What is index universal life insurance?

Index universal life insurance can help protect a family's standard of living or help fund a child's education in the event of the death of the insured. The policy also offers options to change death benefit amounts or adjust premium payments within certain limitations.

Multi-purpose protection

Frequently asked questions

How can the policy accumulate cash value?

The FFIUL gives customers the opportunity to grow policy value through excess index interest (earnings above the guaranteed minimum rate) that may be credited to the policy based partly on changes in these major stock indexes: S&P 500® Index, EURO STOXX 50® INDEX, and the Hang Seng Index.3 It is important to understand the different account options to see whether this policy is a good fit.

What’s a “guaranteed floor"?

Index changes can be positive or negative. However, with the FFIUL, customers have the security of knowing they will never be credited less than the guaranteed minimum interest rate, or "floor." The floor can protect cash values and helps ensure that segments with positive value will be credited with interest.

Are there tax advantages associated with the FFIUL?

Federal income tax-free death benefit

Many people don’t realize there can be tax consequences when it comes to inheriting certain assets. Thankfully, FFIUL provides a federal income tax-free death benefit to help protect families.

Tax-deferred earnings

Any cash value in the policy accumulates interest on a tax-deferred basis. That means greater policy value accumulation potential for customers.

Tax-free transfers

Transfers among accounts inside a policy are on a tax-free basis. Tax-free transfers help protect earnings from the effects of current taxes.

Tax-free withdrawals and loans

Customers enjoy easy access to their policy value. When the policy value is sufficient, they may request withdrawals or loans to use for any purpose they wish.

Keep in mind that the tax advantages only apply as long as the policy remains in force. Allowing the policy to lapse could result in adverse tax consequences.

What’s a “No-Lapse Guarantee"?4

Payment of the minimum monthly no-lapse premium ensures that the policy will remain in force during the no-lapse guarantee period. However, by paying only the minimum monthly premium, customers may be forgoing the opportunity to build up additional policy value.

Please note, after the no-lapse period or if the cumulative minimum monthly no-lapse premium requirements are not met, then fluctuations in interest rates and/or policy charges may require the payment of additional premiums to keep the policy in force. Guarantees are based on the claims-paying ability of the company.


The EURO STOXX 50® (Index Trademark) is the intellectual property (including registered trademarks) of STOXX Limited, Zurich, Switzerland (“STOXX”), Deutsche Börse Group or their licensors, which is used under license. This fixed indexed life product (“Licensed Product”) is neither sponsored nor promoted, distributed, or in any other manner supported by STOXX, Deutsche Börse Group, or their licensors, research partners, or data providers, and STOXX, Deutsche Börse Group and their licensors, research partners, or data providers do not give any warranty, and exclude any liability (whether in negligence or otherwise) with respect thereto generally or specifically in relation to any errors, omissions, or interruptions in the EURO STOXX 50® or its data.

Please read the full disclaimer in the Transamerica Financial Foundation IUL policy regarding the Hang Seng Index in relation to the policy.