Description of First Trinity Financial's Business Segments
First Trinity Financial Corporation (FTFC) operates an array of segments, products, and services concentrated in the life insurance and annuity sectors, making it a vital player in providing financial security to a diverse clientele. Below is an extensive overview of its core operations.
1. Life Insurance Operations
Policy Types:
- Ordinary Whole Life Insurance: This product offers lifetime coverage with guaranteed premiums and a guaranteed death benefit. The cash value accumulation grows over time based on a predetermined schedule, providing policyholders with a savings component alongside life coverage.
- Modified Premium Whole Life with Annuity Rider: This is a specialized product where the policyholder pays modified premiums initially, which transitions into a level premium structure. It includes an annuity rider that allows for the accumulation of cash value that can be accessed or converted to annuity benefits at a later stage.
- Term Life Insurance: This product provides coverage for a specific term, typically ranging from 10 to 30 years. It is ideal for individuals seeking affordable, temporary protection that can meet short-term financial obligations, such as raising a family or paying off a mortgage.
- Final Expense Insurance: Designed to cover end-of-life expenses, this insurance typically features lower face values and is sold on a simplified issue or graded benefit basis. The simplified issue allows for quicker underwriting decisions, while graded benefits provide a safety net during the early years of the policy.
- Accidental Death and Dismemberment (AD&D) Policies: These policies offer financial protection specifically in the event of death or dismemberment due to an accident. It complements other types of coverage, providing an additional layer of security for policyholders.
Annuity Operations
- Annuity Contracts: FTFC offers various annuity products, which generally serve as a retirement savings vehicle. These contracts can be structured to provide consistent income streams during retirement, ensuring financial stability for policyholders. The options may include fixed interest, indexed, or variable annuities, catering to different risk appetites and financial goals.
Administrative Services Agreements
First Trinity has established administrative services agreements with Investors Heritage Life Insurance Company (IHLIC) to enhance operational efficiency. These agreements underscore FTFCs commitment to maintaining high standards in underwriting, actuarial work, policy issuance, accounting, claims processing, and other critical operational facets. The key agreements are as follows:
- TLIC Administrative Services Agreement: Effective from September 1, 2012, TLIC has enlisted IHLIC to provide comprehensive administrative support for its operations over a five-year term.
- FBLIC Administrative Services Agreement: Similar to TLIC, FBLIC utilizes IHLICs services starting from November 1, 2012, also under a five-year agreement with similar termination provisions.
- FTFC Internal Administration: FTFC previously sourced its operational needs through IHLIC, but since October 1, 2015, it has assumed full control of its administrative functions, reflecting a strategic shift toward self-management and operational independence.
Target Market and Geographic Reach
First Trinity Financial Corporation primarily serves middle-income households, focusing on expanding its market reach. TLIC targets states such as Illinois, Kansas, Kentucky, Nebraska, North Dakota, Ohio, Oklahoma, and Texas. Following the acquisition of FBLIC, the operational footprint extended to Arizona, Colorado, Missouri, and New Mexico, with additional licensing acquired in several states over the years:
- 2012: Arkansas, Indiana, Kentucky, North Dakota, South Dakota, Texas, West Virginia - 2013: Illinois, Pennsylvania - 2014: Georgia, Louisiana, Michigan, Mississippi, North Carolina, Ohio, Tennessee, Virginia - 2015: Alabama, Utah
By engaging with independent agents, FTFC ensures personalized and widespread access to its products, allowing it to cater efficiently to the needs of diverse demographics across its operational territories.
Summary
In conclusion, First Trinity Financial Corporation stands as a robust provider of life insurance and annuity products, focusing on the needs of middle-income families. Through strategic partnerships and comprehensive product offerings, FTFC demonstrates its commitment to delivering financial security and peace of mind to its clients across a widening geographic base.
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