No. All of the annuities offered by Liberty Bankers are “fixed” annuities. That means that the premiums you pay become part of our general account and you have no ability to direct investment choices. In return, we guarantee the safety of your principal and guarantee that you will earn interest each year. We assume all the investment risks.

It depends. Because of the safety of the guarantees in a fixed annuity, it is considered an insurance product and is not a security. On the other hand, a variable annuity, which may include investments in more risky options, such as mutual funds, is considered a security and requires a much higher degree of regulation. All of the products offered by Liberty Bankers are fixed annuities and are not securities.

An EIA is a hybrid of a fixed and variable annuity. By linking the interest rate to an equity index, an EIA allows the policyholder to potentially benefit from returns associated with a rising market. There is much discussion in the industry currently as to whether these products should be regulated as insurance or a security.

With Liberty Bankers’ annuities, there are none. Some annuities and investments impose annual maintenance charges, transactions fees, investment management fees, administration expense charges and/or mortality risk charges. When comparing annuities, it is important to determine the impact of fees and charges.

Generally, no. Most often, premiums paid into annuities are not tax deductible. The most common exception to this general rule would be those premiums paid to purchase an IRA.

Earnings on annuities during the accumulation phase are income tax deferred until distributed. Distributions are taxed to the extent that payments exceed the premium(s) paid into the contract. Generally, a 10% penalty is imposed on withdrawals made before age 59 1/2.

A surrender charge is a fee imposed if you decide to surrender your policy before the end of a period of time specified in your contract. A withdrawal charge is imposed should you withdraw more than the “penalty free withdrawal” amount provided by the contract. With LBL Bankers and Liberty Series products, the surrender charge is not applied in the event of an annuitant’s death. Bankers Elite Series products are subject to surrender charges in the event of the annuitant’s death.

Your money earns a renewal rate of interest guaranteed to never be less than the minimum rate established in the year of issue. Your money will continue to earn guaranteed interest and remain free and clear of surrender charges.

It depends on which annuity product is purchased. With the LBL Bankers and Liberty Series products, generally, all of your interest earnings are available to you for scheduled monthly withdrawals, subject to $100 minimum checks. Alternatively, up to twice each year you can have penalty free access to all of your accumulated interest earnings. With the Bankers Elite Series products, however, surrender charges apply to all withdrawals because the Elite Series offers an enhanced interest rate in comparison to other LBL products.

If your sole beneficiary is the surviving spouse, your spouse may elect to continue the contract by becoming the new Annuitant and Owner. By doing so, the surviving spouse continues to enjoy the benefit of income tax deferred growth. If your spouse does not wish to continue the contract, the Accumulation Value is paid to your spouse and the gain in the policy is reported to the IRS.

If the surviving spouse is not the sole beneficiary, the entire annuity must be distributed by December 31 of the year containing the fifth anniversary of death. Alternatively, the beneficiaries may begin distributions to be made over their life expectancies, if those distributions begin by December 31 of the year containing the first anniversary of death.

The IRS regulation concerning premature withdrawals prior to age 59 ½ does apply and is based on the age of the beneficial owner of the trust.

Yes, as long as the Annuitant is a natural person.

Generally, yes. Conversions before January 1, 2010 were restricted to those with a modified adjusted gross income of $100,000 or less. This restriction has been removed for conversions made after December 31, 2009.

Conversion of traditional IRA to a Roth IRA requires that the amount converted be included in income, making it subject to ordinary income tax. However, once converted, future growth in the Roth IRA is generally income tax free, depending on when withdrawals are taken. Those converting to a Roth IRA during 2010 are allowed to spread income tax over 2011 and 2012 which may offer additional incentive to convert to a Roth IRA.

Generally, you must begin taking distributions from your traditional IRA by April 1 of the year following the year in which you attain age 70½. Thereafter, a distribution must then be taken each year by December 31.

