Variable universal life insurance blends the features of universal life, such as flexible premiums and adjustable death benefit,1 with a choice of investment options. The amount of the death benefit may increase or decrease depending on the success of the investment options you choose. Your policy builds accumulated value, which you can borrow against or withdraw, according to the terms of the contract.2,3
Variable universal life insurance through Farm Bureau Financial Services provides death benefit protection for your family or business, and has the potential to reward you over the long term with greater cash accumulation to help fund your retirement or other accumulation goals. Variable universal life insurance offers you:
Flexible protection ― You can tailor your policy to your changing needs. Beneficiaries may receive the insurance proceeds1 income-tax free.
Flexible payments ― You may pay any amount at any time within the maximum limit set by tax law, as long as it is enough to maintain the coverage.
Investment options ― You can allocate your premium dollars to a range of investment options offered through well-established fund families, giving you greater growth potential in your policy. These subaccounts allow you to diversify,4 and provide you access to various investment philosophies and strategies.
In addition to your choice of subaccounts, the following options are available to help you manage your investment strategy:
Automatic rebalancing5,6 — The accumulated value in the policy is rebalanced to the allocation percentages requested, which helps maintain your asset allocation plan.
Dollar cost averaging5 — You can automatically transfer7 a specified amount from one investment option to others over a period of time.
Transfer your money — You can move money8 among the investment options without current taxation.
Direct policy charges — You can specify what investment options the monthly charges are drawn from.
Access to your money ― You have tax-advantaged access to the accumulated value through partial withdrawals2 and loans.3
Faster rate of growth ― The funds in your policy’s accumulated value earn interest on a tax-deferred basis, which means your money can grow at a faster rate.
Overloan protection rider ― May provide a safety from lapse due to loans. (See your prospectus for details and limitations.)
Living benefit coverage ― Allows the policy owner to receive a portion of the policy’s death benefit if the insured is diagnosed with a qualifying terminal illness.
No-lapse guarantee ― Insurance coverage will continue for a specified period of time, provided paid premiums meet the requirements.
Children’s term rider ― Provides term life insurance for each of your qualifying children.
Enhanced disability rider ― Discontinues your monthly insurance charges after 90 days if you experience a total disability.
Accidental death benefit rider ― Provides an additional benefit if death is accidental.
As a variable universal life policy owner, you will receive an annual report listing your policy transactions, current accumulated value, amount of premium payments and charges deducted, as well as a record of any policy loans or partial withdrawals.
Variable universal life insurance can help strengthen your financial future by providing protection and asset accumulation for you and your loved ones. Find a Farm Bureau agent now.
1The accumulated value and death benefit are dependent upon the investment performance of the subaccounts you select.
2Partial withdrawals are subject to a fee. For the first 10 years of the policy and for 10 years following an increase in coverage, full surrenders are subject to a surrender charge based on policy year, age, sex and underwriting category. Surrender charges may be waived if eligibility can be established. Withdrawals may result in a taxable event.
3Any loans from the policy's accumulated value will reduce the accumulated value and death benefit if the borrowed funds, plus interest, are not repaid by the time of your death. On the policy, the Company currently offers a Zero Net Cost Loan feature after 10 years on the gain in the policy. This means that the credited interest rate will equal the loan rate charged on the portion of the loan that equals the gain in the policy.
4Diversification does not protect an investment from market risks and does not ensure a profit.
5Dollar Cost Averaging and Automatic Rebalancing do not guarantee a profit, nor assure against a loss in a declining market. Because Dollar Cost Averaging involves a continuous investment in securities regardless of fluctuating prices, an investor must consider his or her financial ability to continue purchases through periods of fluctuating price levels.
6Automatic Rebalancing cannot be in place at the same time as the Dollar Cost Averaging option.
7Transfers within the Dollar Cost Averaging option are subject to the same provisions and limitations as regular transfers. This feature is considered in the 12 free transfers during a contract year.
8Market timing transfers may not be permitted. The first 12 transfers per year are free; a charge may apply for additional transfers.