What’s the most valuable part of your operation?

Your machinery?

The value of your land?

Your animals?

Let’s face it. You are. The ability to run a business and produce income is the most difficult (if not impossible) commodity to replace.

Yet, many people overlook the importance of protecting this valuable asset. You insure your cars, trucks and buildings, but perhaps you’ve left yourself unprotected.

Farm Credit understands the value of protecting the lives of our members. That’s why we offer credit life insurance, which provides added financial security to your family and your business.

Here are answers to questions that we are most frequently asked about this product.

Q: What is credit life insurance?
A: Credit life insurance covers the outstanding balance of your mortgage or loan. The coverage provides money to help a family or farm business repay the loan in case of your unexpected death. It gives them time to deal with their loss and temporarily relieves them of major financial stresses.

Q: How much life insurance do I need?
A: Most people should carry enough insurance to cover all outstanding debt. Two other areas to consider after debt coverage include "income replacement" and "dependent coverage." A common estimate would be five times your annual income.

Q: Who may participate in the insurance program?
A: All Farm Credit customers under age 70 can apply, including your spouse and your partners.

Q: Can I insure just a portion of my loan?
A: Of course it’s important to protect your entire debt, but you can decide how much of your loan you want to insure. This allows you to control how much you pay for this insurance each year.

Q: After my loan is paid off or refinanced, what happens to this insurance?
A: Once the loan is paid in full or refinanced, you can keep the insurance by simply transferring it to another Farm Credit loan.

Q: How often do I make payments?
A: Many businesses have fluctuating cash flows throughout the year. You may pay monthly, quarterly, semiannually or annually.

Q: How do I apply for insurance?
A: Applying is easy. Simply complete an application at your local Farm Credit office. Most people just enroll when they are applying for the loan.

Q: Do I need to take a physical exam?
A: Most customers do not need to take a physical exam. If Minnesota Life, the insurance company backing this program, does require one, they will pay for it.

In some cases, members can be approved right at their local Farm Credit office. Thousands of Farm Credit customers participate in this program. We provide customer service and personalized assistance in all areas, including claims. Our insurance company partner, Minnesota Life, has insured American farmers for 50 years, and their financial strength is excellent.

Whenever you borrow from Farm Credit, consider what a life is worth — it’s worth protecting.

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