When choosing an insurance company to protect you and your family, an important consideration is the financial stability of the organization behind the policy. Federal Life Insurance Company is pleased to present to you an overview of our company’s long-term financial stability.
In 2016 Federal Life’s ratio of total adjusted capital to liabilities (excluding separate accounts) was 9.2%. Our high ratio provides a substantial margin of safety for our policyholders.
In an uncertain economic environment it is important to be backed by a company with financial strength. Federal Life provides that security.
The primary investment for Federal Life is in fixed income securities. Fixed income securities represent 85.0% of the company’s invested assets. Cash and other short term investments represent 3.6% of the invested assets. The only direct investment in commercial real estate is the company-owned home office building. Common stocks represent 4.3% of the invested assets. The company has 5.1% of its invested assets in policy loans. This investment is fully secured using the cash value of policies issued by the company as collateral.
The quality of the underlying assets must also be considered. Of our fixed income securities, 95.1% are rated as a 1 (highest quality) or a 2 (high quality) by the National Association of Insurance Commissioners (NAIC). United States Government and Agency backed securities make up over 39% of the securities in the NAIC 1 rating category.
Federal Life invests in fixed income securities with the objective of providing reasonable returns while limiting the exposure to credit, liquidity and interest rate risk.
Matching the investment cash flows to the cash flow demands of the benefits being paid out is an important consideration in our investment strategy.
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Contact the Concierge Team
Phone: (800) 233-3750
Fax: (847) 520-7651