A stock index, such as the S&P 500 or Dow Jones Industrial Average, is a way to track a group of stocks. Transamerica is a financial services company offering a wide variety of life insurance products. , which means policyholders can change payments and benefits as needed. Jon and Suzy have long-term goals, such as funding their child's college education. Customers seeking advice regarding their particular investment needs should contact a financial professional. Index Universal Life and YouThis is just one example of how index universal life insurance can work for you. Pre-qualified offers are not binding. If this happens, the return on your investment could fail to meet your goals. Javascript is disabled in this browser. In the life insurance world, there’s a term we use called “level.” This … Over more than a decade, he's worked in everything from banks to tech startups. Three options, including a survivorship policy. Contact a financial professional today! recommendation by Transamerica for customers or prospective customers. Index Account Interest is based, in part, on index performance. The NeedJon and Suzy are a newly married couple in their early thirties. If you ever decide to skip a payment or underpay, those fees can be taken directly from the account. You need enough life insurance to cover your obligations after you’re gone. Your life insurance agent can help you decide what product would be appropriately suited for your unique situation. About Transamerica Life Insurance Company, Upside potential of an index account option. Indexed universal life is more complex than it may appear. If you have any questions, please contact your Transamerica support team. A notable feature of Transamerica is the high coverage options, up to more than $10 million depending on the policyholder’s family needs. limit you from fully participating in the success of the market. Indexed universal life is complex, subject to shifting fees, returns and benefits. Current caps above 10% and floors above 0%. Three options available for people with different needs. Long story short, my wife and I got married about 9 months ago and my brother-in-law had just gotten into peddling Transamerica. All financial products, shopping products and services are presented without warranty. The intent of this calculator is to show how an Indexed Universal Life policy works. of return on your cash value account. When evaluating offers, please review the financial institution’s Terms and Conditions. 6 Ron Panko, “A small bright star: indexed universal life insurance was the fastest-growing product line in the individual life insurance galaxy last year, and specialists expect fast growth to continue.” Best’s Review, July 1, 2007. It’s a subset of universal life insurance, which means policyholders can change payments and benefits as needed. When evaluating offers, please review the financial institution’s Terms and Conditions. , which can increase over time and eat into the payments you make or the value of your cash account. The Transamerica Administrative Office will be open from 8:30am – 2:00pm EST on Thursday, December 24th. Caps are the highest interest rate the account can earn, so if the market is up more than the cap, you’ll get credited only for the cap amount. So, they are interested in a policy that offers the potential for greater cash value accumulation when compared to traditional life insurance policies and they also minimum interest rate guarantees*. One of the best ways to fund an IUL policy is by maximizing your premium payments in the early years. The floor is the lowest your account rate can go and is usually guaranteed for the life of the policy, but is often set at 0%. The death benefit is determined at the beginning of the policy, but can change. It has options for common life insurance like term and whole life insurance policies. The company’s original goal was to help bring financial services to everyone, not just the rich. If you need advice regarding your particular investment needs, contact a financial professional. Four options available for people with different needs. 7 Ibid. In addition to life insurance, Transamerica offers the following services to individuals: Two options for smaller and larger death benefit options. Our opinions are our own. Past performance of an index is not an indication of future index performance. Your cost of insurance will be lower then, so more money will flow into your cash account with more time to grow. As long as your premiums are paid, you don’t need to worry – your cover won’t expire. Our partners cannot pay us to guarantee favorable reviews of their products or services. NerdWallet strives to keep its information accurate and up to date. Final expense life insurance. Your cash could grow more quickly, enhancing your policy’s flexibility. These accounts build up when the market grows, and that growth is often accumulated tax free. TERM LIFE CONVERSION UPDATE: INSURED SIGNATURE Conversion applications received on or after Monday, August 17, 2020, must be signed by the policy owner, the insured (if different than policy owner), and … Life insurance pays out after you die and can be an important safety net for your family. Your policy may have caps that come down over time, fees that increase and periods of poor market performance that aren’t shown in the illustration. As an example, let’s look at an IUL policy based on the S&P 500 with a floor of 0% and a cap of 9.5%. is required to maintain your cash value account in good health. The Society of Actuaries — the folks who do the math behind insurance — has said these illustrations are problematic because “illustrations create the illusion that the insurance company knows what will happen in the future.”. Policy value accumulation potential with basic interest account and index account options. Life insurance is one of the most important decisions you will ever make. Insurance. Money that went into the cash account earns interest at the credited rate shown in the last column. Indexed universal life, or IUL,  gives you a chance to experience some of the upsides of the stock market while limiting risks. You have probably heard that “the stock market returns 10% in the … © Transamerica 2015-2020. These caps can also come down over time, further limiting your account’s potential. If the index drops, the account earns less or nothing. Eventually, you may even grow the account to the point you can stop making premium payments. Three indexed life insurance options for differing financial needs. to help them navigate the buying and management processes. Anyone considering an IUL policy should. Indexed universal life is complex, subject to shifting fees, returns and benefits. Fixed interest rate, non-guaranteed dividends, Yes, if index growth is low and fees are high, Cost ($ = cheapest, $$$$ = most expensive). An indexed universal life policy is tied to a stock market index such as the S&P 500. Like other forms of permanent life insurance, indexed universal life offers a death benefit and a cash account. This is not an actual Indexed Universal Life illustration. SolutionAfter meeting with their professional life insurance agent, Jon and Suzy agreed that an index universal life (IUL) policy best fits their needs. We are still excited about using indexed universal life insurance as a way to accumulate cash on a tax-deferred basis and … All of these benefits come with risks. Work is required to maintain your cash value account in good health. If you find discrepancies with your credit score or information from your credit report, please contact TransUnion® directly. During periods of low returns, you may need to pay more into your account, helping it regrow as quickly as possible. Over the last 100+ years, the company has grown significantly. over your death benefit and payments. Your life insurance agent will be able to discuss what product would work best in your unique situation. The coverage limit for Transamerica's whole life insurance is $2 million. Suzy is pregnant with their first child and they just recently bought a new home. Indexed universal life (IUL) insurance policies put a portion of the policyholder’s premium payments toward annual renewable term insurance with the remainder added to … Term life, term life, or “ floor, ” brings safety guarantees.1... 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