Online Resources to Life Insurance

One of the most important and responsible decisions you’ll make in life is purchasing life insurance. The Internet provides easy access to a host of life insurance resources. Choosing life insurance online can get tricky – so it’s best to do plenty of research and compare numerous policies.

What is variable universal life insurance?
Variable universal life is a flexible premium life insurance policy which provides life insurance protection with long-term investment growth potential of the policy's account value. You may increase or decrease planned periodic premium payments, skip premiums or make additional premium payments within limits. You may also increase (subject to insurability) or decrease your coverage without having to purchase a new policy.

What are the basic benefits of variable universal life insurance?
Variable universal life insurance offers the following benefits:

Financial protection for your beneficiaries against your premature death

Opportunity to allocate your net premiums among a variety of investment options

Federal income tax deferral on any growth in the policy account value

Are there risks associated with a variable universal life insurance policy's account value?
Yes, the policy offers an investment element. Almost all investments carry some degree of risk, and certain investments involve more risk than others. Investment returns on underlying investment options can be affected by many factors, including general fluctuations in markets, changes in interest rates, industry trends, performance of individual companies, and changes in the relative value of currencies. Account values are likely to fluctuate over time and can be more or less than the premiums paid.

How can I determine how much risk is right for me when selecting investment options?
State Farm agents have a tool called Risk Profiler that contains a series of 10 questions that combined with your own good judgment, will help you determine the amount of risk that may be right for you when allocating premium payments or accumulation value to underlying investment options.

Can I change how my money is invested after I choose my initial mix of funds?
Yes, you can transfer assets among your variable universal life policy's various investment options without incurring current year federal income tax on any gains. Certain restrictions apply. This investment flexibility is important because you may want to change your investment mix over time.

Are there any tax advantages to owning variable universal life insurance?
Yes, there are a number of tax advantages:

The death benefit payable to your beneficiaries is generally federal income tax free

Federal income tax is deferred on growth in the policy's account value

You can transfer account value between investment options within the policy without incurring current federal income tax on any gains

Can I also provide life insurance coverage for my spouse and children under the same policy?
Yes, subject to insurability and age limits, you may provide term life insurance coverage for your spouse and children under your variable universal life insurance policy. The additional insured level term rider may not be available in all states.

Are there fees or charges associated with a variable universal life policy?
As with most variable life insurance contracts, our Variable Universal Life policy carries certain fees and charges. These fees and charges include a premium charge, a cost of insurance charge, a mortality and expense risk charge, a monthly expense charge, and fund expenses. There is the potential for policy surrender charges, account transfer fees and withdrawal processing fees. Federal Income tax and a 10% penalty tax may apply to distributions. These fees and charges are covered in detail in the prospectus.