Farmers Index Universal Life Insurance

Get the best of both worlds – the lifelong coverage¹ you may need and the opportunity for lower-risk cash value growth you want.

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Balance Your Needs with Farmers Index Universal Life® Insurance

Interested in permanent life insurance to help support your family’s financial future? Looking for a policy which may accumulate cash value you can use for future needs? Farmers Index Universal Life** from Farmers New World Life Insurance Company can help balance both.

Not only does it provide universal life insurance coverage, but the policy’s index-linked accounts provide more potential for cash value growth than traditional universal life insurance, with less risk than variable universal life insurance.

What is Farmers Index Universal Life?

Lifelong insurance

Like other universal life insurance policies, Farmers Index Universal Life is lifelong insurance protection for you, which helps ensure your family’s financial future if the unexpected happens. As long as all premiums are paid to keep the policy in force, you will be covered.

Cash value accumulation

Universal life insurance products may accumulate cash value over time. This value can help you with your family's financial needs, and you may even access the cash value while the policy is in force2 to help with expenses now.


Farmers lets you decide how your premium payments are allocated, to help you achieve your financial goals. Any remaining contract value after charges can be linked to index growth, and Farmers Index Universal Life Insurance offers a choice of indexed accounts to help grow your cash value.

The policy offers a choice of two indexed accounts or two fixed interest accounts with a guaranteed minimum rate of return. The index-linked accounts tie the policy’s contract value to the annual performance of two underlying indexes – the S&P 500®3 or the Russell 2000.®4

Risk protection

The Farmers Index Universal Life index-linked feature provides more potential for cash value growth while providing a "floor" which can protect you from losses in years when the indexes perform poorly.

What cash accumulation opportunities are there?

Based on your needs and financial objectives, the Farmers Index Universal Life policy lets you choose from a variety of accounts (one or both indexed accounts, or two fixed interested accounts) to allocate your value (premium after charges).

You get the freedom and flexibility to allocate value among one or both options to suit your risk tolerance and preferences:

  • S&P 500® Index - An American stock market index that reflects the market performance of 500 large-cap companies.
  • Russell 2000® Index - The most widely quoted measure of the performance of small-cap stocks traded in the U.S.

Understanding Farmers Index Universal Life options

The indexed accounts pay an annual or monthly credit5 based on the performance of the underlying index, subject to a cap and a participation rate. The policy allows your cash value to grow in years that an index experiences gains, but unlike direct investment in the stock market, the Farmers Index Universal Life policy provides a 0% "floor" that can protect you from market-related losses in years when the indexes perform poorly.

The two fixed interest accounts have a guaranteed minimum annual interest rate. The Long Term Fixed Account has a minimum interest rate of 1% while the Short Term Holding Account has a minimum interest rate of 0.1% and allows for the convenient transfer of funds to other accounts.

Index Universal Life
The growth potential for the products shown is based on assumptions and market fluctuations that are subject to change and are for demonstration purposes only. Actual results may be more or less favorable.

Is Farmers Index Universal Life for me?

If you are in the market for a permanent life policy that offers low-risk financial growth, then Farmers Index Universal Life might be the policy you want.

Also, ask yourself if the following features are important to you:

  • Generally tax-free6 life insurance protection
    Life insurance can help replace the income your family needs. The death benefit is generally income tax-free and can be an important advantage for your beneficiaries.
  • Access to cash value
    The policy’s cash value benefits from competitive cash accumulation and can help build the foundation of your personal and family financial plans, such as supplementing your retirement income or funding a child’s education.
  • Flexibility when you need it
    Adjust the policy as your needs change with flexible premium7 amounts and timing, flexible death benefit options, and the ability to increase or decrease the face amount within policy limits after the first policy year. Some policy changes may require evidence of insurability. Premium payments are not subject to retirement plan contribution limits, so you may be able to continue to take advantage of tax-deferred growth even if you’ve maximized your retirement plan savings limit. However, the IRS also sets a maximum amount of premium that can be paid into the policy to be considered "life insurance" for favorable tax treatment. A variety of riders and benefits8 are available to customize the policy to fit your unique financial situation.
  • Help securing your business
    Business owners can use Farmers Index Universal Life for executive benefits and business succession planning, such as helping to fund buy-sell agreements.

Make the smart choice

We understand your need for permanent life insurance coverage, and your desire for potential cash value growth. The Farmers Index Universal Life policy can help you plan for your loved ones’ financial future today – even if you should pass away.

Talk to a Farmers agent today about your life insurance needs, to find the product that works best for you and your family.

You may even be able to save on your life insurance policy if you have other Farmers policies.9 Ask your agent for more information.

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

See footnotes 2, 3, 4, 5, 6, 7, 8, 9 in disclosures. View disclosures.


FL-31                    09/15