New index universal life insurance offers opportunity for tax-advantaged choice and flexibility
Transamerica announces the availability of the Transamerica Financial Choice IUL, a new index universal life insurance policy to protect beneficiaries while providing flexibility and opportunity for tax-advantaged supplemental income. The Transamerica Financial Choice IUL offers life insurance protection and a variety of index options and policy features to help customers maximize accumulation potential and access to cash value.
“At Transamerica, we continue to create new solutions, such as the Transamerica Financial Choice IUL to help meet our customers’ changing needs and expand our distribution to ensure these customers have the right coverage to help build wealth now and in the future,” said Jamie Ohl, President of Transamerica’s Individual Solutions division.
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“The Transamerica Financial Choice IUL is designed for clients seeking protection and flexibility with tax-free supplemental income,” said Andrew DeMarco, Head of Life Solutions at Transamerica. “This product delivers upside potential with downside protection for those customers who want to supplement their retirement income or diversify their tax liability. We’re pleased to offer more peace of mind along with the ability to help maximize accumulation potential.”
Some of the benefits of the Transamerica Financial Choice IUL include:
- Life insurance protection for loved ones – The death benefit from Transamerica Financial Choice IUL can help replace income, fund major expenses, or leave a financial legacy for loved ones. The insurance protection includes a generally tax-free death benefit and optional living benefit riders1 for qualifying critical, chronic, and/or terminal illnesses.
- Tax-free supplemental income2 – A properly funded Transamerica Financial Choice IUL policy offers customers tax-free access to the policy’s available cash values, minimizing taxable income in a given year. This helps maximize after-tax income, diversify and manage tax risk or build a diversified and tax-efficient retirement distribution strategy.
- Power of indexing and versatility of choice – The policy offers a diverse mix of index options that provide choice and control for policyholders. Customers can choose from domestic and global index options and high or uncapped index rates. Customers can also obtain greater coverage with buy-up options to help maximize tax-efficient policy value accumulation.
- A cash value strategy – This policy helps customers create a flexible source of cash. For example, a parent can save for a loved one’s education without impacting their ability to qualify for financial aid or set aside after-tax dollars for retirement as an alternative to a Roth IRA3.
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Individuals who contribute the maximum to qualified plans and are seeking additional tax-advantaged strategies will find the Transamerica Financial Choice IUL particularly attractive. This product will also appeal to small business owners looking to fund or start a new venture, or those who use life insurance to support business-planning strategies such as deferred compensation, split dollar, and executive bonus.
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