Universal life is the policy type that shows up most often in the life settlement market, and the reason is mechanical rather than mysterious. A universal life contract is an account value with insurance charges deducted from it every month. Those charges are based on the amount at risk and the insured’s age, so they rise year after year. On a policy funded twenty or thirty years ago at an assumed interest rate that never materialized, the charges eventually outrun the interest credited, the account value starts falling, and the premium needed to keep the contract alive climbs.
If you own a Farm Bureau Life universal life policy and the premium notices have started to look wrong, this page explains how to read the situation, what document actually answers the question, and what the company requires if ownership is ever transferred. Pine Lake Life Solutions is an independent educational resource, is not affiliated with Farm Bureau Life Insurance Company, and does not purchase policies.
In This Article
The One Document That Answers the Question
Before comparing anything, request a current in-force illustration from the company, run at current cost-of-insurance charges and current credited rates rather than at the original assumptions. Ask for it in more than one version: one showing the premium required to carry the policy to a chosen age, one showing how long the policy survives if you stop paying entirely, and one showing the guaranteed-charges scenario, which is the worst case the contract permits.
That set of pages tells you almost everything. It shows the current account value, the current net surrender value after any surrender charge, the current death benefit, any outstanding loan, and the date the policy is projected to lapse under each assumption. A universal life policy that is projected to lapse in four years is a completely different asset than one projected to run to age ninety-five, and no honest comparison can be made without knowing which one you hold. Farm Bureau Financial Services lists 800-247-4170 as its life and annuity client service number, available Monday through Friday 8:00 a.m. to 7:00 p.m. and Saturday 9:00 a.m. to 1:00 p.m. Central time, and requests are typically routed through that line or your servicing agent.
Confirm You Are Dealing With the Iowa Company
Several unrelated insurers use the Farm Bureau name. Farm Bureau Life Insurance Company, the life subsidiary of FBL Financial Group, Inc., operates from 5400 University Avenue, West Des Moines, Iowa 50266-5997 and markets under the Farm Bureau Financial Services brand. Southern Farm Bureau Life, Farm Bureau Life Insurance Company of Michigan, Farm Bureau Life Insurance Company of Missouri, Kentucky Farm Bureau, Indiana Farm Bureau and Texas Farm Bureau are separate companies with their own service centers and their own forms. Read the corporate name and home office address on the face page of your contract before calling anyone.
The Iowa company’s life and annuity business is licensed in Arizona, Idaho, Iowa, Kansas, Minnesota, Montana, Nebraska, New Mexico, North Dakota, Oklahoma, South Dakota, Utah, Wisconsin and Wyoming. If your universal life policy was issued outside that footprint, it is very likely a different Farm Bureau entity.
Is the Company Still Standing Behind the Contract
Owners sometimes read a delisting as a sign a carrier is winding down. That is not the case here. Farm Bureau Property & Casualty Insurance Company completed a take-private transaction with FBL Financial Group, Inc. on May 25, 2021, purchasing the outstanding Class A and Class B shares it and the Iowa Farm Bureau Federation did not already own for $61.00 per share in cash. The stock left the New York Stock Exchange before the open on May 26, 2021, and the Iowa Farm Bureau Federation remained majority owner. No block sale of in-force policies to a third-party administrator is part of that transaction.
Farm Bureau Life continues to write new individual life insurance. As of July 2026 its consumer site states it offers three types: term life, whole life and indexed universal life. AM Best has affirmed a Financial Strength Rating of A (Excellent) and a Long-Term Issuer Credit Rating of “a+” for Farm Bureau Life Insurance Company, with a “bbb+” Long-Term Issuer Credit Rating for FBL Financial Group, Inc., outlook stable. Ratings change over time, so verify the current one with AM Best or the company.
| Document | Why it is needed |
|---|---|
| Policy cover or face page | Confirms the issuing company, policy number and original face amount |
| Most recent annual statement | Shows current account value, charges deducted and any loan |
| In-force illustration at current charges | Shows the projected lapse date and the premium needed to avoid it |
| In-force illustration at guaranteed charges | Shows the worst case the contract allows |
| Loan payoff figure | Determines net proceeds under any exit route |
| Rider schedule | Identifies riders that may be adding cost or value |
Levers You Have Before Considering a Sale
A struggling universal life policy is not always a policy that must be abandoned. Farm Bureau Life’s Policy Service Request, form 433-279 (01-23), shows several administrative changes the company processes. Section 10 allows a decrease in the specified or face amount, which lowers the amount at risk and therefore lowers monthly insurance charges. The same section allows a universal life or variable universal life death benefit option to be changed to Option B, level, with a choice of whether to include the cash value, and permits deletion of riders that are no longer needed. Section 6 covers a change in premium mode and, for flexible premium policies, lets you specify a new billing amount.
