why transamerica? april 2013. 2 why should you choose transamerica? when it comes to creating...

Why Transamerica? APRIL 2013

2 Why should you choose Transamerica? When it comes to creating products, programs and services, everything we do is focused on just two outcomes: Because our focus is on you and your client. Period. 1 Make it easier for you to do business with us 2 Make it easier for your clients to get the insurance protection they need at a price they can afford

3 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

4 Why Transamerica? Because we make it easier for 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 We offer you:

5 Why Transamerica? Because we make it right for 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 (TERMSelect tm ), universal life (Estate ADVANTAGE tm and Wealth ADVANTAGE tm ) and our Critical Illness Protection Rider (CIPR) A dedicated call centre team available to answer any product or policy question We offer your clients:

6 Why Transamerica? Because were always at your service e-Learning Seminars Marketing resources Ready to take your phone calls and answer your emails Dedicated sales team committed to working with middle market advisors like you to successfully grow your business To learn more about Transamerica, visit us online at www.transamerica.ca

7 Why Transamerica? Because of our products

8 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

9 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. Our term products are: Affordable Valuable Adaptable

10 About Transamericas term products T10 T20 T30

11 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

12 Why Transamerica? Because of our Term 30 coverage with SelectOPTIONS Only Term 30 from Transamerica offers increased flexibility built right in with our SelectOPTIONS. SelectVALUESelect30 SelectLIFE Available in years 16-20 Cash surrender value Subject to taxation Available on either surrender or conversion Available in years 16-20 Reduced paid-up coverage to year 30 Available in years 16-20 Reduced paid-up coverage for life

13 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 1 st policy anniversary and up to and including the 5 th 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.

14 Why Transamerica? Because of our Term Exchange Program 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 Who is it good for? *For inforce cases, available if issued since January 1, 2009.

15 Program details: Term Exchange Program* 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 1 st policy anniversary and up to and including the 5 th 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.

16 Why Transamerica? Because of our universal life products 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 Automatically reduces the face amount to minimize insurance costs while enhancing tax-deferred accumulation FOR: ChoiceFlexibilityGuarantees

17 Why Transamerica? Because of our universal life products Annual renewable term (ART) cost of insurance Choice ART to age 85provides 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 100cost of insurance period ends at age 100 ART COImay also be changed to level COI before the clients 80th birthday

18 Why Transamerica? Because of our universal life products 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 This option allows the ability to pay COI with pre-tax investment dollars Flexibility

19 Why Transamerica? Because of our universal life products 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 Attractive for both business and families because it offers great flexibility and an enhanced tax-sheltering ability without additional policy fees Flexibility

20 Why Transamerica? Because of our universal life products Tax differed growth to maximize your clients 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. Guarantees

21 Why Transamerica? Because of our universal life products Guarantees Minimum returns 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

22 Why Transamerica? Because of our great product features Selection of riders Multiple and joint life options For future flexibility, this includes joint first-to-die and joint last-to-die switch options Available on both term and UL products:

23 Why Transamerica? Because of our combined banding 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 Other comparison software wont show additional savings offered by Transamerica for purchases that include a base plan layered with riders Help your clients save a bundle!

24 Why Transamerica? Because when life happens, we have you covered

25 Why Transamerica Because when life happenswe have you covered Childrens 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.

26 Why Transamerica? Because when life happenswe have you covered 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. Compassionate Assistance Program (CAP)

27 Why Transamerica? Because of our Critical Illness Protection Rider (CIPR) 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 For a broader spectrum of coverage * Monthly premiums based on Transamerica rates for male non-smoker, age 45, for $75,000 in face amount.

28 Coverage type Term 10Term 20Term 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 65 Renewability option Renewable with guaranteed premiums that increase every 10 and 20 years, respectively. None Conversion option The plans are convertible starting on the second anniversary and are convertible up to or until the coverage anniversary nearest the life insureds age 60. Available on life insurance plans 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 CIPR is available on the following coverages

29 Why Transamerica? Because of our tools and our reward programs

30 Why Transamerica? Because we have programs and tools to support and reward you LifeScripter Layered insurance Ultimate Rewards

31 Why Transamerica? Because of our LifeScripter tool 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 thats easy for your clients to understand Its integrated with LifeView, so you only have to input your clients information once Coming soon an enhanced version of LifeScripter that will help your clients consider their critical illness needs LifeScripter is an innovative insurance calculator and the only one youll ever need

32 Why Transamerica? Because of our LifeScripter tool Layers several different types, or durations, of insurance protection, such as term insurance and permanent insurance, to create a customized solution Evolves as your clients need for protection and savings evolves It may help avoid the need for separate and expensive permanent CI, DI and LTC plans Use LifeScripter to present your clients with a layered insurance solution:

33 Why Transamerica? Because of our advisor rewards programs We offer advisors rewards and conference programs with attainable qualifications

34 Ultimate Rewards from Transamerica is now twice as good! Two ways to participate its 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.

35 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.

36 Reward levelQualification criteria One-year program 2014 (San Francisco, California) Between, January 1, 2013, and December 31, 2013: 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 Two-year program (Iceland) Between, January 1, 2012, and December 31, 2013 : 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.

37 Need more info? Visit www.transamerica.ca to: Track your progress View the full program rules and regulations

38 Why Transamerica? Because of our new business & underwriting process

39 Why Transamerica? Because of our innovations in underwriting 1 Preferred Underwriting Program 2 ePara 3 Innovative Attending Physicians Statement (APS) policy 4 Dedicated underwriting team 5 New business and underwriting process improvements

40 Why Transamerica? Because of our life underwriting programs Preferred Underwriting Program 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

41 Why Transamerica? Because of our CI 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 Non-medical underwriting:

42 Why Transamerica? Because of our improved turnaround times 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 Improved turnaround time with the new ePara:

43 Why Transamerica? Because of our innovative APS 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: 87% approved compared to industry average of 76% (Munich Re, 2011) Innovative Attending Physicians Statement (APS) policy

44 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 Underwriting guide, medical conditions pocketbook, tip sheets 48 hr turnaround time

45 Why Transamerica? Because of our New Business Report and underwriting process improvements Of all the cases weve underwritten in 2012 that were eligible for preferred classification (>$250,000), 41% received preferred or elite status Whats happening in the industry: The industry results survey for life are: 9% for declines 6% for rated New Business Report and underwriting Source: Munich Re, 2011.

46 Why Transamerica? Because of our New Business Report and underwriting process improvements Weve only declined 5% of life clients Weve rated only 6% of life clients What about Critical Illness? Weve only declined 7% of CIPR clients Weve 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% We can do better than that!

47 Why Transamerica? Because of our New Business Report and underwriting process improvements 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 Claims

48 Why Transamerica? Because of the strength of our brand

49 Were 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.

50 Why Transamerica? Because of our media campaign For the first time in our history, we will be talking directly to your clients with our Its real now SM 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 Exciting new campaign

51 Its real now! 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 Reaching the people

52 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? Transamerica donates $50 for every birdie that Zach Johnson makes throughout the season

53 Why Transamerica? Because were growing every day 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 Canadian Premier Life is now a subsidiary of Transamerica Life Canada

54 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 advisors 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 Canadas 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 advisors 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

55 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 Its 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.

THANK YOU!

why transamerica? april 2013. 2 why should you choose transamerica? when it comes to creating...

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