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- State Farm BankÆ Full Service Financial
Joint Universal Life
A Joint Universal Life policy is a flexible way to help you protect your family or business and build tax-deferred cash value.
Joint Universal Life is an economical way of providing for two individuals' needs within one policy. It is similar to Universal Life except that the policy covers two people. The death benefit is paid, if payable, upon the first death of the insureds.
Joint Universal Life has the following features:
- Flexibility - you decide the amount of premium payments*
- Death Benefit - life insurance proceeds are generally federal income tax free to the beneficiary
- Cash Value growth is tax deferred - The growth in cash value is federal tax-deferred, as long as it is not taken out of the policy, and can be accessed during your lifetime for a variety of personal objectives. (Removal of the value can have tax consequences)
- Guaranteed interest rate - earn interest while you protect your family and/or business. The account value earns a competitive market sensitive interest rate which is guaranteed to never drop below a certain percentage
The Joint Universal Life policy can assist in planning for the following needs:
- Preserving Lifestyle - gives you the security of knowing loved ones will be taken care of in the event of premature death
- Business transition planning - Life insurance can help provide the funds to orderly transfer a business interest. For family owned businesses, it can help those interested in continuing the business do so, while also providing for heirs who are not interested in the business
- Access to cash value - The cash value can be accessed via a policy loan or withdrawal to help with education expenses, provide a retirement supplement, or other personal objectives. Unpaid loans and withdrawals will reduce the death benefit and account value/cash surrender value. Loans accrue interest
* With Joint Universal Life it is possible and that will expire when either no premiums are paid following the initial premium or subsequent premiums are insufficient to continue coverage.
Eligibility |
|
|---|---|
| Premium Duration | Lifetime |
| Coverage | Starting at $100,000 |
| Issue Ages | 20 to 85 |
Survivor Purchase Option:
The Survivor Purchase Option allows the Survivor to purchase a new permanent policy without evidence of insurability at the first death of the insureds, and is available for 90 days if the first death of the insureds has occurred prior to the policy anniversary in which the Survivor is 75. See your State Farm agent for details.
Premium classifications:
State Farm® is able to offer the following premium classifications for each insured depending on eligibility.
Tobacco: Available for current tobacco or other nicotine product users or those who have used tobacco or other nicotine products within the 12-month period prior to application.
Preferred Tobacco: Available for current tobacco or other nicotine product users and those who have used tobacco and other nicotine products within the 12-month period prior to application and can meet underwriting requirements more stringent than the Regular risk category.
Non-Tobacco: Available for those who do not currently use tobacco or have not used tobacco or other nicotine products within the 12-month period prior to application.
Preferred Non-Tobacco: Available for those who do not currently use tobacco or other nicotine products and have not used tobacco or other nicotine products within the 12-month period prior to application and can meet underwriting requirements more stringent than the Non-tobacco risk category.
Super Preferred Non-Tobacco: Available for those who do not currently use tobacco or other nicotine products and have not used tobacco or other nicotine products within the 36-month period prior to application and can meet underwriting requirements more stringent than the preferred risk category.
Elite Preferred Non-Tobacco: Available at $250,000 and above for those who do not currently use tobacco or other nicotine products and have not used tobacco or other nicotine products within the 36-month period prior to application and can meet underwriting requirements more stringent than the Super Preferred category.
Customize your Policy
Add even more value to your policy by buying any of these optional riders. A State Farm agent can help you customize a policy to meet your needs.
Optional riders: You can enhance your Joint Universal Life policy and provide additional protection for your family. The following riders are available with the Joint Universal Life policy for an additional cost:
Level Term Rider
Provides additional coverage on either insured until age 95, subject to a $100,000 minimum amount. This rider is convertible until the later of age 75 or the 5th policy anniversary to any whole life plan that is available.
Children's Term Rider
Provides temporary insurance for each eligible child (of both insureds) that is named on the application, and any eligible children acquired in the future.
Waiver of Monthly Deduction
Helps preserve your plan at a time when income may be limited due to a disability. This optional rider waives the monthly deductions of the entire policy for a total disability as defined in the policy for 6 continuous months of the named insured. Waiver of Monthly deduction can be purchased on both insureds; however, no additional benefit is paid if both insureds are totally disabled. Coverage terminates at the earlier of the base policy termination (surrender or lapse), or when the covered insured is age 65, unless disability occurs prior to that time and continues uninterrupted during the waiting period.
Guaranteed Insurability Option
The insureds are guaranteed the right to add a Basic Amount increase to the Joint Universal Life insurance coverage on specific option dates, without evidence of insurability.
Ask your agent for more information about these optional benefits.
