World Financial Group - Why the FFIUL--WFG’s Flagship Policy--is a *Disaster*

35 of 261 World Financial Group reviews

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.

This review is a subjective opinion of a user.
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Concerns about Transamerica FFIUL
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35 of 261 World Financial Group reviews
NON-Captive Broker

1 day ago #1290533

What is indexed universal life insurance?
IUL is also known as equity indexed universal life (EIUL)
IUL is a type of permanent life insurance policy (i.e. not term insurance) that provides both a death benefit to named beneficiaries and living benefits to the policy owner in the form of policy (or cash) values
What is unique to IUL is the growth of the policy values is linked to the positive performance of one or more securities or market indexes, like the S&P 500 Index, while NOT exposing the policy values to the downside risks of the markets
Whereas variable universal life (VUL), which also has policy values linked to securities, has both unlimited downside and upside exposure to the linked markets, IUL provides downside protection from market risks (in the form of a guaranteed minimum annual return) in exchange for a capped upside of any positive annual market returns
IUL policies combine the long-term growth potential of equity or other markets with the security of a traditional life insurance contract Many people who “drink Wall Street Kool-Aid” are surprised that life-insurance-company-based products are a significant part of the net worth of some of the savviest and wealthiest institutions and individuals in the world: According to a New York Times (Charles Duhigg) article published in 2006, “Hedge funds, financial institutions like Credit Suisse and Deutsche Bank, and investors like Warren E. Buffett are spending billions to buy life insurance
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4 4 Reply

1 day ago #1290611

All this and you can't contradict anything about the complaint...haha!! Holy crzp batman if you care about your family and friends you wouldn't even dare to defend the FFIUL disaster! Now go...go...go my sheap to replenish your brainwashing to make sure reality doesn't creap in!

3 4 Reply

Feb 12 #1285772 Concord, California, United States

"Non Captive Broker" thank you very much for your lengthy post on the Indexed Universal Life (IUL) policy. Alas, all retail IUL policies I've reviewed to date, each is an awful deal for *every person* who expects to live a reasonably long life. Their fatal flaws are due to one simple fact common to all IULs: the policy's Cost of Insurance (COI) charges skyrocket in the insured's later life, which virtually guarantees to force the insured out of his policy. This causes, in his retirement years, the insured and his family to LOSE EVERYTHING, his death benefit and $100,000s, perhaps even a million or more, that he faithfully poured in to it over his life.
Among the retail IULs I've seen, Transamerica's FFIUL--WFG's flagship product--is especially bad. WFG/Transamerica structured it with some of the highest fees and charges, the lowest death benefits, and the lowest protections against skyrocketing late-life insurance charges, of any IUL I've seen. The FFIUL is so poorly structured, it virtually guarantees you will lose this policy unless you die relatively young, under 65 or 70 years of age.
Next "Non Captive Broker" you make numerous claims which I address here. In all cases, I corrected them for the record.
Many years ago, insurance carriers stopped calling the EIULs. They dropped the "equity" name out of the IUL for legal reasons. Despite its name, the IUL doesn't have to follow an equity index or any other kind of index. Indeed, Transamerica's FFIUL makes the
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6 12 Reply

Feb 09 #1284323

Hey "Non-Captive Broker," what's "inaccurate" about this review? Its math comes right out of the COI chart attached to that review. All there for everyone to see.
Please kindly explain HOW and WHY this review is "inaccurate." Explain it HERE for the benefit of all of us readers. Please give us the details including all the FACTS and NUMBERS to show us how YOU understand the product, OK? And please take your salespitch and shove it you-know-where. This is a complaints board. This is NOT a place for WFG rep-licants to flog lousy policies to unsuspecting victims. Thanks.

6 0 Reply
Non-Captive Broker

Feb 09 #1283877 El Monte, California, United States

This is inaccurate. I suggest you ask your agent for the cost and ledgers of your policy. Every policy is built differently. If you have a policy or looking to get a policy contact a reputable agent that understands this product. If you have any questions you can email me
Note* Ill replace your Primerica Term for half the price.

2 6 Reply

Feb 09 #1283898 Berkeley, California, United States

Hey insurance salestron, what's "inaccurate" about this review? Its math comes right out of the COI chart attached to that review. All there for everyone to see.
Please kindly explain HOW and WHY this review is "inaccurate." Explain it HERE for the benefit of all of us readers. Please show us how YOU understand the product, OK? And please take your salespitch somewhere else. This is a complaints board. Not a place for WFG rep-licants to flog lousy policies to unsuspecting victims. Thanks.

