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Transamerica

ProdMod: Transamerica Lowers Cap Rates on FFIUL & Other IUL Products

FROM TRANSAMERICA…

A pillar of our index account strategy is to act responsibly and in the best long-term interest of clients and agents. We believe this will allow us to deliver on our promises for centuries to come. This means Transamerica needs to remain disciplined and adjust our cap rates to remain the strong, stable IUL carrier insurance professionals can rely on.

Transamerica Financial Foundation IUL (FFIUL) Cap Rate Updates

The following cap rate changes apply to newly issued FFIUL policies as well as in force policies with a segment that is created or renewed on September 24.

Cap rates changes are effective September 24, 2022, for the Transamerica Financial Foundation IUL (IUL09):

  • S&P 500 Index Account
    • Old = 13.75%
    • New = 12.00%
    • Max Illustrated Rate = 7.00%
  • Global Index Account
    • Old = 15.00%
    • New = 13.00%
    • Max Illustrated Rate = 7.00%

Please note, there is no change to the FFIUL maximum illustrated rate, spread, participation rate, or Guaranteed Minimum Interest Rates (floor). Additionally, there is no change to cost of insurance rates on our in force policies.

Important Dates & Transition Guidelines

Cap rates apply to the index account segments as of the beginning date and apply for the full segment period. An index account value is equal to the sum of the values of the index account segments, plus or minus any values from pending transactions that may apply to any given segment. This value may include net premiums, loan repayments, transfers, and excess index interest, if any, as allocated to the index account(s).

In Force IUL Policies
  • For impacted products (see table), new and/or renewing segments generated on or after 9/24/2022 will have the new cap rate.
  • The current $25 withdrawal fee for IUL09 / IUL09NY will be eliminated for withdrawals processed on or after 9/24/2022.
  • The loan charge for IUL09 / IUL09NY policies in years 11+ will be reduced from 2.75% to 2.0% for new and existing loans.
Pending IUL Applications (IUL09 / IUL09NY Only):
  • Policies printed/issued on or before 9/23/2022 will have the old cap rates. New and/or renewing segments generated on or after 9/24/2022 will have the new cap rates.
  • Policies printed/issued on or after 9/24/2022 will have the new cap rates.
    • Includes new submissions
    • Includes in flight pending applications
NY Statement of Understanding Form (IUL09NY Only):
  • The existing AG09NY0122 form will be replaced with the new AG09NY0922 form, as of 9/24/2022.
  • The new form (AG09NY0922) will be available through the iGO e-App and on tflic.com, starting 9/24/2022.
  • Pending applications signed on or before 9/23/2022 do not require the new form.
  • Applications signed on or after 9/24/2022 must have the new form prior to print or issue.
Additional Information

Find out more about these changes from Transamerica…

AdminUpdate: Transamerica Expands ITIN Guidelines & LTC Rider Eligibility

FROM TRANSAMERICA…

Transamerica is pleased to announce several exciting changes to our underwriting guidelines to help you provide more coverage to families and individuals to expand your business.

ITIN Program Enhancements

Based on feedback from agents, we’re pleased to announce several enhancements to the Individual Taxpayer Identification Number (ITIN) program.

For applications dated July 1 and later, updates to the ITIN program include:

  • Trendsetter LB availability
  • Qualifying ITIN applicants may add the Chronic Illness Rider, Critical Illness Rider, and Long Term Care (LTC) Rider* to our industry-leading Transamerica Financial Foundation IUL — note that riders must be added at issue.
  • We are also pleased to announce that Asylum Seekers (C8) are now eligible to apply for coverage under our ITIN program.

Click here to view ITIN Guidelines.

LTC Rider Eligibility Enhancements

For applications dated July 1 and later, U.S. residents with eligible visas and Employment Authorization Cards are now eligible for the LTC Rider. Download the Field Guide to Underwriting for eligibility details.

Click here to view the Field Guide to Underwriting for eligibility details.

* The Long Term Care Rider and Chronic Illness Rider are not available on the same policy. Riders must be added at time of issue.

