RETIREMENT PLANNING

Retirement Products Currently Available From Farm Bureau Insurance Company

Universal Life:

FB Cornerstone UL

Life gives you lots of choices, especially when you're looking for ways to help protect the people you love, the business you've worked to build, or the lifestyle you've established. Whether you're buying a home, starting a family or launching a new business, basic life insurance protection can be the financial cornerstone of your objectives.

But things also change along the way. You have to be able to adjust to what life brings -- and so should your life insurance. FB Cornerstone UL provides essential permanent life insurance coverage combined with a unique degree of flexibility not offered by all life insurance products. It can give you the ability to adapt coverage and payments to meet your changing needs, without compromising the continued insurance coverage you count on for your family or your business.

FB Essential Whole Life:

FB Essential Whole Life from Farm Bureau Life Insurance Company of Michigan is a participating whole life insurance policy that offers safety, security, predictability, and the knowledge that you have made a decision that will make a positive impact on the future.

Dividends:
FB Essential Whole Life provides a level or fixed death benefit for a level premium. As a participating policy, FB Essential Whole Life gives you the right to "participate" in any distributions of surplus funds generated through careful investing by Farm Bureau Life and receive policy dividends.

Options:
With FB Essential Whole Life you can take advantage of a variety of optional coverages to make your policy meet your specific needs. Some of the options include:
Paid-Up Additions Rider
Waiver of Premium Rider
Base Insured Term Rider
Additional Insured Term Rider
Children's Rider
Accelerated Death Benefit Rider
Accidental Death Rider
Whatever your situation, you can make FB Essential Whole Life provide additional security.

FB Premier Whole Life

FB Premier Whole Life is traditional whole life insurance. Since it is a level premium policy, FB Premier Whole Life guarantees that the premium you pay will never increase. Your cash value will grow by a guaranteed amount, and is not subject to fluctuations in interest rates. As with any cash value life insurance policy, you can have access to this fund through low-interest policy loans.

Here are some of the benefits of the FB Premier Whole Life:
The increase each year in the cash value is not currently taxable.
The entire death benefit is income tax-free to the insured's beneficiary, subject to policy minimums and IRS guidelines.
The death benefits can avoid probate charges if payable to a named beneficiary.
The policy loan interest rate is guaranteed.
The policy is assignable at the desire of the owner.
With FB Premier Whole Life you can take advantage of a variety of optional coverages to make your policy meet your specific needs. Some of the options include:
Paid-Up Additions Rider
Waiver of Premium Rider
Base Insured Term Rider
Additional Insured Term Rider
Children's Rider
Accelerated Death Benefit Rider
Accidental Death Rider
When you want great performance and guaranteed life insurance, choose FB Premier Whole Life.

Life Paid Up at Age 65

Life Paid Up At Age 65 is a participating whole life insurance policy that offers safety, security and predictability -- all with a limited premium payment schedule.

With Life Paid Up At Age 65 from Farm Bureau Life Insurance Company of Michigan . . .
The premium you pay will never increase.
The cash value will grow at a predictable rate.
The increase each year in the cash value is not currently taxable.
The entire death benefit is tax-free to the insured's beneficiary.
The death benefits can avoid probate charges and delays if payable to a named beneficiary.
The policy loan interest rate is guaranteed.
The policy is assignable at the desire of the owner.
Because Life Paid Up At Age 65 is a participating policy, you may receive dividends that you can use to purchase additional life insurance.

Single Premium Whole Life

Single Premium Whole Life is permanent insurance that provides lifelong protection with one single premium.

Some of the benefits of Single Premium Whole Life from Farm Bureau Life Insurance Company of Michigan . . .
Lifelong insurance protection.
A fixed, level death benefit.
A guaranteed increase each year in the cash value, that is not currently taxable.
A death benefit that is income tax-free to the insured's beneficiary, subject to policy minimums and IRS guidelines.
A death benefit that can avoid probate charges if payable to a named beneficiary.
In addition, as a participating policy, Single Premium Whole Life gives you the right to "participate" through policy dividends, in any distributions of surplus funds generated through careful investing by Farm Bureau Life Insurance Company of Michigan. Dividends can be used to purchase additional paid-up insurance.