4 1 Reply
the joker

Feb 09 #1284214 Tracy, California, United States

Sooo you at not just a broker but an insurance company because nobody can arbitrarily charge x amount for mr x and another for mr y if they are of the same age,sex,health background..ect...Nothing like being on a pissed consumer site trying to sell insurance..haha..Your business in booming I see!

6 1 Reply

Feb 09 #1284327

Hey "Joker" hope you're doing well. I'll be posting for you soon over at Finance Guy under your usual nom de guerre, to update you what's going on here. Please be on the lookout. Thanks, take care.

1 0 Reply

Feb 10 #1284671

For the 6th time I will buy a FFIUL if and only if an WFG agent like yourself PROMISES with a contract that my policy price will not skyrocket in my 70's or 80's and you will pay the difference if it does? Haven't had 1 agent from the bucket of 250,000 or more working for WFG at the moment contact me?? Why? Easy..the math and the facts don't add up and nobody can predict what the market will do especially when WFG uses 8% as a base of return and the client doesn't even have a choice of where or how WFG invests the money the client is paying monthly?! But mr Non-Captive Broker reading between the lines you are actually telling us you will undercut another agents policy with yours at 50% off but at what value...I'll do you one better i'll sell you a nice FFIUL and give you absolutely no guarantee of what you will get and what you will need to pay later in life...but because i'm generous i'll guarantee you 0.75% a year and after I add my fees this equals 0%...thanks by the way with your money i'll use it to save 2.5% on my mortgage rate! Interested?!
Think about this a minute...What incentive does WFG have to maximize a clients rate of return on their money on a FFIUL when WFG controls what stocks they will buy gambling other peoples money and even BETTER if they just make 3-4% rate of return the clients ends up loosing the policy value because they can't afford 15-20k on a fixed income at age 80??? Care to answer that for me?? It's astounding how this should be a red flag
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4 1 Reply

Jan 29 #1278304 Berkeley, California, United States

Hi Will. Thanks for taking the time to write and spell out your views. Alas I still see the FFIUL as a massive rip-off. The FFIUL is a truly terrible deal for *everyone* except folks who die young. I explain why here, and also address your eight points further down this comment.
Let's first go to your main point: index account crediting. You're right to say at the end of your Point 1: I didn't discuss crediting. I didn't need to. It doesn't change the simple fact you face huge explosive COI charges if you live a reasonably long life. The FFIUL penalizes you for living a long live. The example I gave in the review, when you age through 85, you'll end up paying over $100k more than the Death Benefit your heirs receive, in this case over $600k for a $500k policy! How in heavens can that make any sense for anyone? Why would you pay into a product for decades only to end up paying *more* into it than it's worth in the end? You want to GROW your money over time, not lose it! You're vastly better off to buy Term Life and invest your savings in a ultra-low-load S&P 500 ETF tucked away in a Roth IRA.
At this point, most folks knew enough to stop reading right here. They see this exploding COI fatal flaw in the FFIUL. They see that this FFIUL fatal flaw, by itself, is a deal-breaker. 'Nuff said.
But for you Will let's talk about index account crediting. First, the point you make, "average" vs actual." return. Turns out, your "actual" return is even *lower.* The "actual"
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7 2 Reply

Feb 10 #1284686

HAHA!! You had too many FACTS in your reply and thus 2 WFG agents left you a negative revue...Love it!! Thanks again to take the time to destroy WFG agents points 1 by 1 leaving nothing but a vague smell of burnt rubber as they run away!!..

