Annuity Presentation
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This document provides information about the Transamerica Secure Retirement Index Annuity, a fixed index annuity issued by Transamerica Life Insurance Company. The document is intended for agent use only and not for use with the public. It discusses features of the annuity such as index account options, surrender charge periods, living benefits, and other product details. The overall purpose is to educate agents on the Transamerica Secure Retirement Index Annuity so they can help clients plan for a more secure retirement.
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TRANSAMERICA SECURE
RETIREMENT INDEX ®
ANNUITY
Fixed index annuity issued by Transamerica Life Insurance Company, Cedar Rapids, Iowa.
Not available in New York or Montana.
For Agent Use Only. Not For Use With The Public
A FIXED INDEX ANNUITY IS NOT A SECURITY and fixed index annuity policies are not an investment in the stock market or in the
financial market indexes. Index account interest is based, in part, on index performance. Past performance of an index is not an
indication of future index performance. There is no guarantee that the index interest rate will be greater than zero percent. There is no
guarantee that the Company will declare an interest rate greater than the guaranteed minimum effective interest rate.](https://image.slidesharecdn.com/1214870619-tsriannuitypresentaionfinal1-190824154410/85/Annuity-Presentation-1-320.jpg)
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Annuity Presentation
- 1. [DATE] TRANSAMERICA SECURE RETIREMENT INDEX ® ANNUITY Fixed index annuity issued by Transamerica Life Insurance Company, Cedar Rapids, Iowa. Not available in New York or Montana. For Agent Use Only. Not For Use With The Public A FIXED INDEX ANNUITY IS NOT A SECURITY and fixed index annuity policies are not an investment in the stock market or in the financial market indexes. Index account interest is based, in part, on index performance. Past performance of an index is not an indication of future index performance. There is no guarantee that the index interest rate will be greater than zero percent. There is no guarantee that the Company will declare an interest rate greater than the guaranteed minimum effective interest rate.
- 2. 2 42% of consumers surveyed indicate saving enough money for a comfortable retirement is a concern. *2017 Insurance Barometer Study Ashley Durham, LL Global, Inc.® and Life Happens® For Agent Use Only. Not For Use With The Public.
- 3. 3 THE BARRIER TO A COMFORTABLE RETIREMENT For Agent Use Only. Not For Use With The Public. 87% with pensions in 1979 15% with pensions in 2017 Department of Labor, EB BL 12/03/2017 Employee Benefits in Industry: A Pilot Survey, 1979 and Bureau of Labor and Statistics, NCS: Employee Benefits in the U.S., March 2017
- 4. 4 GAIN NEEDED TO RECOVER FROM A MARKET LOSS For Agent Use Only. Not For Use With The Public.
- 5. THE FIRST STEP TO A SECURE RETIREMENT For Agent Use Only. Not For Use With The Public.
- 6. 6 • Affordability – low minimum premium of $10,000 • Opportunity for interest earnings – two index account options, plus a fixed account option, with any earnings growing on a tax-deferred basis • Protection – against market downturns, with the safety provided by the guarantee that the interest credited will never be less than zero • Income – a guaranteed lifetime withdrawal benefit option provides secure income for life for an additional fee TRANSAMERICA SECURE RETIREMENT INDEX ANNUITY OFFERS All contract guarantees are based on the claims-paying ability of Transamerica Life Insurance Company, Cedar Rapids, Iowa. For Agent Use Only. Not For Use With The Public.
- 7. 7 • Issue ages: 0 – 80* • Premiums are allowed in the first policy year only • Minimum premiums: • Initial: $10,000 • Subsequent: $1,000 • Maximum premium: $1,000,000 without prior company approval • Premiums are credited and contracts issued on the 1st, 8th, 15th, or 22nd of each month • An annual service charge may be deducted from the policy value PRODUCT FEATURES INCLUDE * Issue age for 5- year surrender charge period is 0-85 For Agent Use Only. Not For Use With The Public.
- 8. KEY CLIENT CHOICES For Agent Use Only. Not For Use With The Public.
- 9. 9 ACCOUNT OPTIONS Account Options Crediting Period Index Method Fixed 1-year N/A S&P 500® Index American stock mark et index 1-year Point to Point MSCI EAFE Index measures the equity market perf ormance of developed mark ets outside of the U.S. & Canada 1-year Point to Point For Agent Use Only. Not For Use With The Public.
