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A shocking dirty little secret of Universal Life policies: you LOSE all your policy's cash value when you croak. This is true of Transamerica’s Financial Foundation Indexed Universal Life (FFIUL) policy and all other xUL policies.

Check out the two pages here. These are from a real FFIUL policy. An agent issued this last winter from a Northern California WFG office. Go to page 5 and read how the FFIUL defines “beneficiary.” That def makes clear your heirs receive ONLY the death benefit. You find no provision that lets you pass along even a single peso of your FFIUL's cash value to your family or friends or any other entities.

For example, let’s say you bought the FFIUL with a half-million death bennie. You pay into it over many decades and accumulate an equivalent half-mil in cash value. Your total policy value and death benefit equals a cool million dollars. *However*, when you go toes up, Transamerica KEEPS half of your million dollars. Transamerica gives the $500k death benefit to your heirs. But it TAKES your $500k of cash value.

Alas, this awful FFIUL problem is common among generic pre-packaged xULs. Neither this flagship policy from WFG, nor any other off-the-shelf UL, VUL, and IUL policies from, Pacific Life, Nationwide, Voya, or big carriers, let you pass on your policy’s cash value to your heirs. The NAIC (National Association of Insurance Commissioners) makes this fact crystal-clear. Please google this string: “insureuonline consumer life FAQs” to find the following:

“Q: What happens to the cash value in my policy when I die?

A: … No matter how much cash value you may have had in the policy the moment before you died, *your beneficiaries can collect no more than the stated death benefit*…

Your policy’s cash value matters massively. For two reasons:

1) It’s YOUR cash. It’s what you realized AFTER you shelled out to Transamerica its COI (Cost of Insurance) charges and its many other charges and fees for covering you with life insurance. Why should Transamerica keep your cash? But that’s precisely what this company and virtually all other xUL issuers do.

2) The less cash value in your FFIUL to offset your death bennie, the higher COI charges you must pay. These charges start to blast into the stratosphere when you hit the “knee of insurance” in your 50s and 60s. The less cash value you have to mitigate soaring your COI charges, the sooner these charges WIPE OUT your cash value. This forces you to pay enormous premiums or let cancel your FFIUL. Then you lose *everything*--your cash value AND your death benefit.

Bottom line: The FFIUL and other standard xUL policies are LOSE-LOSE for you. If you keep low your policy’s cash value, usually by converting into death benefit, then your late-life COI expenses will destroy your remaining cash value and blow your policy to smithereens. On the other hand, if you choose a level death benefit and choose to accumulate your cash value, then your heirs lose a ton of your money when you die.

Thanks “Ex-WFGer” over at Fin*nce Guy for most of this data and for the policy materials he or she posted on that site. If you’d like to read that commenter’s 2 September convo with Corona CA WFG agent Bryan Bravo, please search on this string: “Fin*nce Guy WFG” replacing the “*” with an “a.” Once there, search on “FFIUL a total non-starter” to reach the first message in that exchange. Then you can read that thread while scrolling up.

EndMLMAbuseNow wrote the review because of "ripoff products" at World Financial Group and attached photo s. Reviewer claimed that he or she wants World Financial Group to read this review and look into the issue (if any).

The most disappointing in user's experience was harmful products and deceptive sales practices. The author asks this business to immediately contact him/ her to briefly discuss his/ her negative experience with the company.

We collected other reviews about products and/or services offered by World Financial Group and transamerica life insurance for you to read. This information may help you with your purchase decision.


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Actually yes they will take the cash value remaining only if you're not smart enough to cash out the remaining amount. If you know death is nearer than farther then, Cash Out.

to Mr.Master42 #1401833

Well it's a life insurance policy..if the purpose is to cash out when you think you will die in a few years I have another product that doesn't cost this much..Thanks a least for letting us know it's a useless product because let's face it IUL's aren't a pension plan and worst it's very very expensive in fees so why would any sane person invest in it?

to Mr.Master42 #1401967

"Oh!I'm having a massive heart attack.

Quick, get Transamerica on the phone so I can wait on hold 40 minutes to cash out my FFIUL!"

"Mr.Master42" Kindly GTFOOH.Thank you.

to Ex-WFGer #1401989

I know right... Thank god nobody dies suddenly and have decades of warning so we can maximise a FFIUL?

Glendale, California, United States #1229676

Depends on if the death benefit is Level or Increasing.

to Anonymous Berkeley, California, United States #1229688

Glendale Anon, sorry, but you're wrong.It doesn't matter which option you choose.

The FFIUL policyholder is hosed either way.

If you choose the Level DB option, then you lose the Cash Value per the contract.

If you choose the Increasing DB option, then TA keeps raising your death benefit, keeping your Net Risk, and thus your COI charges, high. These COI charges will skyrocket in your later life, wiping out your FFIUL's Cash Value and busting you out of this policy in your retirement on a fixed income, the time you can least afford for this to happen. You LOSE EVERYTHING after you've dumped $100,000s into this worthless policy.

Do the math.You'll see for yourself.


Well if it looks like a money grab and it smells like a money grab...well it's probably a sc*m...Thanks for the interesting read and details and FACTS on WFG and the FFIUL they sell family and friends...

They are stealing your money..plain and simple!

oh but there will be an WFG agent passing around with the lipstick to pretty this pig up while taking your wallet and your families wallet with the other hand!

to john43 Berkeley, California, United States #1207939

Hi John.Yes, the FFIUL is an utterly BOGUS policy.

Through and through.

It amazes me that Lieff Cabraser, Zamansky, etc didn’t start to jump on this whopping fraud until just recently. They’ll have a major $KA-CHING! field day with this slo-mo train wreck.

I’m sure Transamerica and the other for-profit carriers have already budgeted for the massive out-of-court settlement.

At Finance Guy, Ex-WFGer repeated this review from EndMLMAbuseNow. It’s at or near the top of the comments list.

I wonder, will Corona CA WFG agent Bryan Bravo have anything of value to say about these facts and numbers?I'm not holding my breath :-)

to john43 Berkeley, California, United States #1208076

John, sumpin' new for you, heh:

www dat quora dat com / Does-anyone-have-experience-with-Western-Reserve-Foundation-Fixed-Index-Universal-Life-FFIUL-insurance-Is-it-a-good-investment-option-nowadays-for-someone-in-their-mid-20s

This Quora question’s getting up to 3--4k views. When you google “FFIUL” this pops up on the first page of hits.

If you’re not yet on Quora, you can make a super basic FB account to get in.

to john43 Berkeley, California, United States #1210698

Happy weekend John.All quiet here at PC WFG.

The rep-licants got nuthin'. NUTHIN'.

Maybe their brainlets are off somewhere receiving downloads.Massive critical updates to their RahRahSmokenMirror™ OS :-)

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