- What is a variable universal life policy?
- Where can I send in my payment?
- How do I change my beneficiary?
- Can I make a single payment to pay my premium online or over the phone?
- What effect will a partial withdrawal or loan have on my contract?
- Will I have to pay taxes on any money I withdraw?
- How long does it take to receive money from my policy?
- What is a 1035 exchange?
- Are death benefit proceeds taxable?
- How do I terminate my policy?
- If I sign up for automatic account deductions, when will the deduction occur from my account?
Variable Universal Life (VUL) is a versatile product which provides both insurance protection and investment components. VUL, like universal life insurance, allows you the flexibility to choose the amount and timing of your premiums, subject to company minimums and IRS maximums. Likewise, you may increase or decrease the death benefit, depending on policy minimums and any underwriting requirements. [Return to Top]
Please send your billing notice with your payment. If you do not have a billing notice, please write your policy number on your check and send in your payment(s) to the following address:
CMFG Life Insurance Company
2000 Heritage Way
Waverly, IA 50677-9202
[Return to Top]
A Change of Beneficiary form can be downloaded from the Variable Universal Life Forms page. Send the original form, signed by the owner, to our office to be reviewed and recorded. You may want to keep a copy for your records. [Return to Top]
Unfortunately we do not have the capability to make a single payment online yet. However, you can call us at 1-800-798-5500 and we will be happy to do this over the phone. [Return to Top]
Reduces the cash value of your contract and cannot be repaid. If your policy has a Death Benefit Option 1 – Level, the specified face amount of your contract will be reduced by the amount of the partial withdrawal. If your policy has a Death Benefit Option 2 – Changing, the death benefit (specified face amount plus accumulated cash value) is reduced by the cash value withdrawn.
Unpaid loan balances will be deducted from the death benefit payable on your contract. [ Return to Top]
Generally, no. Withdrawals from life insurance policies are usually taxed on a "first-in-first-out" basis. In other words, the amount you paid into the contract as premium (cost basis) is withdrawn first – then any taxable income. The amount withdrawn that exceeds the policy's cost basis is taxable.
Exception:For policies that are Modified Endowment Contracts, partial withdrawals are taxed on a "last-in-first-out" basis. In other words, any taxable income in the contract is withdrawn first, then the amount you paid into the contract as premium is withdrawn.
Generally, no. Loans are not considered a taxable distribution unless the policy is classified as a Modified Endowment Contract. In that case, a loan may be reportable as taxable income if the policy's cash value exceeds the cost basis (premiums you paid into the contract).
Please ask us about any potential taxation when you call to request a withdrawal. [Return to Top]
The length of time it takes to receive your money will depend on the time at which the request is received and the delivery method that you choose.
Requests received prior to 3:00 p.m. Central Time are processed that same day. Requests received after 3:00 p.m. are considered received the next business day and are processed on the following business day.
Delivery methods available include:
| Method |
Time |
Charges |
| Check - sent via U.S. Postal Service |
Sent the day after request is processed. Receipt depends on U.S. Postal Service. |
None |
| Check - sent via Overnight Delivery Service |
Sent the day after request is processed. For most areas, you will receive the check the next business day. Some remote areas take 2 business days. |
$25.00 |
| Wire to your account |
Funds will be credited to you account the day after we process your request. We need the name of your financial institution, routing and account numbers, type of account (savings, checking, or share draft), and names on the account. |
$25.00 |
| Electronic Funds Transfer |
Funds will be credited to your account within 48 hours (business days) after your request is processed. We need the name of your financial institution, routing and account numbers, type of account (savings, checking, or share draft), and names on the account. |
None |
[Return to Top]
A 1035 exchange is the exchange of an insurance contract for another that meets all the requirements of Section 1035 of the Internal Revenue Code (IRC §1035). When a contract is exchanged under IRC §1035, the gain or loss of the exchanged contract is transferred to the new contract.
Only the following types of exchanges will qualify for non-taxable treatment:
| FROM: |
TO: |
| Life insurance policy |
Life insurance policy; nonqualified annuity contract |
| Endowment contract |
Nonqualified annuity contract |
| Nonqualified annuity contract |
Nonqualified annuity contract |
The other requirements for non-taxable treatment include:
The owner and insured/annuitant on both contracts must be identical. The contract being exchanged must be in force. If the contract is maturing, the 1035 exchange request must be signed prior to the maturity date. The entire value of the existing contract must be exchanged. If any cash is received, the taxable gain up to the amount of cash received is taxable.
Please call us at 1-800-798-6600 to discuss what constitutes a valid 1035 exchange, who qualifies, and the forms you'll need to complete an exchange. [Return to Top]
Life insurance proceeds are not taxable.
The gain portion of annuity proceeds is taxable to the beneficiary when it is distributed. There are several ways to defer the gain. Contact us for more information on specific settlement options available. Our telephone number is 1-800-779-5433, ext. 3351 (if your policy was purchased by mail or phone), or 1-800-798-6600, ext. 3351 (if your policy was purchased through a local representative). [Return to Top]
Call our contact center at 1-800-779-5433 (if your policy was purchased by mail or phone) or 1-800-798-6600 (if your policy was purchased through a local representative) from Monday through Friday - 7 a.m. to 7 p.m., CT for a surrender form. Because of the importance of this decision, including possible taxation, an original surrender form signed by the policy owner is required to terminate the policy. [Return to Top]
The first deduction may not occur on the day you selected. We will send you a confirmation letter notifying you before the first deduction occurs. Thereafter, a draft will be sent on the specific day of the month you requested account deductions. If no draft day is designated, we will determine the date deductions will be sent based on the policy due date. Actual deduction from your account will occur 2 business days after the draft is sent, or longer if a holiday. Ex: you selected the 1st of the month for account deductions; if the 1st falls on a weekend, we will send the draft on the next business day, and the deduction will occur 2 business days later. [Return to Top]
Forms & FAQs for All Products
Representatives are registered, securities are sold, and investment advisory services offered through CUNA Brokerage Services, Inc. (CBSI), member FINRA/SIPC, a registered broker/dealer and investment advisor, 2000 Heritage Way, Waverly, Iowa 50677, toll-free (800) 369-2862. Nondeposit investment and insurance products are not federally insured, involve investment risk, may lose value and are not obligations of or guaranteed by the financial institution. CBSI is under contract with the financial institution, through the financial services program, to make securities available to members. CUNA Brokerage Services, Inc., is a registered broker/dealer in all fifty states of the United States of America. The Representative may also be a credit union employee that accepts deposits on behalf of the financial institution.
|
|
|
©1997-2012 CUNA Mutual Group.
|
|
