HEALTH INSURANCE

GIFT TAX LAW LETS YOU GIVE A GIFT THAT KEEPS ON GROWING.

TAX-FREE GIFT LIMITS:

Present tax law lets you give up to $10,000 annually (or $20,000 if your spouse participates) to as many individuals as you’d like and still qualify for the Gift Tax Exclusion.  Look at what your gift to life insurance or a tax-deferred annuity could mean to your loved ones.

LIFE INSURANCE AS A GIFT:

The UNIFLEX PLAN.

You can give your grandchild or any young relative a solid financial start in life with Farmers Uniflex Plan.  A one-time payment of under $5,000 can purchase a paid up, cash value life insurance policy of $100,000 for a child, with lifetime coverage.

Stephen Smith Farmers Insurance Agency
112 N. 4th Ave. • Sandpoint, Idaho 83864
Call: (208) 265-4562 • Fax: (208) 263-7866
E-Mail: farmers1@sandpoint.net

Or, how about helping your son or daughter protect their young family with a gift of life insurance?  Your one-time payment of $10,000 can provide $100,000 of paid up, cash value life insurance protection for a 25-year-old man.  Based on the current interest rate*, that policy would generate over $232,139 in cash value by age 65.  Similarly attractive results can be gained for a 25-year-old female, for a cost of less than $9,000.

Based on the above example, no more premiums would ever have to be paid on that policy.  But the cash value will continue to grow, year after year, to be available as a source of college funds, or as collateral to start a business or for use however needed.  Most importantly, you have guaranteed insurance protection for that person, regardless of any future changes in their health or occupation that might otherwise make it difficult or impossible for them to but life insurance on their own.

*Current interest rate of 9% is not guaranteed and may be changed by the Company but never below the 4½% minimum guarantee.

ANNUITIES AS A GIFT:

Consider what your gift of a tax-deferred annuity today can mean to someone in the future.  Assuming an 8% interest rate, $10,000 deposited in our Flexible Payment Annuity today would produce:

• Over $21,000 at the end of 10 years
• Over $46,500 at the end of 20 years
• Over $469,000 at the end of 50 years

Ask your Farmers Agent for the current rate.

Or, you might wish to make a continuing yearly gift to that person in which case Farmers Flexible Payment Annuity would be an excellent choice.  Farmers Flexible Payment Annuity offers:

• No sales charges
• No maintenance or service fees
• Accumulation free of current income tax
• High current interest
• Safety of the funds
• Generous retirement income options

You make the choice…

Choose the vehicle – a Life Insurance policy or Flexible Payment Annuity.

Choose the recipient – any individual or individuals can benefit from your generous gift.

Choose the amount – any amount up to $10,000 ($20,000 if your spouse participates) can be given each year to as many different people as you choose and the full amount would qualify for a gift tax exclusion (there is no overall maximum limit, only a limit per donee).

Ask your Farmers Agent to help you use the Gift Tax Law to benefit your loved ones.  You may also wish to check with your lawyer or tax advisor for guidance in your particular situation.  This brochure is not intended to provide specific tax advice or counsel.

What greater gift could you possibly give than to guarantee a solid financial foundation for a loved one?