Why Transamerica?

Report
Why Transamerica?
APRIL 2013
Why should you choose Transamerica?
Because our focus is on you and your client. Period.
When it comes to creating products, programs and services, everything we do is focused
on just two outcomes:
1
2
2
Make it easier for you to do business with us
Make it easier for your clients to get the insurance protection they need
at a price they can afford
Agenda
1
Why Transamerica?
2
…Because of our products
3
…Because when life happens, we have you covered
4
…Because of our tools and rewards programs
5
…Because of our new business and underwriting offering
6
…Because of the strength of our brand
3
Why Transamerica?
Because we make it easier for you…
We offer you:

Choice, Value and Flexibility in our product
selection

Our easy-to-use LifeScripter® tool

Innovation in underwriting with ePara®

Our New Business Report and underwriting
process improvements

Financial stability and solid industry ratings

Online access to WebCAPPOW 24/7

TransXpress e-newsletter with the latest
information on our products and services

Conference programs with attainable qualifications
4
Why Transamerica?
Because we make it right for your clients…
We offer your clients:

An easy way to get the insurance protection they
need at a price they can afford

A strong and diverse product line – including term
(TERMSelecttm), universal life (EstateADVANTAGEtm and
WealthADVANTAGEtm) and our Critical Illness Protection
Rider (CIPR)

A dedicated call centre team – available to answer
any product or policy question
5
Why Transamerica?
Because we’re always at your service…
Dedicated sales team committed to working with middle market advisors
like you to successfully grow your business

e-Learning

Seminars

Marketing resources

Ready to take your phone calls and answer your emails
To learn more about Transamerica, visit us online at www.transamerica.ca
6
Why Transamerica?
…Because
of our products
7
Why Transamerica?
Because we have the right products for your middle
market clients

TERMSelect

T10, T20
̶
T30 with SelectOPTIONS

Universal life – EstateADVANTAGE and
WealthADVANTAGE

Critical Illness Protection Rider (CIPR) on term
and universal life (UL) products
8
Why Transamerica?
Because of our term products
Term products from Transamerica offer many ways to
customize your clients’ policy so they can get exactly
what they need, for as long as they need it.

9
Our term products are:
̶
Affordable
̶
Valuable
̶
Adaptable
About Transamerica’s term products
T10
T20
T30
10
Single life multiple
life and joint life
coverages
Combined
banding
Accidental Death
& Dismemberment
Rider
Preferred
underwriting
program
Full or partial
conversions to
permanent plans
Waiver of Premium
Rider
Guaranteed
renewal premiums
Child Insurance
Rider
Critical Illness
Protection Rider
Why Transamerica?
Because of our Term 30 coverage
Saves money:
 Clients who need 30 years of coverage will benefit
from paying much lower rates over 30 years than
if they bought T10 or T20 and had to renew or
convert
Provides coverage for life:
 TERMSelect30 automatically renews at year 30
with level premiums to age 100, with coverage
for life!
Rates are guaranteed:
 Premium rates are guaranteed for life
11
Why Transamerica?
Because of our Term 30 coverage with SelectOPTIONS
Only Term 30 from Transamerica offers increased flexibility built right in with our
SelectOPTIONS.
SelectVALUE
SelectLIFE
Available in years 16-20
Available in years 16-20
Available in years 16-20
Cash surrender value
Reduced paid-up
coverage to year 30
Reduced paid-up
coverage for life
Subject to taxation
Available on either
surrender or conversion
12
Select30
Why Transamerica?
Because of our Term Exchange Program

Provides your clients with the opportunity to
exchange their current T10 product for a T20 or T30
without additional underwriting

Can be done on or after the 1st policy anniversary
and up to and including the 5th policy anniversary*

Allows clients to lock in their current underwriting
status at new-issue rates
*Only available in accordance with program rules. Term Exchange is done at attained age.
At the time of the exchange, regular Term 20 and Term 30 maximum issue ages apply.
13
Why Transamerica?
Because of our Term Exchange Program
Who is it good for?

