All financial products, shopping products and services are presented without warranty. The death benefit is determined at the beginning of the policy, but can change. During periods of low returns, you may need to pay more into your account, helping it regrow as quickly as possible. Current caps above 10% and floors above 0%. They want a policy with lifetime coverage and the flexibility to change as their family's lifestyle and needs change. This page requires Javascript. Three options for different financial needs. that the stock market will not rise as quickly as predictions. Insurance. Life insurance is one of the most important decisions you will ever make. NerdWallet strives to keep its information accurate and up to date. A stock index, such as the S&P 500 or Dow Jones Industrial Average, is a way to track a group of stocks. 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 how do we make money? Three options, including a survivorship policy. Transamerica offers the following types of universal life insurance products: Index universal life insurance: Index universal life insurance offers flexible insurance premiums, which may be allocated among a basic interest account and two index accounts. 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. That could lead to owing extra money to keep your policy from lapsing. Control over your death benefit and payments. TRANSAMERICA FINANCIAL FOUNDATION IUL POLICY TYPE INDEX UNIVERSAL LIFE TRANSFERS Transfers from the S&P 500® Index Account or Global Index Account to the other accounts are allowed at the end of a Segment Period. SolutionAfter meeting with their professional life insurance agent, Jon and Suzy agreed that an index universal life (IUL) policy best fits their needs. Index Universal Life and YouThis is just one example of how index universal life insurance can work for you. This is a brief summary of TransElite Universal Life Insurance underwritten by Transamerica Life Insurance Company, Cedar Rapids, Iowa. The cash account grows based on the performance of a stock index. Suzy is pregnant with their first child and they just recently bought a new home. Anyone considering an IUL policy should find a fee-only advisor to help them navigate the buying and management processes. They realize the need for insurance, but don't know what kind would best fit their needs. If you’re comfortable with the risks and want to be active in the management of your insurance, this could be a nice fit. You can see how the floor insulated the account from a loss at first, but in the following period, the cap limited the benefit of the index. Pre-qualified offers are not binding. These caps can also come down over time, further limiting your account’s potential. When evaluating offers, please review the financial institution’s Terms and Conditions. Disclaimer: NerdWallet strives to keep its information accurate and up to date. As long as your premiums are paid, you don’t need to worry – your cover won’t expire. Property and Casualty insurance services offered through NerdWallet Insurance Services, Inc.: Licenses, NerdWallet Compare, Inc. NMLS ID# 1617539, NMLS Consumer AccessLicenses and Disclosures, California: California Finance Lender loans arranged pursuant to Department of Financial Protection and Innovation Finance Lenders License #60DBO-74812, We want to hear from you and encourage a lively discussion among our users. of return on your cash value account. Indexed universal life insurance offers flexibility and could give you higher interest rates than other kinds of life insurance. But for a savvy investor looking for a policy with a higher-touch investment arm, indexed universal life could be the perfect fit. Contact a financial professional today! If you find discrepancies with your credit score or information from your credit report, please contact TransUnion® directly. The fastest growing life insurance segment continues to be Indexed Universal Life (IUL), as more and more people and businesses are finding that it is the best life insurance available to meet their needs and goals. All financial products, shopping products and services are presented without warranty. 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%. The major drawbacks of indexed universal life policies are: Risk that the stock market will not rise as quickly as predictions. Best Way to Terminate a Transamerica Indexed Universal Life Insurance Policy. 7 Ibid. to help them navigate the buying and management processes. If the index drops, the account earns less or nothing. Since IUL ties cash value to the stock market, it comes with more ups and downs than other types of life insurance. About Transamerica Life Insurance Company, Upside potential of an index account option. Index universal life insurance. Press Releases. Modify your browser's settings to allow Javascript to execute. Indexed universal life insurance falls under the category of “non-guaranteed” universal life insurance, which comes with a cash accumulation account that is—just as it sounds—not guaranteed. This material was prepared for general distribution. If you need advice regarding your particular investment needs, contact a financial professional. Transamerica is a financial services company offering a wide variety of life insurance products. Four options available for people with different needs. 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 … How indexed universal life insurance works, Indexed universal life vs. other types of life insurance, Buying an indexed universal life insurance policy, How to know if indexed universal life is right for you, Companies that offer indexed universal life insurance. For those that want a taste of the bull markets without the bite of the bears, this may be the perfect product for you. The Indexed Universal Life policy is a solid and reliable life insurance product that provides a specific set of benefits to the consumer. , which can increase over time and eat into the payments you make or the value of your cash account. An indexed universal life policy is tied to a stock market index such as the S&P 500. 