Farmers New World Life Insurance Company offers options for parents looking for help

On a crisp, fall morning, you watch with pride as your daughter’s team takes the field. You imagine the doors that might open to her if she pursues education and athletics after high school. Then a bit of reality sets in: even with scholarships, college is expensive...will you be able to afford it? What options are available to help you help her meet her future expenses? Indexed universal life insurance1 may be one way to help make her possibilities a reality.


Introducing Farmers Index Universal Life Insurance**

Like other universal life insurance policies, Farmers Index Universal Life offers lifelong insurance protection, which can help safeguard your family’s financial future should something unexpected happen to you. As long as all premiums are paid to keep the policy in force, you will be covered. However, Farmers Index Universal Life insurance can also link the policy’s cash value to stock market indexes, offering the potential for cash value growth.

As you pay your premiums, you have a choice of two indexed accounts or a fixed-interest account for your cash value. The index-linked accounts tie the policy’s contract value to the annual performance of two underlying indexes – the S&P 500®2, an American stock market index that reflects the market performance of 500 large-cap companies, or the Russell 2000®3, the most widely quoted measure of the performance of small-cap stocks traded in the U.S. The indexed accounts pay an annual or monthly credit4 based on the performance of the underlying index, subject to a cap and a participation rate.

That means your cash value has the potential to grow over time, and can help build the foundation of your financial plans. And, this cash value can be used5 to help you cover the cost of future insurance needs, to supplement your retirement income, or to help fund a child’s education, among other uses.

The cash value in an indexed universal life policy can be tapped generally income-tax free6 and can be used for any for any college expense – it’s not subject to the same restrictions and tax implications as a 529 College Savings Plan7.

Other ways Farmers Index Universal Life may help you

Flexibility when you need it – In addition to cash value growth potential, Farmers Index Universal Life allows you to adjust the policy as your needs change, with flexible premium amounts and timing8, flexible death benefit options, and the ability to increase (subject to evidence of insurability) or decrease the face amount within policy limits after the first policy year. Also, premium payments are not subject to the same types of contribution limits as retirement plans, so you may continue to take advantage of generally income tax-deferred growth even if you’ve maximized your retirement plan savings limit.

Help with continuing business operations – Business owners can use Farmers Index Universal Life for executive benefits and business succession planning, such as helping to fund buy-sell agreements.

Chronic Illness9 and Terminal Illness Accelerated Benefit Riders10 – Available in most states. These riders are available to qualified insureds for no additional premium, allowing the policy owner to access a portion of the policy’s death benefit early if the insured is diagnosed with a chronic or terminal illness as defined in the contract. Accelerated proceeds are generally income-tax free. The money can be used for any purpose, but may help ease the financial strain that can come with these medical conditions.


Get started with the financial possibilities of Farmers Index Universal Life insurance

Farmers Index Universal Life insurance can help bring your family’s dreams closer to reality, both now and in the future. We understand your need for generally income tax-free life insurance coverage, and your desire for financial possibilities based on potential cash value growth. You may even be able to save on your life insurance policy if you have other Farmers policies11.

Call me today and I’ll work with you to find the product that works best for you and your family.

**Policy form ICC14-FIUL or applicable state variation.

2 The S&P 500 Index is a product of S&P Dow Jones Indices LLC (“SPDJI”), and has been licensed for use by Farmers New World Life Insurance Company (FNWL). Standard & Poor’s®, S&P® and S&P 500® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”) Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by FNWL. Farmers Index Universal Life (FIUL) is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates, and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the S&P 500 Index.

3 Russell Investment Group is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. Russell® is a trademark of Russell Investment Group.

Farmers Index Universal Life ("IUL") is not promoted, sponsored or endorsed by, nor in any way affiliated with Russell Investments (“Russell”). Russell is not responsible for and has not reviewed the IUL nor any associated literature or publications and Russell makes no representation or warranty, express or implied, as to their accuracy, or completeness, or otherwise.

Russell reserves the right, at any time and without notice, to alter, amend, terminate or in any way change the Russell Indexes. Russell has no obligation to take the needs of any particular fund or its participants or any other product or person into consideration in determining, composing or calculating any of the Russell Indexes.