Ideal for clients who are looking to take their
current term coverage* and lock into level rates
for a new 20-year or 30-year period to cover
their mortgage

Eligible coverage types:
̶
Single life, multiple life, joint life (both JFTD & JLTD),
term riders on either term or UL policies, term
standalone plans
*For inforce cases, available if issued since January 1, 2009.
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Term Exchange Program*
Program details:

The new coverage will receive an underwriting
class comparable to the existing term coverage

A reduced first-year compensation is paid upon
exchange

If the exchange is done in the first 24 months,
there is no chargeback on the T10 coverage

Override is paid on the new coverage
*Available if the exchange occurs on or after the 1st policy anniversary and up to and
including the 5th policy anniversary and in accordance with program rules. Term
Exchange is done at attained age. At the time of the exchange, regular Term 20 and
Term 30 maximum issue ages apply.
15
Why Transamerica?
Because of our universal life products
FOR: Choice…Flexibility…Guarantees
CHOICE
WealthADVANTAGE

Ideal for policyholders who plan to invest more aggressively and have longer-term
financial goals and investment horizon
EstateADVANTAGE

Ideal for more conservative policyholders with shorter-term financial goals and
investment horizon

Wide selection of investments choices with competitive fees

Optimizer option
̶
16
Automatically reduces the face amount to minimize insurance costs while enhancing
tax-deferred accumulation
Why Transamerica?
Because of our universal life products
Choice
Annual renewable term (ART) cost of insurance
ART to age 85
provides clients with peace of mind
in knowing that their cost of
insurance ends at age 85 (or 20
years coverage if purchased after
age 65)
ART to age 100 cost of insurance period ends at
age 100
ART COI
17
may also be changed to level COI
before the client’s 80th birthday
Why Transamerica?
Because of our universal life products
Flexibility

Premium flexibility
̶


Providing the policy does not go into shortage, clients may change premium payments by
increasing or decreasing, paying at unscheduled dates, stopping and restarting payments or
paying monthly deductions with the accumulated tax-deferred fund value
Accessible cash value
̶
Clients may withdraw a portion of the cash values that have built up within their policy
̶
Convenient withdrawal and loan methods are available, subject to current tax laws and policy
surrender charges
Pre-funding
̶
18
This option allows the ability to pay COI with pre-tax investment dollars
Why Transamerica?
Because of our universal life products
Flexibility

Creditor protection
̶

May be available if a certain family relationship exists
between the life insured and beneficiary (and in
Quebec between the policy owner and the
beneficiary), or if a beneficiary designation is
irrevocable
Single policy fee for up to 15 coverages
̶
19
Attractive for both business and families because it
offers great flexibility and an enhanced tax-sheltering
ability without additional policy fees
Why Transamerica?
Because of our universal life products
Guarantees

Tax differed growth to maximize your client’s capital
̶

Interest growth earned within the universal life policy is tax sheltered to a maximum
determined under the Income Tax Act (Canada)
Probate bypass and tax-free benefits
̶

The proceeds from WealthAdvantage or EstateAdvantage can be paid directly to the named
beneficiary tax free, bypassing the estate and the delays and expenses surrounding probate.
(Probate is not applicable in Quebec.)
Client bonuses
̶
̶
̶
We offer guaranteed, unconditional bonuses that do not vary with the type of investment
option selected
WealthAdvantage: has a performance bonus with guaranteed minimums to ensure a
competitive bonus is always credited
EstateAdvantage: includes an Accumulation Bonus with fixed percentages that do not vary
based on fund performance*
*EstateAdvantage low-fee option does not include an accumulation bonus.
20
Why Transamerica?
Because of our universal life products
Guarantees

Minimum returns
̶

21
Guaranteed minimum returns for our fixed-rate
interest options
Premium tax built right into the COI
̶
Guarantee, in the contract, that there will never be an
additional fee to cover any fluctuations in provincial
premium tax
̶
Transamerica is the ONLY company to build premium
taxes right into the cost of insurance
Why Transamerica?
Because of our great product features
Available on both term and UL products:

