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Transamerica | Important: FFIUL Illustration Rates

November 23, 2020

Effective December 5, 2020: Transamerica will implement new maximum illustrated rates for the following IUL new business and in-force illustrations. The new maximum illustrated rates for Transamerica Financial Foundation IUL® (FFIUL) & TFLIC Financial Foundation IUL® are below:

Maximum Illustration Rate

FROM TO
S&P 500® Index Account 7.70% 7.20%
Global Index Account 7.70% 7.20%

We’ve updated the maximum illustrated rates for our IUL based on the new actuarial guideline, AG49A. AG49A is an update to the existing AG49 regulations that were implemented in 2015. AG49A tasked the ACLI to update regulations so that products with multipliers and bonuses illustrated the same as products without these features. Transamerica’s IUL does not have these features, however, AG49A has affected our max illustrated rates. AG49A has also affected our min/max rates shown in the Narrative Summary.

To learn more about AG49A and how it will impact illustrations, we’ve prepared a helpful document.

FOR IUL APPLICATIONS SUBMITTED PRIOR TO DECEMBER 5, 2020

AG49A does not affect IUL product features, such as caps and floors. However, policies issued December 5 and later will include illustrations that utilize the new maximum illustrated rate and the hypothetical values could be lower than what you originally showed to your client. In force illustrations that run December 5 or later are limited to the new lower maximum illustrated rate.

We recommend you begin using lower rates immediately. Using the new maximum illustrated rates today will help ensure the illustration you share with your client will be consistent with the one included in the issued policy.

ADJUSTING THE ILLUSTRATED RATE IN THE ILLUSTRATION

IUL illustrations default to the maximum illustrated rate. However, the illustration software gives you the flexibility to lower the rate to the new maximum illustrated rate, or any rate between the floor and the maximum. To change the rate, please access: myTransware > Allocation > Rate and enter a lower rate.

If you have any questions, please contact your sales team.

For more information, contact a Pinnacle Financial Services representative today

1 (800) 772-6881 x7731 | sales@pfsinsurance.com

Contact a Pinnacle Representative if you have any questions.

1 (800) 772-6881
support@pfsinsurance.com

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