Transamerica Adds Life Policy Aimed at Retirement Savers
The index option menu includes two global index options.
Transamerica has introduced a life insurance policy that could help high-income clients save more for retirement.
The new Transamerica Financial Choice IUL product is an indexed universal life insurance policy with five index accounts and a fixed-interest account on its crediting rate option menu.
Clients who earn too much to contribute to Roth IRAs and are healthy enough to buy the policy can contribute to the policy and get cash later by taking out policy loans, Transamerica says.
Under current IRS rules, policyholders can borrow from their policies without increasing their taxable income.
The Menu
In addition to the fixed account, which pays a minimum rate of 1%, the index menu includes two accounts tied to the performance of the S&P 500.
The menu also includes two accounts tied to the performance of an index that reflects the performance of the Euro Stoxx 50 index and the Hang Seng index as well as the S&P 500.
The fifth index account is the Fidelity Small-Mid Multifactor Index Account.
The index accounts have a guaranteed minimum index credit rate of 0.25%.
Transamerica imposes no cap on what policyholders can earn on the policy amount held in the Fidelity index account.
The cap rates for the other index accounts range from 9.5% to 14%.
Details
Transamerica is issuing the policy through Transamerica Life Insurance Company, which is based in Iowa.
The policy has a $250,000 minimum policy amount.
Optional living benefits riders can give policyholders early access to benefits if they suffer from a critical, serious chronic or terminal illness.
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