Help and Support

Annuity FAQs

When will my 1099 tax form be mailed?
Forms 1099-INT and 1099-R will be mailed by January 31st for qualifying policies/contracts.
Are death benefit proceeds taxable?

The gain portion of annuity proceeds may be taxable to the beneficiary when it is distributed. There are several ways to defer the gain. Any interest paid on the benefits is taxable. Contact us for more information on specific settlement options available.

Can a beneficiary designation be made online (via the Internet)?
If your policy allows the beneficiary to be updated online, that option will be provided to you in the Update Your Beneficiaries Online link on the Account Overview or Policy Details pages.

You may also download and print the Change of Beneficiary Request Form. If your policy number starts with 21, download and print this Change of Beneficiary Request Form. When complete, return the form by mail or fax. 

 

Can I change ownership of my contract?
The ability to change ownership of a contract varies by product. Click on your contract type under Forms on Help and Support and select the form to meet your needs. Or, call for friendly service and expert assistance.
Definition

Transfer

A transfer is a method of moving qualified funds from one trustee to another without triggering a reportable event. Transfers often occur between two financial institutions but they can also be between contracts or accounts at the same institution. To qualify as a transfer:

  • It must be between "like kind" plans (e.g. Traditional IRA to Traditional IRA, Roth IRA to Roth IRA), and
  • There must be no constructive receipt of the funds. In other words, the check must be payable and directed to the receiving financial institution as trustee.

Direct Rollover

A direct rollover is a method of rolling eligible distributions from one type of qualified retirement plan to another type of qualified retirement plan (e.g. Tax Sheltered Annuity (TSA) to a Traditional IRA, 401(k) to a Traditional IRA). To qualify as a direct rollover:

  • The funds distributed must be an "eligible rollover distribution" which can generally be described as a distribution you receive upon a qualifying event such as retirement, termination of employment, attainment of age 59 1/2, or disability. The Internal Revenue Code defines eligible rollover distributions for each plan type.
  • The receiving qualified retirement plan must allow for the acceptance of rollovers, and
  • The funds must be transferred directly from one financial institution to another for your benefit. In other words, the check must be payable and sent to the receiving financial institution as trustee.

Indirect Rollover

An Indirect Rollover is another method of rolling qualified retirement plan assets from one qualified plan to another (e.g. 401(k) to Traditional IRA, Traditional IRA to Traditional IRA). In an indirect rollover, the plan participant or IRA holder has constructive receipt of the funds from the distributing plan. In other words, the check is made payable to the account owner instead of the receiving financial institution.

 
Generally, individuals receiving the funds from a qualified retirement plan have 60 days to roll the funds into another qualified plan to avoid taxation. This can be accomplished by endorsing over the check or writing a personal check to the receiving financial institution. The receiving plan must allow for the acceptance of the rollover. The Internal Revenue Code defines eligible rollover distributions for each plan type. Additionally, amounts distributed from a qualified retirement plan or TSA may be subject to 20% mandatory withholding.

 

1035 Exchange

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.
How can I check the status of a death claim?

By Phone: Contact a Claim Professional at 1-800-798-6600, Monday through Friday, 7:30 a.m. to 5:00 p.m. CT.

By Mail: You can request a status update in writing by sending a letter to:

CMFG Life Insurance Company

2000 Heritage Way

Waverly, IA 50677-9202

How can I contact a Claim Professional about my claim?

By Phone: Contact a Claim Professional at 1-800-798-6600, Monday through Friday, 7:30 a.m. to 5:00 p.m. CT.

By Mail: Send a letter to:

CMFG Life Insurance Company

2000 Heritage Way

Waverly, IA 50677-9202

How can I determine the value of the contract?

Go to Account Overview and click on View Policy Details or View Contract Details. Please refer to your contract for additional features and benefits or call for friendly help and expert assistance.

How can I get help completing the claim form or get an answer to my question?

By Phone: Contact a Claim Professional at 1-800-798-6600, Monday through Friday, 7:30 a.m. to 5:00 p.m. CT.

By Mail: Send a letter to:

CMFG Life Insurance Company

2000 Heritage Way

Waverly, IA 50677-9202

How do I file a death claim?

By Phone: Contact a Claim Professional at 1-800-798-6600, Monday through Friday, 7:30 a.m. to 5:00 p.m. CT.

By Mail: Send information to:

CMFG Life Insurance Company

2000 Heritage Way

Waverly, IA 50677-9202

Please provide the insured's name, date of birth, date of death, and policy number(s).

If you are not the policy beneficiary, you may be asked for the beneficiary's address.

How do I make allocation changes or transfer funds on my contract?
To request service, click on your contract type under Forms on Help and Support and select the form to meet your needs. Or, call for friendly service and expert assistance.
How do I request a partial withdrawal from my contract?
Partial withdrawals cannot be made online. Please call for friendly help and expert assistance with your contract.
How do I sign up for online delivery of prospectuses, annual reports and other information?

Please call us for assistance or visit the MEMBERS Products Website at http://membersproducts.com/EDelivery.aspx?s=PBS.

How long does it take to receive money from my contract?

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. CT are processed within 3 calendar days. Requests received after 3:00 p.m. are considered received the next business day and will be processed within 4 calendar days.

 

How long will it take for me to receive the death benefit settlement after you receive all the information?

It normally takes 3-5 business days to process a claim once completed claim information is received from all beneficiaries. A letter and a statement of values are sent out through regular mail. If lump sum payment by check is elected, the check will be sent under separate cover.

What are the differences between a Traditional IRA and a Roth IRA?

