For producer use only. Not for distribution to the public.
A Commitment to Guarantees
TransACE® 2012
[Presenter name goes here][Title]
For producer use only. Not for distribution to the public.
The Consumer
LIMRA: Consumer Sentiment Tracking. October 2011 Update
Unfavorable Opinion of the Economy
84% Somewhat unfavorable or very unfavorable
Consumers are Not Taking Action
63% Took no action during the last 12 months
For producer use only. Not for distribution to the public.
• How do we get them to act in this uncertain environment?
• What are consumers looking for in the products that they buy?
The Consumer
For producer use only. Not for distribution to the public.
Guarantees Flexibility Control
Key Consumer Drivers
Solutions that offer:
For producer use only. Not for distribution to the public.
Life Insurance is a Solution
• Provides certainty in an uncertain world
• Secures the financial future of loved ones
• Protects families and legacies
Addressing Consumer Drivers
For producer use only. Not for distribution to the public.
• Lifetime guarantees
• Flexible exit strategy
• Competitive premiums
TransACE® Universal Life
The all-new TransACE®:
Guarantees, more flexibility and control at lower, competitive premiums.
For producer use only. Not for distribution to the public.
TransACE® Universal Life Quick Facts
• Age-Nearest-Birthday Pricing
• Accelerated Death Benefit (ADB)
• Accident Indemnity Rider (AI)
• Children’s Insurance Rider (CIR)• Guaranteed Insurability Rider (GIR)
• Issue Ages • 16 – 89 • 16 – 80 with ROP (other than Select NS class)• 16 – 69 for Select Nonsmokers
• Minimum Face Amounts• $25,000 • $100,000 minimum for Select Nonsmoker class
• 7 Underwriting Classes• 2 Death Benefit Options
• Option 1 = Level • Option 3 = Return of Premium (ROP)
• Available Riders
For producer use only. Not for distribution to the public.
TransACE® Sweet Spots
$1M face amount
$250K face amount
Risk Class Male Female
Preferred Nonsmoker Ages 45-65 Ages 45-65
Standard Nonsmoker Ages 35-80 Ages 35-80
Preferred Smoker Ages 35, 55-60, 70-80 Ages 35-65
Risk Class Male Female
Preferred Nonsmoker Ages 45-65 Ages 45-65
Standard Nonsmoker Ages 35-65 Ages 45-70
Preferred Smoker Ages 35, 55-60 Ages 45-60
For producer use only. Not for distribution to the public.
• Lifetime guarantees
• Flexibility to also illustrate guarantees to any age (80, 90, 100, 105)
• No-lapse death benefit
• Assured Coverage Endorsement (ACE)
• Client’s policy will not lapse even if the cash value of the policy falls to zero*
Lifetime Guarantees
*Subject to the terms of the endorsement.
For producer use only. Not for distribution to the public.
• Surrender Penalty Deferral Endorsement (SPDE)*
• Income Protection Option (IPO)
*Premium requirements must be met.
Options That Provide Flexibility
For producer use only. Not for distribution to the public.
Guaranteed Monthly Income StreamOptional
Initial Lump Sum
Optional Final
Lump Sum
Income Protection Option (IPO)
• Available at no additional cost• May include multiple beneficiaries• Can be modified prior to the death of the insured
$10,000 min. 5 – 25 years / $100 min. $10,000 min.
For producer use only. Not for distribution to the public.
• Surrender Penalty Deferral Endorsement (SPDE)*
*Premium requirements must be met.
Options That Provide Flexibility
• MultiFlex Surrender Endorsement (MSE)
• Income Protection Option (IPO)
For producer use only. Not for distribution to the public.
• Enhanced Surrender Value: Up to 100% of gross premiums
• Exit Strategy: Three surrender value enhancement options
• No additional cost to the client
MultiFlex Surrender Endorsement (MSE)
Flexibility that puts clients in Control
Built-in Options to Adapt to Clients’ Changing Needs
For producer use only. Not for distribution to the public.
