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Variable Universal Life Insurance

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 from 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. Variable universal life insurance offers you:

Flexible protection ― You can tailor your policy to your changing needs, and receive coverage up to age 121. 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 some states, a Declared Interest Option5 is available that guarantees6 you a minimum of three percent earnings. You may direct your premium dollars to investment options offered through:

EquiTrust Mutual Funds®
Columbia Management®
DWS Investments
Fidelity Investments®
Franklin® Templeton® Investments
JPMorgan Asset Management
Summit Investment Partners
T. Rowe Price®7

In addition to your choice of subaccounts, the following options are available to help you manage your investment strategy:

Automatic rebalancing8,9 — The accumulated value in the policy is rebalanced to match your premium designations, which helps maintain your original asset allocation plan.

Dollar cost averaging8 — To help minimize short-term fund volatility, you can automatically transfer10 a specified amount from one investment option to others over a period of time.

Transfer your money — You can move money11 among the investment options without current taxation.

Direct policy charges — You can specify what investment option 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 ― May provide a safety net by paying up the policy if the withdrawal and loan amount exceed 96 percent of your policy’s accumulated value. (See your prospectus for details and limitations).

Living benefit12 coverage ― Allows the policy owner to receive money by using a portion of the policy’s death benefit if the insured is diagnosed with a qualifying terminal illness.

Universal cost of living ― Increase your insurance protection every three years to keep pace with inflation.

No-lapse guarantee6 ― Insurance coverage will continue for 10 years, provided paid premiums meet the requirements.

Waiver of surrender charges ― To provide you access to money in critical times, surrender charges for withdrawals13 made during the first 10 policy years will be waived if you experience terminal or chronic illness, total disability or nursing home confinement for 90 days.14

Optional protection available at an additional cost:

U-Term Life Insurance Rider allows you to acquire additional term life insurance for you and/or one other person ― available in 10-, 15- and 20-year periods. Coverage may be converted to permanent life insurance prior to age 75 and before the end of the specified term.

Universal Children’s Term Life Insurance Rider provides term life insurance for each of your qualifying children, age seven days to 23 years.

Universal Waiver of Charges Rider discontinues your monthly insurance charges after 90 days if you experience a total disability.

Guaranteed Insurability Option Rider allows you to periodically increase your insurance protection by a specific amount at current rates without a medical review.

Daily Living Rider15 accelerates a portion of your policy death benefit if the insured has been chronically ill16 for a certain period of time.

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 .

1 The accumulated value and death benefit are dependent upon the investment performance of the subaccounts you select.
2 Partial 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.
3 Any 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.
4 Diversification does not protect an investment from market risks and does not ensure a profit.
5 The Declared Interest Option guarantees a 3 percent rate of return backed by the claims-paying ability of Farm Bureau Life Insurance Company. The current rate is declared by the Company and may change at any time for any reason.
6 The guarantees expressed here are based on the claims-paying ability of Farm Bureau Life Insurance Company.
7 T. Rowe Price is a registered trademark of T. Rowe Price Group, Inc.
8 Dollar 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.
9 Automatic Rebalancing cannot be in place at the same time as the Dollar Cost Averaging option.
10 Transfers 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.
11 Market timing transfers may not be permitted. The first 12 transfers per year are free; a charge may apply for additional transfers.
12 The Living Benefit Rider is known as the Accelerated Benefit Rider in some states.
13 This may result in a loss of principal. An IRS tax penalty may also apply if withdrawals are made prior to age 59½.
14 Available after the first policy year, but may be available during the first contract year by current Company practice, which may change at any time for any reason.
15 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, cancelling, reducing, surrendering or replacing a long-term care or health insurance policy for this rider would be considered unsuitable.
16 A chronically ill individual means any individual who has been certified by a licensed health-care practitioner as being unable to perform (without substantial assistance from another individual) at least two activities of daily living for a period of 90 days due to a loss of functional capacity and/or requiring substantial supervision to protect such individual from threats to health and safety due to severe cognitive impairment. In Kansas, chronically ill individuals must also be confined in an eligible institution.

 

 

 

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IMPORTANT: The information and material contained on this Web site is not an offer to sell or a solicitation to buy any security or any insurance product in any jurisdiction. No security or other insurance product is offered or will be sold in any jurisdiction in which such offer or solicitation purchase or sale would be unlawful under the securities, insurance or other laws of such jurisdiction. Not all products are available in all states. Exclusions, limitations and reductions may apply. This Web site briefly highlights Farm Bureau's insurance policies and their benefits. The contract is contained only in the policy. Farm Bureau products are offered by Farm Bureau agents -- for more information about any Farm Bureau product, please contact your local agent or nearest office using the Agent Locator.

Variable product subaccounts, mutual funds and municipal fund securities are subject to market risk and possible loss of principal. This and other important information is contained in the prospectus and in the issuer's official statement, which can be obtained from a registered representative and should be read carefully before you invest or pay money. Investors should consider the investment objectives, risks, charges and expenses carefully before investing.

Variable products are comprised of insurance-related features including, but not limited to, a death benefit; optional riders; payment options at death, maturity or upon complete surrender or partial withdrawal; and fees and charges. A 10% tax applies to most withdrawals made from a variable annuity prior to age 59½.

Agent must be a registered representative of EquiTrust Marketing Services, LLC to discuss mutual funds or variable products.

Securities & services offered through EquiTrust Marketing Services, LLC+, 5400 University Ave., West Des Moines, IA 50266, 877/860-2904, Member SIPC. Property-casualty insurance products are offered through Farm Bureau Mutual Insurance Company+* and Western Agricultural Insurance Company+*/West Des Moines, IA and are intended for residents of AZ, IA, KS, MN, NE, NM, SD and UT.

Life insurance & annuity products are offered through Farm Bureau Life Insurance Company+*/West Des Moines, IA and are intended for residents of AZ, CO, IA, ID, KS, MN, MT, ND, NE, NM, OK, SD, UT, WI and WY.

+Affiliates *Company providers of Farm Bureau Financial Services

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