If you are looking for lifelong insurance protection with a single premium that also allows you to accumulate a cash value, then Single Premium Whole Life may be the solution.

Term Inurance:

FB Term 10

Our FB Term 10 Life Insurance product offers you a minimum of $100,000 of level death benefit for ten years. At the end of that time, you can renew your policy on an annual basis until age 95. In addition, you may convert it to permanent life insurance protection any time before you reach age 65.

Additional Coverage Options
We've also included three options for additional coverage to customize your FB Term 10 Policy:
Waiver of Premium Rider
Children's Rider
Accidental Death Rider

FB Term 20

Our FB Term 20 Life Insurance product offers you a minimum of $100,000 of level death benefit for twenty years. At the end of that time, you can renew your policy on an annual basis until age 95. In addition, you may convert it to permanent life insurance protection any time before you reach age 65.

Additional Coverage Options
We've also included three options for additional coverage to customize your FB Term 20 Policy:
Waiver of Premium Rider
Children's Rider
Accidental Death Rider
Return of Premium Rider

FB Term 30

Our FB Term 30 Life Insurance product offers you a minimum of $100,000 of level death benefit for thirty years. At the end of that time, you can renew your policy on an annual basis until age 95. In addition, you may convert it to permanent life insurance protection any time before you reach age 65.

Additional Coverage Options
We've also included three options for additional coverage to customize your FB Term 30 Policy:
Waiver of Premium Rider
Children's Rider
Accidental Death Rider

FB ART (Annual Renewable Term)

Our FB ART (Annual Renewable Term) Life Insurance product offers you a minimum of $100,000 of level death benefit on a yearly basis. At the end of each year, you can renew your policy at the rate established for your current age until age 95. In addition, you may convert it to permanent life insurance protection any time before you reach age 65.

Additional Coverage Options
We've also included three options for additional coverage to customize your FB ART Policy:
Waiver of Premium Rider
Children's Rider
Accidental Death Rider

Qualified Flexible Premium Deferred Annuity
(used to fund the following retirement programs):

SIMPLE IRA

To make it easier for small employers to establish a retirement plan for themselves and their employees, Congress created the Savings Incentive Match Plans for Employees, also known as SIMPLEs. These plans are simple to administer and offer contribution options that are both flexible and substantial.

Which employers are eligible?
A SIMPLE IRA plan is generally available to both profit and non-profit employers who have 100 or fewer employees who are expected to earn at least $5,000 during the calendar year. However, generally, an employer may not have a SIMPLE plan if the employer provides benefits under another qualified retirement plan.

How much can be contributed?
The SIMPLE IRA plan is a salary deferral-type of plan resembling a traditional 401(k). Under the SIMPLE IRA plan:
Employees may contribute up to $11,500 ($14,000 if age 50 or greater), tax-deferred, each year.
Employers provide either a match of employee deferrals up to three percent of compensation, or a lower percentage (but not lower than one percent) in two of any five years, or a two percent-of-compensation contribution on each eligible employee's behalf.
Total annual contributions may reach as much as $23,000 ($28,000 if age 50 or greater) per participant.
What are the tax benefits?
All amounts contributed to a SIMPLE IRA are tax-deductible by the employer. Employees are not taxed on salary that they have deferred. All plan earnings are tax-deferred.

Roth IRA

What is a Roth IRA?
The Roth IRA was designed to provide retirement savings opportunities to more Americans. It offers higher income limits and more relaxed eligibility rules than are available with the Traditional IRA.

Individuals earning up to $105,000 per year and couples earning up to $166,000 per year can fully contribute to a Roth, even if they are covered by an employer-sponsored retirement plan. Those individuals whose earnings are between $105,000 and $120,000 and couples whose income is between $166,000 and $176,000 may contribute a reduced amount adjusted for their income. The maximum contribution amount for 2009 is $5,000 ($6,000 if you are age 50 or older).

