Transamerica Enhances Variable Annuity Rider
DENVER--(BUSINESS WIRE)-- Transamerica Life Insurance Company (Transamerica) today introduced a handful of enhancements to its variable annuity living benefit rider, Retirement Income ChoiceSM (identified in the prospectus as Retirement Income ChoiceSM 1.2). The latest modifications provide cost flexibility and additional investment options, while the core benefits of the rider remain intact.
“We’re confident these changes combined with our existing features provide a compelling solution for financial professionals and their clients,†said Dave Paulsen, executive vice president, national sales manager at Transamerica Capital, Inc. “The new rider reflects our ongoing goal to offer industry-leading solutions while prudently and responsibly managing our business.â€
Starting today, clients can elect an open allocation option, which provides access to any investment option available with the annuity. The ability to allocate a 100 percent equity structure may be attractive to clients interested in a bull market strategy with insurance protection for future income. With this allocation option, Transamerica can utilize the Open Allocation Method (OAM), which is designed to manage policy value in relation to the rider’s guarantees.
A designated allocation option offers allocation into any three designated groups of investment options, with an initial rider fee as low as 0.40% for more conservative options. The designated allocation option is an alternative to open allocation, though investors may switch between the two.
While many variable annuity providers have been decreasing offerings and even discontinuing products, the core benefits of the Retirement Income ChoiceSM rider remain unchanged. The rider continues to offer The Power of 12SM – the industry’s only automatic reset based on clients’ best Monthiversary SM value each year – during both accumulation and withdrawal periods. And, the Retirement Income ChoiceSM rider still offers compounding 5% growth based on the previous year’s highest Monthiversary SM value.
Financial professionals interested in learning more should contact the Transamerica sales desk at 1-800-851-7555. Investors interested in learning more should contact the customer care group at 1-800-525-6205.
Variable annuities are long-term financial vehicles designed for retirement purposes and contain underlying investment portfolios that are subject to market fluctuation, investment risk and possible loss of principal.
All guarantees, including optional benefits, are based on the claims-paying ability of the issuing insurance company.
Transamerica variable annuities’ range of fees and charges include 0.60%–2.35% M&E&A, 0%–9% surrender charges, $30-$35 annual fee, and subaccount management fees. A fund facilitation fee of up to 0.20% may apply for certain subaccounts. Retirement Income ChoiceSM rider initial fees range from 0.40%–1.75% annually, depending on options chosen.
Before investing, consider the variable annuity's investment objectives, risks, charges, and expenses. Call 1-800-525-6205 for a contract and prospectus containing this and other information. Read it carefully.
Withdrawals of taxable amounts are subject to ordinary income tax and, if taken prior to age 59½, a 10% federal tax penalty may apply. Withdrawals may be subject to surrender charges.
Clients must wait until the rider year after they turn 59 to begin withdrawals permitted under the rider. If the rider is purchased prior to age 59, however, the rider fee will still apply. The rider may be added at any time through age 85 and may be terminated within 30 days following each fifth year rider anniversary.
The rider fee percentage may increase after the first five rider years with an automatic step-up. The annuitant has 30 days after the rider anniversary to reject an automatic step-up, and retains the right to all future automatic step-ups if they reject one. The maximum rider fee percentage allowed is 0.75% higher than the initial percentage.
On the maximum annuity commencement date, the rider terminates. By annuitizing the policy, clients will have the option to receive lifetime payments that are no less than the withdrawals allowed by the rider.
The Withdrawal Base (WB) is equal to the policy value when the rider is added, plus any additional premiums, and less any adjustments for excess withdrawals after the rider is added. If the rider is added in the first policy year, it does not include any premium enhancements, if applicable.
On each rider anniversary, the WB will be set to equal the greatest of the policy value, highest MonthiversarySM value (rider month anniversary), or the WB with the 5% compounded growth, if applicable. The highest MonthiversarySM value is not applicable in years an excess withdrawal is taken. When the WB is increased due to the policy value or the highest MonthiversarySM value, it is called an automatic step-up. With the automatic step-up your client will not have to keep track of each of these values, and your client’s WB will be adjusted to reflect the highest of these amounts. Note that automatic step-ups and the 5% compounded growth affect the WB only and do not affect policy value, or other rider values. The 10-year growth period will not reset with an automatic step-up.
Investment options with this rider may be limited. The Open Allocation Method may limit the ability to fully participate in the market's growth.
All policies, riders, and forms may vary by state, and my not be available in all states. RGMB 35 0109, RGMB 36 0109, RGMB 35 0109 (IS) (FL), RGMB 36 0109 (IS) (FL), other versions also available, RGMB 35 0109 (IS) (OR), RGMB 35 0109 (IJ) (OR), RGMB 35 0109 (AS) (OR), RGMB 35 0109 (AJ) (OR), RGMB 36 0109 (IS) (OR), RGMB 36 0109 (IJ) (OR), RGMB 36 0109 (AS) (OR), RGMB 36 0109 (AJ) (OR)
Annuities issued by:
Transamerica Life Insurance Company – Cedar Rapids, IA
Underwritten and distributed by: Transamerica Capital, Inc.
About Transamerica Life Insurance Company
Transamerica Life Insurance Company, an AEGON company, provides retirement solutions for financial professionals and their clients, including variable and fixed annuities, and universal life insurance. The company consistently earns high marks for financial strength from the nation's leading independent agencies that rate insurance companies. For current ratings, please visit www.talife.com.
AEGON N.V. is an international life insurance, pension and investment group based in The Hague, the Netherlands, with businesses in over 20 markets in the Americas, Europe and Asia.
About Transamerica Capital, Inc.
Transamerica Capital is the underwriting and wholesaling broker/dealer for Transamerica Life Insurance Company variable annuities. The company works with financial professionals at wirehouse, regional, independent, and bank firms to provide a variety of insurance and investment solutions.
Transamerica Capital, Inc.
Ryan Hoffman, 720-482-1505
Source: Transamerica Capital
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