Selection of riders

Multiple and joint life options
̶
22
For future flexibility, this includes joint first-to-die and
joint last-to-die switch options
Why Transamerica?
Because of our combined banding
Help your clients save a bundle!
The more term, universal or layered insurance they
buy from Transamerica, the less they pay per unit and
the more they can save

Clients pay one policy fee for whole “deal”

Client can take advantage of highly competitive
rates from Transamerica
Use LifeView illustration software from Transamerica
to see the full savings potential

23
Other comparison software won’t show additional
savings offered by Transamerica for purchases that
include a base plan layered with riders
Why Transamerica?
…Because
when life happens,
we have you covered
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Why Transamerica
Because when life happens…we have you covered

Children’s Insurance Rider
̶

Low-cost life insurance coverage for unmarried children, issue ages 15 days to 19 years old (including
legally adopted children and stepchildren)
Payor Waiver Riders
̶
̶
Provides additional protection for single life policies issued to children by insuring the payor for the amount
of the premiums or monthly deductions
Monthly deductions are waived when the payor dies or is considered totally disabled under the terms of
the rider

Waiver Riders
̶

This rider waives the monthly deductions should the life insured under this rider be considered totally
disabled under the terms of the rider
Living Benefits
̶
̶
̶
Living Benefits from Transamerica provide tax-free* and surrender charge-free access to your fund value
upon disability†
Can help fund unexpected medical expenses, provide nursing care or funds to help with a serious disability
or critical illness
Covers occupational and critical condition disabilities
* Under the Income Tax Act (Canada) and at the date of publication of this website, the receipt of Living Benefits is not currently taxable.
Transamerica does not guarantee nor is it responsible for the tax treatment applicable to this policy feature. Please consult your legal or tax
advisor for an opinion on this matter in relation to your particular circumstances.
† For information on what qualifies as a disability and for the determination of the benefit amount available to your client, please refer to the
contract provisions. Disabilities caused by pre-existing conditions do not qualify.
25
Why Transamerica?
Because when life happens…we have you covered
Compassionate Assistance Program (CAP)
The Compassionate Assistance Program provides
clients with peace-of-mind during a stressful time:

Gives them the option of taking out a loan against
their death benefit if they are diagnosed with a
terminal illness or terminal injury and their life
expectancy is less than 24 months*

Knowing that they can access their death benefit in
the form of a loan can help make your clients’
everyday life a bit easier during a very difficult time
*Twelve months or less if your client is between the ages of 72 and 77.
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Why Transamerica?
Because of our Critical Illness Protection Rider (CIPR)
For a broader spectrum of coverage
Our Critical Illness Protection Rider, when bundled as a rider with your clients’ term or
universal life insurance, will provide your clients with:

More comprehensive protection than life insurance alone can offer

An average savings of up to 15%* when compared to purchasing standalone critical
illness coverage

A choice of a 4-condition rider, or a more comprehensive 25-condition rider

A one-time lump sum benefit that can be used for any purpose without restriction if
your client is diagnosed with one of the critical illness covered conditions and survives
the 30-day survival period
* Monthly premiums based on Transamerica rates for male non-smoker, age 45, for $75,000 in face amount.
27
CIPR is available on the following coverages
Coverage type
Term 10
Term 20
Term to 65
Coverage
description
A renewable and
convertible term 10
critical illness rider
A renewable and
convertible term 20
critical illness rider
A level premium to age
65 critical illness rider
Expiry age
To age 75
To age 75
To age 65
Renewability
Renewable with guaranteed premiums that
None
increase every 10 and 20 years, respectively.
option
Conversion option
The plans are convertible starting on the second anniversary and are convertible up to
or until the coverage anniversary nearest the life insured’s age 60.
Available on life
insurance plans
28
Term and universal life plans, currently available
“for sale” today (single and multiple life)
Individual life insureds in a joint life insurance
coverage may not apply for a Critical Illness
Protection Rider
Universal life only
(single and multiple
life)
Not available on joint
life plans
Why Transamerica?
…Because
of our tools and
our reward programs
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Why Transamerica?
Because we have programs and tools to support
and reward you

LifeScripter ®
̶

30
Layered insurance
Ultimate Rewards
Why Transamerica?
Because of our LifeScripter® tool
LifeScripter is an innovative insurance calculator –
and the only one you’ll ever need

