The member owners of Security Benefit Mutual Holding Company have blessed efforts to sell the company to Guggenheim Partners L.L.C.

Members have approved plans to have Security Benefit, Topeka, Kan., demutualize and dissolve, the company says.

About 90% of the members who voted in favor of the demutualization and dissolution plans, the company says.

The Security Benefit board needed member approval of the plans to proceed with efforts to have Guggenheim Partners, Chicago, acquire the company.

Guggenheim Partners announced that it would spend a total of $400 million to acquire and strengthen the company.

Guggenheim Partners has agreed to compensate Security Benefit members for the extinguishment of their interests in the company by paying them $20 million in the form of cash or an increase in cash value, account value, dividend accumulations or life policy benefit payments, Security Benefit says.

Each member probably will get about $100 in consideration after the transaction closes, Security Benefit estimates.

Security Benefit and Guggenheim Partners need favorable rulings from the Internal Revenue Service and the U.S. Department of Labor to complete the deal. They hope to complete the transaction by mid-July.

Security Benefit would keep its current offices and its current businesses, including its annuity and insurance administration businesses, according to Security Benefit and Guggenheim Partners.

Security Benefit’s Security Benefit Life unit has about 200,000 fixed and variable annuity contracts in effect.