The Beneficial Financial Group - part of a holding company owned by The Church of Jesus Christ of Latter-day Saints - Tuesday announced its decision to discontinue issuing life insurance policies and annuities on October 31, after selling insurance to the church members since 1905.

According to corporate executives, though the Beneficial Financial decision to stop writing any new insurance policies will virtually put it on the 'out-of-business' path, the company would still be around for decades crediting life insurance policies for present customers.

Beneficial's decision will not affect the 150,000 to 160,000 owners of its life insurance policies and annuities, as the company is reportedly "well capitalized" to meet its obligations.

However, the impact of the Beneficial's actions will largely be borne by nearly 70 percent of the company's work force of 214 home office and field representatives; who will see the way out in the next four months.

Talking about Beneficial's closing down of business, Mark Willes - CEO of the insurer's parent company, Deseret Management Corp. - said the insurer is "too small" to offer any notable competition to bigger and newer rivals.

Willes said: "So the fundamental rationale for the decision is you end up with a business that because of its size has limited economic potential, and is not high enough to make up for the attendant risks involved in the business."