- 10. 10 SURRENDER CHARGE PERIOD Years Since Premium Payment Date 0-1 1-2 2-3 3-4 4-5 5-6 6-7 7-8 8-9 9-10 10+ 10-year 9% 9% 8% 7% 6% 5% 4% 3% 2% 1% 0% 8-year 8% 8% 7% 6% 5% 4% 3% 2% 0% 0% 0% 5-year 7% 7% 6% 5% 4% 0% 0% 0% 0% 0% 0% For Agent Use Only. Not For Use With The Public.
- 11. 11 PREMIUM ENHANCEMENT Surrender Charge Elected Premium Enhancement A s o f 6 / 1 / 1 9 5-year 0.25% 8-year 0.25% 10-year 3.00% 2.50% in CT For Agent Use Only. Not For Use With The Public. Premium enhancement percentages may vary from premium to premium. The premium enhancement percentages are subject to change and will never be less than 0.25%. The premium enhancement percentages may vary in Connecticut. The premium enhancement is not intended to reimburse surrender charges on an annuity replacement.
- 12. 12 PREMIUM ENHANCEMENT RECAPTURE Policy Year 5-Year 8-Year 10-Year 0-1 100.0% 100.00% 100.00% 1-2 80.00% 87.50% 90.00% 2-3 60.00% 75.00% 80.00% 3-4 40.00% 62.50% 70.00% 4-5 20.00% 50.00% 60.00% 5-6 0.00% 37.50% 50.00% 6-7 0.00% 25.00% 40.00% 7-8 0.00% 12.50% 30.00% 8-9 0.00% 0.00% 20.00% 9-10 0.00% 0.00% 10.00% 10+ 0.00% 0.00% 0.00% A recapture of the premium enhancement will generally apply for a withdrawal amount in excess of the surrender charge-free amount. Premium enhancement recapture charges are not allowed in Connecticut. The premium enhancement is not intended to reimburse surrender charges on an annuity replacement. For Agent Use Only. Not For Use With The Public.
- 13. 13 CAP AND FLOORS EFFECTIVE JUNE 1, 2019 Index Option Surrender Charge Period Cap w hen Policy Value < $100,000 Cap w hen Policy Value ≥ $100,000 Minimum Crediting Rate S&P 500 Index 5-year 5.00% 5.50% 0.00% 8-year 5.25% 5.75% 0.00% 10-year 2.75% 3.25% 0.00% MSCI EAFE Index 5-year 5.00% 5.50% 0.00% 8-year 5.25% 5.75% 0.00% 10-year 2.75% 3.25% 0.00% Fixed Account Any Current Rate Declared by Company 2.00% Guaranteed 1.00% during surrender charge period; 0.25%af ter surrender charge period. Surrender charge period Minimum cap rate during surrender period Minimum cap rate during surrender period 5 year 2.00% 1.00% 8 year 3.00% 1.00% 10 year 1.00% 1.00% For Agent Use Only. Not For Use With The Public.
- 14. DOWNSIDE PROTECTION HOW IT WORKS For agent use only. Not for use with the public.
- 15. EASY FOR CLIENTS TO ACCESS THEIR MONEY SURRENDER-CHARGE FREE • Withdrawals of up to 10% of the gross premium each year • Nursing care or terminal condition waiver • Unemployment waiver • Optional Transamerica Income Plus® living benefit ACCESS TO MONEY For Agent Use Only. Not For Use With The Public. 15
- 16. 16 DOWNSIDE PROTECTION This hypothetical example is provided for illustrative purposes only and does not reflect any surrender charges or other expenses that may be assessed. It assumes no policy value was allocated to the Fixed Account, no additional premiums were added in the first contract year, and no withdrawals were taken. With purchase of living benefit, the policy values will be reduced by the cost of the living benefit. This may result in a loss of principal if the living benefit charge exceeds the interest credited. For Agent Use Only. Not For Use With The Public.
- 17. LIVING BENEFIT TRANSAMERICA INCOME PLUS For Agent Use Only. Not For Use With The Public.
- 18. 18 • Optional guaranteed lifetime withdrawal living benefit • Can be added at or after policy issue, provided it is still available for sale at that time • Must be age 50 or over to receive benefits under this living benefit • Available for an additional fee • Provides lifetime income without annuitization “drawback” • Single life and joint life options • Once withdrawals begin, they are guaranteed for life LIVING BENEFIT DETAILS For Agent Use Only. Not For Use With The Public.
