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Please see attached the chart page from a Transamerica Financial Foundation Indexed Universal Life (FFIUL) policy. A California WFG agent sold this policy to a client earlier this year. Transamerica buries this very important chart deep down in its policy paperwork.

This chart's numbers are Cost of Insurance (COI) charges. Carriers also call them Mortality Charges. For Universal Life (UL) policies--like the FFIUL--COI charges are a constant--and constantly growing--part of your monthly premium.

At first these COIs look small and harmless. But when you add in their multipliers, they swell to enormous charges that threaten to destroy your policy. **If you live to your 80s and older, you can pay much more than your Death Benefit. How can that possibly make any sense for a policyholder to pay?!

Let’s do an example together. You are a healthy non-smoking 35 year old male who buys this policy. You choose a $500,000 death benefit.

Look in the second column on the left, titled “MALE MONTHLY COST OF INSURANCE PER $1,000.” Trace down that column to age 35. You see “0.09333.” This means that, at age 35, you pay $0.09333--a little over 9 pennies--per $1,000 of Death Benefit per month.

“Gee, only 9 cents. Sounds low right?” Not so fast! First you need to multiply $0.09333 by 500. Why? Because you pay 9 cents just for each $1,000 of death benefit. Remember, you bought $500,000 of total Death Benefit. Thus you have to multiply $0.09333 by 500. That gives you a COI charge of $0.09333 by 500 = $46.67 per month. Then you have to multiply that by 12 to get your yearly COI charge. In this case $46.67 x 12 = $559.98 per year.

See how it works? To calculate how much COI you have to pay each year, you have to multiply that year’s monthly COI charge by *6,000.* That’s 500 (for your total Death Benefit) x 12 (months in a year). 500 x 12 equals 6,000.

Now all you have to do is go down the column and multiplying each year’s COI by 6,000. That’s

Age 35: $0.09333 x 6000 = $559.98

Age 36: $0.09750 x 6000 = $585.00

Age 37: $0.10333 x 6000 = $619.98


Age 85: $9.98583 x 6000 = **$59,914.98**

WHOA! What just happened there?! At age 85, you pay almost $60,000/year? Almost *$5,000 per month?* Indeed that's -over- $5,000/month when you add in all premium fees.

I’m afraid it’s true! In your twilight years, your FFIUL becomes enormously expensive. So expensive, you are most likely forced to drop it and lose everything you put into it.

Let’s make the math super easy. Let’s say you’ll die at age 85. All you need do is add up the COI charges from ages 35 to 85. Then multiply that by 6,000. It comes to $1.023815 x 6,000 = $614,289. Over $100k more than your Death Benefit.

If you live to 90, it’s worse--MUCH worse. You pay $1,018,374. That’s over a -million dollars-. Twice as much as your Death Benefit.

Wait. You pay over a million dollars for a $500k policy?? Again, how can that possibly make any sense for a policyholder to pay?

Using this simple math I showed you here, please ask your WFG agent how the FFIUL can possibly make sense for anyone who expects to live even a reasonably long life. Please don’t let your WFG agent pass off your question with a vague claim that “your money will grow to cover this.” Please make your agent -prove- to you that your money's growth will cover these enormous late-life charges. Insist he use a hand-held calculator --NOT Transamerica’s Illustration software that can hide numbers and other data from you. Also very important: Ask your agent to do the math at 5% average annual Rate of Return which is close to the long-term stock index rates of Return. That’s very important. You don’t want your WFG agent to use the fantasy 8% and higher Rates of Return that less scrupulous agencies typically use.

It’s almost certain your WFG agent will be at a total loss to defend the FFIUL by the numbers. In his May 25th 2016 review, author William3 lays out a compelling argument for why you'll wish to avoid this policy. It’s titled “World Financial Group - Plan to live a long life? Will your FFIUL--WFG’s “top” product--FAIL and leave you with NOTHING? I show you the MATH." If you bought the FFIUL, I urge you to follow the procedure that William3 spells out for you there. Do this before you meet with your WFG agent so you are fully prepared. Knowledge is power.