Russell’s publication of the Russell Indexes in no way suggests or implies an opinion by Russell as to the attractiveness or appropriateness of investment in any or all securities upon which the Russell Indexes are based.

Russell makes no representation, warranty or guarantees as to the accuracy, completeness, reliability or otherwise of the Russell indexes. Russell makes no representation, warranty or guarantee regarding the use, or the results of use, of the Russell indexes or any data included therein, or any security (or combination thereof) comprising the Russell indexes. Russell makes no other express or implied warranty, and expressly disclaims any warranty, of any kind, including without limitation, any warranty of merchantability or fitness for a particular purpose with respect to the Russell index(es) or any data or any security (or combination thereof) including therein.

4 Indexed account credits are calculated at the end of each one-year segment for each indexed account. The growth rate is calculated based on the value of the index at the end of the segment compared to the value of the index at the beginning of the segment. The growth rate is then multiplied by a participation rate and capped at the cap rate declared by the company, and cannot be less than the minimum guaranteed rate of 0%.

5 Policy loans and withdrawals will reduce cash surrender value and death benefit. Policy loans are subject to interest charges. If your policy is a modified endowment contract, loans and withdrawals may be subject to taxes and penalties.

6 Distributions from a life insurance policy in the character of partial surrenders (withdrawals) up to basis or policy loans will generally be income tax free, provided the policy does not violate Modified Endowment Contract (MEC) guidelines and the policy is not terminated during the lifetime of the insured. MEC guidelines are rules in the Internal Revenue Code which specify maximum premiums that can be paid without triggering adverse tax consequences for withdrawals. A policy termination during the life of the insured can cause the owner a single taxable event for any gains in the policy that were borrowed or withdrawn on or before the termination date.

7 For informational purposes only. In general, partial withdrawals from a permanent life insurance policy in excess of the policy’s basis are taxable, and limited circumstances exist where death proceeds will be taxable. Neither Farmers New World Life Insurance Company, its employees nor its Agents provide legal or tax advice. Always consult your own attorney, accountant or tax adviser as to the legal, financial or tax consequences and advice on any particular transaction.

8 This policy may lapse if premiums are not paid or if premiums are not sufficient to continue coverage.

9 ICC15-CRN or applicable state variation.

This Accelerated Death Benefit Rider for Chronic Illness is intended for favorable tax treatment under Section 101(g) of the Internal Revenue Code (26 U.S.C. Sec. 101(g)). Nevertheless, receiving accelerated death benefits from a life insurance policy may have tax consequences for you as the IRS has per diem limits. If you receive payment of accelerated benefits under this rider, you may lose your right to receive certain public funds, such as Medicare, Medicaid, Social Security, Supplemental Security Income (SSI) and possibly others.

We cannot give you advice about the above information. You may wish to obtain advice from a qualified tax professional or an attorney before adding this rider to your policy and before receiving accelerated death benefits under this rider.

If the insured is diagnosed with a permanent chronic illness a portion of the death benefit may be paid before the death of the insured. This rider is an indemnity rider, and there are no restrictions on the use of this payment. The Accelerated Death Benefit Payment will be an actuarially discounted present value of the Elected Benefit Amount reduced by the actuarial present value of future Maximum Cost of Insurance charges and an administrative fee. The Elected Benefit Amount is subject to minimum and maximum amounts; see the Policy Contract for more details.

Long-term care insurance policies typically reimburse policyholders for services to assist them with activities of daily living such as bathing, dressing, or eating. Comparatively, accelerated death benefits are typically a single lump-sum advance (certain states allow periodic installments) on future life insurance benefits paid in the case of chronic or terminal illness.

This is a life insurance benefit that also gives you the option to accelerate some or all of the death benefit in the event that you meet the criteria for a qualifying event described in the Accelerated Death Benefit Rider for Chronic Illness. This rider does not provide long-term care insurance subject to California long-term care insurance law. This rider is not a California Partnership for Long-Term Care program policy. This rider is not a Medicare supplement (policy or certificate).

10 Policy form ICC15-ABR-TI or applicable state variation

11 A Multiple Policy Customer Rate Class may be available for customers with a new or existing Farmers policy.

Your Farmers agent may only sell policies in states in which he or she is licensed.

Farmers New World Life Insurance Company is not licensed to sell life insurance, accident and health insurance, or annuities in the state of New York.

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