State Farm Life Insurance

How Much Is Protecting Your Family Worth To

You?

Megan Potier

What is life insurance?The Three P’s

Protection- Life insurance is protection against financial loss resulting from death.

Promise- A life insurance policy is a contract which

promises to pay a specific amount of money to your beneficiary when you die, in exchange for your timely payment of premiums while you are

alive

Purpose- At the time of your death, life insurance can provide money to your beneficiaries to help pay off debts, provide monthly income for your

surviving family members, furnish money for your funeral expenses, or pay off any medical debts that may have built up before you pass away. Some insurance policies even build up funds

which can be borrowed against while you are still alive

Not Sure What Type Of Insurance Is Best For You?

When deciding what type of life insurance would best meet your

needs, you should consider four basic features:

1. What type of Death Benefit do you need?

2. What amount of premium can you afford to pay each month?

3. Do you want your life insurance to accumulate cash value while you are alive?

4. Do you want long term or short term coverage?

Term Or Permanent: Which Is Best For You?

Term Life Insurance- Term life insurance provides death protection for a stated time period, or term.

• Simplest form of life insurance• Generally offers a high amount of coverage

for a small amount of premiums• Good choice for short-range goals• Generally used during the child raising years

or while children are still living at home

Term Or Permanent: Which Is Best For You?

Permanent Life Insurance- Permanent life insurance provides a set amount of death protection for as long as you live

• Many different options, so it is not as easy to understand

• Good choice for long-range goals• Coverage guaranteed at a set premium for as

long as you pay the premium• Most accumulate cash value that you can borrow

against while you are living

Types Of Permanent Life Insurance

There are two basic types of permanent life insurance :

Whole Life Insurance

Universal Life Insurance

Whole Life Insurance

• Premiums generally are level and payable for life

• Whole life insurance can actually earn dividends

• Unlike term life insurance, which does not accumulate cash value, some of the money you pay into your whole life policy accumulates as guaranteed cash value

Universal Life Insurance

• Offers flexible premium and adjustable benefits that still accumulate cash value

• You can decide how much life insurance you need and you can adjust them according to your needs as they change

• You account earns interest at the company’s current interest rate

* current rate is 5.00% (as of 6/01/2004)

How To Choose • When it comes to choosing life insurance,

you need to look for a policy with benefits and premiums that match your present and future needs and ability to pay.

• The correct product for your situation may be a combination of permanent and term insurance.

• Together, you and your State Farm agent can assess your life insurance needs to help you choose the life insurance coverage that is best for you.

Why Choose State Farm?Our Mission, Our Vision, and Our Shared ValuesState Farm's mission is to help people manage the risks

of everyday life, recover from the unexpected and realize their dreams.

We are people who make it our business to be like a good neighbor; who built a premier company by selling and keeping promises through our marketing partnership; who bring diverse talents and experiences to our work of serving the State Farm customer.

Our success is built on a foundation of shared values -- quality service and relationships, mutual trust, integrity and financial strength.

Our vision for the future is to be the customer's first and best choice in the products and services we provide. We will continue to be the leader in the insurance industry and we will become a leader in the financial services arena. Our customers' needs will determine our path. Our values will guide us.

Why Choose State Farm?5 Good Reasons To Choose State Farm

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