Each of these has a consequence. Reducing the face amount permanently reduces what your beneficiaries receive and can create tax issues if the policy is a modified endowment contract. Deleting a rider you may still need is not reversible on favorable terms. Changing the death benefit option changes both the charges and the payout structure. These are the levers to price out with the company before deciding the policy has no future, and they belong in the same comparison as any settlement conversation.
Why Universal Life Attracts Settlement Buyers
An institutional buyer in the life settlement market pays a lump sum, takes over the premiums, and collects the death benefit. What the buyer is really pricing is how many years of premium it expects to pay. That makes two features of universal life attractive. First, premiums are flexible, so a buyer can often fund the policy at a lower level than the owner has been paying. Second, universal life usually has a small surrender value relative to the death benefit, which means the seller’s alternative is weak and the gap a buyer can pay into is wide.
Eligibility turns mostly on the insured’s age and current health, and no one can promise you qualify or promise a value in advance. Anyone who quotes a figure before reviewing medical records and a current in-force illustration is guessing. What is reliably true is that letting a universal life policy lapse produces nothing at all, while a policy sold in the settlement market at least produces an offer you can accept or refuse. If the policy has a loan, the loan is settled at closing and reduces the net proceeds.
The Ownership Transfer Step
A settlement is completed by transferring policy ownership to the buyer, so the carrier’s change-of-ownership procedure sits on the critical path. Farm Bureau Life handles ownership transfers in Section 4 of form 433-279 (01-23), submitted to the home office in West Des Moines or faxed to 800-754-6370. The form states that any ownership change removes all existing owners and contingent owners, so anyone who should remain must be re-affirmed on the form. The new owner signs the form, and an entity owner such as a trust or corporation requires form 433-042 or 433-043 attached. Beneficiary changes go on a separate form, 433-64. The company states changes take effect when recorded at the home office.
Build that processing time into any timeline, particularly if the policy is close to a grace period. Confirm the current version of every form and the current requirements directly with the company; form numbers and procedures can be revised without notice.
Frequently Asked Questions
Why is my Farm Bureau Life universal life premium suddenly not enough?
Universal life deducts a monthly cost of insurance that rises with the insured’s age, and it credits interest at a rate that can be far below what was assumed when the policy was sold. When charges exceed the interest credited, the account value falls and the premium required to sustain the policy rises. An in-force illustration run at current charges will show exactly when the policy is projected to lapse.
Is Farm Bureau Life still in business and still writing new policies?
Yes. FBL Financial Group, Inc. was taken private by Farm Bureau Property & Casualty Insurance Company on May 25, 2021 and its shares were delisted from the New York Stock Exchange, but that was a shareholder transaction, not a sale of the in-force block. As of July 2026 Farm Bureau Life’s consumer site states it offers term life, whole life and indexed universal life.
Can I reduce the face amount instead of selling the policy?
Farm Bureau Life’s Policy Service Request form includes a section for decreasing the specified or face amount, changing a universal life death benefit option to Option B, and deleting riders. Reducing coverage lowers the monthly insurance charges but permanently reduces what beneficiaries receive and can carry tax consequences. Price the option out with the company before choosing it.
What happens to my policy loan if the policy is sold?
In a life settlement, an outstanding loan is generally satisfied at closing and reduces the net amount you receive. Ask the company for a current loan payoff figure, including accrued interest, before evaluating any offer, because the gross offer and the net proceeds can differ substantially.
How long does a change of ownership take at Farm Bureau Life?
The company does not publish a standard turnaround. Its Policy Service Request form states that requested changes do not take effect until recorded at the home office in West Des Moines, with the effective date then dated back to the request. Call the life and annuity client service line at 800-247-4170 for current processing times, and allow for that time if a grace period is approaching.
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Related Reading
- Sell My Farm Bureau Life Whole Life Policy
- Sell My Farm Bureau Life Guaranteed Universal Policy
- How To Read In Force Illustration
- How Long Policy Survive Without Premiums
- Life Insurance Grace Period Explained
- Carrier Change Of Ownership Requirements
- Sell My Nationwide Universal Life Policy
Pine Lake Life Solutions does not purchase life insurance policies and does not provide legal, tax, or investment advice. Information provided is for educational purposes only. Eligibility for any option, including life settlements, is not guaranteed and depends on individual circumstances, policy terms, underwriting, and market conditions. Consult independent legal, tax, or financial professionals before making decisions regarding a life insurance policy.