Two Advantages – Transamerica Life’s Universal Life Policies

Transamerica Life has two Universal Life policies: Wealth Advantage which, as the name implies is geared more toward individuals who are focused on wealth accumulation; and Estate Advantage, which is designed for income protection and estate preservation.

The Wealth Advantage policy has an attractively priced annual renewable term cost of insurance structure; with this option, the life insurance charges are very low in the initial policy years, allowing the plan to maximize cash accumulation. The policy also has a performance bonus which is linked to the plan’s investment return, and commences in year two. On the downside, the cost of insurance increases dramatically in later policy years. Moreover, the plan has surrender penalties for the first 10 policy years.

The Estate Advantage policy has a very well-priced level cost of insurance option. This option has a higher initial cost, but the policy’s insurance charges remain level for life. The policy also has a choice of two investment structures: an accumulation bonus, which has higher management expense ratios on its investment accounts, but also has a bonus that starts in year two; or a low fee option which does not offer a bonus on its investment accounts, but has lower management expense ratios.

Both plans offer the following features:

• The premium tax is built into the cost of insurance
• Preferred rate on face amount of $250,000 and greater on policyholders 16 or older
• Multi-life or joint policies
• Children’s term rider
• Waiver of premium rider
• Guaranteed insurability rider

As an example of their pricing, a 45-year-old male non-smoker who applies for $250,000 of Universal life level cost coverage will pay a minimum premium (i.e., the premium to keep the plan in force) of $169.58 per month.