When can I use my Roth IRA assets?
With a Roth IRA, the retirement contributions are not tax deductible. However, withdrawals can be made completely tax-free once you reach age 59 1/2.

Certain requirements regulate tax-free withdrawals from a Roth IRA:

The account must have been open for at least five years from the initial contribution.
The investor must be age 59 1/2 or older.
Exceptions to these requirements may apply in cases of death, disability, or the first-time purchase of a home.

Traditional IRA

Who is eligible for a traditional IRA?
Anyone under the age of 70 1/2 who has earned income (including the self-employed) can contribute to an IRA. Also, certain unemployed spouses can contribute. An unemployed spouse may open an IRA if:
You file a joint return.
One spouse has earned income and
The unemployed spouse is under the age 70 1/2 before the close of the tax year.
The maximum contribution amount for 2009 is $5,000 ($6,000 if you are age 50 or older). The combined contribution for a couple participating in IRAs cannot exceed $10,000 ($12,000 if both are at least age 50), with no more than $5,000 ($6,000 if both are at least age 50) allocated to either IRA.

No one but an insurance company can guarantee an income for life. When you have a Traditional IRA, you have an income that you cannot outlive and you can select the payout option that best suits your financial needs.

SEP - IRA

What is a Simplified Employee Pension Plan (SEP)?
Basically, a Simplified Employee Pension Plan is a pension plan for employers who wish to give their employees a retirement plan, while giving themselves a tax break and enjoying the benefits of maintaining a less complicated qualified plan. The accumulation vehicle for this plan is an IRA, which is established for each employee.

A SEP from Farm Bureau Life Insurance Company of Michigan is a tax-deductible alternative for employers who want to provide themselves and their employees with the benefits of a pension plan without assuming the costly and restrictive fiduciary responsibilities normally associated with pension plans.

How is the funding of a pension plan through an individual's IRA accomplished?
Employers can contribute up to $49,000 a year or 25% of the employee's compensation (whichever was less) to a SEP-IRA.

The amount can be varied each year as long as the percentage remains uniform for all employees and there is no discrimination. Contributions are not required each year. The maximum amount of compensation that can be considered to determine the contribution is $245,000.

What employees are eligible to participate?
All employees who are 21 years old or older, have performed some service during at least three of the preceding five calendar years, and have earned $550 in the present calendar year are eligible and must participate.

Tax Sheltered Annuity

Who Can Establish a Tax Sheltered Annuity?
Tax Sheltered Annuity (TSA) Plans are available to the employees of public schools and certain tax-exempt organizations described in Internal Revenue Code section 501(c) (3).

Qualified Employers
Some hospitals; public schools, colleges, and universities; nonprofit organizations operated exclusively for religious, charitable, educational, scientific, literary, or testing for public safety purposes, or to promote national or international sports competition, or to prevent cruelty to children or animals, are eligible to establish a TSA plan for their employees.

Although governmental agencies and municipalities generally are not qualified employers, if the organization is a separate entity operated for the purposes outlined above and is not engaged in activities that are an integral part of state or local government, it may be a qualified employer.

The best method for determining whether a particular organization qualifies for a TSA plan is to make an inquiry with the chief administrator or manager of the organization. In order to be eligible to participate in a TSA plan, an individual must be an employee of a qualified employer, as opposed to an independent contractor. An employee is a person who directly or indirectly renders services for the organization and is subject to the will and control of the employer regarding both the assignment of tasks and the method of accomplishing them.

Keogh Plan

Who Can Establish a Keogh?
Any person who has "net earnings from self-employment" is eligible to establish a Keogh Plan. "Net earnings from self-employment" is defined as earned income (as opposed to investment income) derived from an unincorporated (sole-proprietorship or partnership) trade, business, or profession.

A Keogh Plan is established by an employer, and therefore, in the case of a partnership, all partners must agree to the establishment of the plan. However, once the plan is established, neither "owner-employees" nor "self-employed persons" are required to participate unless they so desire.

If an employer establishes a Keogh Plan, all full-time common-law employees who have completed two years of service must be covered under the plan. A full-time employee is one whose regular and customary employment is for 1,000 hours or more during a 12-month period.