- 19. 19 THE UNCERTAINTY OF RETIREMENT Age Annual Withdraw al Percentages (Single Life) 0-49 0.00% 50-54 3.40% 55-59 3.90% 60-64 4.40% 65-69 4.90% 70-74 5.40% 75-79 5.90% 80-84 6.40% 85+ 6.90% GUARANTEED ANNUAL WITHDRAWAL PERCENTAGES Receive guaranteed lifetime income based on the following withdrawal amount percentages 1 For joint life, rates are based on the attained age of the younger of the annuitant or the annuitant’s spouse. The withdrawal and growth percentages are also 0.50% lower than the single life rates listed above. Also available for joint life1 For Agent Use Only. Not For Use With The Public.
- 20. 20 Age Annual Grow th Rate Percentages (Single and Joint Life) 2 0-49 0.00% 50-54 10.00% 55-59 10.00% 60-64 10.00% 65-69 10.00% 70-74 10.00% 75-79 10.00% 80-84 10.00% 85+ 10.00% GUARANTEED ANNUAL GROWTH RATE PERCENTAGES Even in down markets, the withdrawal base may increase annually for up to 10 years1 1. Not applicable in benefit years when a withdrawal is taken during the first 10 benefit years. Growth isn’t applicable in rider years 11+, regardless of if withdrawals were taken or not. 2. For joint life, rates are based on the attained age of the younger of the annuitant or the annuitant’s spouse. THE UNCERTAINTY OF RETIREMENT For Agent Use Only. Not For Use With The Public.
- 21. HOW IT ALL WORKS For Agent Use Only. Not For Use With The Public.
- 22. 22 TRANSAMERICA SECURE RETIREMENT INDEX ANNUITY For Agent Use Only. Not For Use With The Public.
- 23. 23 TRANSAMERICA INCOME PLUS 1 This refers to the rider only and isn’t interest credited to the policy value. Age Growth Percentage 0 – 49 0.00% 50 – 54 10.00% 55 – 59 10.00% 60 – 64 10.00% 65 – 69 10.00% 70 – 74 10.00% 75 – 79 10.00% 80 – 84 10.00% 85+ 10.00% Age Growth Percentage 0 – 49 0.00% 50 – 54 3.40% 55 – 59 3.90% 60 – 64 4.40% 65 – 69 4.90% 70 – 74 5.40% 75 – 79 5.90% 80 – 84 6.40% 85+ 6.90% ANNUAL GROWTH RATE PERCENTAGES ANNUAL WITHDRAWAL RATE PERCENTAGES Policy value on rider anniversary1 Withdrawal base prior to rider anniversary Growth percentage x growth component base At rider anniversary greater of OR OR For Agent Use Only. Not For Use With The Public.
- 24. OTHER ITEMS TO CONSIDER For Agent Use Only. Not For Use With The Public.
- 25. 25 • Requires TLIC Life Appointment • Not available in New York, Puerto Rico and Montana • Available paper or eApp • Order materials at www.mywfg.com >Fulfillment eStore • Agents must complete product training to sell this product • NAIC product training is required and is available at www.RegEd.com. Select Transamerica from the carrier list. • Transamerica also requires a 4-hour general training to submit business for this product. This training is offered for free at MYWFG.com > Tools > Licensing & Training > State Annuity Requirements WHAT ELSE DO I NEED TO KNOW? For Agent Use Only. Not For Use With The Public.
- 26. 26 TRANSAMERICA.COM • Illustrations • Electronic application • Download sales materials and forms • Access your book of business, pending business, and statements WHAT ELSE DO I NEED TO KNOW? For Agent Use Only. Not For Use With The Public.
- 27. CERTAINTY IN RETIREMENT • Transamerica Secure Retirement Index Annuity can help your client take some of the uncertainty out of retirement • Resources at Transamerica.com can help your clients be better today and better in the future 27For Agent Use Only. Not For Use With The Public.
