LIFE INSURANCE AS A FOUNDATION

With life insurance, you have peace of mind that you and your family have laid a firm foundation for your financial future. The federal tax-free death benefit offered by all types of life insurance allows families to help meet financial obligations and rebuild in a time of need. However, only permanent life insurance includes a death benefit as well as the potential to grow Policy Value for use later in life

INDEX UNIVERSAL LIFE CAN PROVIDE

A DEATH BENEFIT

GROWTH POTENTIAL

TAX ADVANTAGES

DOWNSIDE PROTECTION

OPPORTUNITIES FOR GROWTH POTENTIAL

To build assets or increase purchasing power, growth has to exceed inflation, not just keep pace with it. A choice of domestic and global index account options may offer the opportunity you need to keep up. The transamerica financial foundation IUL gives you the option to allocate your Net Premiums to one or more of the following accounts:

  • Global Index Account
  • S&P 500 Index Account
  • Basic Interest Account
The Basic Interest Account is credited with a rate of interest declared by the Company and the two Index Accounts are credited with any Excess Index Interest based on changes in one or more indexes.

The Global and S&P 500' Index Accounts have the potential to credit higher interest rates than the Basic Interest Account, up to their Caps. The Cap is the maximum percentage of index enange your Index Account may be credited.

THE POWER OF A GUARENTEED FLOOR

Index changes may be positive or negative. With the Transamerica Financial Foundation IUL, you have the security of knowing you will never be credited less than the Guaranteed Minimum Interest Rate, * or floor. The floor is a protective feature that ensures all three account options will always credit positive interest. That is the power of a guaranteed floor.

Avoiding Loss Can Be As Important
As Realizing Gains

IMPORTANT TAX ADVANTAGES

Tax Deferred Earnings

Life insurance contracts meet special IRS requirements that allow amounts credited to the Policy Value to be tax deferred. This favorable treatment can enhance the Transamerica Financial Foundation IUL's Policy Value accumulation potential.
You do not have to pay taxes on any gains in the policy during years in which they are earned or while they remain in the policy is surrendered, lapses, or when certain distributions occur. The gains left in the policy can continue to accumulate and lead to potentially higher Policy Values. IRC Sec. 72

Tax-Free Access to Policy Value

Tax-Free Loans and Withdrawals*
As your life changes, you may access your accumulated Policy Value through tax-free policy loans and cash withdrawals.
Here's How When yhe Policy Value is sufficient, this policy provides the flexibility to make withdrawals up to your cost basis in the policy. Provided there is still enough Cash Surrender Value in the policy, you could continue taking money out of it in excess of your basis through tax-free loans. When you take a policy loan, an amount equal to the loan balance will be transferred to a loan reserve account. Interest is charged on the loan
balance, but at the same time the money in the loan reserve account earns interest which is credited to the Policy Value. The credited interest helps offset the interest charged on the loan, resulting in a net effective rate which is generally lower than the loan interest rate charged by banks for similar secured loans. In certain circumstances, the loan interest reate charged on the loan balance is the same as the rate credited (see the next page). And as long as you stay within IRS guidelines, the withdrawals and loans may be taken without federal income tax liability.