¹Any loans from the policy’s accumulated value will reduce the policy’s accumulated value and death benefit if the borrowed funds, plus interest, are not repaid by the time of your death. If your life insurance policy is classified as a Modified Endowment Contract (MEC), distributions, including loans, may be taxed less favorably than non-MEC policies.
2Partial withdrawals are subject to a fee of $50. The first 11 years of the Foundations Indexed Universal Life policy and for 11 years following an increase in coverage, full surrenders are subject to a current surrender charge based on policy year, age, sex and premium class. Surrender charges may be waived if eligibility can be established due to the insured’s terminal illness, total disability or stay in a qualified nursing care center for 90 consecutive days (after the first policy year).
3Subject to a cap.
4Insured must be chronically ill for 90 days and expected to be for another 180 days (90 days in MN or KS) or longer to qualify for activation. The Daily Living Rider is not to be purchased as a long-term care or health insurance policy, but can provide help with needs resulting from terminal or catastrophic illness. In most situations, canceling, reducing, surrendering or replacing a long-term care or health insurance policy for this rider would be considered unsuitable.
5This is a flexible premium policy. It is important that your premium payments are sufficient to maintain coverage. In the event that premium payments are insufficient to maintain the insurance, coverage under the policy will terminate and may be a taxable event. Any increase in coverage is subject to underwriting review and approval. Increases in Specified Amounts trigger new Surrender Charges and Surrender Charge Periods, but decreases to Specified Amounts do not reduce Surrender Charges. The guarantees expressed here are based on the claims-paying ability of Farm Bureau Life Insurance Company. Not FDIC insured, not bank guaranteed, may lose value, not a deposit, not insured by any federal or state government agency.W010 01-20
What is Indexed Universal Life Insurance?
You know you need to save for retirement, but you also want life insurance to protect your loved ones from the unexpected. Foundations Indexed Universal Life Insurance (IUL) can help you do both at the same time. In addition to offering a traditional death benefit for your beneficiaries, you have the option to use your policy while you’re living through planned loans1and withdrawals.2
Growth Potential, Limited Risk
What makes Foundations Indexed Universal Life unique is the way interest is credited to the policy. You have a choice in how interest is earned on your policy. Allocations can be changed at any time for future transfers.
Funds in the fixed account earn interest on a daily basis, based upon an interest rate that is declared periodically by the company. It will never be less than the guaranteed minimum of 1%.
Your IUL policy also has the potential to grow more quickly than a traditional life insurance policy by earning interest based on market performance if the one-year point-to-point index crediting option is chosen.3 At the same time, it offers protection from market downturns.
Funds in the indexed strategy earn interest credits based upon the movement of the index. When the market does well, so do you, and when the market is down, your interest credits will simply be zero.
Added Benefits You Want
The older you are, the higher your chances of needing some type of chronic care services in your lifetime. These services aren’t cheap. When you add the Daily Living Rider to your IUL policy, you can elect to receive a portion of your death benefit to pay for your care.4
You can pay premiums at any time with IUL. Funding your policy at the maximum limit can be done on a tax-advantaged basis and will offer greater accumulation of your money and opportunity for growth. Conversely, you must also keep a minimum payment balance to maintain your coverage.5
Building for the Future
With the opportunity to take advantage of potential market gains and built-in protection from market losses, Foundations Indexed Universal Life Insurance can be the foundation for your financial future. Contact an agent to learn more today!
Your local Farm Bureau agent can help. We’ll answer questions and help you choose the right life insurance for your needs.
It’s your future. Let’s protect it.®