MultiFlex Surrender Endorsement (MSE)
*Less any refunds, partial surrenders, and any outstanding policy loans.**Less any outstanding loans, and any partial surrenders that did not reduce the face amount.
Guidelines
15th policy anniversary (60 day period
following)
20th policy anniversary(60 day period
following)
25th policy anniversary or at
anytime afterwards
100% of gross premiums* OR 33% of lowest face amount**
The policy owner would receive the lesser of:
For producer use only. Not for distribution to the public.
MultiFlex Surrender Endorsement (MSE)
Kathy, age 50Preferred Nonsmoker
$1M TransACE® level annual premium
Level Annual Premiums: Illustrate to age 100 to qualify for the endorsement
ACE guarantee to age 95
ACE guarantee to age 100
ACE guarantee to age 105
ACE guarantee to lifetime
MSE No Yes Yes Yes
Premiums $6,763 $7,375 $7,490 $7,621
For producer use only. Not for distribution to the public.
Estate Planning Concerns
Kathy, age 50
• Children and grandchild’s future
• Retirement needs
• Flexibility to make changes
MultiFlex Surrender Endorsement (MSE): Estate Planning Example
Solution
Kathy purchases a $1 million TransACE policy with the MultiFlex Surrender Endorsement and pays a level annual premium of $7,375
Female, Age 50, Preferred Non-smoker, $1M policy, guaranteed coverage to age 100.
For producer use only. Not for distribution to the public.
MultiFlex Surrender Endorsement (MSE)
Kathy’s Options
Premiums Paid: $184,375
Enhanced Surrender Value: $184,375
Premiums Paid: $147,500
Enhanced Surrender Value: $147,500
Premiums Paid: $110,625
Enhanced Surrender Value: $110,625
Female, Age 50, Preferred Non-smoker, $1M policy, guaranteed coverage to age 100.
15th policy anniversary
20th policy anniversary
25th policy anniversary
• Surrenders her policy and uses the funds to pay for her grandson’s college education
• Surrenders her policy and uses the proceeds for her retirement needs
• Surrenders her policy and uses the funds to pay for medical expenses
For producer use only. Not for distribution to the public.
TransWare® Illustration
For producer use only. Not for distribution to the public.
Business Planning Concerns
ABC Company
• Protection for key employee and minority owner, Alex, 42
• Flexibility to buy out Alex
• Business liquidity needs
• Flexibility to address long-term business needs
MultiFlex Surrender Endorsement (MSE): Business Planning Example
Male, Age 42, Preferred Non-smoker, $2M policy, guaranteed coverage to age 100.
Solution
ABC Company purchases an individual $2 million TransACE policy with the MultiFlex Surrender Endorsement and pays a level annual premium of $12,747
For producer use only. Not for distribution to the public.
MultiFlex Surrender Endorsement (MSE)
ABC Company’s Options
Male, Age 42, Preferred Non-smoker, $2M policy, guaranteed coverage to age 100.
Surrender Possibilities
Exit Strategy Options
Premiums Paid
Enhanced Surrender
Value
Buy-out Alex’s minority share of the company
Business liquidity
Long-term business needs
15th Policy Anniversary $191,205 $191,205
20th Policy Anniversary $254,940 $254,940
25th Policy Anniversary
$318,675 $318,675
For producer use only. Not for distribution to the public.
Short-Pay Funding
Paul, age 45
• Family needs
• Limited guarantee period
• Flexibility to make changes
MultiFlex Surrender Endorsement (MSE): Other Funding Pattern Example
Male, Age 45, Preferred Non-smoker, $500K policy, guaranteed coverage to age 90.
Solution
Paul purchases a $500K TransACE policy with the MultiFlex Surrender Endorsement. He chooses to guarantee his policy only to age 90 and pays an annual premium of $4,146 for 20 years.
For producer use only. Not for distribution to the public.
