GROWING YOUR BUSINESS WITH INDEX UNIVERSAL LIFE

Transcription

1 GROWING YOUR BUSINESS WITH INDEX UNIVERSAL LIFE John Oliver Vice President, Field Development OL

2 Why Index Universal Life Upside policy value accumulation up to Cap Downside protection with guaranteed minimum interest rate (floor) Supplemental income Indexed Universal Life product sales grew by 35% in 2011* *2012 Industry Predictions, LIMRA

3 Transamerica s Flexible IUL Products Flexible Premium Universal Life Insurance with Index Feature Freedom Index Universal Life II SM S&P 500 (domestic) Freedom Global IUL II SM Global diversification S&P 500 EURO STOXX 50 Hang Seng Both are one year point-to-point crediting method Freedom Index Universal Life II SM current cap = 12.50% Freedom Global IUL II SM current cap = 13.25%

4 Index Weighting Freedom Index Universal Life II SM Freedom Global IUL II SM 0% S&P % Heng Seng 20% EURO STOXX 50 30% S&P % Heng Seng 20% S&P % EURO STOXX 50 50%

5 Product Features Low face amount ($25K up) Level and increasing death benefit options Term blend option 10 year surrender charge Fixed interest rate loans

6 Account Options Flexible Premium Payment Owner Controlled Net Premium Allocation Choices Basic Interest Account (BIA) Credits interest at a rate set by the Company. Guarantees a minimum interest rate of 2% Index Account (IA) Credited with Excess Index Interest based, in part, on changes in the indexes. Guarantees a minimum interest rate of 1% Unless otherwise specified, references to Index Account are intended to mean both the S&P 500 Index Account in the Freedom Index Universal Life II and the Global Index Account in the Freedom Global IUL II Guarantees are based on the claims paying ability of TLIC.

7 Account Options Freedom Index Universal Life II SM Basic Interest Account Current 3.50% Guaranteed Minimum 2.00% Index Account Current Cap 12.50% Maximum Illustrated Rate 8.01%* Guaranteed Minimum 1.00% Index S&P 500 Index Freedom Global IUL II SM Basic Interest Account Current 3.50% Guaranteed Minimum 2.00% Global Index Account Current Cap 13.25% Maximum Illustrated Rate 8.82%* Guaranteed Minimum 1.00% Indexes S&P 500 Index EURO STOXX 50 Index Hang Seng Index *New Illustrated rate effective March 1, The Maximum Illustrated Rate used in this presentation is only an example rate based on a weighted average of year-to-year changes in the S&P 500 Index, the EURO STOXX 50 and Hang Seng.

8 20 Year No-Lapse Guarantee No-Lapse Period: Issue Ages No-Lapse Guarantee Period 0 60 Lesser of 20 years or until age years Guarantees are based on the claims paying ability of TLIC.

9 Overloan Protection Overloan Protection Rider (OPR): Prevents policy from lapsing due to excessive loans Reduces likelihood of tax consequences Ensures reduced paid-up benefit Automatically included in all non-mec Guideline Premium Test (GPT) IUL II policies

10 Guaranteed Payout Structure Income Protection Option (IPO) Initial Lump Sum Guaranteed Monthly Income Stream* Final Lump Sum $10,000 min years / $100 min. $10,000 min. Available at no additional cost May include multiple beneficiaries Can be modified prior to the death of the insured *Any guarantees associated with the IPO endorsement are based on the claims paying ability of the issuing insurance company.