31
How does it make your life easier?
̶
It offers a fast and easy way to calculate how much
insurance your client needs at every stage of life
̶
It presents that information in a way that’s easy for
your clients to understand
̶
It’s integrated with LifeView, so you only have to input
your client’s information once
̶
Coming soon – an enhanced version of LifeScripter
that will help your clients consider their critical
illness needs
Why Transamerica?
Because of our LifeScripter® tool
Use LifeScripter to present your clients with a layered insurance solution:

Layers several different types, or durations, of
insurance protection, such as term insurance and
permanent insurance, to create a customized
solution

Evolves as your client’s need for protection and
savings evolves

It may help avoid the need for separate and
expensive permanent CI, DI and
LTC plans
32
Why Transamerica?
Because of our advisor rewards programs
We offer advisors rewards and conference programs
with attainable qualifications
33
Ultimate Rewards from Transamerica
is now twice as good!
Two ways to participate – it’s your choice:


The one-year program
̶
Make it Miami! in 2013 (Completed)
̶
Savour San Francisco in 2014
The two-year program
̶
Fire and Iceland in 2014
Each program has its own qualifications and criteria.
34
How to qualify
Subject to eligibility, qualification for rewards is based
on a combination of convention credits and case
counts as follows:

Convention credits are based on net life
first-year commissions

One convention credit = $1.00 first-year life
commissions

One case count for every settled newly issued life
policy number
NOTES:
1. Additional coverages or additional lives on existing life policies are not eligible
towards case count.
2. Investment accounts are excluded from case count.
3. Investment product sales are not eligible, nor are they included towards
convention credits.
35
Reward level
Qualification criteria
Between , January 1, 2013, and December 31, 2013:
One-year program 2014
(San Francisco, California)

50,000 convention credits and 10 or more settled life cases

40,000 convention credits and 15 or more settled life cases

30,000 convention credits and 30 or more settled life cases

50 or more settled cases
Between , January 1, 2012, and December 31, 2013 :
Two-year program
(Iceland)

200,000 convention credits and 20 or more settled life cases, or

100,000 convention credits and 50 or more settled life cases, or

120 or more settled life cases
All NLFYC generated from the Transamerica Term Exchange Program will count towards Ultimate Rewards convention credits. However, these
policies will not count towards the case threshold for the San Francisco or Iceland Ultimate Rewards programs.
36
Need more info?
Visit www.transamerica.ca to:
Track your progress
View the full program
rules and regulations
37
Why Transamerica?
…Because
of our new business &
underwriting process
38
Why Transamerica?
Because of our innovations in underwriting
1
Preferred Underwriting Program
2
ePara®
3
Innovative Attending Physician’s Statement (APS) policy
4
Dedicated underwriting team
5
New business and underwriting process improvements
39
Why Transamerica?
Because of our life underwriting programs

Preferred Underwriting Program
̶

40
Available for face amounts of $250,000 or greater
and now offered for ages 16 and above
Non-Medical Underwriting Program
̶
Available for face amounts below $250,000 and
ages 45 and under
̶
Available for face amounts below $100,000 and for
ages 46-55
Why Transamerica?
Because of our CI underwriting
Non-medical underwriting:

Available for face amounts up to and including
$250,000 for ages 45 and under

Available for face amounts up to and including
$99,999 for ages 46-50

Not available for ages 51-65
41
Why Transamerica?
Because of our improved turnaround times
Improved turnaround time with the new ePara®:

Underwriting on applications requiring
paramedicals reduced by up to 9 days!

