Transamerica Upgrades Variable Annuity Rider
2008-11-10 22:34:03 -
- Transamerica Life Insurance Company (Transamerica) today introduced an upgraded version of its guaranteed lifetime withdrawal benefit rider that can help address retirement challenges like long-term care costs and market volatility. Retirement Income Choice, available with Transamerica's suite of variable annuities, provides a new feature that may increase the withdrawal amount available under the rider.
"Retirement Income Choice provides multiple solutions for the growing landscape of retirement challenges," said Dave Paulsen, executive vice president, national sales manager at Transamerica Capital, Inc. "The additional solution can help address retirement uncertainty as the need for specific retirement income planning continues to grow."
The latest feature available with the innovative Retirement Income Choice is the Double Withdrawal Base benefit. After 10 rider years or the rider anniversary after age 67 (whichever is later), the withdrawal base (WB) will be at least double the initial WB, provided no withdrawals were taken. This benefit will include all premiums added within 90 days of the rider date. If the WB after 10 years is higher than the benefit amount, the higher WB is used.
The Double Withdrawal Base benefit offers an incentive to wait to begin withdrawals, and an attractive feature for those not old enough to take withdrawals permitted under the rider right away.
Retirement Income Choice continues to offer two additional features. The Power of 12(SM) provides 12 chances to receive an automatic step-up on the WB annually. The Income Enhancement benefit - while not a substitute for long-term care insurance - can help pay for long-term care expenses in some cases. The benefit doubles the rider withdrawal percentage if the owner is confined to a hospital or nursing facility as defined by the rider, and under certain conditions.
Financial professionals interested in learning more about the new Retirement Income Choice 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.
Should the annuity's policy value fall to zero, clients will receive payments for life up to the amount allowed under the rider.
Transamerica variable annuities' range of fees and charges include 0.60%-2.35% Mortality and Expense Risk fee and Administrative charges (M&E&A), 0%-9% surrender charges, $35 annual fee, and subaccount fees. A fund facilitation fee of up to 0.20% may apply for certain subaccounts. Retirement Income Choice (RIC) initial fees range from 0.75%-1.25% annually, depending on options chosen. RIC fees are an annual percentage of the WB. The rider fee percentage may increase after the first five rider years with an automatic step-up. Withdrawals may be subject to surrender charges.
Withdrawals of taxable amounts are subject to ordinary income tax and, if taken prior to age 59 1/2, a 10% federal tax penalty may apply. Any withdrawals, including those permitted under the RIC rider, reduce the policy value, death benefits, and other annuity values. Withdrawals in excess of the amount allowed by the rider will result in a decrease in the dollar amount of future withdrawals available under the rider.
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.
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 information. Read it carefully.
Guarantees are based on the claims-paying ability of Transamerica Life Insurance Company.
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 ratings for financial strength from the nation's leading independent agencies that rate insurance companies. For current ratings, please visit www.talife.com.
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.
About AEGON
AEGON is one of the world's leading life insurance and pension groups and an important provider of long-term investment and savings products. Based in The Hague, the Netherlands, AEGON companies have more than 40 million customers and approximately 31,500 employees around the world. AEGON's business structure stresses the importance of balancing local knowledge and local financial solutions with the resources of an expanding global operation.
All policies, forms, and riders may vary by state, and may not be available in all states. RGMB 31 0708, RGMB 33 0708, RGMB 31 0708 (IS) (FL), RGMB 33 0708 (IS) (FL), other versions also available, RGMB 31 0708 (IS) (OR), RGMB 31 0708 (IJ) (OR), RGMB 31 0708 (AS) (OR), RGMB 31 0708 (AJ) (OR), RGMB 33 0708 (IS) (OR), RGMB 33 0708 (IJ) (OR), RGMB 33 0708 (AS) (OR), RGMB 33 0708 (AJ) (OR)
CPERIC1108
Transamerica Life Insurance Company
Ryan Hoffman, 720-482-1505
rhoffman@aegonusa.com
