INSIDE: imaxx now available for inforce UL plans • Finally! An easy way to quote Single Premium Immediate Annuities A new way to convert term to UL • Accountable UL: pride in the fine print • Advance notification of e-Statements As an advisor, you know that clients don’t really think of buying life insurance. Rather, they seek solutions to the specific needs and concerns that arise at each stage of life. From wealth enhancement to estate planning, income protection to healthcare, advisors who offer true solutions can earn more business than those who simply sell products. At Transamerica, we want to help you embrace this philosophy. We are expanding and enhancing our series of “turn-key” insurance solutions. We are implementing product upgrades to ensure the effectiveness of our solutions. And we are helping you maintain lasting client relationships with more comprehensive inforce services. This publication highlights some of our most recent upgrades and innovations, and more will follow in the coming months. Please keep reading to find out how Transamerica can help you provide solutions for every stage of life. WealthADVANTAGETM and EstateADVANTAGETM clients imaxx TOP Portfolios are based on the strategy of already enjoy the benefits of investing in imaxxTM asset allocation. Each portfolio combines multiple top- interest options, and now policyowners of some of ranked, brand-name mutual funds and is diversified by our older plans are about to receive the same benefits. asset class, geography, investment style, and market New imaxx interest options are now available within cap. Using our convenient Investment Questionnaire ADVANTAGELifePlus, Challenger, Discovery 2000 and (IP-LP793), you can help your clients establish an Enterprise UL plans. appropriate level of risk, then choose a TOP Portfolio The new offerings are interest options linked to with a corresponding risk profile. the imaxx Canadian Fixed Pay Fund and each of four The result is an interest option selection that is optimized imaxx TOP Portfolios which are comprised optimized to generate the highest potential rate of of leading Canadian mutual funds. return at a client’s preferred level of risk. What makes these interest options unique? The total annual fee for these new interest options – imaxx Canadian Fixed Pay Fund is the first fixed- including the underlying mutual fund’s MER and the pay fund in Canada that is available for UL plans. UL interest option fee – is guaranteed never to exceed The fund provides a fixed monthly income stream an annual maximum. That way, your illustrations will which is automatically reinvested to maximize be more accountable and your clients will know exactly tax-deferred compounding. what to expect. This focus on generating income through On December 15th, our new UL Allocation Form investments in income trusts and other securities will include the imaxx interest options. Clients who helps the fund provide a buffer against market switch to imaxx will automatically receive a contract volatility, with the potential for higher returns than endorsement with their confirmation slip, with no many fixed-rate investments. action required on your part. What’s more, transfer Continued on reverse Investment Loan Strategy update Our highly successful Investment Loan Strategy (ILS) with adequate assets, cash flow and sophistication for has undergone some revisions that make it even more this innovative strategy, please contact your Regional attractive for high net worth clients. If you have clients Sales Director for complete details. Mortgage protection for home: MORTGAGESelectTM simplified-issue term insurance Transamerica’s Single Premium Immediate Annuities As of January 2004, LifeView 4.2 will enable you to (SPIA) offer a simple and reliable way to earn tax quickly generate SPIA quotes right on your desktop, efficient, guaranteed retirement income for life. And in real time. Copies of the software will be available with the upcoming launch of the newest version of from the DRC or by faxing DDS at 1-800-385-8790 or LifeView, getting quotes for your clients will be easier 416-421-4707 locally. than ever. Continued on reverse Accountable UL: pride in the fine print Ever worry about the fine print? With Transamerica, in the Fine Print” to see some of the specific ways in you don’t have to because our WealthADVANTAGE and which Transamerica places a priority on accountability EstateADVANTAGE universal life plans feature some of in our UL products. the most reliable illustrations in the industry. Beware of these five potential pitfalls