How Much Can Be Contributed?
The maximum annual tax-deductible contribution which the employer may make on behalf of each participant in the plan is the lesser of 25 percent of the participant's earned income or $49,000; contributions of a smaller percentage or amount may be provided for in the plan document.

Flexible Premium Annuities:

Accumulator

The Accumulator from Farm Bureau Life Insurance Company of Michigan promises to make you a series of periodic payments in the future in exchange for a series of premium payments from you starting now.

A benefit you can't outlive
With a life annuity, the payments will continue for as long as you live.

Tax-Deferral
You don't pay taxes on the interest earned by your annuity premiums until you begin to withdraw money from the annuity.

A special federal income tax penalty is levied against all taxable withdrawals made before age 59 1/2. The penalty is 10 percent of the taxable funds withdrawn. However, the penalty is waived if the proceeds are taken as annuity payments. Only the interest earned portion of the proceeds are subject to income tax.

Flexibility
You decide when you want to make premium payments and how much each premium payment will be.

Guaranteed Safety
No matter how market conditions change, you will never lose your initial investment.

Withdrawal Provision
You will have the right to withdraw 10 percent of your annuity's accumulated value every year without penalty.

Single Premium Deferred Annuities:

Single Premium Deferred Annuity

With a Single Premium Deferred Annuity from Farm Bureau Life Insurance Company of Michigan, you pay a one-time premium. All of your money goes into an annuity policy, where it earns a competitive rate of interest. We do not charge any maintenance or administrative fees. When you annuitize your policy, you receive periodic income payments according to a schedule you select.

Because it is an annuity, your income is tax-advantaged.

Take a look at some of the benefits the Single Premium Deferred Annuity provides.

100% Invested
Every dollar you contribute to your Single Premium Deferred Annuity works for you immediately.

Substantial Tax Advantages
No federal or state income taxes on your earnings until they are withdrawn.

Reliable, Lifetime Income
You're guaranteed a specific amount of income, unshaken by economic and market fluctuation to help you meet your expenses for the rest of your life.

Immediate Access to Your Money
You can make withdrawals when you need to. (A nominal surrender charge may apply to the earnings.)

Qualified Single Premium Deferred Annuity

A Qualified Single Premium Deferred Annuity (QSPDA) is an annuity policy that is available to certain people who meet stringent Internal Revenue Service guidelines.

With a QSPDA, you make a one-time deposit. Your money is placed into an annuity account, where it earns a competitive rate of interest. When you annuitize your account, you receive periodic income payments according to a schedule you select.

It is one of the best instruments you can have to plan for your financial security during your retirement.

Take a look at the summary of benefits the Qualified Single Premium Deferred Annuity provides:

100% Invested
Every dollar you contribute to your Single Premium Deferred Annuity works for you immediately. With a QSPDA from Farm Bureau Life, you won't have to pay any administrative or maintenance fees.

Substantial Tax Advantages
No federal or state income taxes on your earnings and principal until they are withdrawn.

Reliable, Lifetime Income
You're guaranteed a specific amount of income, unshaken by economic and market fluctuations, to help you meet your expenses for the rest of your life.

Immediate Access to Your Money
You can make withdrawals or take policy loans when you need to. (A nominal decreasing surrender charge may apply to withdrawals.)

Single Premium Immediate Annuity:

Payout Annuity

The Payout Annuity is a single premium immediate annuity which can provide you with a guaranteed income. This annuity will pay you selected benefits monthly, quarterly, semi-annually, or annually during your lifetime or for a guaranteed period.

With a Payout Annuity, you purchase your annuity with a single deposit and begin to receive your income payments immediately. A Payout Annuity from Farm Bureau Life Insurance Company of Michigan has many important features that can help you to make your future more predictable

One of the primary advantages of the Payout Annuity is that you can be assured you will receive income from this annuity as long as you live. Your Payout Annuity is based on a guaranteed interest rate and provides favorable tax treatment.

You can decide how often and for how long you will receive your income from this annuity. The choices offered by a Payout Annuity provide flexibility in planning your secure, long-term investment.