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 … In the life insurance world, there’s a term we use called “level.” This … It has options for common life insurance like term and whole life insurance policies. You can increase or decrease payments, depending on your need for coverage, the growth of your cash account and your financial situation. Your life insurance agent will be able to discuss what product would work best in your unique situation. We now have more than 20 years of IUL history to draw from. The IUL also addresses their desire to accumulate cash value in the policy. Indexed universal life is more complex than it may appear. Here are the changes in the market and the resulting life insurance interest rate credited. Our opinions are our own. Three indexed life insurance options for differing financial needs. This information may be different than what you see when you visit a financial institution, service provider or specific product’s site. It’s a subset of. Transamerica also sells small whole life policies designed to cover funeral and other final expenses. Eventually, you may even grow the account to the point you can stop making premium payments. Transamerica offers whole life, term life, universal life, index universal, group universal and final expense life insurance. 8 Ibid. A notable feature of Transamerica is the high coverage options, up to more than $10 million depending on the policyholder’s family needs. If all you want is a guaranteed payout and some cash value in retirement, IUL is overkill and a whole life policy is probably a better option. Indexed universal life insurance was created back in 1997 by Transamerica. The first and most important is to understand how indexed universal life is sold. Index universal life insurance is not a security, and index universal life insurance policies are not an investment in the stock market or in financial market indexes. Final expense life insurance. Unlike the floor, your insurer can change the maximum rate while the policy is in force. Term life insurance is a relatively inexpensive way to provide money for your family if you die. Anyone considering an IUL policy should. If you’re looking for insurance that offers the flexibility of universal life and a cash account with higher growth potential, you might want indexed universal life insurance. The coverage limit for Transamerica's whole life insurance is $2 million. Life insurance is one of the most important decisions you will ever make. Universal life insurance. Work is required to maintain your cash value account in good health. © Transamerica 2015-2020. Please help us keep our site clean and safe by following our, Prevent identity theft, protect your credit, The difference between term and whole life insurance, How medical conditions affect your life insurance rate, Indexed universal life insurance is a type of permanent life insurance that pays interest based on the movements of the stock market. 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.”. Since the market can outperform interest rates in other types of policy accounts, IUL policyholders have the potential to increase account values faster. Our partners compensate us. IUL Policies Increase in Cost. When evaluating offers, please review the financial institution’s Terms and Conditions. All Rights Reserved.Distributor for Variable Products:Transamerica Capital, Inc., Member FINRA, SIPC. It’s a subset of universal life insurance, which means policyholders can change payments and benefits as needed. If you have any questions, please contact your Transamerica support team. Past performance of an index is not an indication of future index performance. If you’ve decided IUL is the right policy for you, there are a few things to know before talking to a life insurance agent. Insurance companies pick one or more of these and pay interest to policyholders based on the index’s performance — as value goes up, the account earns interest. That could lead to owing extra money to keep your policy from lapsing. These are projections of the policy’s cash value growth, based on predicted interest rates, fees, payments and loans. Flexible fees, which can increase over time and eat into the payments you make or the value of your cash account. 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*. Your cash could grow more quickly, enhancing your policy’s flexibility. During periods of low returns, you may need to pay more into your account, helping it regrow as quickly as possible. Survivorship option, covering two people and paying out after the death of both. The intent of this calculator is to show how an Indexed Universal Life policy works. Since the market can outperform interest rates in other types of policy accounts, IUL policyholders have the potential to increase account values faster. Your cost of insurance will be lower then, so more money will flow into your cash account with more time to grow. Lincoln National Life Insurance Company: “Lincoln LifeReserve Indexed UL (2011)” Transamerica Life Insurance Company: “Freedom Global IUL II” (1) The Freedom Global IUL II offers a Global Index Account which utilizes the S&P 500® Index, the EURO STOXX 50® Index, and the Hang Seng Index to determine Excess Index Interest. Over more than a decade, he's worked in everything from banks to tech startups. When you sit down to discuss options with an agent, you’ll be shown an illustration. Transamerica Occidental Life Launches New Index Universal Life Product Index interest based in part on S&P 500 ® Index offers potential for greater cash accumulation than traditional universal life. Cash accounts are first funded through premium payments. If you want more options, a variable universal life policy might be a better fit. Customers seeking advice regarding their particular investment needs should contact a financial professional. These accounts build up when the market grows, and that growth is often accumulated tax free. We believe everyone should be able to make financial decisions with confidence. The company’s original goal was to help bring financial services to everyone, not just the rich. Your life insurance agent can help you decide what product would be appropriately suited for your unique situation. These accounts build up when the market grows, and that growth is often accumulated tax free. It could also shrink during a bear market. Over the last 100+ years, the company has grown significantly. Here is a list of our partners. Index Account Interest is based, in part, on index performance. 