WFG agents, if you see any problems with the reasoning and math I present here, please let us hear from you. Thank you.

Reason of review: Concerns about Transamerica FFIUL.

I didn't like: Concerns about transamerica ffiul policy.

Company wrote 0 private or public responses to the review from Jul 22, 2016.
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We've been talking to a WFG (under the Managed Wealth Financial group name) agent in the last few weeks. This is very helpful and I will be (nicely) bringing this information in to talk to them this week.


Doesn't all insurance company Cost Of Insurance (COI) go up every year anyway? Regardless if it TransAmerica, Nationwide, Allstate, Farmers, State Farm, etc...... Also, can't I just take out my cash value on the policy and move it to somewhere else?


standard insurance scam. Profit over moral.


The rates that you are breaking down in this example are the highest possible charges that the insurance company can charge. Transamerica does not charge these rates.

They currently charge the non-guaranteed rates (which are much less). In the last 18 years since I've held my license with WFG, I have never seen WFG's preferred provider insurance companies charge the guaranteed rates. The reasons why an insurance company raises the cost of insurance closer to the guaranteed rates would be because they experienced factors that they did not adequately account for such as mortality, persistency, investment income and expenses. Transamerica manages their risk very well so they do not have to raise their rates.I ran a $500,000 Transamerica illustration for a 40 year old client.

He's fairly healthy. Guess what the non-guaranteed rate is for him at age 85? Not anywhere near $50,000 per year. It's a little over $12,000 per year.

Guess how much a term life policy would cost, if they could even qualify for it, at age 85? It would be way more than a $1,000 a month.

to EC #1533434

Ok... So I am liking this to HOTEL RACK RATE for renting a room.

there is a MAXIMUM rate that the room could be rented for (something crazy like 395.00 for a motel 8) but the normal rate $89 and the special rate is more like 48.99 with AAA...

Clearly I am seeing some bias in the extrems being presented on the website. I am trying to learn enough to make a decision on if I shouel be more than a client (been a HAPPY client for almost 6 years of a VOYA IUL that I purchased with WFG)


I am one of those people who has universal life insurance from Transamerica from a WFG agent. Since I have it what should I do now?

What life insurance should I get instead?

I’m worried now that I’ve paid over 5 years of premiums for nothing. That’s a lot of money lost already plus the life insurance I thought I had will cost me more than the death benefit itself.

to Mary #1495649

You are still better off to ditch it anyways and buy a term life insurance which is about 25% of the price and put the rest in a nest egg for your future because if you continue with this FFIUL you can see that it's unsustainable if you dare to live to 80..then your kids will have to bury you while you will have put 100's of thousands in an insurance that you couldn't afford to keep...so you'll lose all your money plus won't have a penny of insurance....PS...GO see a financial advisor from your bank...do not call or speak to an wfg agent,they will give you the run around because this is a money maker.Good luck

to Mary #1498179

Hey Mary,I am an agent of WFG and even though it is true for that amount of insurance with the COI as it is shown here it would be totally ridiculous to think that your policy would outlive you. That is why at the age of 65 we always decrease the amount of the face value to $100,000 (the minimum amount of insurance).

And there is something else that he didn't mention. Oftentimes they use something called a Base Insured Rider. This rider is not included in the face value of your policy. This rider will then be dropped at the age of 65.

And if you put in the max on the policy that you got then you'd definitely be able to overcome the insurance costs with the cash accumulation. I would recommend that you talk with people who have actually used these products and not just people who are speculating because they have actually seen the benefits. I truly wish that I could have this product but because of my health right now I am uneligible.

Hopefully I will be able to get this within the next couple of years. I think it is amazing.

to Enoch #1498510

Wow...so she can pay 200k or more if she lives to 80 in COI to have a REDUCTION of her plan to 100k insurance? So in essence you are the first semi honest WFG agent that is telling us it's unaffordable to buy the FFIUL....Funny how the tune changes.Let me guess for 650$/month when she's 80 she will be able to get a 5k insurance while she will have put over 200k in this bottomless pit.Good idea..NOT!

to Mary #1502780

Mary, see my explanation in my comment on June 18th. It's from EC.

