Universal life insurance is a type of permanent policy where you can adjust your premiums or your death benefit, according to certain parameters. Some people prefer it over whole life insurance because it’s generally less expensive, but can still create cash value and provide coverage for life.
State Farm universal life insurance policies provide lifetime protection and living benefits that you can use to pay premiums, cover emergencies and more.
State Farm Universal Life Insurance is the company’s most flexible permanent policy. It creates cash value and is available to people aged 0-85. Coverage starts at $25,000 or $50,000, depending on your age, and you can increase or decrease your premiums as needed.
It is important to remember that universal life insurance policies can lapse if the cash value becomes too low to cover the policy fee and the fees charged each month by the insurer.
State Farm also offers two types of universal policies that cover two people in one.
With State Farm Survival Universal Life Insurance, the beneficiaries only receive a payment after the death of the two insured persons. This type of policy is often used for estate planning, funding a trust with special needs, or making donations to your favorite charities. It’s usually less expensive than buying two separate life insurance policies.
State Farm Joint Universal Life Insurance insures two people under one policy and pays a benefit after the death of the first person. It is mainly used to cover the living expenses of a surviving spouse or to finance buy-sell agreements between business partners. Any unpaid policy loans or withdrawals upon death will reduce the amount of the death benefit.