A New Solution for the Uncertainties in Life

Life is full of uncertainties, but your retirement shouldn’t be one of them. While you can’t control taxes or predict market fluctuations, one solution may be the flexibility, guarantees¹ and tax advantages of a Universal Life insurance policy. Properly managed, it can provide a future source of retirement income you can depend on.

Increasing Taxes — Taxes continue to be on the rise, so it’s wise to look for ways to retain as much of your money as possible. By doing so, you can maximize funds for the future.²

Solution: As you pay premiums, your Universal Life policy’s accumulated value earns tax-deferred interest, helping build your nest egg during pre-retirement years. When you decide to retire, you can use your accumulated value as retirement income in a tax-advantaged manner.^3,4 And upon your death, your beneficiaries will receive policy proceeds income-tax-free.

Uncertainty of Social Security — The future of Social Security is unclear, so it’s difficult to predict what, if any, retirement income you can count on. Taking control of your financial future now is more important than ever.

Solution: You can contribute additional funds to your policy’s accumulated value that can be used as supplementary retirement income. In fact, our Universal Life product compares favorably, over the long term, with other Universal Life products on the market today.

Comfortable Retirement — Your annual income may disqualify you from contributing to a qualified plan, such as a Roth IRA, thus making it difficult for you to put additional money away for the future.

Solution: There are no annual income limits that would prevent you from contributing to the accumulated value of your Universal Life policy. You pay any amount at any time within the maximum limit set by tax law, provided your premium is sufficient to maintain your coverage.

Market Volatility — Due to the volatility of the stock market in the past few years, your preference today may be for more stability and preservation of your principal.

Solution: Market volatility does not directly impact Universal Life. As you pay premiums, the money in your policy’s accumulated value currently earns a competitive interest rate – of 5.4%⁵ - with a 3% guaranteed minimum rate.⁶

Flexibility to Make Changes — As your life changes or you experience unexpected events, you need to be able to adjust your coverage and premium amounts as necessary.

Solution: With Universal Life, you can increase or decrease your coverage as your needs change throughout your life,⁷ and adjust the amount and timing of your premiums. In addition, you can access your policy’s accumulated value through partial withdrawals and loans if you need additional funds.

To help you determine if Universal Life insurance is the right choice for you, simply contact your local Farm Bureau agent.

¹ The guarantees expressed here are based on the claims-paying ability of Farm Bureau Life Insurance Company.

² Neither the Company nor its agents give tax, accounting or legal advice. Consult your professional advisers in these areas. ³ Partial withdrawals are subject to a fee of $25 or 2 percent of the accumulated value withdrawn, whichever is less. For the first 10 years of the Universal Life policy, and for 10 years following an increase in coverage, full surrenders are subject to a current surrender charge based on policy year, age, sex and underwriting category. 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). ⁴ Any 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. For the Universal Life insurance policy, the Company currently offers a Zero Net Cost Loan feature after 10 years on the gain in the policy. Zero Net Cost means that the credited interest rate will equal the loan rate on the portion of the loan that equals the gain in the policy. ⁵ The interest rate as of 9/1/2010. This rate is not guaranteed and is subject to change at any time. ⁶ This rate is the guaranteed minimum interest rate you can receive on your Universal Life policy. ⁷ Subject to insurability and IRS regulations.

Tips brought to you by Farm Bureau Financial Services.  For more information about products and services, call Shane Blanchard at 515 528 2319.

Securities & services offered through FBL Marketing Services, LLC+, 5400 University Ave., West Des Moines, IA 50266, 877/860-2904, Member SIPC. Farm Bureau Property & Casualty Insurance Company⁺*, Western Agricultural Insurance Company⁺*, Farm Bureau Life Insurance Company⁺*/West Des Moines, IA. ⁺Affiliates *Company providers of Farm Bureau Financial Services