11 Income Protection Option Example Meet Sarah, age 50 Sarah s Concerns Supplemental retirement income Income for spouse and children in the event of her death Solution Sarah purchases IUL policy that, in the event of her death, provides: Initial lump sum payment to spouse Monthly income to family Final lump sum payment to children Female, Age 50, Preferred Non-tobacco

12 Income Protection Option Example Freedom Index Universal Life II SM policy with IPO Beneficiary Initial Lump Sum Guaranteed Monthly Income (15 Years) Final Lump Sum James (Spouse) $50,000 $2,500 Lindsey (Daughter) $1,000 $25,000 Paul (Son) $1,000 $25,000 Total : $50,000 $4,500 / monthly for 15 years $50,000 Total Income Protection Option Payments: $910,000 Total Policy Face Amount: $737,170 Annual Level Lifetime Premium: $12,186

13 College Planning Example Meet Ken, 55 and Rita, 53 They have a granddaughter, Emma, age 3 They plan to help pay for Emma s college education but are worried about: Unexpected event / death Depleting retirement assets They want flexibility to access funds for any other needs

14 College Planning Example Solution Ken purchases a $1M Freedom Global IUL II policy In year 15, Ken accesses his policy s cash surrender value Uses withdrawals and/or loans to fund Emma s college tuition costs* Ken has peace of mind Tax-free death benefit can help support Emma s college expenses. With IPO, a portion of Ken s death benefit paid over 5 years can provide care for Emma. *Withdrawals or loans against the policy can reduce the face amount/death benefit and policy value This example is based on a hypothetical illustration which assumes that the non-guaranteed elements will continue unchanged for all years shown. This is not likely to occur and actual results may be more or less favorable. All non-guaranteed elements are subject to change by the company. Prospective policy owners should refer to the consumer brochure for the Global IUL II and a complete personalized policy Illustration for guaranteed elements and other important policy and rider information.

15 Business Planning Example: Executive Bonus Executive Bonus Strategy Meet Steve, age 45 TicTacToe Company Protect family of key employee Supplemental retirement income Solution Steve purchases a $1M Freedom Global IUL II policy and pays a level annual premium of $18,908 for 20 years Male, Age 45, Preferred Non-Tobacco

16 Business Planning Example: Executive Bonus Executive Bonus Strategy Steve s policy provides protection to his spouse and children At retirement, Steve can access cash value in the policy in the form of withdrawals and/or loans* At age 65, Steve begins taking loans of $40,000 annually from his policy OPR can ensure policy does not lapse while loans are outstanding *Withdrawals or loans against the policy can reduce the face amount/death benefit and policy value This example is based on a hypothetical illustration which assumes that the non-guaranteed elements will continue unchanged for all years shown. This is not likely to occur and actual results may be more or less favorable. All non-guaranteed elements are subject to change by the company. Prospective policy owners should refer to the consumer brochure for the Global IUL II and a complete personalized policy Illustration for guaranteed elements and other important policy and rider information.

17 Why Transamerica IUL Global and domestic options Fixed loan provisions* Guaranteed death benefit Income Protection Option Overloan Protection Rider *Withdrawals or loans against the policy can reduce the face amount/death benefit and policy value

18 Consumer Producer Marketing Materials Product Guide Summary Sheet Spec Sheet IPO/Overloan Flyer Brochure College Flyer

19 The Freedom Global IUL II (Policy Form # IUL05) and The Freedom Index Universal Life II (Policy Form # IUL04) are index universal life insurance policies issued by Transamerica Life Insurance Company, Cedar Rapids IA. Policy Form and number may vary, and this product may not be available in all jurisdictions. "Standard & Poor's ", "S&P ", "S&P 500 ", "Standard & Poor's 500", and "500" are trademarks of Standard and Poor's Financial Services LLC, and have been licensed for use by the issuing Company. This life insurance policy is not sponsored, endorsed, sold, or promoted by Standard & Poor's and Standard & Poor's makes no representation regarding the advisability of purchasing the policy. The EURO STOXX 50 is the intellectual property (including registered trademarks) of STOXX Limited, Zurich, Switzerland, (the "Licensor"), which is used under license. The Freedom Global IUL II product based on the Index is in no way sponsored, endorsed, sold or promoted by the Licensor and the Licensor shall have no liability with respect thereto. Please read the full disclaimer in the Freedom Global IUL II policy regarding the Hang Seng Index in relation to the policy. OL