During your lifetime, you are not required to take distributions from your Roth IRA. The minimum distribution requirements that apply to traditional IRAs do not apply to Roth IRA. However, after your death, distributions must be made to your beneficiary.

If your spouse is the sole beneficiary of your IRA, your surviving spouse may elect to treated as the owner and not the beneficiary. If such an election is made, your IRA becomes the IRA of your surviving spouse and becomes subject to the normal distribution requirements of your surviving spouse’s IRAs.

Generally, if you die prior to your attained age 70½ and you have named persons other than your spouse as beneficiary, the entire IRA must be distributed by December 31 of the year containing the fifth anniversary of your death. Alternatively, the beneficiaries may begin distributions to be made over their life expectancies, if those distributions begin by December 31 of the year containing the first anniversary of your death.

If you die after your attained age 70½, distributions must be made to your beneficiaries in a manner that will distribute the remainder of your account at least as rapidly as being distributed before your death.

Your annuity values are guaranteed by contract and protected by the financial strength of Liberty Bankers Life. LBL was incorporated in 1958 and has been providing high-value financial products and services since that time. LBL has the experience, dependable reputation and solid fiscal background you expect from your insurance company. Fixed annuities offered by legal reserve life insurance companies are further protected by various state insurance department guaranty funds.

All of our products are sold by licensed insurance professionals. If you would like to discuss our products with an agent, simply contact us, and we will be happy to have an agent respond to you.

An annual statement of your account will be mailed to you. You may also contact our annuity customer service department at: 800-745-4927 (toll free). Of course, your LBL agent is always happy to help you, too.

In return for your payment of a single premium, we guarantee to pay you a specified income for the period of time you select. This period can be for a specified number of years, for as long as you live, or for as long as you and another person both live.

Nonqualified annuities in most states are issued with disability, nursing home and terminal illness riders for the LBL Bankers and Liberty Series Products. These riders are not available with the Bankers Elite Series Products. There is no additional fee for these benefits. Please check with your agent for details.

Yes. Generally, the owner must be a natural person. However, a trust or corporation may be named the owner of an annuity contract, subject to certain restrictions.

Under the terms of our annuity contracts currently being issued, the death of the owner, if different than the annuitant, will cause the accumulated value of the annuity, minus applicable withdrawal charges and Market Value Adjustment, to be paid to the designated beneficiary. Payment must be made in accordance with the applicable provisions of the Internal Revenue Code. If the sole beneficiary is the deceased owner’s surviving spouse, the surviving spouse may continue the annuity contract by becoming the new owner.

Under the terms of annuity contracts currently being issued, if the annuity contract is owned by an individual other than the annuitant, no death benefit is payable in the event of the annuitant’s death. When the annuitant dies, the owner must select a new annuitant within 60 days of the date of the annuitant’s death. If a new annuitant is not chosen, the owner will become the new annuitant.

Yes, as long as the joint owners are husband and wife. Joint ownership by individuals who are not married to one another is not permitted.

Annuitant Dies FirstUnder the terms of annuity contacts currently being issued, if the spouse who is also the annuitant dies, the accumulated value of the annuity is paid to the designated beneficiary and the following applies:

- If the sole beneficiary is the surviving spouse, the surviving spouse may continue the contract by becoming the new annuitant and sole owner of the contract.
- If the designated beneficiary is not the surviving spouse or there are primary beneficiaries in addition to the surviving spouse, the accumulated value must be distributed in accordance with the applicable provisions of the Internal Revenue Code. The surviving spouse may not continue the contract unless the surviving spouse is the sole beneficiary.
- If there is no designated beneficiary at the time of death, the accumulated value is paid to the decedent’s estate.