You have a great policy.

Transamerica is one of the most well managed and reputable companies in the country. Try to maximum fund your policy if you can.


Hey! Thanks for the OBJECTIVE info.

I hope everybody comes here to learn and not get taken advantage of.I have a few questions for you maybe you can help me clarify (also i apologize for my lack of math skills so ill do my best to ask my question):Lets say i am 30 years old start a policy and am putting in $250 dollars a month for a 100,000 dollar policy.i max out my investment portion of my IUL for 30 years and end having a good cash value that is above the face value.Would it be advantageous to just pull my cash out at that time enjoy the gains and cut the policy before the COI gets out of hand?Because from what at least I understand from the FFIUL they have a floor and a cap and all that but the avg over 30 years for how well the market did was like 8 or 9% which is a decent ROI.So i guess i am asking if my intention for the FFIUL is primarily to grow my money safely and enjoy it tax free and cut the policy when it gets expensive.

Would that be a sound strategy and just get term LI at some point in between? Thank you!


No one should or can buy any life insurance based on this report because all life insurance has cost of insurance unless you are in the business of giving money away for free. No insurance companies out there would be interested in losing their shirts.

They are for profits organizations and would like to make as much money as they can make just like the companies we all work for during our life time.So if you or anyone talk about costs, then you have to talk about costs on each and every life insurance product out there; not just FFIUL or any Indexed Universal Life in general. And, let me add, we also need to talk about the benefits that comes with each and every life insurance coverage out there in the market place. Showing costs alone would be the weakest form of argument because no one can argue with the extreme ends of the spectrum.I am licensed agent and ran an illustration and dissected the cost of insurance information and do NOT see this author's calculation anywhere. Remember, all insurance policy will give the worse, the medium and hypothetical illustration of best allowed performance (AG49 rules if you will).In general, yes, cost of insurance will always rise because as human (unless you're Jesus Christ), we all go toward one direction; namely DEATH with no chance of coming back to life again.

Cost of insurance for this FFIUL product for a healthy 35 male client who bought this policy at 35 will be estimated to be about $4,370 plus Policy Exp Charge of $88 and Policy Fee of $120 at the age 65; total = $4,578 even. This particular illustrative case, the client will also have $19,471 credited to his account as interest earnings that year with accumulated cash value of $268,916 and death benefit (DB) of $768,916 at the age 65. On top of that, this client will have a long-term care (LTC) protection of $768,916 which is the $500,000 base coverage plus all the cash ($268,916) built up over the years till age 65. Ok...even if this client has to pay a whopping $59,914.98 in cost...(BTW...based on the illustration I ran, the total accumulation on costs will be about $65,674 which is the total accumulated COI from age 35 to 65 this client has paid), anyone will be ok with this in light of the cash accumulation, DB and LTC coverage and Tax-exempt withdrawal, etc., would you NOT agree?If you really want to talk about costs, let's bring out all the older products such the whole life policies that million and million of US people bought years ago.

Oh man, fasten your seat belts! Not only will you not be able to sleep with so many questions to answer, millions of people will be kept awake at night with their worries for what they've purchased in the past as well!

to JC #1482506

Perfect JC...as the 11th WFG agent that I am begging to buy 1 here you are....I will buy a FFIUL if you promise to pay my COI when I hit 80++...As you seem to guarantee that the money in the stock market will pay for my fees it shouldn't be a problem..right?Oh by the way insurance is about winners and losers ...yes the insurance companies make money but nobody can afford to pay 60k/year for insurance while this FFIUL is built to seem to be a long term investment with no end in site..it is because nobody on a fixed income can continue paying the fees if they dare to live behond 75++.But you will prove me wrong by guaranteeing me that you will pay the difference to all the clients buying a FFIUL and you will pay the difference right?I'm sure the guarantee of this great product is all in the terms and conditions right? So I pay 350$+ for 30-40 years and I end up needing to abandon it when I need it most when I get well in my elder years and don't start with the specific #'s of interest earned..you are not a pscychic..I bet you can't even tell me what stocks and bonds WFG FFIUL buys and the client doesn't know either right?