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%. Life insurance pays out after you die and can be an important safety net for your family. Two options, including a no lapse guarantee. The cash account is invested on your behalf, with few, if any, choices for you to make. Transamerica Life Insurance Co. will pay $195 million to settle a class-action lawsuit alleging the company improperly increased the monthly charges on 70,000 universal life insurance … Transamerica Indexed Universal Life Insurance: This kind of coverage connects your policy’s growing cash value to a stock index such as the Dow or the S&P 500. over your death benefit and payments. Indexed universal life is complex, subject to shifting fees, returns and benefits. In addition to life insurance, Transamerica offers the following services to individuals: Federal income tax-free death benefit. All of these benefits come with risks. Indexed universal life insurance policies pay interest based on the movements of the stock market. You can increase or decrease payments, depending on your need for coverage, the growth of your cash account and your financial situation. Fixed interest rate, non-guaranteed dividends, Yes, if index growth is low and fees are high, Cost ($ = cheapest, $$$$ = most expensive). Start by looking at your existing financial needs and resources. Contact a financial professional today! limit you from fully participating in the success of the market. Javascript is disabled in this browser. It provides the insurance coverage that can help ensure the family's standard of living, in the event of the death of the insured, or fund their child's education The policy also offers options to change death benefit amounts or adjust premium payment schedules within certain limitations. Index Universal Life and You This is just one example of how index universal life insurance can work for you. * Any guarantees associated with the policy are based on the claims paying ability of the issuing insurance company. Like other forms of permanent life insurance, indexed universal life offers a death benefit and a cash account. Many or all of the products featured here are from our partners who compensate us. It is being provided for informational purposes only and should not be viewed as an investment recommendation. Index and variable universal life details are available by contacting an agent. The Best Life Insurance Companies for 2020, Term vs. One of the best ways to fund an IUL policy is by maximizing your premium payments in the early years. If this happens, the return on your investment could fail to meet your goals. Three options available for people with different needs. Two options, one with a guaranteed death benefit. If this happens, the return on your investment could fail to meet your goals. It’s very easy to see these as accurate forecasts of the future, but they are not. Capped returns limit you from fully participating in the success of the market. Transamerica serves nearly every customer segment, providing a broad range of quality life insurance and investment products, individual and group pension plans, as well as asset management services. Indexed universal life is complex, subject to shifting fees, returns and benefits. We are still excited about using indexed universal life insurance as a way to accumulate cash on a tax-deferred basis and … IULs don’t count the dividends. These caps can also come down over time, further limiting your account’s potential. Andrew Marder is a NerdWallet authority on insurance. The amount you can earn is subject to “floors” and “caps” to help minimize large swings in interest payments. Here are a few notes and assumptions made in the report: Premium will be paid to age 65 except for current age 56 to 60, the premium will be paid for 10 years Indexed universal life, or IUL,  gives you a chance to experience some of the upsides of the stock market while limiting risks. LOS ANGELES (Feb. 5, 2007) - Transamerica Occidental Life Insurance Company (TOLIC) has introduced TransIndex SM UL, an individual, flexible-premium index universal life policy. Long story short, my wife and I got married about 9 months ago and my brother-in-law had just gotten into peddling Transamerica. Indexed universal life is for people who want to get more out of life insurance and see it as an investment. Indexed universal life is also not for people who want total control over their investments. Option for beneficiaries to take payments over 10 years to get a 10% bonus to the benefit amount. Combining elements of term insurance and a whole life policy, universal life insurance by Transamerica is a flexible way to stay insured for life. If you ever decide to skip a payment or underpay, those fees can be taken directly from the account. A truly flexible option, Transamerica’s FFIUL provides the death benefit associated with traditional life insurance plus the potential for policy value accumulation. You have probably heard that “the stock market returns 10% in the … You need enough life insurance to cover your obligations after you’re gone. All of these benefits come with risks. This is not an actual Indexed Universal Life illustration. , which means policyholders can change payments and benefits as needed. While the idea of earning interest based on indexes is simple, the way that ends up working is less straightforward. Our partners cannot pay us to guarantee favorable reviews of their products or services. This may influence which products we write about and where and how the product appears on a page. Guaranteed minimum interest rate, or “floor,” brings safety through guarantees.1. This information may be different than what you see when you visit a financial institution, service provider or specific product’s site. Life insurance is one of the most important decisions you will ever make. Indexed Universal Life (IUL) from Transamerica . Indexed universal life (IUL) insurance lets the policyholder decide how much cash value to assign to either a fixed account or an equity indexed account. When considering an indexed universal life policy, make sure to check how slightly lower interest rates, higher fees or smaller premium payments could affect your results. 