OTHER CASH FLOW DISCLOSURES

3 Months Ended

Mar. 31, 2014

OTHER CASH FLOW DISCLOSURES [Abstract]

OTHER CASH FLOW DISCLOSURES

Note 8 – Other Cash Flow Disclosures

On a cash basis, the Company paid the following expenses:

	Three Months Ended
	March 31,
	2014		2013
Interest expense	$	19,672	$	16,398
Federal income tax		0		2,050,000

During the first quarter of 2013 and 2014, UG's wholly-owned subsidiary, UTG Avalon, LLC, entered into a noncash transaction whereby the subsidiary obtained a new line of credit in the amount of $5 million and utilized the line of credit to repay the prior line of credit. The terms of the new line of credit are consistent with the terms of the prior line of credit.

During the first quarter of 2014, the Company sold a block of life insurance business.  As a result of this transaction, the Company transferred approximately $3,100,000.0 million in cash to purchaser.  The transaction also resulted in a reduction of approximately $3.7 million of future policyholder benefits and approximately $600,000 of cost of insurance acquired.