3 1 Reply

Jan 27 #1277291 Richardson, Texas, United States

Points agreed - All life insurance has COI.
- Most agents follow leadership blindly rather than taking time to understand the products they are selling. Doesnt mean this applies to all.
WITH THAT SAID, it doesn't mean the FFIUL or IUL is a bad product doing terrible things to people.
1.) Your COI is MAXIMUM charge (worse case scenario). Also we don't know what the rating of the client was. Yet, lets go ahead and assume this is a standard tobacco smoker and max rates are utilized in all years the policy is to remain in force and assume the client lives to 100. Worse case. Even with the excessively high COI, it wouldn't matter. The flaw in the logic is the crediting method isn't explained/understood.
2.) Crediting is compounded monthly. There are 1 yr, 2yr, and 5yr buckets respectively. Lets say you assign 100% to the 1 yr allocation for simplicity sake. This means in the first 12 months the client would experience no credit to their account. However on month 13 they would measure back exactly 12 months and whatever the change in the tracked index they credit (up to a cap). The very next month they do the exact same thing. measure back 12 months except this time it is on the balance plus premium. This means cash value compounds with the elimination of downturns. Credits do not occur only 1x yr.
3.) average return vs actual return are two very different things. A qualified plan (such as an IRA, 401k, etc) is susceptible to market losses. You cant compare an
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3 7 Reply

Jan 01 #1264047 San Jose, California, United States

Hello to Anonymous who posted message #1263979 below.
You can read the chart if you click once on the image to blow it up.
About what you claim on the facts and objective statements, what facts will you include here? And what do you feel is not objective and what will you add to make it objective in your opinion?
Thank you to explain and clarify your claims to us.

8 1 Reply

Jan 01 #1263979

The writer is misleading and did not disclose all facts needed to make objective statements. The illustration is all blurry and cannot be read.

3 7 Reply

Jan 01 #1264063

Wow mr anon from anon..this is an WFG you have a 1995 desktop computer with half the pixels burned out because the illustration is very clear if you bother to click on the nice big + sign to expand the picture but that's too complicated for you because you don't disclose anything to your client..just like your post very muddy!! We'll just add another wfg agents empty post on the pile of manure we already have!

8 0 Reply

Jan 01 #1264077 Berkeley, California, United States

Hahhh! Happy New Year John! Yes, the WFGers are off to a lame start. Pretending a chart's blurry and making vague baseless criticisms. And of course not backing them up with even a shred of evidence.
It's now 2017. And still we expect no less--and no more--from these rep-licants spouting feeble excuses.

8 0 Reply

Jan 02 #1264217

Hi William3,Happy New Year to you and your baffles the mind how they throw anything and think it will stick...we're not all gullible like the robo-unicorn at the rah rah meetings now.Critical thinking and proof does have a purpose in life,especially in things like math where you can actually calculate the outcome in x number of years....but with WFG agents that come here post a 2 line answer that is empty of any proof but hey I make 1 million a month which the way I see it would be even higher than the top of the ring earners that even WFG posts as great numbers?! When you need to lie and deflect answering basic questions to me shows that they are brainwashed and unethical in what they are doing to the clients they oh so love.
Next rah rah meeting should be on planet Mars and they would still come here and tell us 30k people were packed in that nice crater and they all have a nice suntan even thow it was minus 195 degrees they were all toasty and warm with half of them in bathing suits with all the love ...haha!! And sadly as I write this some would try to make you believe it happened...They don't come up with those fancy words like BELEIVE OR MOMENTUM for's all a show for the minions!!

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Dec 02, 2016 #1248813 San Jose, California, United States

California Anonymous, thanks for your comments. Most of all, thanks you don't deny that Transamerica's FFIUL charges ruinous sky-high late-life Cost of Insurance (COI) charges. COI charges that greatly help make this WFG flagship product a truly terrible deal for ANY customer. All people should *avoid Transamerica's FFIUL like the plague.*
Anonymous, please allow me to correct your mistakes and to clarify misleading statements. You say: " is required by law that an insurance company charges the cost of insurance for it to have special tax treatments, according to IRS tax code 7702..." This is incorrect. First, there's no such thing as "IRS tax code." What you refer to is 26 U.S. Code §7702 which defines what is a life insurance contract. Second, you won't find anywhere in §7702 a requirement that says the insurance company must charge the cost of insurance "...for it to have special tax treatments..." Indeed, §7702 mainly stresses that the calcs for Guideline Single Premium must use *reasonable* COI charges (aka Mortality charges)--e.g. here in §7702 (c) (3) (B) (ii):
" not exceed the mortality charges specified in the prevailing commissioners’ standard tables (as defined in section 807(d)(5)) as of the time the contract is issued..."
Anonymous, you can read all of this for yourself here:
www dot law dot cornell dot du/uscode/text/26/7702
Anonymous, you mention the California Department of Insurance (CDI). I speak with the lovely folks at CDI
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