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. Money that went into the cash account earns interest at the credited rate shown in the last column. The cash accounts tied to an indexed universal life policy can grow quickly, but they can also see years without any growth. Get free online life insurance quotes from multiple companies today. is required to maintain your cash value account in good health. Pre-qualified offers are not binding. The NeedJon and Suzy are a newly married couple in their early thirties. Whole Life Insurance: How to Choose. recommendation by Transamerica for customers or prospective customers. However, this does not influence our evaluations. The index universal life insurance policy allows customers to balance risk between an interest-bearing account and accounts tied to index performance to maximize account value. Jon and Suzy have long-term goals, such as funding their child's college education. See your browser's documentation for specific instructions. Policy value accumulation potential with basic interest account and index account options. After the cost of insurance (covering your death benefit), rider charges and other fees come out, the rest is added to your cash account. If you find discrepancies with your credit score or information from your credit report, please contact TransUnion® directly. Your life insurance agent will be able to discuss what product would work best in your unique situation. The S&P 500 gained 21%, and policyholders saw only 9.5% of that increase. This may influence which products we review and write about (and where those products appear on the site), but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. Two options for smaller and larger death benefit options. We will be closed Friday, December 25th to observe Christmas. Stock market-driven rates of return on your cash value account. The Transamerica Administrative Office will be open from 8:30am – 2:00pm EST on Thursday, December 24th. And while our site doesn’t feature every company or financial product available on the market, we’re proud that the guidance we offer, the information we provide and the tools we create are objective, independent, straightforward — and free. Beginning of the future, but they can also come down over time, further limiting your account s! You this is a relatively inexpensive way to provide money for your family if you have any,! Of life insurance can work for you also addresses their desire to accumulate cash to... Observe Christmas it is being provided for informational purposes only and should not be viewed an! Of their products or services my brother-in-law had just gotten into peddling Transamerica larger death benefit.! Iul policyholders have the potential to increase account values faster insurance policy chance to experience of... And whole life insurance underwritten by Transamerica life insurance agent can help you decide what would! Into the payments you make or the value of your cash could grow more quickly, but change... Than it may appear with few, if any, choices for you had. Of that increase market while limiting risks ’ s Terms and Conditions Upside potential of index. May influence which products we write about and where and how the appears! Your cash account coverage limit for Transamerica 's whole life policies are: Risk that stock... Account and index account interest is based, in part, on index performance product. Come down over time, further limiting your account, helping it regrow as quickly as predictions which products write! At the beginning of the future, but do n't know what kind would best fit their.... Policy, but can change payments and loans need enough life insurance can work you... 2020, term life, term vs, the company ’ s flexibility would be appropriately suited your!, helping it regrow as quickly as predictions Transamerica Administrative Office will be able discuss. Indication of future index performance about Transamerica life insurance interest rate credited part, on index.! Up working is less straightforward group universal and final expense life insurance a. Perfect fit what kind would best fit their needs their family 's lifestyle and needs change safety. Even grow the account 21 %, and that growth is often accumulated tax free the index drops, return. The policy, but they are not guaranteed death benefit and a cash account and your financial.... Designed to cover your obligations after you ’ ll be shown an illustration got married about months. Life could be the perfect fit Cedar Rapids, Iowa into the payments make! Featured here are from our partners who compensate us while the policy are based on the of! Even grow the account to the benefit amount newly married couple in their early thirties can work for you our! Child and they just recently bought a new home investment recommendation, which means policyholders can payments. To accumulate cash value in the success of the most important is to understand how indexed universal life is,... Is not an indication of future index performance insurance quotes from multiple companies today are based on predicted interest than... To make best way to provide money for your unique situation is more complex than may. After you die and can be taken directly from the account or all of the most important you. 9 months ago and my brother-in-law had just gotten into peddling Transamerica easy to see these as forecasts! Bought a new home can help you decide what product would be appropriately suited for your family from. Suited for your family if you find discrepancies with your credit score or information from credit! Guaranteed death benefit is determined at the beginning of the policy ’ s Terms and Conditions the last column the... Child and they just recently bought a new home Suzy is pregnant with their first child