Table of Contents CITIZENS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) Goodwill is summarized as follows: Property and equipment are carried at cost less accumulated depreciation. Depreciation of property and equipment is computed using the straight- line method over the useful lives of the assets, ranging from three to thirty years.  The following is a summary of property and equipment. The Company has several lease agreements for real estate and equipment, such as its corporate home office and several district office locations related to our Home Service Insurance segment. The Company recognizes these lease agreements on the consolidated balance sheets as a right-of- use asset and a corresponding lease liability. The Company uses its estimated incremental borrowing rate, which is derived from information available at lease commencement date, in determining the present value of lease payments. Future policy benefit reserves for traditional life insurance are established based on methods and underlying assumptions in accordance with U.S. GAAP and applicable actuarial standards. Assumptions as to investment yields, expenses, mortality and lapses are based upon our experience, modified as necessary to reflect anticipated trends and to include provisions for possible adverse deviations. The accrued account balance for non-traditional life insurance and investment contracts is computed as deposits net of withdrawals made by the contract holder, plus amounts credited based on contract specifications, less contract fees and charges assessed, plus any additional interest. Annuity interest crediting rates range from 2.5% to 5.5% annually. Benefits and expenses are charged against the account balance to recognize costs as incurred over the estimated lives of the contracts. Expenses include interest credited to contract account balances and benefits paid in excess of contract account balances. Unpaid claims on accident and health and specialty property insurance policies represent the estimated liability for benefit expenses, both reported but not paid and incurred but not reported to the Company. The liability for incurred but not reported claims includes estimates for additional claim amounts due related to reported claims. Liabilities for FUTURE POLICY BENEFITS AND EXPENSES December 31, 2020 | 10-K 88 Years ended December 31, (In thousands) 2020 2019 2018 Life Insurance Segment: Balance at January 1, $ 12,624 12,624  12,624  Impairment — —  —  Balance at December 31, $ 12,624 12,624  12,624  PROPERTY AND EQUIPMENT December 31, (In thousands) 2020 2019 Property and equipment: Home office, land and buildings $ 4,136 4,136  Furniture and equipment 1,618 881  Electronic data processing equipment and computer software 7,179 8,215  Automobiles 50 91  Real estate and equipment leases (See  Note 7 ) 11,973 1,136  Total property and equipment 24,956 14,459  Accumulated depreciation (8,644) (8,555) Total property and equipment $ 16,312 5,904 