Farmers Life has launched Index Universal Life insurance product that gives savvy consumers another option for permanent life insurance protection and potential for cash value growth.

The Farmers Index Universal Life policy integrates the protection of permanent life insurance with a flexible premium and the opportunity for market-linked, generally income tax-deferred growth of the policy’s cash value.

Apart from offering two fixed interest accounts, the Farmers Index Universal Life provides a range of two indexed accounts, namely the S&P 500 and/or the Russell 2000.

These options allows insureds to take advantage of potential market gains as the policy’s cash value can be tied to the performance of an underlying index up to a cap.

As per their individual needs, preferences and risk tolerance, policyholders can allocate the cash value portion of their premium across these accounts.

In order to eradicate the risk of loss of their accumulated cash value due to market decline, the policy gives the protection of a guaranteed minimum 0% floor, according to the insurer.

Alternatively, two fixed interest accounts, the Short Term Holding Account and the Long Term Fixed Account, have a guaranteed minimum annual interest rate of 0.1% and 1%, respectively.

Farmers Life distribution head John Henle said: "We wanted to give customers another option to help protect their assets, should they have a serious illness, by giving them the flexibility to access a portion of their cash value.

"This new chronic illness benefit recognizes the concerns of an ever-aging population, providing a way to help them pay for expenses."

Furthermore, the plan unites a life-long death benefit with a flexible premium structure and generally income tax-deferred accumulation of cash value within the policy, to help cover future insurance costs and help the customer maintain life insurance protection.