in the fine print What’s more, our contracts include predictable daily of some universal life contracts: MERs and unconditional bonuses that do not vary with the type of investments selected. And with the security 1. How is premium tax paid? Unless premium tax is of built-in premium taxes, ours is the only contract that part of the guaranteed COI, changes in tax legislation can be structured to be fully guaranteed. That way, you could cut into your client’s investment capital, distorting and your clients can actually take comfort in the fine print. initial illustrations. Charging premium tax separately Please review the enclosed article entitled “Pride Continued on reverse TRANSEXPRESS has left the station! TRANSEXPRESS is a weekly e-mail that consolidates the can affect your business. Sign up to receive TRANSEXPRESS latest news from Transamerica into one convenient on the User Profile screen within the DRC, or look digest. TRANSEXPRESS is a companion to our popular under ‘Resource Centre’ and ‘News’ on the DRC, DRC, with updates on legal, compliance, corporate, and get on board today! marketing, operational and administration issues that Health protection for entire family: CriticalADVANTAGETM out-of-country medical expense coverage Wealth accumulation: WealthADVANTAGE plan with imaxx interest options TERMSelectTM is known as an affordable and flexible Want to see just how much of a difference a term term policy, and we’ve just added even greater flexibil- conversion can make? See the table “Using a Term ity for your clients. Conversion to Increase UL Premiums” (on reverse). Now you can convert a TERMSelect policy – or any We’ve used a $500,000 term policy issued to a 40-year term policy held in-force with Transamerica – into a old as an example, and examined the maximum UL UL policy, and “port” the duration of the term policy. premiums available when the policy is converted to Crediting the duration of the term policy to the UL UL in the 6th or 10th policy year, and compare both policy increases its tax-exempt room, meaning the scenarios to simply buying a new UL policy without client can shelter a greater amount of savings in their any conversion. plan (subject to tax-exempt testing rules). Please note that mortality charges are the same If you have clients that have maxed-out their RRSPs under both the new and old rules, and are excluded and still need more tax-sheltering room, then convert- from these calculations, and that we’ve used an ing an existing term policy to UL could be the best interest rate of zero per cent to simplify calculations. solution. For detailed information on how to benefit Nonetheless, the conclusion is clear: in most cases, from this feature, please see the TERMSelect Marketing converting from term to UL has advantages over Guide (LP469) and check out the new Term-to-UL buying a new UL policy. conversion feature in LifeView. Continued on reverse TERMSelect ‘Thank You’ sale ends soon Thank you for making TERMSelect the term policy of choice right across the board. Transamerica even has lower among independent advisors. Since November 1, 2003, rates, higher face amounts, or both compared with Transamerica has waived the $50 annual policy fee on competitors who offer preferred underwriting between all TERMSelect applications with face amounts of $100,000 $100,000 and 250,000. and above, but the sale ends January 31, 2004 for Band 2 We hope you’ll take advantage of this limited-time policies ($100,000-250,000). offer. For a head-to-head rate comparison, please see the Now one of the industry’s best term policies is also TERMSelect Thank You Sale flyer available on the DRC. among the least expensive at almost every face amount, Personal business investment: Transamerica’s Investment Loan Strategy Estate planning: EstateADVANTAGE plan with imaxx interest options New fixed rate UL Interest Options Want more choice when it comes to fixed rate To keep things simple, eligible clients who select interest options? Introducing our new 1, 2, 3 and these options will automatically receive a contract 4 – year Fixed Rate Interest Options available within endorsement with their confirmation slip, with no certain WealthADVANTAGE and EstateADVANTAGE plans action required on your part. Please see the new (WAV2 & EAV2) effective January 2004. Unlike some Interest Option Fact Pages on the DRC or in LifeView of our competitors, we do not charge an MVA when to find the best interest option for your client, and monthly deductions are drawn from these options, forward any investment instructions to us using the making