tip-off to sales

TIP-OFF TO SALESHow to Boost UL Sales in a

Depressed Economy: The TransSecuritySM Solution

John Oliver CLU, ChFC, MBAVice President, Field Development

For producer use only. Not for distribution to the public. For producer use only. Not for distribution to the public.

Market Overview

What Clients are Looking For

How to Boost Your UL Sales

Tools and Resources

Overview

For producer use only. Not for distribution to the public.

Industry Trends, 2009

0

25%

-25%

-50%

5%

-14%

-1%

1%7%

12%

-49%-52%

-11%

0%

UL Term WholeLife VUL Total

Source: LIMRA U.S. Individual Life Insurance Sales Trends Q3, 2009

Policies Premium


Challenges to Your Business

Changing Environment High-net-worth market Estate Tax laws Premium Financing Guaranteed products


Challenges to the Opportunities of Future Generations

Budget deficits Increased taxes & slower recovery Real estate & equity depreciation Retirement insecurity


Standard of Living: The Next Generation


Source: The American Dream, CBS Poll, May 2009

Better or Worse Off?

Same or Worse 52%

Better 43%


“The biggest myth is that the stock market returns, on average, about 10% a year.”

The Myth of Averages

-5.6

-0.9

3 Years 5 Years 10 Years

S&P® 500 (total returns, %) as of 12/31/2009

Source: “Let's Bury The Myth Of Averages,” Forbes, February 23, 2009Chart Source: Standard & Poor’s Index Services, Monthly Returns

0.4


Client Mindset


Today’s Clients Should they keep working longer? Revise their retirement plans? Scale back their standard of living now

to conserve money for later? What standard of living will my

grandchildren have?

Future Generations Lower income Higher taxes Fewer entitlements Less purchasing power Fewer opportunities

“Leave less to your heirs. Or even nothing at all.”Source: “Baby Boomers To Kids: Kiss Your Inheritance Goodbye,” The Wall Street Journal, July 2009


The TransSecuritySM SolutionCreating Opportunitiesfor Future Generations


The TransSecurity Solution

A Guaranteed Policy Guaranteed Income Strategy

Innovative Financial Underwriting

The Transamerica Advantage

A Guaranteed Policy



Independent of external factors

TaxesInvestments

Economic ConditionsCareer Choices



Guaranteed Death Benefit The “ACE” Advantage:

- TransACE UL- TransACE Survivor

2008 UL

Tax-favored status Tax-free buildup of gain Income & Estate Taxes

High Internal Rate of Return

Non-correlated to stock market

A Guaranteed Policy

Guaranteed Death Benefit The “ACE” Advantage

- TransACE UL- TransACE Survivor 2008 UL



Female, Age 65Male, Age 70

Standard Non-SmokersTransACE Survivor® 2008Premium: $ 30,187Death Benefit: $2,000,000


A Guaranteed Policy

Female, Age 65Male, Age 70

Standard Non-SmokersTransACE Survivor® 2008Premium: $ 30,187Death Benefit: $2,000,000



20

15

10Year

$2,000,000

$2,000,000

$2,000,000

Internal Rate of ReturnNet Death Benefit

10.41%

17.10%

33.13%

A Guaranteed Policy

25 $2,000,000 6.86%





2008 UL

Tax-favored status Tax-free buildup of gain Income & Estate Taxes



A Guaranteed Policy



2008 UL

Tax-favored status Tax-free buildup of gain Income & estate taxes





A Guaranteed Policy



Guaranteed Income Strategy


Dangers of Sudden Wealth

As many as 70% of those who come into sudden money end up losing it all because of their inability to deal with the practical, financial and emotional issues involved1

44% of lottery winner winnings were spent after 5 years2

Nearly one-third of lottery winners become bankrupt3

1 MSN.com as quoted in http://www.pacificawealth.com/financial_planning_services/sudden_money_recipients.asp (2010)2 Camelot Group Plc (2003)3 Certified Financial Planner Board of Standards, Inc (2003)



Income Protection Option (IPO)

Available at no additional cost May include multiple beneficiaries

5 – 25 years / $100 min.$10,000 min. $10,000 min.

Guaranteed Monthly Income StreamInitial Lump Sum

Back-EndLump Sum



The Turners’ Plan

*A portion of each monthly payment and a portion of the final lump sum are reportable as interest income. The policy illustration provides the tax-reportable percentage for each monthly income payment and the final lump sum based on a 3% guaranteed minimum interest rate and the illustrated face amount. Upon the insured’s death, the actual taxable portion of each monthly payment will be calculated and communicated to the beneficiary(ies) based on the actual payout amounts. The taxable portion of the final lump sum payment will be determined when the payment is made.

