Pricing / Performance
Variable Universal Life
Variable universal life insurance to help protect your legacy
The loss of a loved one can be the most devastating event for a family. Those you leave behind not only have to deal with the emotional grief, but often financial hardship may set in due to lost income. Mortgage payments still need to be made, child care is still needed, and what about the dreams of sending your child to college - will that still be possible?
Life insurance can help provide the necessary protection for your loved ones when it is needed the most. Variable Universal Life (VUL) insurance not only provides a death benefit for your beneficiaries to help them to preserve their financial security, it also offers you the opportunity to invest for your future. You may direct net premium payments to any combination of available subaccount investment options that suit your investment goal.
Tax advantages and access to cash value
Life insurance offers the advantage of allowing the death benefit to pass to your beneficiary federal income-tax free. And, you do not have to pay taxes on any gains in the policy during years in which they are earned or while they remain in the policy. When the cash value is sufficient, premiums paid into a policy can be taken as tax-free withdrawals.* Provided there is still ample net surrender value in the policy, you could continue taking money out of the policy through tax-advantaged loans.*
Flexible premium payment options
Subject to certain limitations, this policy provides exceptional flexibility in premium payment options. Payments can be increased or decreased, made more or less frequently and even skipped or stopped altogether if the net surrender value is sufficient to cover the monthly deduction.
* Distributions such as loans and withdrawals can only be made if the policy has been in force long enough to accumulate sufficient value. Loans and withdrawals will reduce the cash value and death benefit. Loans are subject to interest charges. If a policy lapses while a loan is outstanding, adverse tax consequences may result. Policy loans are generally not taxable when taken and cash withdrawals are not taxable until they exceed basis in the policy. However, if the policy is treated as a modified endowment contract (MEC) by IRC Sec. 7702A, withdrawals and loans are taxable when taken to the extent of gain in the contract and may also be subject to a 10% federal income tax penalty if taken prior to age 59½. Cash distributions associated with benefit reductions, including reductions caused by withdrawals during the first 15 years, may be taxable. Consult with your tax advisor regarding your particular situation. See the prospectus for details.
Note that the return and principal value of variable life insurance investment options will fluctuate over time. When redeemed, they may be worth more or less than the original cost.
Any guarantees associated with variable universal life insurance policies are based on the claims paying ability of the issuing insurance company and do not apply to the performance or safety of the investment options.
Please contact the issuing insurance company or your financial professional for a prospectus that contains complete information for any variable universal life insurance (VUL) you consider, including fees, investment objectives, surrender charges, risks, expenses and other important information about the VUL. Carefully consider these important factors and read the prospectus carefully before investing.
Transamerica Series Trust portfolios are distributed by Transamerica Capital, Inc.