coverage is to
the primary insured's age 65. The same amount of level term insurance is
provided at no additional premium to your children age 15 days to 19 years and
all future children you may have. Coverage is to the child's age 22, or your age
65, if earlier. Coverage on spouse and children may be converted to a
permanent plan.
*Not available if Additional Insured Rider selected.
Deposit Fund*
This optional side fund may be used to build cash reserves for the future.
Payments may be made into the fund if there is no policy loan outstanding,
subject to a $25 minimum. Interest is compounded annually, and the fund
earns a competitive current interest rate. The interest rate will never fall
below a guaranteed minimum. Ask your Farmers agent for the current
and guaranteed rates.
*Retirement Premium Deposit Fund in Kansas; Not avalable in Tennessee.
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