- 28. 28 This product may be appropriate for those individuals who do not need the premiums paid for the annuity to meet short-term financial needs or goals. Purchasers must understand that the interest credited based on the changes in index values will not be known until the end of the crediting period and the interest may be zero. In the event zero interest or low interest is credited, due to the charges and fees deducted from the policy value, the client may receive less than the premiums paid. The S&P 500® Index is a product of S&P Dow Jones Indices LLC ("SPDJI"), and has been licensed for use by the Company. Standard & Poor's®, S&P® and S&P 500® are registered trademarks of Standard & Poor's Financial Services LLC ("S&P"); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC ("Dow Jones"); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by the Company. This Policy is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates, and none of such parties make any representation regarding the advisability of purchasing this product(s) nor do they have any liability for any errors, omissions, or interruptions of the S&P 500® Index. The products referred to herein are not sponsored, endorsed, or promoted by MSCI, and MSCI bears no liability with respect to any such funds or securities or any index on which such funds or securities are based. The statement of understanding contains a more detailed description of the limited relationship MSCI has with Transamerica Life Insurance Company and any related products. Same sex couples have the right to marry in all states. The parties to each marriage that is valid under the law of any state will each be treated as a spouse as defined in this policy. Individuals in other arrangements, such as civil unions, registered domestic partnerships, or other similar arrangements, that are treated as spouses under the applicable state law, will each be treated as a spouse as defined in this policy for state law purposes. However, individuals in other arrangements, such as civil unions, registered domestic partnerships, or other similar arrangements, that are not recognized as marriage under the relevant state law, will not be treated as married or as spouses as defined in this policy for federal tax purposes. Therefore, exercise of the spousal continuation provisions of this policy or any riders by individuals who do not meet the definition of “spouse” may have adverse tax consequences and/or may not be permissible. Please consult a tax adviser for more information on this subject. All policies, living benefits, and forms may vary by state, and may not be available in all states: ICC14 FIA0214, NIC14 FIA0214(FL), ICC14 RGMB470214(IS), ICC14 RGMB470214(IJ), NIC14 RGMB470214 (IS)(FL), NIC14 RGMB470214 (IJ)(FL), ICC14 RDR50214 IMPORTANT DISCLOSURES For Agent Use Only. Not For Use With The Public. 06/19121487
Editor's Notes
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- You know full well how challenging it is to save for retirement. According to the 2017 Insurance Barometer Study, your clients know, too. 42% of consumers surveyed indicate that saving enough money for a comfortable retirement is a concern. Source: http://advisor.simplicitymarketing.com/wp-content/uploads/2017/06/report_Barometer_Study_2017.pdf
- Few of your clients either have or will have the benefit of a pension to guarantee a steady stream of income through retirement. Nowadays, it's up to you and your clients to create a stream of reliable income for their retirement years. They want the financial security that comes with knowing their money will last all the way through their retirement. Our fixed index annuity can help.
- As your clients get closer to retirement, a sudden downturn could send them off course. With our fixed index annuity, they get the confidence from knowing that a downturn in the market won't reduce their policy value. Importantly, interest credited to a policy is guaranteed never to be less than zero.
- Fortunately, there’s a retirement tool that can help. Transamerica Secure Retirement Index Annuity, a fixed index annuity, can help grow and protect your clients’ retirement assets on the way to and through retirement.
- Transamerica Secure Retirement Index offers: Affordability – Many of your clients can take the first step towards a secure retirement with a low minimum premium of $10,000. Opportunity for Interest Earnings – Transamerica Secure Retirement Index offers two different index options, and a fixed account, from which your clients can choose. All earnings grow on a tax-deferred basis, too. Protection is afforded against market downturns – Remember, a fixed index annuity is not a security or an investment in the stock market or in the indexes. Index account interest is based, in part, on index performance. With Transamerica Secure Retirement Index Annuity, the interest credited will never be less than zero, although your client’s annuity can lose value due to fees. Income – An optional guaranteed lifetime withdrawal benefit provides secure guaranteed income for life. This is available with an additional fee.
- Let me take you through some of the product features. Transamerica Secure Retirement Index Annuity is available for issue ages 0-80 for both the 8 and 10 year surrender charge period, and 0-85 for a 5 year surrender charge period. Premiums are allowed only in the first policy year. The initial premium must be at least $10,000 and then subsequent premiums, of as little as $1,000, can be made throughout the first policy year. The maximum premium is $1,000,000 into the annuity without prior company approval. Please note that premiums will be credited and policies will be issued only four times during a month: on the 1st, 8th, 15th or 22nd of the month. This is important to note and is required due to the index options availability and minimum crediting rate. Last, an annual service charge may be deducted from the policy value.
- Transamerica Secure Retirement Index Annuity provides your clients the opportunity for interest earnings with the choice of two index account options, plus a fixed account, upon which your clients’ annuity may be credited interest.