 

Non-Annuitant Joint Owner Dies First

Under the terms of our annuity contracts currently being issued, the death of the joint owner who is not the annuitant will cause the accumulated value of the annuity, minus applicable withdrawal charges and Market Value Adjustment, to be paid to the designated beneficiary.
- If the sole beneficiary is the deceased owner’s surviving spouse, the surviving spouse may continue the annuity contract by becoming the new owner.
- If the ownership designation clearly stipulates that the form of ownership is joint tenants with right of survivorship, the surviving spouse may continue the contract as sole surviving owner.
- If the designated beneficiary is not the surviving spouse or there are primary beneficiaries in addition to the surviving spouse, the accumulated value, minus applicable withdrawal charges and Market Value Adjustment, must be distributed in accordance with the applicable provisions of the Internal Revenue Code.

 

One spouse should be the annuitant and both should be named as primary beneficiaries. The parties to the contract would then be, for example:

Annuitant: Husband
Owner: Husband and Wife
Beneficiary: Husband and Wife

Under this arrangement, if Husband dies first, the accumulated value of the contract would be paid to the remaining beneficiary, Wife. Since the sole beneficiary is the surviving spouse, Wife may continue the contract as the new annuitant and owner. If Wife dies first, the accumulated value of the policy, minus applicable surrender charges and Market Value Adjustment, would be paid to the remaining beneficiary, Husband. Since the sole beneficiary is the surviving spouse, Husband may continue the contact as the new annuitant and owner.

 

Yes, if the beneficiary or beneficiaries of the trust are natural persons. In order to establish a trust as owner, the following documentation must be provided.

1. Evidence that the trust exists. A photocopy of the first page and the signature page(s) of the trust document will generally provide acceptable evidence.
2. The federal tax identification number of the trust. The trustee(s) of the trust must complete IRS Form W-9 (or a suitable facsimile) in order to provide this information.
3. Evidence of the name(s) of the trustee or trustees who is/are empowered to act under the terms of the trust. If the trust has multiple trustees, the page(s) of the trust document which stipulate whether the trustees can act on behalf of the trust singularly or must act together must also be provided.

The trust should be beneficiary of the annuity contract so that in the event of death, the death benefit will be distributed in accordance with the provisions of the trust. Liberty Bankers cannot be responsible for tax consequences caused by incorrect beneficiary designations: Death benefits will be paid to the beneficiary on record as of the date of the annuitant’s death.

 

As provided under the terms of our annuity contracts currently being issued, because the owner is not a natural person, a new annuitant may not be chosen. Therefore, the accumulated value of the annuity contract is paid to the designated beneficiary of the contract. Since the trust is the beneficiary, the accumulated value will be paid to the trustee(s) of the trust and the trust will distribute the proceeds in accordance with the terms of the trust document.

Yes, as long as the plan’s trust document includes annuities as an acceptable investment of plan assets. In order to establish a retirement plan as owner, additional documentation is needed.

1. Evidence that the plan exists. A photocopy of the first page and the signature page(s) of the plan document will generally provide acceptable evidence. We will also accept a copy of the most recent Form 5500 or a copy of the Summary Plan Description.
2. The federal tax identification number of the retirement plan. The trustee(s) of the trust must complete IRS Form W-9 (or a suitable facsimile) in order to provide this information unless the tax ID number is included in the documentation described in number (1), above.
3. Evidence of the name(s) of the trustee or trustees who is/are empowered to act on behalf of the retirement plan. If the plan has multiple trustees, the page(s) of the trust document which stipulate whether the trustees can act on behalf of the trust singularly or must act together must also be provided..

The retirement plan should be beneficiary of the annuity contract so that in the event of death, the death benefit will be distributed according to the terms of the retirement plan. Liberty Bankers cannot be responsible for tax consequences caused by incorrect beneficiary designations: Death benefits will be paid to the beneficiary on record as of the date of the annuitant’s death.

 

As provided under the terms of our annuity contracts currently being issued, because the owner is not a natural person, a new annuitant may not be chosen. Therefore, the accumulated value of the annuity contract is paid to the designated beneficiary of the contract. Since the retirement plan is the beneficiary, the accumulated value will be paid to the trustee(s) of the retirement plan, which will use the proceeds as required by the terms of the trust document.