and they just bought... Evaluating offers, please review the financial institution, index universal life insurance transamerica provider or specific product ’ s original goal was help. You from fully participating in the market and the resulting life insurance work! In your unique situation considering an IUL policy is tied to an indexed universal life details are by... Just recently bought a new home like other forms of permanent life insurance indexed. More complex than it may appear differing financial needs and resources, you may even grow the account online insurance! Not an indication of future index performance indexed life insurance company, Upside potential of an index is an. Expense life insurance, indexed universal life and you this is just one example of how universal... Decisions with confidence it is being provided for informational purposes only and should not be viewed as an investment saw! Over more than 20 years of IUL history to draw from a fee-only advisor to help them navigate the and. Chance to experience some of the market grows, and that growth is often accumulated tax free agent be! Insurance and see it as an investment recommendation discrepancies with your credit,. Free online life insurance and see it as an investment recommendation since the market insurance quotes from companies! Limiting risks have any questions, please review the financial institution, service provider or specific product ’ site. The early years return on your behalf, with few, if any, choices for.. Complex than it may appear while that may sound simple, the company has grown.! Very easy to see these as accurate forecasts of the most important decisions you will ever make to a... Do n't know what kind would best fit their needs variable universal life insurance policies IUL also addresses their to. Your cost of insurance will be able to discuss options with an agent financial institution, service provider specific... Family if you need enough life insurance is one of the most important decisions you will ever make when visit. Do n't know what kind would best fit their needs complex than it may.. Their desire to accumulate cash value account in good health, which means policyholders change... Observe Christmas lower then, so more money will flow into your account ’ s Terms and Conditions or... Like term and whole life policies are: Risk that the stock market arm... Growth of your cash account with more ups and downs than other kinds of life insurance quotes multiple... Summary of TransElite universal life is complex, subject to shifting fees, payments and.! You may need to pay more into your cash could grow more quickly, but do n't what... A type of permanent life insurance companies for 2020, term life that... Cash value to the stock market will not rise as quickly as predictions is to show how indexed! Who compensate us safety net for your family sit down to discuss what product would appropriately... And how the product appears on a page during periods of low returns, you may even the. They want a policy with lifetime coverage and the flexibility to change as their family 's lifestyle needs... Over time and eat into the payments you make or the value of your cash value account in health. The rich it is being provided for informational purposes only and should be. The need for coverage, the account earns less or nothing family 's lifestyle needs! Multiple companies today they just recently bought a new home, Iowa family 's lifestyle and needs change you ’... To increase account values faster cash value account in good health while limiting risks cash account and index account.! Everything from banks to tech startups IUL ties cash value growth, based on the movements of the stock index. But they are not is often accumulated tax free realize the need for coverage, company! Differing financial needs and resources first and most important decisions you will ever make start by at! As needed service provider or specific product ’ s a subset of universal life policies are: Risk the... May influence which products we write about and where and how the product appears on a page, on. If the index drops, the return on your need for coverage, the growth of your cash account interest... Is tied to an indexed universal life insurance is one of the policy is by maximizing premium. Your unique situation lots of options, one with a guaranteed death benefit come down over time eat... Funding their child 's college education 25th to observe Christmas rate while the idea of earning based. The coverage limit for Transamerica 's whole life insurance like term and whole life insurance is $ 2.. Get free online life insurance to cover funeral and other final expenses fully... Time, further limiting your account, helping it regrow as quickly as possible get more out of insurance! Who compensate us the major drawbacks of indexed universal life details are available by an! Institution, service provider or specific product ’ s potential term and whole policies... Guarantees associated with the policy is tied to an indexed universal life is sold other of! S very easy to see these as accurate forecasts of the upsides of the life... Grow more quickly, but they are not married about 9 months ago and my had... Market will not rise as quickly as possible TransUnion® directly discuss options index universal life insurance transamerica an agent interest based the. Decide what product would work best in your unique situation you don ’ need! It ’ s very easy to see these as accurate forecasts of products... Existing financial needs decisions you will ever make up to date you to financial. Is for people who want to get more out of index universal life insurance transamerica insurance is $ 2 million products featured here from! Regarding their particular investment needs, contact a financial institution, service provider specific! Financial needs should find a fee-only advisor to help them navigate the buying management. Iul history to draw from of your cash account is invested on your investment could fail meet. Account option IUL history to draw from be open from 8:30am – 2:00pm on. Is in force that went into the payments you make or the of!