- The index account options base the credited interest on: 1.) Changes in the S&P 500 index, subject to a cap and a minimum interest crediting rate of 0% (not to be confused with the GMIR on the fixed account). Also subject to Spread and Participation rates the S&P 500 index account, a commonly recognized index made up of large-cap stocks and features 500 industry-leading companies designed to measure the U.S. economy and overall market (without dividends). 2.) Changes in the MSCI EAFE index, subject to a cap and a minimum interest crediting rate of 0% (not to be confused with the GMIR on the fixed account). Also subject to Spread and Participation rates the MSCI EAFE index which is designed to measure the equity performance of 21 developed markets outside of the U.S. and Canada (without dividends). 3.) A fixed account option is also available. In the Point to Point index method, interest is credited at the end of a crediting period and is guaranteed not to be less than zero. Interest is based on the percentage change in the index, as measured by comparing its value at the beginning and the end of the crediting period reduced by the spread and participation rate, not to exceed a predetermined annual index cap rate. The spread, participation rate, and index cap rate are declared prior to the crediting period, guaranteed for one year and subject to change annually. Even though changes in the index value affect the interest credited to the annuity policy, this product is not an investment in equities or fixed income.
- With Transamerica Secure Retirement Index Annuity, clients choose from one of three surrender charge schedules, based on their objectives. This choice of surrender charge will drive the premium enhancement percentage your client will receive and the cap rate and Spread and Participation rates on their choice of account options. We will talk more about this in the coming slides.
- Based on the surrender charge period selected, a premium enhancement will be added to the policy value. This premium enhancement is included in the policy value day one and will be paid on all premiums paid in the first 12 months. Go through chart. If the annuity is cancelled in the free look period, no premium enhancement is paid.
- Please note that there is a recapture percentage schedule. This means that if your client takes a withdrawal that exceeds the surrender charge-free amount or benefit withdrawal amount (if applicable and greater)(10% of total premium payments), then we may recapture (or deduct) that portion of the premium enhancement associated with the excess withdrawal using the recapture percentage schedule listed in the table. All required minimum distributions are exempt from recapture But, exercising a Nursing Care, Terminal Condition or Unemployment Waiver does not waive the premium enhancement recapture
- As I mentioned, the surrender charge selected also drives the cap that is in effect on the interest credited. The cap can also vary by index account option and whether the policy value is below $100,000 or greater than or equal to $100,000. The cap is declared at the beginning of each index crediting period and will not change during that period. The minimum cap rates are as follows: (point to chart) The interest credited to the index account is only credited at the end of a crediting period and is guaranteed not to be less than 0%. This is the floor that will protect your client against market downturns. The Fixed Account interest rate is currently 2.0% but is guaranteed never to be less than 1.00% during the surrender charge period and 0.25% after the surrender charge period. The fixed account guaranteed minimum interest rate is set at policy issue and is guaranteed for the life of the contract. Also subject to Spread and Participation Rates.
- So let’s take a look at how, conceptually, the Transamerica Security Retirement Index Annuity works…it works to protect your client’s policy value and keep it from decreasing due to market downturns.
- Access to monies in the Transamerica Secure Retirement Index Annuity is also easy: Withdrawals of up to 10% of the gross premium or benefit withdrawal amount (if applicable and greater) are available each year without incurring a surrender charge. A nursing care/terminal condition waiver is included with the annuity, at no additional cost, which provides surrender charge-free withdrawals as early as the first year if diagnosed with a terminal condition. There are specific restrictions and limitations that apply to this waiver. You should review these details in the client brochure or contract. An unemployment waiver, also included at no additional cost, provides surrender charge-free withdrawals available should the annuity owner or spouse become unemployed. This too has restrictions and limitations that apply. Last, the Transamerica Income Plus Living Benefit is an optional benefit that provides for a guaranteed lifetime withdrawal benefit. We will spend the next few minutes talking about this optional living benefit.
- It also gives you the ability to earn interest based, in part, on the performance of an index, providing your client with the opportunity to earn interest when markets perform well. In this example, the interest credited to the index account option is determined by an annual point to point crediting method by comparing the starting index value to the ending index value. The market index may decrease, but your client’s policy value will not be impacted. However, the policy value could decrease as a result of rider charges or other fees. Following a year of negative market index performance, the market heads up. The index account does not have to make up previous losses before the annuity can earn index interest. The policy value can increase at the end of the crediting period in which a positive market index change takes place.
- Transamerica Income Plus® is an optional guaranteed lifetime withdrawal benefit.
