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by Indiana Farm Bureau Insurance

What is Single Premium Life Insurance?

Family in their backyard enjoying dinner and playing in the yard

When you hear the words life insurance, what do you think of? When you see or hear a life insurance commercial on the radio or television what is the focal point?  


The answer is usually death! Ask yourself this question, “If it is called life insurance, why do we constantly focus on death?”  


At Indiana Farm Bureau Insurance, we look at life insurance differently. We like to highlight the living benefits of life insurance.  Our enhanced Single Premium Whole Life Policy is the perfect example. In this policy, we focus on the savings and living benefits components of life insurance. With a Single Premium Whole Life Policy, not only can you provide income to your loved ones in the event of your death, there are benefits you may access during your lifetime with the living benefits of the policy.**   


Let’s dive into how a Single Premium Life Insurance Policy works, what we mean by living benefits and more! If you’d like to learn more about what the policy would look like for you, contact a local Indiana Farm Bureau Insurance agent today.  



How does single premium life insurance work? 


Here’s the simple answer. A Single Premium Whole Life Policy is a type of life insurance policy purchased with a one-time premium payment that buys a paid-up life insurance policy that is guaranteed to never require an additional premium payment. Although there is only one premium payment, the death benefit is projected to increase throughout the years.** 


Here’s an example of what this may look like. A 62-year-old standard non-tobacco male, applies a $50,000 single premium which purchases an immediate guaranteed $80,926 death benefit.** If the insured dies the next day the beneficiary receives $80,926 income tax-free! However, if you project the death benefit to age 83 (the male’s estimated life expectancy), the projected death benefit will have increased to $111,157.** That is a 220% increase from the initial single premium. 


However, as previously stated, we call it “life” insurance for a reason. There are a number of living benefits in our Single Premium Whole Life Policy available to the policy owner. If events in the insured’s life change, the policyowner has options and stays in control of their money. 


What are the living benefits of a single premium life insurance policy?  


Our Single Premium Whole Life Policy provides options that include savings, inheritance and living benefits, which can be used in multiple ways.* 



  • Our Single Premium Whole Life Policy guarantees a 3% interest rate, with a current rate of 4.5% after mortality and administration expenses are applied. In 15 years, the cash value is projected to increase to $74,350!** 

  • The cash value accumulates on a tax-deferred basis. You will not pay income taxes on any cash value accumulation unless you request or receive the cash value—also known as a cash value surrender.* 

  • If there is a need for monthly income in the future, you have the option to place the cash value accumulation on a monthly income stream, supplementing your retirement income.* It is still your money.  



  • Our Single Premium Whole Life Policy provides you the opportunity to leave an income tax-free inheritance to your heirs.   

  • Per the example above, the 62-year-old standard non-tobacco male applies a $50,000 single premium payment that provides an immediate $80,926 death benefit, which could serve as an inheritance to your heirs. However, at the current 4.5% interest-rate projection, the inheritance could increase to $111,157 when you are age 83.** 


Living Benefits

  • If situations in your life change, you may surrender the policy and receive a portion or all of the cash value in a lump sum, or you may choose to provide yourself monthly income for a number of years!* 

  • Should you need home health care, nursing home care or assisted living care in the future, you have access to your policy cash value with no surrender penalty by using the Nursing Home Provision within the policy contract.**   

  • Though we hope it never happens, if you are diagnosed with a terminal illness, the policy provides you the option to receive nearly all of the death benefit while you are alive, income tax-free when you need or want it most.**  


Is it important that you decide when and how you need or want to utilize your life insurance program?  We believe it is. At Indiana Farm Bureau Insurance, we offer products that allow you to remain in control and utilize your policy when you need it most.  


How much does single premium life insurance cost?  


As the name suggests, a Single Premium Whole Life Policy is purchased with one single premium. No additional payments are required. The best way to learn about your life insurance options is to contact your local Indiana Farm Bureau Insurance agent today.  


Is a single premium life insurance policy for me? 


As life insurance experts, we often hear people ask the question, “Is this a good decision?” Don’t let us decide for you. 


How do you know if a Single Premium Life Policy is a good option for you and your family? The answer can be found by asking yourself a series of questions. 


  • Do you want to leave an inheritance (income tax-free) to your loved ones?  

  • Are you at a stage in your life where your savings and investment preferences are of a conservative nature, where guarantees are more important than aggressive growth and risk-taking?  

  • Do you still want the peace of mind knowing that you are in control of your money and the assurance that if unexpected situations arise, you have several options to utilize the cash value accumulation for yourself? 

The saving, inheritance, and living benefit options of our Single Premium Whole Life Policy may also help answer the common question, “Is this a good decision?” But we will let you decide that on your own.     


If you’re interested in learning more about the saving, inheritance and living benefit options of our Single Premium Whole Life Policy, contact your local Indiana Farm Bureau Insurance agent today. They will help you decide what’s important to you and assist you in exploring the benefits of life insurance—during and after your life. We understand how important it is to protect your loved ones as well as your present and your future self! 

* Increases in policy cash values may not be free of taxation at surrender if the cash value exceeds cost basis or if exercising a settlement option or other policy provision, benefit, or rider. Please consult your tax, legal, or accounting professionals. 


** Savings, Inheritance, and Living Benefits (SIL) is a Single Premium Whole Life Insurance policy that provides guaranteed interest (net of policy expenses and mortality charges) for the entire policy term and includes an accelerated benefit rider for terminal illness and a nursing expense provision. Exercising certain benefits may cause coverage to terminate. See policy for complete details.