Federal Life launches digital currency variable annuity for crypto exposure – blocktribune

Federal Life Launches Digital Currency Variable Annuity for Crypto Exposure

Announcements, Blockchain, Innovation, News | October 7, 2021 br>
By: David Pimentel

Federal Life Insurance Company (COP) announced the launch of a first variable annuity in digital currency that offers broad exposure to Bitcoin and Ether.

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

“In today’s environment, where the market capitalization of digital currencies has exceeded $ 2 trillion, it is undeniable 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 approximately 13.6 million accredited investor households in the United States, many of whom are already mindful of the digital currency space, we can help the advisor market provide a one-stop solution to meet the needs of their clients. Said Bill Austin, CEO of FLIC. .

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

“Our goal for Onramp was to be exactly that, an easy way for legacy institutions to integrate and experience the usefulness of cryptoassets. We expected our model portfolios with Wisdom Tree to provide easy access to traditional asset managers and this achievement is one example. As a young company, we are honored to play a small role in Federal Life with this historic annuity offering, ”said Tyronne Ross, CEO of Onramp Invest.

Will Peck, Head of Digital Assets at WisdomTree, said WisdomTree is excited to work with Onramp to deliver model portfolios that combine traditional assets like stocks and bonds with crypto assets like bitcoin and ether in as educational building blocks for counselors and institutions.

“WisdomTree’s Custom Model Portfolios for Federal Life show that crypto assets are overtaking early initial users and slowly gravitating to institutional investors and advisers,” said Peck. “We applaud Federal Life for being an innovator in the insurance and variable annuity channel for these crypto exposures by leveraging the WisdomTree model portfolios.”

Federal Life Insurance Company intends to launch its Nationwide Private Placement Variable Annuity in Q4 2021, partnering with a broad range of advisory firms to provide a solution to the broad market of consumers seeking alternative investment and retirement solutions.

“We are delighted and proud, for a company with a heritage stretching back over 120 years, to be at the forefront of the intersection between insurance and digital currency and we look forward to making a long-term commitment to our advisors to partners and our customers, as we continue to evolve and deliver innovative products, ”said Austin.