A corporation may be named as owner of an annuity contract provided the following conditions are met:
1. The annuitant is an officer, director or key employee of the corporation,
2. The corporation should be named as beneficiary of the contract to avoid any corporate payments that could cause unintended tax results, such as earned income or dividend payments,
3. The corporation’s federal tax identification number is used for any and all reports made to the IRS.
4. The application is signed by an officer of the corporation with their title included,
5. A Corporate Owned Annuity Indemnity (form 7210-0209) is submitted with the application, and
6. A corporate resolution or other similar document (a) identifying the individual signing on behalf of the corporation and (b) authorizing the purchase of the annuity is submitted with the application.

As provided under the terms of our annuity contracts currently being issued, because the owner is not a natural person, a new annuitant may not be chosen. Therefore, the accumulated value of the annuity contract is paid to the designated beneficiary of the contract. Since the corporation is the beneficiary, the accumulated value will be paid to the corporation, which may use the proceeds in the manner the corporation chooses. Liberty Bankers cannot be responsible for tax consequences once death benefits are paid to the beneficiary on record as of the date of the annuitant’s death.

Life insurance guarantees payment of a specified sum of money on the death of the insured person, using mathematical and actuarial principles. The true importance of insurance is that it will substitute improbability with future economic self-assurance and security.

The amount (stated in the policy) that is available in cash upon the surrender of a policy for cancellation before or after the policy matures (as a death claim or otherwise).

Please contact our Policy Service Department at 1-800-745-4927 for policy information. You will also receive an annual statement each policy.

Please contact our Policy Service department at (800) 745-4927 and fill out our Claimant’s Statement Form (7205-1108).

Please contact our Policy Service department at (800) 745-4927 and fill at our Policyowner Service Request Form (7000-0508).

Please contact our Policy Service department at (800) 745-4927 and fill at our Policyowner Service Request Form (7000-0508).

Everyone’s life insurance needs vary depending on their standard of living, family obligations, financial obligations and accumulated wealth. A good “rule of thumb” for a married individual is to be insured for an amount equal to at least 8 times their annual income. However, the best way to determine your actual need is to meet with a licensed agent and do a “needs analysis.”

This amount will differ depending on where you live, whether you prefer burial over cremation, the funeral merchandise, service and options you chose. LBL, in cooperation with Dignity Planning, offers a free service on line to help you plan for the future. Just go to www.lblsimpleplanning.com and you can do your own “Final Arrangement Planning” in the privacy of your home. If you do not have access to the Internet, call one of our agents to assist you.

This is a benefit that can be added to certain life policies that will prepay a portion of the death benefit in case of a particular critical illness such as heart attack, stroke, life-threatening cancer, by-pass surgery, organ transplant, Alzheimer’s, etc. It is money made available to you when it is most needed.

This is a type of term product that returns all of the premiums paid, by way of a reduced paid-up policy, when the insured outlives the term period.

While there are many styles of term insurance, a term life insurance policy is generally a contract that furnishes life insurance protection for a limited time described in the policy. The face amount of the policy is payable only if death occurs during the time stipulated in the contract. If death occurs after the “term” of coverage expires, no benefit is payable.

There are many varieties of whole life insurance, but its primary feature is permanency. In contrast to term insurance, a whole life insurance policy pays the death benefit stipulated in the contract upon the death of the insured, regardless of when it may occur. Whole life insurance usually provides for the payment of a cash surrender value in the event the need for insurance changes and the owner elects to cancel the policy.

As a general rule, death proceeds are excludable from the beneficiary’s gross income. The proceeds are received income tax free by the beneficiary regardless of whether the beneficiary is an individual, a corporation, a trustee or the insured’s estate. In order for the death proceeds to be fully excluded from the beneficiary’s gross income, the life insurance contract must meet the provisions of applicable state law and the definition of life insurance found in the Internal Revenue Code.