Individual Retirement Arrangements (IRAs) are personal savings plans that give you tax advantages for setting aside money for retirement. IRAs can be an individual retirement account or an annuity, which can be either a fixed or variable annuity. It must be set up in the United States in your name and for the exclusive benefit of you or your beneficiaries. Following is a chart of the primary differences between Traditional IRAs and Roth IRAs:

 

Roth IRA

Traditional IRA

Eligibility

Investors with compensation meeting income limits
OR
Non-income earning spouses who file a joint return with a working spouse who meets the income limits

Investors under age 70 1/2 with compensation
OR
Non-income earning spouses who file a joint return with a working spouse

Federal
Taxes

  • Contributions are not tax deductible
  • Contributions and earnings are free from federal tax upon withdrawal under specified conditions.
  • Distributions are not required at age 70 1/2
  • Contributions may or may not be deductible depending on your income tax filing status, modified adjusted gross income (MAGI), and eligibility to participate in a tax-qualified retirement plan through employment.
  • Earnings grow tax deferred and are taxed as ordinary income upon withdrawal as are deductible contributions.
  • Minimum distributions are required beginning at age 70 1/2
What are the typical income options with an annuity?

The below settlement options are available for both spouse, non-spouse, and partner beneficiaries, qualified and nonqualified, and most annuity products:

• Lump Sum Payment
• Fixed Interest Account (Immediate Taxation)
• Transfer to a Non-Qualified Deferred Annuity or Life Insurance Contract
• Transfers the Value to a Fixed Interest Supplemental Contract (Taxation Deferred up to 5 years)
• Income Payments for a Fixed Period (Taxed as payments are received)

 

Trust and Estate beneficiaries and MEMBERS Zone have more limited options:

• Lump Sum Payment
• Transfers the Value to a Fixed Interest Supplemental Contract (Taxation Deferred up to 5 years)
• Income Payments for a Fixed Period (Taxed as payments are received)

 

Additional settlement options may be available based on product and beneficiary relationship.

What does it mean to annuitize?
To annuitize is to convert the accumulated value of an annuity into a stream of income. The payments may be a fixed amount, for a fixed period of time, or for a lifetime.
What does the beneficiary need to provide to CMFG Life Insurance Company upon settlement of the claim?

1)  Proof of death

 

Additional Information is required:

 

If Beneficiary is Estate:
• Letters of Testamentary or Authority issued by the Probate Court showing the name and address of the executor or personal representative of the estate.
• A valid Tax ID Number for the estate (provide on claim form).  If you do not have an ID #, one can be obtained by calling the IRS at 1-800-829-4933.
• If there are not enough assets to probate an estate, please obtain a Small Estate Affidavit from the county court house – Probate division, where insured resided.

 

If Beneficiary is Trust:
• A copy of the trust agreement.  The pages of the Trust required are: the title page, the appointment of trustees or successor trustees after death of the insured and the final page showing the date and witness signatures.
• A valid Tax ID number for the trust. If you do not have an ID #, one can be obtained by calling the IRS at 1-800-829-4933.

 

If Beneficiary is a Minor:
• Completed Claimant's Statement completed by an adult family member in behalf of the minor.  The funds will be placed in an interest bearing account with our company until the minor reaches legal age.
• To have the funds released prior to the time the minor reaches age of majority, copies of the court appointment papers for guardianship or conservatorship for the minor child must be received.

 

If Beneficiary is Deceased:
• Proof of death for the deceased beneficiary.

What is a variable annuity?

Variable annuities are designed to supplement a retirement program, serving as long-term savings vehicles and efficient sources of retirement income. Deposits to a variable annuity are invested in equity and/or fixed income funds.

 

The value of the annuity (and income ultimately received) is directly related to the performance of the funds within the annuity. The fund selection process is critical and will vary for each individual depending on tolerance for risk and desired return.

 

A variable annuity can be issued as a nonqualified annuity, an individual retirement annuity (IRA), or a tax-shelter annuity (TSA). The amounts that can be paid into the annuity contract and the tax-treatment of withdrawals from it will depend on what type of annuity it is – nonqualified, IRA or TSA.

What is an annuity?

An annuity is a contract between you and an insurance company in which you pay the insurer a lump-sum payment or series of payments. Your money is invested and accumulates on a tax-deferred basis. In return, at retirement the money is returned to you either in a lump sum, through periodic withdrawals, or as a guaranteed income stream for a specified period of time.

 

An annuity can be issued as a nonqualified annuity, an individual retirement annuity (IRA) or a tax-shelter annuity (TSA). The amounts that can be paid into the annuity contract and the tax-treatment of withdrawals from it will depend on what type of annuity it is: nonqualified, IRA or TSA.

Where can I see the latest information for my funds?
Please visit http://membersproducts.com/unitvalues.aspx.
Where can I view and/or update my beneficiary?

For current beneficiary information, please call us.                                                                                      

 

To update your beneficiary:

• If your policy allows the beneficiary to be updated online, that option will be provided to you in the Update Your Beneficiaries Online link on the Account Overview or Policy Details pages.
• You may also download and print the Change of Beneficiary Request Form.
• If your policy number starts with 21, download and print this Change of Beneficiary Request Form.
• When complete, return the form by mail or fax.

Where do I mail or fax my claim documents?

CMFG Life Insurance Company
2000 Heritage Way
Waverly, IA 50677-9202 

 

Fax Number:  1-608-236-8030

Who can notify CMFG Life Insurance Company of a death?
Anyone can notify us of a death. However, only the named beneficiary(ies) can submit the necessary documentation or evidence to settle the claim.

Customer Support

Questions?

1-855-591-9026
Phone Hours: 7:00 AM - 7:00 PM CT
Monday - Friday

Fax: 608-236-8030


We'll respond within one business day.