Paramedical received by Transamerica
electronically – same day

Ensured accuracy and completeness of all
paramedicals greatly reduces NIGOs

No paperwork or misplaced documents

Enhanced security features
42
Why Transamerica?
Because of our innovative APS
Innovative Attending Physician’s Statement (APS) policy

Our APS policy is unique to the industry

Reduces the number of second follow-ups
to doctors

Allows for faster, more efficient processing

Makes it easier for your clients to get the
protection they need, while simplifying the new
business process

Overall underwriting success compared to the
industry i.e., more approved cases than the
industry:
̶
43
87% approved compared to industry average of 76%
(Munich Re, 2011)
Why Transamerica?
Because of our dedicated underwriting team

Risk assessment team underwrites applicants for life insurance or our CIPR

Research Team is always busy:


̶
Conducting research on emerging medical and industry trends affecting underwriting and
pricing of life insurance
̶
Working on our automated universal life decision tool
̶
Looking for ways to make it easier to do business with us
Case coordinators help you get your business settled by:
̶
Tracking the NB cases
̶
Answering your calls on a specific case
̶
Consulting with the specific underwriter and providing answers right away
Marketing support to help you speed up the underwriting process
̶

44
Underwriting guide, medical conditions pocketbook, tip sheets
48 hr turnaround time
Why Transamerica?
Because of our New Business Report and
underwriting process improvements
New Business Report and underwriting
Of all the cases we’ve underwritten in 2012 that were
eligible for preferred classification (>$250,000), 41%
received preferred or elite status
What’s happening in the industry:

The industry results survey for life are:
̶
9% for declines
̶
6% for rated
Source: Munich Re, 2011.
45
Why Transamerica?
Because of our New Business Report and
underwriting process improvements
We can do better than that!

We’ve only declined 5% of life clients

We’ve rated only 6% of life clients
What about Critical Illness?

We’ve only declined 7% of CIPR clients

We’ve rated only 5% of CIPR clients
AND…

Only 19% of our cases have required an APS when there
was a Critical Illness Protection Rider

Total of APS requested including CI was at 23%
46
Why Transamerica?
Because of our New Business Report and
underwriting process improvements
Claims

We continue to deliver on our commitment to be
there when your clients and their families need it
the most

In 2012, we settled 2,748 claims, paying out
$293,841,804 in death benefits
47
Why Transamerica?
…Because
of the strength of our brand
48
We’re part of something big

Transamerica has three divisions:
̶
̶
Life & Protection
Individual Savings & Retirement and
Employer Solutions & Pensions
̶

Transamerica Life Canada is part of Life &
Protection, the largest of the three divisions
̶
̶
̶
̶
̶
̶
̶
One of the top 10 providers of life and protection
products in U.S. and Canada
Operations in nine countries
4,500 employees worldwide
Sales of $1 billion
Inforce premium of $6 billion
Total claims of $4 billion
21 million customer contacts
Note: Annual amounts for 2011 as at December 2011.
49
Why Transamerica?
Because of our media campaign
Exciting new campaign

For the first time in our history, we will be talking
directly to your clients with our “It’s real now ”
campaign
Creating greater awareness of our brand and what
we stand for
Campaign focuses on real moments in life, both
joyful and bittersweet
Talks about how these moments transform how we
think about our future and our finances
SM



50
It’s real now!
Reaching the people

TV spots airing throughout the 2013 NCAA March
Madness and the Masters Tournament

Streaming video of the “stories” on the landing
page of the .com website

Online and mobile banner ads
51
As part of our golf sponsorship,
we help make better tomorrows
Zach Johnson Foundation Classic



Title sponsor at the second annual Zach Johnson Foundation
Classic
A number of pro golfers and celebrities are playing
Event raised an estimated $1M last year for the Kids On Course
program to help make a difference in lives of children
Birdies That Care: What does Transamerica do each time Zach makes a birdie?

52
Transamerica donates $50 for every birdie that Zach Johnson
makes throughout the season
Why Transamerica?
Because we’re growing every day
Canadian Premier Life is now a subsidiary of Transamerica Life Canada

We gain additional strength from having a closer
relationship with another Transamerica business
in Canada