MultiFlex Surrender Endorsement (MSE)
Paul’s Options
Premiums Paid*: $82,920
Enhanced Surrender Value: $82,920
Premiums Paid*: $82,920
Enhanced Surrender Value: $82,920
Premiums Paid: $62,190
Enhanced Surrender Value: $62,190
Male, Age 45, Preferred Non-smoker, $500K policy, guaranteed coverage to age 90.
*Last premium made in year 20, resulting in identical values at the 20 th and 25th policy anniversary.
15th policy anniversary
20th policy anniversary
25th policy anniversary
• Surrenders his policy and uses funds for provide a nest-egg for his children
• Surrenders his policy and deposit funds into college savings for grandchildren
• Surrenders his policy and uses proceeds to supplement his retirement income
For producer use only. Not for distribution to the public.
Flexibility with Table Rated Clients
Premium with Table C Rating: $45,694Premium using 8-year Flat Extra*: $41,886
Premium Savings: $3,808
*TransACE: $1M Policy, Male, Age 68, NS Level Premium to age 111, Lifetime Death Benefit. 8-year flat extra amount of $19.59
Level Annual Premium for Lifetime No-Lapse Guarantee
Dustin, Age 68Underwriting Decision: Table C Rating $1M TransACE® 2012*
For producer use only. Not for distribution to the public.
8-Year Flat Extra with the MSE
Dustin, Age 68Underwriting Decision: Table C Rating $1M TransACE® 2012*
Year 15 Year 20 Year 25
Total Premium: Table C Rating
$685,410 $913,880 $1,142,350
Total Premium: 8-Year Flat Extra Option
$628,290 $837,720 $1,047,150
Total Premium Savings
$57,120 $76,160 $95,200
MSE
*TransACE: $1M Policy, Male, Age 68, NS Level Premium to age 111, Lifetime Death Benefit. 8-year flat extra amount of $19.59
For producer use only. Not for distribution to the public.
• Illustrate at no less than the level ACE to age 100 to qualify for the MSE
• Other funding patterns may qualify for the MSE for a limited time when guarantees are illustrated to less than age 100
• No limitations to age, face amount or risk class*
• Termination of endorsement is irrevocable
Endorsement Guidelines
*Must meet funding requirements
For producer use only. Not for distribution to the public.
• Flexibility to fully surrender the policy in applicable years for an enhanced surrender value or continue no-lapse guarantee coverage
• Up to 100% of premiums* or 33% of the lowest face amount**
• Built-in exit strategy for planning purposes or unexpected life changes
TransACE® MSE Advantages
*Less refunds, partial surrenders and any outstanding loans.**Less any outstanding loans and any partial surrender that did not reduce the face amount
For producer use only. Not for distribution to the public.
• More Competitive Premiums
• Lifetime Guarantees
• Flexibility with the new MultiFlex Surrender Endorsement (MSE)
• Three exit strategy options for clients to receive an enhanced surrender value
• No additional cost
TransACE®
For producer use only. Not for distribution to the public.
TransACE® is a non-participating flexible-premium universal life insurance policy issued by Transamerica Life Insurance Company, Cedar Rapids, IA 52499 (Policy Form #1-12611107 (CVAT), Group Certificate #2-72336107 (CVAT) for certificates issued under a group policy issued to the Rhode Island National Consumer Protection Trust). Policy form and number may vary, and this policy may not be available in all jurisdictions.
Transamerica Life Insurance Company (Transamerica) and its representatives do not give tax or legal advice. This material is provided for informational purposes only and should not be construed as tax or legal advice. Clients and other interested parties must be urged to consult with and rely solely upon their own independent advisors regarding their particular situation and the concepts presented here. Discussions of the various planning strategies and issues are based on our understanding of the applicable federal tax laws in effect at the time of presentation. However, tax laws are subject to interpretation and change, and there is no guarantee that the relevant tax authorities will accept Transamerica’s interpretations. Additionally, this material does not consider the impact of applicable state laws upon clients and prospects. Although care is taken in preparing this material and presenting it accurately, Transamerica disclaims any express or implied warranty as to the accuracy of any material contained herein and any liability with respect to it. This information is current as of April, 2012.
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