The Company received a $120,000 leasehold improvement allowance from the lessor related to the original lease on January 1, 2011 that was fully amortized by September 30, 2015 and reduced incurred rent expense by $25,263 for the year ended December 31, 2014 and by $18,947 for the nine months ended September 30, 2015. The Company also received a $25,000 leasehold improvement allowance from the lessor related to the amended lease on October 1, 2015 that will be amortized over the remaining, amended non-cancellable lease term and reduced incurred rent expense by $1,250 for the three months ended December 31, 2015. The Company also has the right to receive an additional $29,152 leasehold improvement allowance during the term of the amended lease that if and when received will be amortized over the remaining non-cancellable lease term. The future minimum lease payments to be paid under the amended non-cancellable lease agreement are $102,043, $104,090, $106,189, $108,304 and $82,446 for the years 2016 through 2020, respectively.
The $4,022,471 increase in total revenues for the year ended December 31, 2015 is discussed below.
The major components of our net investment income for the years ended December 31, 2015 and 2014 are summarized as follows:
The $2,745,588 increase in gross investment income for the year ended December 31, 2015 is primarily due to the 2015 increases in investment in mortgage loans, fixed maturity securities and other long-term investments. During 2015, our investments in mortgage loans have increased approximately $20.1 million. In addition, during 2015, our investments in fixed maturity securities have increased approximately $23.9 million. Finally, during 2015, our investments in other long-term investments (lottery receivables) have increased approximately $9.8 million.
$530,683 increase in death benefits is primarily due to 59 additional final expense claims at an average of approximately $9,500 per claim. Final expense mortality is above actuarial estimates when the products were introduced but management and actuarial analysis continues to conclude that its final expense products are profitable despite the unfavorable mortality.
For the year ended December 31, 2015 and 2014, current income tax expense was $405,546 and $63,983, respectively. Deferred federal income tax benefit was $830,704 and $546,421 for the years ended December 31, 2015 and 2014, respectively. The change in deferred taxes between 2015 and 2014 is primarily due to the utilization of net operating loss carryforwards and the reduction in valuation allowances on deferred tax assets as it is probable that a portion of the net operating loss carryforwards on the consolidated federal income tax returns of FTFC and FTCC will be utilized due to projected taxable income in future years demonstrated by the taxable income generated in 2015 and 2014.
The $57,133,643 increase in policy liabilities is due to $59,274,275 of deposits on annuity and deposit-type contracts, $2,966,827 acquired in the reinsurance assumption and interest credited to policyholders’ account balances of $5,675,873 that exceeded withdrawals of $10,783,332.
In February 2016, the FASB issued updated guidance regarding leases that generally requires the lessee and lessor to recognize lease assets and lease liabilities on the statement of financial position.
Management also impaired one mortgage loan on real estate investment that is in foreclosure and reduced that investment by $23,737 from its carrying value to its net realizable value expected at the time of ultimate resale.
There are allowances for losses on mortgage loans of $183,348 and $126,466 as of December 31, 2015 and 2014, respectively. As of December 31, 2015, $534,330 of independent mortgage loan balances are held in escrow by a third party for the benefit of the Company related to its investment in mortgage loans on real estate with one loan originator. As of December 31, 2014, $540,049 of independent mortgage loan balances are held in escrow by a third party for the benefit of the Company related to its investment in mortgage loans on real estate with one loan originator.
Property and equipment as of December 31, 2015 and 2014 is summarized as follows: