MEMBERS Variable Annuities and the Annual Death Benefit Options

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1 Additional Death Distribution SM Additional Death Distribution+ SM GUARANTEE YOUR LEGACY Move confidently into the future

2 Focused on helping people. It s important to know that you have a strong team helping you achieve retirement security. With more than 75 years of true market commitment, the products offered through MEMBERS Insurance & Investments provide financial security and protection to credit unions and their members worldwide. MEMBERS Variable Annuities are offered through licensed investment and insurance representatives and are issued by Transamerica Life Insurance Company (Transamerica). Transamerica is among the leading providers of financial services with a history of superior service and a focus on helping people. More than a century of service. The date is April 18, A catastrophic earthquake shatters the early morning silence in San Francisco. In the wake of the devastation, a young banker, A.P. Giannini, who would later form Transamerica Corporation, focuses on one thing: helping residents rebuild. He extends credit to anyone in need, with only a handshake as collateral. With this simple act of trust, the reconstruction of San Francisco begins and a remarkable American success story is born. With more than a century of experience, dating to the incorporation of Transamerica Occidental Life Insurance Company in 1906, Transamerica Life Insurance Company continues to follow the mission to help individuals, families and businesses build and protect their hard-earned assets. As of December 31, 2011, financial records of Transamerica Life Insurance Company indicated $102.7 billion in assets, $96.7 billion in liabilities and $6.0 billion in capital and surplus. Transamerica Life Insurance Company is rated A+ (Superior), second-highest rating out of 16, by A.M. Best, AA- (Very Strong) by Standard and Poor s, fourth-highest rating out of 21, A1 (Good) by Moody s, fifth-highest rating out of 21, and AA- (Very Strong) by Fitch, fourth-highest rating out of 19, as of April, Ratings refer to the company s overall financial strength; they are not a recommendation of specific contract provisions, rates or practices. Guarantees are based on the claims-paying ability of Transamerica Life Insurance Company and do not extend to the performance of variable subaccounts, which can fluctuate with changes in market conditions. 2 ADDITIONAL DEATH DISTRIBUTION SM & ADDITIONAL DEATH DISTRIBUTION+ SM

3 Protect your legacy. Are you interested in providing a financial legacy to your loved ones? A variable annuity from MEMBERS Insurance & Investments provides important guarantees to help protect your family if you should die before you begin receiving annuity payments. A return of premium death benefit is included in every contract, or you can choose to purchase protection that offers a potential step-up in death benefit as part of your policy. you can also add one of two optional policy riders for additional death protection. These additional death benefit riders enhance your protection by adding a percentage of any earnings or a percentage of policy value. A rider may be added for an extra cost when you purchase one of the MEMBERS Variable Annuities. 1 All guarantees are based on the claims-paying ability of Transamerica Life Insurance Company. Confidence in your legacy Proceeds from an annuity can pass directly to your beneficiaries without the potential cost and delay of probate. And, surrender charges are not applied at death. With the many death benefit options of your MEMBERS Variable Annuity, you can be confident of passing a financial legacy to your loved ones that aligns with your goals. Return of Premium standard benefit When you buy your annuity, the Return of Premium guaranteed minimum death benefit is included as part of the standard annual mortality, expense and administrative (M&E&A) charge. The M&E&A charge for Return of Premium ranges from 1.30% to 1.70% based on the policy purchased, and is deducted daily in proportion from your selected investment options. The Return of Premium death benefit guarantees your beneficiaries will receive the greater of: Total premiums less adjusted partial withdrawals, 2 or Policy value on the date death proceeds are calculated With the Return of Premium, you have the confidence of passing an amount at least equal to your premium payments as a legacy for your loved ones. 1 Riders may not be available in all states and state variations may apply. 2 The adjusted partial withdrawal may be more than the dollar amount of your withdrawal. This generally occurs if the guaranteed minimum death benefit exceeds the policy value at the time of withdrawal. See your prospectus for details. GUARANTEE your LEGACy 3

4 William and Claire have saved carefully all their lives. At age 66 and 64, they purchased the MEMBERS Variable Annuity for both the retirement income benefit, which they plan to access when William turns 70, and the legacy benefit, which begins protecting them immediately. Because they selected the Annual Step-up death benefit, they ll have the opportunity to pass on a greater amount to their beneficiaries if their investment options perform well. Increase your protection. Annual Step-up death benefit At the time you purchase your MEMBERS Variable Annuity, you may choose to increase your protection by selecting your policy s Annual Step-up guaranteed minimum death benefit option. This benefit is available for annuitants under age 76 and is offered for an additional 0.20% above the M&E&A charge for the policy s standard Return of Premium death benefit. The M&E&A charge for the Annual Step-up ranges from 1.50% to 1.90% based on the policy purchased, and is deducted daily in proportion from your selected investment options. All guarantees are based on the claims-paying ability of Transamerica Life Insurance Company. The Annual Step-up death benefit provides beneficiaries the greater of: Total premiums less adjusted partial withdrawals, 1 or Policy value on the date death proceeds are calculated, or Highest policy value on any anniversary prior to the annuitant turning 81, plus premiums paid and less adjusted partial withdrawals since that highest anniversary With the Annual Step-up, when your investment options perform well and your policy value increases, you have the opportunity to pass on a greater financial legacy to your beneficiaries. 1 The adjusted partial withdrawal may be more than the dollar amount of your withdrawal. This generally occurs if the guaranteed minimum death benefit exceeds the policy value at the time of withdrawal. See your prospectus for details. 4 ADDITIONAL DEATH DISTRIBUTION SM & ADDITIONAL DEATH DISTRIBUTION+ SM

5 At age 60, May purchased a MEMBERS Variable Annuity with the goal of taking withdrawals when she turns 70. To protect her legacy until then, May chose the Annual Step-up death benefit and the Additional Death Distribution+ SM rider. May stated, My family is what s most important to me, so the idea of getting the most protection possible for my children just makes sense. Additional protection through riders. your MEMBERS Variable Annuity gives you more options to increase your death benefit distribution through additional riders. These riders 1 are available for an extra cost and may help protect your legacy in an up or down market. you may select one of two riders to potentially increase your policy s death benefit. Additional Death Distribution SM The Additional Death Distribution SM (ADD SM ) rider is available for annuitants ages 0 to 80 for an annual rider fee of 0.25% of policy value. you have the flexibility to include the ADD SM rider on your annuity at any time prior to your 81st birthday. The rider provides your beneficiaries an additional uncapped benefit equal to: 40% of rider earnings if the annuitant is age 70 or younger on the rider issue date, or 25% of rider earnings if the annuitant is age 71 to 80 on the rider issue date Rider earnings are the policy gains accrued and not previously withdrawn since the rider issue date. However, no ADD SM rider benefit is payable if there are no rider earnings on the date death proceeds are calculated. A plus with Additional Death Distribution+ SM If you re looking to help maximize a potential legacy for your heirs, the Additional Death Distribution+ SM (ADD+ SM ) rider may be the right solution. ADD+ SM is available for annuitants ages 0 to 75 for an annual rider fee of 0.55% of policy value. you have the flexibility to attach the ADD+ SM rider to your annuity at any time prior to the annuitant s 76th birthday. The rider can help your loved ones with taxes and expenses by giving beneficiaries an uncapped death benefit plus that is equal to: 30% of rider benefit base (which equals policy value less premiums added after rider issue) if the annuitant is age 70 or younger on the rider issue date, or 20% of rider benefit base (which equals policy value less premiums added after rider issue) if the annuitant is age 71 to 75 on the rider issue date The rider must be in force for five consecutive years before benefits are payable. Should death occur during the first five years, the benefit equals a return of all ADD+ SM rider fees paid. Note that no ADD+ SM rider benefit is payable if policy value is less than premiums added after rider issue on the date death proceeds are calculated. 1 Riders may not be available in all states and state variations may apply. GUARANTEE your LEGACy 5

6 Protection in up and down markets. While the ADD SM rider can provide additional protection when your policy experiences gains, the ADD+ SM rider offers protection regardless of market conditions. The illustrations below demonstrate the value of these riders in both rising and falling markets. How the ADD SM rider can add protection in a rising market Let s assume an individual invested $100,000 in a MEMBERS Variable Annuity at age 70. They selected the Return of Premium guaranteed minimum death benefit 1 and purchased the optional Additional Death Distribution SM rider. The individual took no withdrawals and then passed away at age 80. Rising markets In the up market scenario below, the individual s policy value rose to $172,039 after 10 years. With the ADD SM rider, 40% of rider earnings an extra $28,816 is added to the death proceeds, for a total death benefit of $200,855. Falling markets However, in a down market scenario, there are no rider earnings, so no ADD SM rider death benefit is payable. The good news is that the policy s Return of Premium minimum death benefit still guarantees the annuitant s beneficiaries will receive $100,000. $275,000 Rising market policy value Falling market policy value $200,855 Total $100,000 $100,000 Total $ Age Year Age Policy Value Surrender Value Rising Market Policy ADD SM Rider Total Policy Value Surrender Value Falling Market Policy ADD SM Rider Total 0 70 $100,000 $91,900 $100,000 $0 $100,000 $100,000 $91,900 $100,000 $0 $100, $105,575 $97,929 $105,575 $2,230 $107,806 $96,838 $89,638 $100,000 $0 $100, $111,462 $104,462 $111,462 $4,585 $116,046 $93,775 $87,475 $100,000 $0 $100, $117,676 $111,676 $117,676 $7,070 $124,746 $90,810 $85,410 $100,000 $0 $100, $124,237 $119,237 $124,237 $9,695 $133,932 $87,938 $83,438 $100,000 $0 $100, $131,164 $127,164 $131,164 $12,465 $143,629 $85,157 $81,557 $100,000 $0 $100, $138,477 $135,477 $138,477 $15,391 $153,867 $82,464 $79,764 $100,000 $0 $100, $146,197 $144,197 $146,197 $18,479 $1 64,676 $79,856 $78,056 $100,000 $0 $100, $154,348 $153,348 $154,348 $21,739 $176,088 $77,331 $76,431 $100,000 $0 $100, $162,954 $162,954 $162,954 $25,182 $188,135 $74,885 $74,885 $100,000 $0 $100, $172,039 $172,039 $172,039 $28,816 $200,855 $72,517 $72,517 $100,000 $0 $100,000 These graphs and charts reflect a policy with the Return of Premium death benefit with an M&E&A charge of 1.70%. If a different death benefit was selected, results would be different. This chart reflects the deduction of the 0.25% ADD SM rider fee, an average subaccount fee of 1.00%, a fund facilitation fee of 0.30% and a surrender charge schedule of 9%, 8%, 7%, 6%, 5%, 4%, 3%, 2%, 1%. The rising market scenario assumes a constant 9.00% gross (5.58% net) annual rate of return. The falling market scenario assumes a constant 0.00% gross (-3.16% net) annual rate of return. This hypothetical example is for illustration purposes only and does not guarantee or predict actual performance. 1 M&E&A charges for the MEMBERS Variable Annuities range from 1.30% to 1.90% depending on the product and guaranteed minimum death benefit selected. 6 ADDITIONAL DEATH DISTRIBUTION SM & ADDITIONAL DEATH DISTRIBUTION+ SM

7 How the ADD+ SM rider can increase your legacy in any market With the Additional Death Distribution+ SM rider, you have the opportunity to increase your financial legacy no matter how the markets perform. Let s assume our same individual invested $100,000 in a MEMBERS Variable Annuity at age 70. They again selected the Return of Premium guaranteed minimum death benefit, 1 but this time purchased the optional ADD+ SM rider. They took no withdrawals and passed away at age 80. Rising markets In the up market scenario, the individual s policy value (rider benefit basis) rose to $166,934 after 10 years. With the ADD+ SM rider, 30% of the rider benefit basis an extra $50,080 is added to the death proceeds, for a total death benefit of $217,014. Falling markets In the down market scenario with a policy value (rider benefit basis) of only $70,365, the ADD+ SM rider still adds value. This time 30% of the rider benefit basis provides $21,110 on top of the $100,000 Return of Premium death benefit. Even though their investment options did not perform, the annuitant was able to pass on $121,110 to their beneficiaries. $275,000 Rising market policy value Falling market policy value $217,014 Total $100,000 $121,110 Total $ Age Year Age Policy Value Surrender Value Rising Market Policy ADD+SM Rider Total Policy Value Surrender Value Falling Market Policy ADD+SM Rider Total 0 70 $100,000 $91,900 $100,000 $0 $100,000 $100,000 $91,900 $100,000 $0 $100, $105,258 $97,637 $105,258 $582 $105,840 $96,546 $89,346 $100,000 $534 $100, $110,792 $103,792 $110,792 $1,1 9 5 $111,987 $93,212 $86,912 $100,000 $1,049 $101, $116,618 $110,618 $116,618 $1,840 $118,457 $89,993 $84,593 $100,000 $1,547 $101, $122,749 $1 1 7,749 $122,749 $2,519 $125,268 $86,885 $82,385 $100,000 $2,028 $102, $129,203 $125,203 $129,203 $3 8,761 $167,964 $83,884 $80,284 $100,000 $25,165 $125, $135,996 $132,996 $135,996 $40,799 $176,795 $80,987 $78,287 $100,000 $24,296 $124, $143,147 $141,147 $143,147 $42,944 $186,091 $78,190 $76,390 $100,000 $23,457 $123, $150,673 $149,673 $150,673 $45,202 $195,876 $75,490 $74,590 $100,000 $22,647 $122, $158,596 $158,596 $158,596 $47,579 $206,174 $72,882 $72,882 $100,000 $21,865 $121, $166,934 $166,934 $166,934 $50,080 $217,014 $70,365 $70,365 $100,000 $21,110 $121,110 These graphs and charts reflect a policy with the Return of Premium death benefit with an M&E&A charge of 1.70%. If a different death benefit was selected, results would be different. This chart reflects the deduction of the 0.55% ADD+ SM rider fee, an average subaccount fee of 1.00%, a fund facilitation fee of 0.30% and a surrender charge schedule of 9%, 8%, 7%, 6%, 5%, 4%, 3%, 2%, 1%. The rising market scenario assumes a constant 9.00% gross (5.26% net) annual rate of return. The falling market scenario assumes a constant 0.00% gross (-3.45% net) annual rate of return. This hypothetical example is for illustration purposes only and does not guarantee or predict actual performance. 1 M&E&A charges for the MEMBERS Variable Annuities range from 1.30% to 1.90% depending on the product and guaranteed minimum death benefit selected. GUARANTEE your LEGACy 7

8 Guarantee a legacy that meets your needs. A MEMBERS Variable Annuity offers you a wide range of choices for your financial legacy. This chart provides a hypothetical example of the death benefit options available on your policy. Only one guaranteed minimum death benefit may be selected on the policy, and only one death benefit rider may be added. Return of Premium For the standard M&E&A, your policy s Return of Premium guaranteed minimum death benefit provides the greater of premium payments 1 or policy value 2. Annual Step-up For a higher M&E&A charge, you can instead select the Annual Step-up guaranteed minimum death benefit for your policy. It provides the greater of premium payments 1, policy value 2 or the highest policy value on any prior anniversary 3. Additional Death Distribution SM (ADD SM ) rider The ADD SM rider is available for an extra cost and enhances your death benefit based on a percentage of rider earnings 4. The rider benefit, if payable, is added on top of the guaranteed minimum death benefit which you select for your policy. Additional Death Distribution+ SM (ADD+ SM ) rider The ADD+ SM rider is available for an extra cost and enhances your death benefit, after five rider years, based on a percentage of rider benefit base (policy value less withdrawals since rider issue) 5. During the first five rider years, the benefit is a return of all ADD+ SM rider fees. The rider benefit, if payable, is added on top of your policy s guaranteed minimum death benefit. Total premium payments Current policy value Highest anniversary value ADD SM rider benefit with Return of Premium ADD+ SM rider benefit with Annual Step-up 1 Premium payments 2 Policy earnings 3 Highest policy value on any prior policy anniversary 4 ADD SM rider benefit can add a percentage of rider earnings 5 ADD+ SM rider benefit can add a percentage of rider benefit base (policy value less withdrawals since rider issue) This hypothetical chart does not represent the performance of any investment option available through MEMBERS Variable Annuities. It assumes a positive investment return and no withdrawals or additional premium payments. Gains shown are for illustrative purposes only and are taxable as ordinary income to the beneficiary. If there are no earnings since rider issue, the ADD SM rider benefit would be zero. If the policy value less premiums received since rider issue is zero, the ADD+ SM rider benefit would be zero. Note the ADD SM or ADD+ SM rider may be attached to a policy with the Return of Premium or the Annual Step-up guaranteed minimum death benefit, subject to age limits. 8 ADDITIONAL DEATH DISTRIBUTION SM & ADDITIONAL DEATH DISTRIBUTION+ SM

9 Anita and Tony are thinking about retiring next year. Anita purchased a MEMBERS Variable Annuity with money she saved during her teaching career. She chose the Return of Premium death benefit and added the Additional Death Distribution SM rider, naming Tony as sole beneficiary. In the event Anita dies prior to receiving income, Tony will be able to continue the policy without tax consequences. And the policy value will be increased to equal the Return of Premium guaranteed minimum death benefit, if greater, along with any ADD SM rider death benefit, giving him extra financial security. Options for additional control. Your spouse can decide to continue the policy If you are the sole owner, a spouse who is named as sole beneficiary may continue the policy without any current taxes. 1 There is no additional cost for the spousal continuation benefit. By continuing the contract: The policy value is increased to equal the policy s guaranteed minimum death benefit, if greater than policy value The policy value is increased by the value of any ADD SM or ADD+ SM rider The surviving spouse may name a new beneficiary The new beneficiary is entitled to a death benefit upon the spouse s death And if the ADD SM or ADD+ SM rider was in place at the annuitant s death, the spouse has the flexibility to then immediately reelect the rider on the continued policy based on the rider s issue age requirements and availability, and subject to current features and costs. Control how beneficiaries receive benefits you can choose to control how your beneficiaries receive the death benefit by completing forms to restrict the payout. For example, you may want to: Provide a monthly income for the beneficiary Possibly spread out the beneficiary s tax liability over time Control how benefits are paid to a spendthrift beneficiary 1 For civil union partners, registered domestic partners or other similar relationships as recognized by your state, contact your tax advisor prior to purchase. GUARANTEE your LEGACy 9

10 Commonly asked questions. What death benefit options are available with my policy? you may select either the Return of Premium or the Annual Step-up guaranteed minimum death benefit when you purchase your MEMBERS Variable Annuity. If you want the potential to enhance your policy s death benefit, you may choose to add one of the optional death benefit riders Additional Death Distribution SM (ADD SM ) or Additional Death Distribution+ SM (ADD+ SM ). When can I purchase an ADD SM or ADD+ SM rider? The ADD SM rider is available for purchase at issue ages 0 to 80, and the ADD+ SM rider can be bought at ages 0 to 75. you can choose to add a rider at the same time you purchase your MEMBERS Variable Annuity or at a later date. How are my death benefits impacted if I purchase a living benefit rider? Some living benefit riders offer their own options for enhancing the death benefit. Withdrawals taken under a living benefit rider will impact your policy s death benefit. See your prospectus for details. And remember that any withdrawals, including those permitted under a living benefit rider, reduce your variable annuity s policy value, death benefit and other values. Does a surviving spouse have additional options at death? yes. Rather than receiving death proceeds, a spouse who is the sole beneficiary can choose to continue the policy as the new owner without current taxation. What if a spouse wants to continue a policy that had the ADD SM or ADD+ SM rider? The surviving spouse receives a one-time policy value increase equal to the value of the ADD SM or ADD+ SM rider, and the existing rider terminates. The spouse then has the flexibility to immediately reelect a new rider, provided the rider is currently available and they meet the issue age requirements, and subject to current features and costs. 10 ADDITIONAL DEATH DISTRIBUTION SM & ADDITIONAL DEATH DISTRIBUTION+ SM

11 How much do the death benefits cost? The Return of Premium guaranteed minimum death benefit is available as part of the policy s standard mortality, expense and administrative (M&E&A) charge. If you choose the Annual Step-up guaranteed minimum death benefit, your M&E&A charge is 0.20% higher. M&E&A charges range from 1.30% to 1.90% based on policy purchased and death benefit option selected. The ADD SM rider can be attached for an annual fee of 0.25% of policy value. The ADD+ SM rider can be attached for an annual fee of 0.55% of policy value. Can I drop a death benefit rider? your ADD SM or ADD+ SM rider may be canceled at any time should your needs change. A pro-rated charge is assessed at termination. If I cancel my ADD SM or ADD+ SM rider, may I purchase it again? yes. The ADD SM rider may be purchased again immediately. However, one year must pass since cancellation before repurchasing the ADD+ SM rider. What happens to a death benefit rider on the annuity commencement date? The maximum annuity commencement date is generally age 95, and it marks the date when the policy is required to annuitize and move into the lifetime income phase. On this date any death benefit rider will terminate and you will have the option to receive guaranteed payments that continue for life. Ask your representative to show you how the MEMBERS Variable Annuity can help you guarantee your legacy. GUARANTEE your LEGACy 11

12 Annuities are long-term insurance products that can be used for a savings vehicle and for retirement purposes. Before investing, consider a variable annuity s investment objectives, risks, charges and expenses. Call for a contract and fund prospectus containing this and other information. The range of fees and charges for the MEMBERS Variable Annuities includes an M&E&A charge of 1.30% to 1.90%, surrender charges of 0% to 9%, a $35 annual contract fee and management fees that vary by investment option. A fund facilitation fee of up to 0.30% annually may also apply for certain investment options. All contract and rider guarantees, including optional benefits and any fixed subaccount crediting rates or annuity payout rates, are backed by the claimspaying ability of Transamerica Life Insurance Company. Variable annuity policy values, death benefits and other values fluctuate based on the performance of the investment options and may be worth more or less than the total of all premiums paid when surrendered. Withdrawals may be subject to surrender charges. Withdrawals of taxable amounts are subject to ordinary income tax, and if taken before age 59 1 /2 may be subject to a 10% federal tax penalty. If you are considering purchasing an annuity as an IRA or other tax-qualified plan, you should consider benefits other than tax deferral since those plans already provide tax-deferred status. Transamerica Life Insurance Company does not provide tax or legal advice. Contact a licensed professional. MEMBERS is a registered trademark of CMFG Life Insurance Company. Additional Death Distribution SM (ADD SM ) and Additional Death Distribution+ SM (ADD+ SM ) are registered service marks of Transamerica Corporation. Insurance products are issued by Transamerica Life Insurance Company. Variable products are distributed by Transamerica Capital, Inc. Investment and insurance products are not federally insured, may involve investment risk, may lose value and are not obligations of or guaranteed by the financial institution. All policies, riders and forms may vary by state, and may not be available in all states or through all broker/dealers. RTP , RTP (OR), RTP , RTP (OR), RGMD , RGMD (OR), RGMD , RGMD (FL), RGMD (OR). Transamerica Life Insurance Company 4333 Edgewood Road NE Cedar Rapids, IA CUNA MUtUAl GroUp