12-Year Annuity

Contract Description

This is called the 12-Year Annuity because it has a 12 year surrender charge schedule.  (See Below)  Since Family Benefit Life will have possession of your money for a longer period of time, we pay a higher guaranteed initial interest rate.  This length of contract is new to FBL, but we have been very pleased with the results that it has produced thus far.  Its newness is one of the reasons that it currently only has one pricing tier.

Investment Levels

The minimum level of investment for this product is $5,000.  As stated previously, due to the newness of it, we only have one pricing tier.

Interest Rates

Family Benefit Life is currently guaranteeing a first year rate of 5.00% and the current renewal rate has been set at 3.5%.  The state mandated guaranteed interest rate for the life of this annuity contract is 1.50%.  Renewal rates are effective after the initial guaranteed interest rate has expired.  Interest rates can change at anytime.  It will affect your annuity contract on the day of the month that your contract originated.  Example:  Your original investment date was 2/5/11, your initial guaranteed rate will expire on 2/5/11 and the renewal rate of 3.5% will become effective.  FBL changes the renewal rate to 3.0% on 11/10/12, which means that on 12/5/12 it will become effective on your contract. 

Surrender Charges

These are charges that will be withheld by Family Benefit Life from your account if you “Surrender” all or a portion of your contract before the 12 years have elapsed.  The purpose of these charges are to protect the insurance company against investors moving their investment after the initial higher interest rate period.  They are used industry wide.

This product has the following Surrender Charge schedule:

 

1st Year Charge 10%	2nd Year Charge 10%	3rd Year Charge 10%
4th Year Charge 9%	5th Year Charge 8%	6th Year Charge 7%
7th Year Charge 6%	8th Year Charge 5%	9th Year Charge 4%
10th Year Charge 3%	11th Year Charge 2%	12th Year Charge 1%

Tax Tips

A tax deferred investment is treated differently by the IRS than most other non-retirement investment vehicles.  If a withdrawal is made prior to the annuitant turning 59 1/2 , the IRS charges a 10% penalty of the taxable income.  For tax advice, please contact your personal tax advisor.