TransSecurity Solution: TransACE UL policy with the IPO on Eric Turner*


TransSecurity Solution: TransACE UL policy with the IPO on Eric Turner*

IPO Offers Flexibility

$25,000Start-up Capital

for business


IPO Calculator on TransWare



A Guaranteed Policy

Transamerica BrandInnovative Financial Underwriting




Previous Guidelines

Estate Tax liability Multiple of salary Current in-force policies

NEW Guidelines

50% of current net-worth Growth factor: 7% Multiple of salary Current in-force policies



Calculating Net Worth

Age Growth Rate Number of Years

To age 65 7% 15

Age 66 to 75 7% 10

Over age 75 7% 7



Example Female Standard Age 65Male Standard Age 70

Net Worth: $4.0 Million

Qualify: $5.5 Million Death Benefit



Financial Underwriting Estimator

3975000

*Male, Age 45, Preferred, Non-smoker



A Guaranteed Policy



TheTransamerica Advantage




Strong financials High consumer value Solid history, serving customers

for over 100 years

®



HIGH-NET-WORTH

MIDDLE MARKET

($10 Million +)

MASS AFFLUENT

($1 - $10 Million)

(less than $1 Million)

Age 55 - 75


Possible Sources of Premium

Lazy asset rescue Money markets/CDs Municipal bonds Annuities

IRAs Premium financing


Top 10 Tools to Target a TransSecurity Sale

For producer use only. Not for distribution to the public. 34

Top 10 Tools

1. Two minute consumer video

2. Email template

3. Consumer Guide and Fact Finder


6. Consumer lllustration

4. 5. FinancialUnderwriting

Estimator

3975000

IPO Calculator


7. Producer FAQ 8. Producer Flyer


YOUR CONTACT INFO HERE

YOUR LOGO HERE

9. Co-branded web site


10. TransSecurity Concierge Unit

(866) 858-0066

Top 10 Tools


Tip-Off to Sales

Save the Date: March 9

Next Tip-Off: Term for Our Times

Todd EwingVice President, Term Life and Direct Marketing


This material was not intended or written to be used, and cannot be used, to avoid penalties imposed under the Internal Revenue Code. This material was written to support the promotion or marketing of the products, services, and/or concepts addressed in this material. Anyone to whom this material is promoted, marketed, or recommended should consult with and rely solely on their own independent advisors regarding their particular situation and the concepts presented here.

TransACE® is a nonparticipating, flexible-premium universal life insurance policy issued by Transamerica Life Insurance Company, Cedar Rapids, IA 52499. Policy Form #1-12611107 (CVAT), Group Certificate #2-72336107 (CVAT) for certificates issued under a group policy issued to the Rhode Island National Consumer Protection Trust. Policy form and number may vary, and this policy may not be available in all jurisdictions.

TransACE Survivor® 2008 is a nonparticipating, flexible-premium universal life insurance policy issued by Transamerica Life Insurance Company, Cedar Rapids, IA 52499. Policy Form #1-12111108 (CVAT), Group Certificate #2-72136108 for certificates issued under a group policy issued to the Rhode Island National Consumer Protection Trust. Policy form and number may vary and this policy may not be available in all jurisdictions.

Transamerica Life Insurance Company (“Transamerica”) and its representatives do not give tax or legal advice. This material is provided for informational purposes only and should not be construed as tax or legal advice. Clients and other interested parties must be urged to consult with and rely solely upon their own independent advisors regarding their particular situation and the concepts presented here.

Discussions of the various planning strategies and issues are based on our understanding of the applicable federal tax laws in effect at the time of presentation. However, tax laws are subject to interpretation and change, and there is no guarantee that the relevant tax authorities will accept Transamerica’s interpretations. Additionally, this material does not consider the impact of applicable state laws upon clients and prospects.

Although care is taken in preparing this material and presenting it accurately, Transamerica disclaims any express or implied warranty as to the accuracy of any material contained herein and any liability with respect to it. This information is current as of January 2010.

OLA 2055B 0210

TIP-OFF TO SALESHow to Boost UL Sales in a

Depressed Economy: The TransSecuritySM Solution

John Oliver CLU, ChFC, MBAVice President, Field Development

tip-off to sales

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