San Jose, California
1.8K views 6 comments
Not resolved

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.

Review about: Ffiul From Transamerica.

I didn't like: Harmful products, Deceptive sales practices.

Review #912936 is a subjective opinion of a user.

Interest Rate
Discounts and Special Offers
Additional Fees
Advertised vs Delivered
Price Affordability
Billing Practices
Customer service
Product or Service Quality
Value for money
Reason of Review / Monetary Loss Ripoff products / Not specified
Preferred solution Not specified

Had an Experience with World Financial Group?

Submit review

Comments is temporarily operating in read-only mode and users cannot make any changes to the information, publish comments or reviews. Please come back in a couple of minutes.
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 :-)

You May Also Like

"Not trying to kill your dreams here. I’m trying to -save- you, your families, your friendships, and your money from this endless soul-sucking NIGHTMARE. I worked full-time for WFG in..." Read more
"In his “review” last week San Diego Anon oozes about “...a beautiful lifelong career…” It’s “beautiful” all right. IF you love to recruit everybody in sight and personally..." Read more
"Mr/Ms WFG No-name from Nowhere. Please spare us your big fat lie about "many big earners" at WFG. It's total bull cr*p and you know it. Here I give you..." Read more
"WFG agents trick and cheat you. Then they recruit you and teach you how to trick and cheat other people. Seriously guys. Thats how it goes there. Why do I..." Read more
"Originally wanting the veggie leather(online only), but not restocking so I ordered embossed leather as the only other tan slip on option. Extremely disappointed. One shoe noticeably shittier looking than..." Read more
"I filed a claim for my MacBook Pro a few weeks ago due to liquid damage. It was returned in worse condition with a crack screen, bent corners, and scratched..." Read more
"I waited a total of 194 mins for the call to be answered. I am having no help via email or facebook and needed to speak to someone on the..." Read more
"I ordered 2 pictures and when I received them, the frames were broken on both of them. The quality was not as nice as it looks on their website. I..." Read more