Federal Life Launches Digital Currency Variable Annuity for Crypto Exposure

Federal Life Insurance Company (FLIC) has announced the launch of a first of its kind digital currency variable annuity which provides broad exposure to Bitcoin and Ether.

FLIC, an Illinois-domestic carrier with a history dating back to 1899, has formed an Insurance Dedicated Fund (IDF) to support the annuity, which will allow advisors to allocate a portion of their variable annuity contract to a portfolio made up substantially of Bitcoin, Ether and other crypto assets to gain exposure to the evolving digital currency space. This private placement product is available to accredited investors and will provide advisors with a one-of-a-kind resource to offer clients who are looking for alternative ways to gain exposure to the evolving digital currency space.

“In today’s environment, where the digital currency market cap has exceeded $2 trillion, there is no denying that investors are looking to evolve and gain exposure to this dynamic asset class. We have merged the appetite for digital currency with a familiar and proven product in the tax-efficient variable annuity. With an estimated 13.6 million accredited investor households in the U.S., many of whom are already attentive to the digital currency space, we can aid the advisor market in delivering a unique solution to fit their clients’ needs,” said Bill Austin, CEO of FLIC.

FLIC has teamed with digital currency leaders Gemini and Onramp to hold and trade coins, as well as WisdomTree to provide investment allocation design to our IDF.

“Our goal for Onramp was to be exactly that, an easy way for legacy institutions to onboard and experience the utility of cryptoassets. We expected that our model portfolios with Wisdom Tree would provide easy access for traditional asset managers and this accomplishment is exemplary of that. As such a young company we are humbled to play a small part in Federal Life breaking ground with this landmark annuity offering,” said Tyronne Ross, CEO Onramp Invest.

Will Peck, WisdomTree Head of Digital Assets, said WisdomTree has been excited to collaborate with Onramp to provide model portfolios that combine traditional assets like stocks and bonds with crypto assets like bitcoin and ether as educational building blocks for advisors and institutions.

“WisdomTree’s customized model portfolios for Federal Life showcases that crypto assets are finding reach beyond the original early adopters and slowly gravitating towards institutional investors and advisors,” said Peck. “We congratulate Federal Life on being an innovator in the insurance and variable annuity channel for these crypto exposures by leveraging WisdomTree model portfolios.”

Federal Life Insurance Company intends to launch its private placement variable annuity nationwide during the 4th Quarter of 2021, partnering with a broad range of advisor firms to deliver a solution to the vast market of consumers who are looking for alternative investment and retirement solutions.

“We are excited and proud, for a company with a legacy dating back over 120 years, to be on the cutting edge of where insurance and digital currency meet and we look forward to committing long-term to our advisor partners and our clients, as we continue to evolve and deliver innovative products,” said Austin.

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