A Guide to Farmers Index Universal Life®

Life has its cycles — so do the economy and financial markets. While you can’t predict every twist and turn, you can prepare for them. Farmers Index Universal Life® (FIUL) helps you live in the moment with confidence while creating a financial foundation for your future.

What Makes Farmers Index Universal Life® Different?

FIUL provides flexible life insurance coverage that adapts to your needs today and tomorrow. With this policy, you get:

  • Generally income tax-free death benefit to protect loved ones.
  • Indexed growth opportunities linked to market performance, with downside protection.
  • Tax-deferred cash value growth and generally tax-advantaged access to cash value.²
  • Optional riders for added protection against unexpected events.
  • Choice of indexed accounts—including one with uncapped upside potential.

Unlike investing directly in the stock market, FIUL earns interest based on index performance, without exposing you to market losses.

Strategic Foresight for Life’s Uncertainties

FIUL can provide support for:

  • Covering day-to-day expenses and emergencies.
  • Contributing toward financial goals like college savings or mortgage payments.
  • Supplementing retirement income with tax-deferred cash value growth.

By choosing allocations tied to the S&P 500® or S&P MARC 5% ER indices, you can diversify and potentially enhance growth opportunities while balancing risk.

How Indexed Accounts Work

  1. Choose Your Indexed Account
    • S&P 500® Index: Tracks 500 leading U.S. companies.
    • S&P MARC 5% ER: Diversified across equities, commodities, and fixed income.
  2. Annual Point-to-Point Measurement
    Interest is credited based on index performance over a one-year period.
  3. Protection Through Floors and Caps
    • Floor: A guaranteed 0% minimum—no negative returns.
    • Cap or Bonus: Limits or enhances upside potential.
    • The S&P MARC 5% ER option is uncapped, offering potential for additional growth.
  4. Cash Value Accumulation
    Premiums help pay for insurance and fees, while the remaining funds grow tax-deferred. Over time, these funds can be used for big purchases, debt repayment, or even as a retirement supplement.

Flexible Options to Support Your Goals

As your policy builds cash value, you can:

  • Take loans or withdrawals³ to pay medical bills, college tuition, or caregiving expenses.
  • Use FIUL as a supplemental retirement income source.
  • Add riders such as:
    • Accelerated Benefit Rider for Terminal Illness
    • Accidental Death Benefit Rider
    • Chronic Illness Accelerated Death Benefit Rider
    • Children’s Term Insurance Rider
    • Charitable Giving Rider

Riders can offer additional coverage and flexibility tailored to your family’s needs.⁵

Why Choose Farmers®?

  • Proven history: Over 90 years of protecting families and businesses.
  • Award-winning service: Recognized for customer service and digital experience.
  • Nationwide support: More than 11,000 knowledgeable Farmers agents ready to help.
  • Breadth of coverage: From life insurance to home, auto, and business policies, Farmers serves over 10 million households.

Farmers New World Life Insurance Company holds an A (Excellent) rating from A.M. Best, reflecting its financial strength and claims-paying ability.

Plan for Tomorrow, Live Confidently Today

Farmers Index Universal Life® combines protection, growth potential, and flexibility so you can navigate life’s uncertainties while planning for your family’s financial future. Contact your local Farmers® agent to learn how FIUL can fit into your long-term strategy.