Description of Fbl Financial Group Inc's Business Segments
FBL Financial Group, Inc. is a diversified financial services holding company that focuses on providing a wide range of insurance and investment products, primarily through its subsidiaries. The company operates through several key segments, each offering various products and services designed to meet the financial needs of individuals and families. Below is a comprehensive overview of each segment, including details about their respective products and services.
1. Annuity Segment The Annuity Segment of FBL Financial Group specializes in providing various traditional annuity products through an exclusive agency force. This segment primarily consists of fixed rate annuities, indexed annuities, and supplementary contracts, which may involve life contingencies.
a. Fixed Rate Annuities FBL offers a range of annuities aimed at individuals planning for retirement. The products under this category include:
- Flexible Premium Deferred Annuities (FPDA): These annuities allow policyholders to make contributions over a designated period while their account balances accrue interest at rates determined by FBL. Policyholders have the option to withdraw funds either as a lump sum or as a series of payments for a specified number of years or for life.
- Single Premium Deferred Annuities (SPDA): These annuities require a single premium payment upon issuance and provide benefits and surrender charge structures comparable to other fixed rate annuities.
- Single Premium Immediate Annuities (SPIA): The SPIA products, which provide immediate benefit payments post-issuance, are currently suspended due to prevailing low-interest rates.
b. Indexed Annuities FBL’s indexed annuities offer policyholders the flexibility to choose between a traditional fixed rate strategy or an indexed strategy linked to the S&P 500. Key features include:
- Annual interest crediting and index reset. - Two methods for calculating index credit: point-to-point calculations or monthly averaging, both subject to caps. - A guaranteed lifetime withdrawal benefit rider, which can be activated by policyholders and requires an additional annual charge.
Life Insurance Segment FBL Financial Group offers several life insurance products designed to provide both protection and cash value accumulation.
a. Traditional Life Insurance The company markets participating whole life insurance products, characterized by:
- Level premiums and level death benefits throughout the life of the insured. - The ability for policyholders to participate in the company’s surplus through dividends, which are typically distributed annually based on performance.
b. Universal Life Insurance FBLs universal life insurance policies offer a blend of life insurance coverage with savings potential:
- Flexible Premium Structure: Customers can adjust their premium payments, allowing for pre-funding future insurance costs while accumulating cash value on a tax-deferred basis. - Premiums are allocated to a holding account, with excess amounts transferred to an indexed segment linked to the S&P 500, allowing for potential growth based on the S&Ps percentage changes. - Interest is credited to the cash value at periodically determined rates, with potential accumulation subject to caps on positive interest credits. If the S&P 500 index value decreases, the interest would be credited as zero.
Investment Products While the company is primarily focused on insurance products, it may also provide investment solutions that align with the needs of its clients, particularly those seeking long-term growth, retirement supplementation, or estate planning components.
Financial Planning Services FBL Financial Group generally supports its product offerings with financial planning services, helping clients understand their financial goals, retirement planning, and how best to utilize the various products available to them for maximum financial security.
Conclusion FBL Financial Group, Inc. offers a comprehensive range of products and services across its annuity, life insurance, and investment segments. These products are designed to cater to the diverse financial needs of its policyholders, especially focusing on retirement planning, wealth accumulation, and providing life insurance coverage. Each segment is tailored to foster financial stability and growth for individuals and families, emphasizing customer engagement and long-term relationship-building through its exclusive agency force.
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