OTHER CASH FLOW DISCLOSURES

6 Months Ended

Jun. 30, 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
		June 30,
		2014		2013
Interest expense	$	14,648	$	15,643
Federal income tax		0		1,415,000

		Six Months Ended
		June 30,
		2014		2013
Interest expense	$	34,320	$	32,041
Federal income tax		0		3,465,000

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  $5,000,000 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 in cash to the purchaser.  The transaction also resulted in a reduction of approximately $3,700,000  of future policyholder benefits and approximately $600,000 of cost of insurance acquired.

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