- The Transamerica Income Plus Living Benefit provides all the benefits of a guaranteed income stream, and still allows a death benefit to be paid to beneficiaries if there is cash value left in the policy. And it is available in both single and joint life options. Importantly, once withdrawals begin, they are guaranteed for life. The living benefit can be added to the policy at issue, or after issue, should it still be available for sale at that time. For the living benefit, there is a 1.0% fee, charged quarterly throughout the benefit year and upon rider termination. The 1.0% fee of the withdrawal base does not reduce the withdrawal base, only the policy value. The withdrawal base is the amount used to calculate the annual benefit withdrawal amount. Initially it is equal to the policy value, but we will talk more about how the withdrawal base is calculated in coming slides. Keep in mind that if the living benefit is purchased prior to age 50, the benefit fee still applies. And, any withdrawals prior to age 50 will be considered excess withdrawals and will reduce the withdrawal base. If a withdrawal in excess of the benefit withdrawal amount causes the policy value to reach zero, the living benefit and policy will terminate and no more benefits are payable. And remember that withdrawals of taxable amounts are subject to ordinary income tax and may be subject to a 10% additional federal tax if withdrawn before age 59 1/2.
- Let’s take a look at some other benefits your client will receive if they elect the optional Transamerica Income Plus Living Benefit. With Transamerica Income Plus, your client will be guaranteed lifetime income based on a percentage of the withdrawal base. These percentages are listed in the column to the right. Once the withdrawal base is established, it can never decrease provided there are no withdrawals taken in excess of the benefit withdrawal amount.
- Your clients will also benefit from a withdrawal base that is guaranteed to grow based on the annual growth rates shown in the table. These are available for up to ten years after the rider is placed in force provided no withdrawals have been taken in a given benefit year. This growth is on the withdrawal base only, and does not affect the cash value. Thus, if the owner were to surrender the annuity, they would be entitled to the cash value, which would be reduced by any annual service charge, surrender charge, recapture fee, and rider fee. The withdrawal base is not a cash value, surrender value or death benefit and is not available for withdrawal.
- Read slide
- Let’s walk through the money flow. Your client makes a premium deposit into the Transamerica Secure Retirement Index Annuity and receives a premium enhancement based on the surrender charge period selected. That amount, premium plus premium enhancement, will be allocated to any of the three account options that your client chooses. For index account options, interest is credited at the end of a crediting period and is guaranteed not to be less than zero. Interest is based on the percentage change in the index, as measured by comparing its value at the beginning and the end of the crediting period reduced by the spread and participation rate, not to exceed a predetermined annual index cap rate. The spread, participation rate, and index cap rate are declared prior to the crediting period, guaranteed for one year and subject to change annually. For fixed accounts, interest is credited daily and compounded annually. The current rate is set at the time of any allocation into the fixed account and is guaranteed for one year. Fees will be deducted, as appropriate, from the policy value. An annual service charge may be deducted from the policy value. We deduct surrender charges, if within the surrender charge period, any premium enhancement recapture fees necessary and should your client elect the Transamerica Income Plus Living Benefit, we would also deduct the annual 1.0% fee charged quarterly based on the withdrawal base. The policy value less these charges, as applicable, would be the amount that is available upon early surrender, as a death benefit, or the amount that may be annuitized under the contract.
- Now, let’s say your client purchased the Transamerica Income Plus Living Benefit. The money flow would be identical to what we just discussed. However, there would be two additional components at work which could positively affect the withdrawal base and the guaranteed income stream that your client would receive for life. It works like this….your client must be within ten years of their rider start date and no withdrawals could have been taken out of the policy during the current rider year. Then, should your client be at least 50 years old at time of rider anniversary, the growth rate applied to the growth component base is guaranteed to be at least 10%. If the 10% growth is greater than the policy value with interest (less fees) generated from the account options, then the withdrawal base would grow by 10% of the growth component base. Should the policy value grow at a rate higher then the guaranteed growth rate multiplied by the growth component base, then withdrawal base would increase to equal the policy value at time of living benefit anniversary. So, your client benefits from the greater of the two. If you look at the cap rates in today’s economic climate, your client would benefit from the guaranteed growth percentages because the caps are below these amounts. Your client’s withdrawal base can continue to increase annually by the guaranteed percentage during the first ten years from the living benefit start date, provided no withdrawals were taken during the current living benefit year and they are within the age ranges indicated. Of course, the higher your withdrawal base, and the longer your client waits before beginning withdrawals, the higher the guaranteed income stream. These percentages are listed in the table labeled Withdrawal percentages, and is guaranteed to be at least this amount when the Transamerica Income Plus Living Benefit is purchased.
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- What else do you need to know? Read slide
- What else do you need to know? Read slide For illustrations: www.transamerica.com>
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