Transamerica Life Bermuda provides a universal life insurance plan that supports estate and business planning requirements while offering flexible lifetime protection.
It is a form of permanent life insurance with a cash value component and death payment.
Transamerica Universal Life Insurance is a flexible service that enables policyholders to alter their benefits and premiums.
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While there are two main Transamerica Life products, universal and term life plans, we’ll focus on Transamerica Life insurance universal life offering for the purpose of this review.
Who is Transamerica Life Bermuda?
It is a life insurance provider that specializes in serving high net worth clients.
The Transamerica business have been around for 120 years.
Since the firm established its first sales office in Shanghai in 1933, there has been a longstanding history in Asia.
Singapore and Hong Kong have granted authorization for Transamerica Life (Bermuda) Ltd. to conduct business.
Transamerica Universal Life Insurance Products
A cash value account is funded in part by the premium and is available for loans or withdrawals. The account increases in value over time.
The Transamerica Life products include:
- Universal Life Alpha Pro
- Universal Life Alpha Pro Century
- Genesis+ Indexed Universal Life
Universal Life Alpha Pro
This could be an option if you need a life insurance policy with adjustable rates and the prospect of increasing your cash value. 100% of the amount promised is guaranteed as the death benefit.
Additional characteristics of the insurance include the possibility to reinstate coverage, policy loans, withdrawals, and an insured exchange. As long as there is enough cash value to satisfy the monthly deductions, your policy stays in effect.
Universal Life Alpha Pro Century
This adaptable life insurance plan guarantees no-lapses and provides cash growth. When the guarantee is triggered, the death benefit decreases to 80% from 100% of the money assured at the beginning. Once the no-lapse guarantee kicks in, features like loans and withdrawals become inactive.
Regardless of whether the cash value is insufficient to pay monthly premiums, the policy remains in effect until the holder becomes 100.
- Minimum sum assured: 500,000 USD for Hong Kong and Singapore; 1 million USD for Bermuda.
- Premium payment options: Single premium (split payments allowed within the first policy year). Planned premiums with or without a lump sum in the first year (flexible, payable until age 121).
- Premium charges: 6%
- Withdrawals: Starting from policy year 11, up to 5% of account value per year without a surrender charge; this will not reduce the sum assured.
- Surrender charge: Applies if the policy is given up within the first 15 years.
Genesis II Indexed Universal Life, Genesis+ Indexed Universal Life
These long-term holding indexed universal life insurance plans come with a Fixed Account as well as four Index Account options: S&P 500 Index Account, US Market Index Account, Global Index Account, and S&P 500 Shariah Index Account.
As per your instructions, your net premium will be distributed among the chosen accounts, enabling you to increase your wealth.
The policies are in USD, have no maturity, and have a minimum sum assured of 500,000 USD for Genesis II and 1 million USD for Genesis+.
Pros and cons of Transamerica Life Products
Advantages of Transamerica Universal Life Insurance
- Depending on their financial circumstances, policyholders have the ability to modify their premium payments.
- The policy gains cash value over time, which can be withdrawn or borrowed against.
- For the duration that the policy is in effect, it offers a death benefit.
- Business continuity and key person insurance are just two of the demands that the insurance can cover.
- They are perfect for those who want to leave an inheritance because these plans are also designed to facilitate wealth transfer and estate planning.
Disadvantages of Transamerica Universal Life Insurance
- If the firm fails to meet its obligations, you risk losing your premiums and coverage.
- Since the policy is denominated in USD, fluctuations in exchange rates may affect the value of your benefits and payments if your home currency is different.
- The Fixed and Holding Account interest rates are subject to vary after a specific time frame, but they will never go below the minimum guaranteed rate.
- The future value of benefits could be diminished by inflation.
- A reimbursement of only the premiums paid (less any withdrawals and costs) will be given if the insured commits suicide within two years.
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