What is Life insurance?

At Farmers^®, we know it's difficult to imagine a time when you won't be there to help provide for your family. That's why Farmers has developed a suite of Life insurance products* designed to help answer your Life insurance requirements, at any stage of life. Whether you're a new family, empty nester, business owner, or single parent, Farmers has a Life insurance option to suit your needs and budget.

Protecting Your Family:
By preparing in advance, you'll have the peace of mind that comes from knowing you're protecting your family's financial future. And since Life insurance benefits are generally not taxable at the federal level**, your loved ones can use the benefits to help take care of their living expenses in a variety of ways.

• Any needs after the time of death, such as final illness expenses, burial costs and estate taxes.
• Funds for a readjustment period, to finance a move, or to provide time for family members to find a job.
  
• Ongoing financial needs, such as monthly bills and expenses, daycare costs, college tuition or retirement.

Safeguarding Your Business
If you're a business owner or have business partners, it's important to prepare for the unexpected. Farmers offers several Life insurance products that are designed to help you, as a business owner, to make it possible for your heirs to help pay estate taxes and help sustain the business during a change in management, or to help provide funds in order to execute a buy-sell agreement between partners or stockholders.**

Contact a Farmers agent to learn more about how Life insurance can benefit you and your loved ones or beneficiaries.

Products and features may not be available in all states and may vary by state.
*Life insurance issued by Farmers New World Life Insurance Company, Mercer Island, WA 98040
**This document is for informational purposes only.  You should consult your attorney, accountant, or tax advisor for legal or tax advice.

FNWL020026

How much Life insurance do I need?

There's no doubt that Life insurance provides a sense of financial security. "If all else fails," you think, "at least I'm covered." But determining the amount of Life insurance you need depends on a number of variables: your marital status, current income, (projected) future income, number of dependents, value of your assets, and your preferred lifestyle in general.

A common rule of thumb is that your Life insurance benefit should equal 5-10 times your current income. But there's no one answer: if you're older, and your mortgage is paid off, you may not need as much Life insurance as a new homeowner. On the other hand, if you're single and have no children, you may not need a policy in addition to the one available at your job.

Keep in mind that until that Life insurance benefit is paid out, you are paying a monthly premium. That's why it's important to research your options and talk to an insurance agent who can help you determine the best policy options for your situation. Farmers^® offers a wide variety of term and permanent Life insurance coverage, with a range of premium levels to choose from.

Products and features may not be available in all states and may vary by state.

Life insurance issued by Farmers New World Life Insurance Company, Mercer Island WA 98040.

FNWL020027                                                                                  03/2008

What kind of Life Insurance do I need?

In a nutshell, Life insurance comes in two flavors: Term and Permanent. Farmers^® offers several options for both types of Life insurance coverage.

Term Life Insurance
Term Life insurance provides the greatest amount of coverage for the lowest initial cost so it is a good choice if your needs are temporary or your funds are limited. Since term insurance provides coverage for a specific period of time (the "term"), you will have to choose the number of years you will need coverage. The Company pays a death benefit only if you die during that term. Some term insurance policies can be renewed at the end of the term. Premium rates may increase at each renewal date. Term insurance is useful as coverage for responsibilities that will diminish or end over time, such as mortgages or car loans. Farmers offers several Term Life Insurance options to choose from.*

Permanent Life Insurance.
Permanent Life insurance coverage is useful when you anticipate a long-term need and value the option of income-tax-favored accumulation for future needs.** The accumulated value can be borrowed against and, in some cases, withdrawn to help meet future goals. (Of course, accessing your accumulated value may reduce your death benefit). As long as you pay the necessary premiums, there is no time limit (or term) restriction on the availability of your death benefit.

Term vs. Permanent Comparison
The snapshot below offers a basic comparison*** between term and permanent Life insurance, based on a variety of circumstances. For a personalized assessment of your Life insurance coverage needs, contact a Farmers agent.

Products and features may not be available in all states and may vary by state.
*Life insurance issued by Farmers New World Life Insurance Company, Mercer Island, WA 98040
**This document is for informational purposes only. You should consult your attorney, accountant, or tax advisor for legal or tax advice.
***For more information about Life insurance coverage considerations, visit the Life and Health Insurance Foundation for Education.

FNWL020028                                                                                  04/2008