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Show Page 8 June 1974 Utah Farm Bureau News What happens when the premium runs out? By William Shelton Director of Underwriting Country Mutual Life ance companies: term, whole life, and endowment. Term life insurance provides coverage for specified periods of time. A death benefit is paid if the insured dies during that period or term, but nothing, is paid if he survives to the end of the term. Term life insurance contracts are written to provide coverage for as short a period as one year, and for longer periods, extending in some instances until the insured reaches age 65 or 70. . Law requires certain provisions in all life insurance policies. One such provision is the granting of a period of grace (usually 31 days) during which a premium otherwise overdue may be paid without lapse of the policy. The premium due date does not change, but the policy will not lapse because of failure to pay the premium on time. If the insured should die during the grace period, the death benefit would be paid, but the amount of unpaid premium would be deducted. What happens to the policy if the premium remains unpaid at the end of the grace period depends on the type of policy purchased. There are basically three types of life insurance contracts issued by insur Term policies are renewable Many term contracts may be renewed that is,, continued on the same plan (but for a higher premium) for another period of the same length. Often, they may be renewed more than once, but as a general rule, renewal is not permitted to extend beyond age 65 or 70. Term life insurance does not accumulate policy values but only provides a benefit to be paid upon the death of the insured. Because there TIRE TIPS FOR are no cash values, the policy will terminate at the end of the grace period if the premium remains unpaid. Term life insurance contracts provide valuable protection for temporary life insurance needs, but basic lifetime needs can only be met by whole life coverages. The insurance provided under a whole life contract will be paid at the death of the insured, whenever that may occur. A whole life contract is one of the most versatile and flexible contracts issued. The man in modest circumstances uses it to provide an estate at his death. The wealthy man uses it to augment his estate and to provide ready funds for use in conserving his property funds for estate and- - inheritance taxes, funds that may be used to protect his home, farm or business from a forced sale to produce ready cash. These are permanent objectives in the sense that funds are needed for these purposes whenever death VACATION TIME When you take off this summer with your head in the clouds, make sure you have all four wheels planted firmly on the ground with one of these three dependable Co-o- p tires. Theyre rugged performers that give you what you expect and more. Choose the line that fits your needs and pocketbook. Then stop at your nearest Intermountain Farmers Association store see for yourself the careful design and construction that will protect you and yoUr fam- Easier handling Longer tire life FFA youth no-inter- est 30-da- The Mark X gives you all the advantages of a steel belted tire with rayon radial body plies and a nylon cap ply: Superior car control Better traction Gas economy With two fiberglass belts and four polyester cord plies, the Mark V is an outstanding tire for safety and performance. The big, bold wrap-aroun- d tread wider than conventional design tires gives you long mileage, sure stops and starts. The four plies of polyester cord assure a strong tire that will meet the demands of vacation driving. The two fiberglass belts offer increased stability and handling. pickup truck tire Endowment plan is temporary Smoother ride Dont forget your big Farm Bureau member discount. And you can have up to ten months to pay. Or use the y payment plan. SUPER CARGO CARRIER Whole life gathers value A whole life policy accumulates cash values, so if the policyowner is unable or does not care to continue premium payment, he may surrender the policy for its cash value and terminate the contract. However, if he wishes to continue the policy in force with some protection, he may elect one of the following options: 1. He may borrow enough money from his cash value to pay the premium due, or 2. He may use the cash value to policy of the purchase a paid-u- p same type for a reduced amount, or 3. He may use the cash value to purchase term insurance in the face amount of the policy which will remain in force for as long a period of time as the cash value will provide. Endowment life insurance is provided under a contract which pays the face amount to the policyowner if the insured is living at the end of a stated number of years (the maturity date), or the face amount as a death benefit to the beneficiary if the insured dies before the maturity date. Endowment insurance, like term insurance, is .available for different periods of time. It is very important to bear in mind that the insurance protection under endowment plans is always temporary in nature. In this respect, endowment insurance policies are subject to the same basic disadvantage of all term insurance policies. The death benefit is payable only if the insured dies during the term of coverage; the insurance expires if the insured is living at the end of the period, at which time the endowment benefit is paid. Because endowment plans accumulate cash values, the same options discussed in describing the whole life contract are available. If a premium remains unpaid at the end of the grace period, the elected option becomes operative. Because of the different kinds of plans and combinations of plans issued by insurance companies, you may want to cpntact your Farm Bureau insurance agent to help you plan the program best suited for your insurance needs. ily wherever you travel. MARK X STEEL RADIAL passenger car tire occurs. Therefore, permanent (whole life) insurance is needed if such goals are to be attained. MARK V POLY GLASS BELT passenger car tire when you reach out for the open sPQCes in yur PickuP and camper, this is a tire that will give you peak performance, Proven superior in competition with other major brands, the Super Cargo Carrier features a scientific tread design that gives sure traction. Its tough nylon cord assures long life; insert slots cut stone ejection to a minimum. UTAH FARM BUREAU SERVICE COMPANY 629 East Fourth South, Salt Lake City, Utah 84102 Phone (801) 521-3690 gets award Dennis StefanofT (right), member of the Salt Lake county Farm Bureau board, presented a $100 UFBF cash award to Future Farmer Kent Bushman of Lehi for being named Star Greenhand at the recent state FFA convention. |