them both secure and efficient. latest UL Allocation Form. New National Bank Trust UL Interest Options National Bank Trust has partnered with Transamerica Portfolio Index Interest Options offer a disciplined to offer our UL clients access to a new range of asset investment approach that focuses on diversified asset allocation interest options. National Bank Trust classes, investment strategies, well-structured portfolios Continued on reverse Powerful upgrades in LifeView v.4.2 Our LifeView illustration software is constantly evolving • Updated term rates that reflect the recent re-pricing of with powerful new features designed to make your the highest band ($1,000,000+) as well as the limited- illustrations faster, easier, and more accurate than time policy fee waiver for Band 1 (until January 31, 2004) ever. Upgrades to LifeView 4.2 include: • The ability to illustrate a UL plan with enhanced • A built-in tool for obtaining quotes on Single maximum premiums when converting an existing Premium Immediate Annuities (SPIAs) plus a term policy new feature that automatically populates the To obtain a copy of LifeView 4.2 when it is released SPIA application with your client’s information. in January 2004, please fax a request to DDS at 1-800-385-8790 or 416-421-4707 locally, or download it from the DRC. Advance notification for e-Statements Wouldn’t it be convenient to know which clients will and print out a handy list of upcoming annual and have e-Statements published next month? Now you quarterly statements, making it easier to plan your can sign up for advanced notification on your User portfolio reviews and sales activities for the coming Profile Screen within the DRC. You’ll be able to access weeks. Please visit the DRC today to learn more. Business succession: buy-sell agreement using TERMSelect Guaranteed retirement income: Single Premium Immediate Annuity (SPIA) imaxx now available for inforce UL plans Continued from reverse Choose imaxx Canadian Fixed Pay Fund for secure income, or one of four optimized imaxx TOP portfolios. fees on imaxx transfers are waived even for those FIXED INCOME EQUITY clients who have exhausted their annual free allotment. RETURN Aggressive imaxx interest options offer compelling benefits Balanced Growth Growth to investors, especially those who are nervous about Conservative market volatility. They also make life easier for advisors, as they require no ongoing investment decisions. RISK If you’ve got clients who own one of the eligible UL plans, they will receive an introductory imaxx brochure discuss these new imaxx interest options with your clients. with their next annual policy statement with instructions Chances are, you will find attractive UL investment to contact their advisor. We suggest reviewing the alternatives, and the opportunity for new business. imaxx Performance Guide (AFM99) and preparing to Accountable UL: pride in the fine print Continued from reverse could also result in double-taxation in the case of 4. How are MERs calculated? Beware of daily funds that are removed from the plan due to tax- compounded MERs that are actually higher than the exempt testing, then transferred back at a later date. published (estimated) numbers on an annual basis. 2. Are bonuses conditional? Watch out for policies that 5. What is the net return? When illustrating UL plans, reduce or eliminate the investment bonuses on certain it is not only important to use conservative rates of options or in certain market environments. return, but also ones that are net of all fees and MERs. 3. How are bonuses invested? If bonuses aren’t automatically re-invested in the client’s chosen interest option and this is not factored into the illustration, actual long-term investment results could be reduced by 10 to 20 per cent. Finally! An easy way to quote annuities Continued from reverse How does our SPIA stack up against the competition? The following table compares rates on a single life, male, 10-year guaranteed, $100,000 non-registered annuity as of November 20/03. Age in Years Financial Institution 55 60 65 69 70 Transamerica Life Canada $ 559.76 $ 606.95 $ 669.33 $ 729.73 $ 745.95 Canada Life $ 560.58 $ 606.17 $ 665.34 $ 715.26 $ 727.23 Desjardins Fin. Security $ 575.06 $ 623.33 $ 685.90 $ 745.89 $ 762.05 Empire Life $ 567.96 $ 621.44 $ 690.44 $ 747.45 $ 761.71 Equitable Life $ 564.68 $ 611.34 $ 672.14 $ 731.21 $ 747.27 Great-West Life $ 530.08 $ 572.52 $ 628.29 $ 682.39 $ 696.99 Manulife Investments $ 547.77 $ 597.98 $ 659.13 $ 720.48 $ 736.30 Maritime Life $ 570.59 $ 619.58 $ 682.49 $ 741.86 $ 