Find out more about these changes from Transamerica…

AdminUpdate: Transamerica Offers New Term Policy PDFs on TransACT

FROM TRANSAMERICA…

Agents and firm contacts will now be able to view and download new term policy PDFs on TransACT. Term policy PDFs will be available for cases mailed or eDelivered on or after April 27, 2022.

The term policy view and download feature gives agents:

  • Improved Visibility – Access to issued term policies and delivery requirements in real-time
  • Faster Client Coverage – Communicate with clients about any delivery requirements to help speed up policy placement
  • Superior Customer Service – Proactively notify and set client expectations before the client receives the policy
  • Better Record Retention – Save digital copies of term policies to manage in force business efficiently

You can find term policy PDFs in the Delivery Requirements section on TransACT. Once a term policy has been issued or mailed, a PDF icon will display next to the Requirement labeled Policy Document. Clicking on the Policy Document icon will open the term policy PDF.

NOTE: Policies must be issued and mailed to view and download the policy PDF. The view and download feature is currently only available for term policy PDFs on TransACT.

For a full list of FAQs on the New Term Policy PDFs, click here.

Find out more about these changes from Transamerica…

ProdMod: Transamerica to Reprice Trendsetter Super

FROM TRANSAMERICA…

Here’s what we’re doing to give you, your agents, and your clients more competitive rates for Trendsetter® Super.

  • Effective March 26, 2022: The new pricing will take effect. There will be no rate increases, and premiums across the portfolio will either decrease or remain the same.
  • Improved pricing for your healthiest clients: Now in the top five over 80% of the time for healthiest client cells for face amounts $250K–$3M, ages 25–55; best rate class on the 10, 15, and 20-year term durations
  • Improved rates for higher face amounts: Now in the top five 55% of the time for face amounts $3M–$10M, ages 25–55; all term durations (10, 15, 20, 25, and 30 year)

Find out more about these changes from Transamerica…

ProdMod: Transamerica Launches Updated Financial Foundation IUL

FROM TRANSAMERICA…

FFIUL Just Keeps Getting Better

Effective December 4, 2021, Transamerica Financial Foundation IUL® (FFIUL) may be an even more attractive option for your agents and their clients. From lower charges and fees to expanded coverage, FFIUL features several exciting enhancements we think you and your agents are going to love:

  • Reduced Per Unit Charges (PUC) – New lower PUC in all cells for bands 2, 3, and 4 mean many new policies with a face amount of $100,000 and above are now even more competitively priced.
  • 30% Lower Minimum No-Lapse Premiums – Requires less premium to guarantee the policy stays in force if your client’s financial circumstances change.
  • Higher Funding Limits – Transamerica’s illustration and administrative systems have been updated to reflect new regulatory interest rates under the 7702 & 7702A guidelines.
  • Expanded LTC Coverage:
    • LTC International Coverage Benefit – FFIUL policyholders in the U.S. with the LTC Rider, who incur qualified LTC expenses at an international long term care facility outside the U.S., District of Columbia, and Canada, can now file an LTC claim.
    • LTC Informal Care – The Long Term Care Rider now allows clients to pay family members, friends, or even neighbors for providing care as outlined in the plan of care.

Transition Rules

  • All applications submitted on or after December 4, 2021, will reflect new repricing and new plan codes.
  • In-flight applications (submitted prior to December 4, 2021)
    • Cases issued on or after December 4, 2021, will get the new plan codes, repricing, and illustration.
    • Cases issued or printed prior to December 4, 2021, will have old rates and plan codes.

Find out more about these changes from Transamerica…

Transamerica 2021 Year-End Deadlines

Below please find important deadlines regarding year-end commission and payout dates for Transamerica.

  • December 20th: All premium and final delivery requirements must be received in good order on or before this date to ensure placement prior to year-end.
  • December 21st and after: New business and delivery requirements will continue to be processed, but are not guaranteed to be in force prior to year-end.
  • December 24th: Last commission cycle for the year. All business to count for 2021 production year will need to be placed by this date.
  • December 24th: Closed for the holiday

Please contact your sales support team for any questions you may have.