to JC #1482615

JCDo you know the average man in the USA lives to 79..now continue to calculate the COI from 65-79.Then let me know who has 20k-25k-30k at the age of 75 on a fixed income? So a life insurance is made ususally with a limit of money put in it.This FFIUL needs so much money put in it that by the time you need life insurance..when you're older,you can't afford it!Know why the COI is low under 60....because people die when they are older.Now each year add the fees of 4600$You say the cash value at age 65 will be 268k..do you guarantee it?

of course not and how much did the client pay monthly for 30 years?Want to know the odds of a man being alive until 65?82.6%. So when you peddle your FFIUL..peddle it for them(79 year old average living man or women) and let them know that it will cost them on average plus fees..COI on averageAge 65---7,500$ plus each year + feesAge 70---10,000$ ,, ,,, ,,, ,,,Age 75---17,500$ ,,, ,,, ,,, ,,,, ,,,Age 80---30.000$ ,,, ,,, ,,,, ,,Age 85---50,000$ ,,, ,,,, ,,,Now tell me how long that unicorn fancy interest on that 268k at age 65 will last?And the major problem that WFG HAS NO INCENTIVE TO MAXIMIZE THE EARNINGS THRU THE STOCK MARKET BECAUSE THE WORST IT GETS THE EARLIER THE CLIENT WILL END IT SO THEY WILL KEEP ALL YOUR CASH PLUS THEY WON'T HAVE TO PAY THE 500K INSURANCE.JC will now list us 1-2 person that has the FFIUL for over 10 years that's older than 65++.

to john43 #1495655

JC has had 3 weeks to come up with a couple of names of people that still have the FFIUL after 10 years...he hasn't named one.Also he hasn't contacted me to buy one because i ask a guarrantee that he will pay the fees of 30k/year if i live to see 80 years old because i will have no money left to pay the COI.To not have to run out of money at that age i would have to put 700-800$/month for 35-40 years...Now ask yourself if you can afford that money why in the heck would you put it in a life insurance plan in which you have absolutely no control in what they put your money in(stock,bonds,etc).


@endMLMabuseYou have outlined the numbers and even have the spreadsheet with the actual prices the policy holder will pay and as of today ...22 have said it doesn't help..you know that the 22 are WFG agents and in so they are making very clear that they are not about being clear to the policy holders and how disastrous the FFIUL is but it's to line their pockets while victimizing mostly family and friends.Funny they come here and say this is wrong and you don't understand but they can't site 1 FACT to which they say is wrong?!Then they start about buying car insurance and then peddling apples from the street vender to going on a unicorn ride thru the wilderness and then we find out it's all about the notion of distract while I take your wallet?!


I believe this author does not even understand the FFIUL so it is difficult to engage an individual who claims to be an expert on an issue he / she barely understands

to Anonymous #1479210

You dodge-speak just like someone who can’t face the FACTS :-)


You bought a car, but you don't know how to drive.

You got an accident, but it is complainant to car sales man.

Life Insurance is very simple when you get educated about it.

Don't buy car if you don't know how to drive. You don't need a car, you need to get educated. Otherwise you will always follow someone.

Learn enough about life insurance until you understand from the agent, then buy one.

to John #1430846

John I disagree with you on at least two points.

First, not all life insurance is "very simple" like you claim.

Universal Life (xUL) insurance policies, like Transamerica's FFIUL, are very complex. Very few people, even the agents who sell them, fully understand how xUL policies work.

Second, the agents almost always badly configure xULs so your policy will destroy itself 10, 20, 30 years hence, stealing all the money you put in to it, totalling ripping you off! In this case, we really *should* blame the "car sales man."

Folks, do you really wanna make Life Insurance "very simple?" It's easy--stick to Term Life.

If you have to get a "nanny" policy that forces you to save your money, then get a Whole Life policy.

Avoid *all* Universal Life insurance policies.

Especially Transamerica's FFIUL!

Thanks for reading.

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