757.65 SSQ Financial Group $ 563.17 $ 605.18 $ 661.32 $ 716.55 $ 731.64 Standard Life $ 544.65 $ 592.43 $ 653.68 $ 712.45 $ 728.44 Sun Life Assurance Co $ 555.96 $ 598.12 $ 654.25 $ 708.88 $ 723.32 See our SPIA flyer (IP873) for an overview of the SPIA’s key features, and a brief tutorial on generating quotes. If you’ve got clients who need guaranteed, tax-efficient retirement income, we’ve got the solution. Source: Cannex New National Bank Trust UL Interest Options Continued from reverse and tactical deviation. With $3 billion in assets under management, National Bank Trust is a leader in discretionary investment management. Beginning January 2004, the following interest options will be available within certain WealthADVANTAGE and EstateADVANTAGE plans (WAV2 & EAV2): National Bank Trust Portfolio Index Interest Option Investment objective Investment profile National Bank Trust To provide regular interest income and Conservative Conservative Portfolio capital security. Slight equity exposure offers the potential for moderate long-term capital growth. National Bank Trust To provide medium to long-term capital Balanced Balanced Portfolio growth. Exposure to interest income, regular dividends and capital gains offers long-term potential with moderate risk. National Bank Trust To provide strong long-term capital Growth/ Growth Portfolio growth. Primary exposure to equities Aggressive Growth offers high potential returns in exchange for short-term volatility. Please see our latest Interest Option Fact Pages on the DRC or order a copy of Transamerica’s updated Interest Options Guide (available early 2004) for complete details. As always, investment instructions should be sent to us using the latest Allocation Form, available on the DRC. A new way to convert term to UL Continued from reverse Using a Term Conversion to Increase UL Maximum Premiums (assumptions: $500,000 term policy issued on 40-year old) Term Year 6 Term Year 10 UL Policy Year Convert Term to UL Purchase New UL Convert Term to UL Purchase New UL 1 $87,800 $26,900 $58,400 $28,500 2 19,000 20,900 7,600 22,600 3 18,500 20,500 7,200 22,100 4 19,000 21,000 22,600 22,600 5 9,400 11,300 12,900 12,900 Total Premiums $153,700 $100,600 $108,700 $108,700 As you can see, converting term to UL in the sixth money sooner, reaping the benefits of a longer period policy year yields a very significant increase of $53,100 of tax-free investment compounding. ($153,700-$100,600) in total premiums allowed in the The benefit of increasing the maximum premium first five years of the UL plan, compared to buying a room is limited in years eight through ten, with the new UL plan. most benefit generally in years five through seven. If the client in our example had waited until the term To help you find the best time to convert, we’ve added policy’s tenth year to convert, total premiums would a “Term Conversion” tab in LifeView 4.2 which allows not increase, but the bulk of the premiums would be you to run illustrations using duration credits from a heavily weighted towards the first few years of the term conversion UL policy. This would allow the client to invest more Sales Support Download product information, LifeView updates, and our helpful Informed Advisor and Informed Consumer one-pagers on a variety of topics from Transamerica’s Distributor Resource Centre (DRC) at https://transact.transamerica.ca. Order Allocation Forms, applications and other hardcopies from DDS by fax at 1-800-385-8790 across Canada, or 416-421-4707 locally. Request personalized sales and marketing support from a Sales Director in your region: Western Central Eastern 1-888-220-2881 1-888-245-5501 1-800-361-4284 Transamerica’s universal life policies are offered solely by Transamerica Life Canada. Policyholders have no direct or indirect rights to units of the imaxx TOP Portfolios on which the performance of the applicable interest option may be based. The policies are not products of AEGON Fund Management Inc. or any of the managers of the underlying funds held by the imaxx TOP Portfolios. None of these managers or their affiliates guarantees the obligations of Transamerica Life Canada under the policies or the performance of the policies. National Bank Trust is a subsidiary of National Bank of Canada. ™ Trademarks of AEGON Canada Inc. The subsidiary companies of AEGON Canada Inc. are licensed to use such marks. ® Transamerica and the pyramid design are registered trademarks of Transamerica Corporation. Transamerica Life Canada is licensed to use such marks.
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