Helps us reduce or control costs through the
sharing of support services

Our advisors and consumers will benefit more
from the greater scale of support services, as well
as increased access to expertise
53
Ultimate Rewards Program disclaimer
Transamerica Ultimate Rewards Program eligibility, qualifications and rules 2013-2014
• The program is open only to those advisors who meet qualification requirements; no substitutions will be accepted
• Convention credits and case counts cannot be shared or transferred from one advisor to another
• Convention credits and case counts are non-transferable and are not exchangeable for cash or other trips or awards
• Transamerica Life Canada may cancel, discontinue, suspend and/or modify the program, and/or the qualification criteria and requirements, at any time, without notice
• During the qualification period, if an advisor transfers from one distributor to another, his or her credits and case counts will be accumulated from all distributors where he or
she settled Transamerica Life Canada business
– Case counts cannot be split between advisors. If two advisors split a single case, the case count will be attributed to only one of the advisors
– However, split first-year commissions will be attributed to both advisors based on the split percentages paid
• Advisors placing business under corporate or shared codes can only qualify based on their personal production
• Business must be submitted and settled under the advisor’s own selling agent code
• Advisors may be restricted from participation in the Transamerica Ultimate Rewards program by their distributor and/or employer. Advisors are urged to clear their
participation with their applicable management
• Qualifiers must have an inforce contract in good standing with Transamerica Life Canada when the reward is redeemed
• For the 2013 one-year program, to be eligible for convention credits, business must be settled and commission paid to the advisor by December 31, 2012. For the 2014 one-year
program, to be eligible for convention credits, business must be settled and commission paid to the advisor by December 31, 2013
• For the 2014 two-year program, to be eligible for convention credits, business must be settled and commission paid to the advisor by December 31, 2013.
• All qualifiers must meet Transamerica Life Canada’s standard persistency rate for business retention of no less than 85%
• All eligible participants must support industry and regulatory guidelines, including full and proper disclosure to their customers of their participation in incentive and/or reward
programs
• Convention credits will not be awarded for policies settled on the life of the personal producer or his or her immediate family members
• Any convention credits and case counts earned on policies that terminate in the three months immediately following the qualification period, and which were submitted in the
last four months of the qualification period, may be deducted
• A taxable benefit will be assessed to each qualifier (which will include the total value for both the advisor and his or her guest combined), and a T4 will be issued under the
selling advisor’s code for the total value
• Attendance is by invitation only from Transamerica and is not a contractual right. Transamerica Life Canada retains the right to refuse to award convention credits or case
counts, in its sole discretion
• Transamerica will cover approved reasonable travel costs for the advisor and one guest over the age of 18, as well as the hotel and hosted meal and scheduled activity costs
• Inability to attend on the date selected by Transamerica Life Canada for the Ultimate Rewards trip will lead to forfeiture of the reward
• WFG (World Financial Group) advisors are not eligible for the Transamerica Ultimate Rewards program
Visit the website for more details
54
This presentation is for advisor use only
This communication is published by Transamerica Life Canada (“TLC”) with material obtained from a number of third-party sources
and is intended for advisor use only.
Any information contained in this presentation is intended for general information purposes only and should not be considered
specific or personal investment, insurance, estate planning, legal or tax advice or a solicitation to purchase insurance. While
reasonable efforts have been made to ensure that the contents of this presentation have been derived from sources believed to be
reliable and accurate at the time of publication, Transamerica does not warrant the accuracy or completeness of the information
contained herein.
Examples given in this presentation are for illustration purposes only. The specific facts and circumstances of each case will differ
from client to client. Neither Transamerica nor its affiliates, officers, employees or any other person accepts any liability whatsoever
for any direct, indirect or consequential loss arising from any use or reliance on the information, general strategies or opinions
contained herein.
No one should act upon the information or examples without a thorough examination of their legal and tax situation with their own
professional advisors based on the facts of their specific case.
® Transamerica and the pyramid design are registered trademarks of Transamerica Corporation. Transamerica Life Canada is licensed to use such
marks.
SM Tomorrow Makers, Transform Tomorrow, Transamerica Transform Tomorrow, We are the TOMORROW MAKERS and the TOMORROW
MAKERS and It’s real now design mark are trademarks of Transamerica Corporation. Transamerica Life Canada is licensed to use such marks.
™ Trademarks of Transamerica Life Canada.
® ePara is a registered trademark of Hooper-Holmes Canada Ltd.
® LifeScripter is a registered trademark of Transamerica Life Canada.
55
THANK YOU!

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