Index universal life insurance
Why IUL?
Index universal life insurance (IUL) comes with built-in flexibility, allowing you to deliver creative solutions for clients from all walks of life. An IUL policy offers key benefits, including tax-deferred cash-value growth potential, downside protection, and the ability to preserve wealth for future generations.
Transamerica Financial Foundation IUL II
Transamerica Financial Foundation IUL® II (FFIUL II)* can be customized for a variety of clients, with flexible rider options and premium payments that can be designed to fit most monthly budgets.
Transamerica Financial Choice IUL℠ II (FCIUL II)
Transamerica Financial Choice IUL II (FCIUL II)* may be an attractive option for high-earning clients who want to maximize systematic cash value accumulation and tax-free access to cash value.**
Two IULs, many possibilities
Recommending the right IUL policy for your clients starts with knowing your options. We’re proud to offer two IUL selections to help meet your clients’ needs — see the differences below.
FFIUL II
Life insurance designed for a wide variety of clients who value death benefit coverage, flexible riders, and traditional IUL benefits.
Policy Form #ICC24 TPIU12-0224 and TPIU12xx-0224. Form numbers may vary by jurisdiction.
Funding Your Policy
Designed for those who want to pay a premium that fits within their monthly budget
Minimum Policy Amount
$25,000
Index Account Options
- Global Index Account
- S&P 500® Index Account
- Basic S&P 500® Index Account (No IAMC)
- Balanced Uncapped Account
Loan Options
Conventional loans
Living Benefit Riders
Yes
FCIUL II
Life insurance designed for high earners who want to maximize cash value accumulation and receive tax-advantaged income distributions (not available in New York).
Policy Form #ICC24 TPIU11-0224 or TPIU11xx-0224. Form numbers may vary by jurisdiction.
Funding Your Policy
Designed for those with discretionary income who want to contribute more than their target premium
Minimum Policy Amount
$250,000
Index Account Options
- Fidelity Small-Mid Multifactor Index℠ Account
- S&P 500® Index Account
- S&P 500® Plus Index Account
- Balanced Uncapped Index Account
- Global Index Account
- Global Plus Index Account
Loan Options
Conventional loans and index loans
Living Benefit Riders
Yes
Our IUL II products are available in most states and jurisdictions except California and New York.
Frequently asked questions
How can the policy accumulate cash value?
FFIUL II and FCIUL II give customers the opportunity to grow policy value through excess index interest (earnings above the guaranteed minimum rate) that may be credited to the policy based partly on changes in these major stock indexes: S&P 500® Index, EURO STOXX 50® INDEX, Nikkei 225℠, and Fidelity Small-Mid Multifactor Index℠. It is important to understand the different account options to see whether these policies are a good fit.
What’s a guaranteed floor?
The floor is the minimum rate of interest guaranteed by the insurance company. Any guarantees are based on the claims-paying ability of the issuing company.
Are there tax advantages associated with FFIUL II and FCIUL II?
Federal income tax-free death benefit
Many people don’t realize there can be tax consequences when it comes to inheriting certain assets. Thankfully, FFIUL II and FCIUL II provide a federal income tax-free death benefit to help protect families.
Tax-deferred earnings
Any cash value in the policy accumulates excess index interest on a tax-deferred basis. That means greater policy value accumulation potential for customers.
Tax-free transfers
Transfers among accounts inside a policy are on a tax-free basis. Tax-free transfers help protect earnings from the effects of current taxes.
Tax-free withdrawals and loans*
Customers enjoy easy access to their policy value. When the policy value is sufficient, they may request withdrawals or loans to use for any purpose they wish.
Keep in mind that the tax advantages only apply as long as the policy remains in force. Allowing the policy to lapse could result in adverse tax consequences.
What’s a no lapse guarantee? *
Payment of the minimum monthly no lapse premium ensures that the policy will remain in force during the no lapse guarantee period. However, by paying only the minimum monthly premium, customers may be forgoing the opportunity to build up additional policy value.
Please note, after the no lapse period or if the cumulative minimum monthly no lapse premium requirements are not met, then fluctuations in interest rates and/or policy charges may require the payment of additional premiums to keep the policy in force. Guarantees are based on the claims-paying ability of the company.
Explore other insurance products from Transamerica
Term life insurance
Whole life insurance
Life insurance for foreign nationals
Important information
Important information regarding S&P 500® Index:
The S&P 500 Index is a product of S&P Dow Jones Indices LLC (“SPDJI”), and has been licensed for use by the Company. Standard & Poor’s®, S&P®, and S&P 500® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by the Company. This policy is not sponsored, endorsed, sold, or promoted by SPDJI, Dow Jones, S&P, their respective affiliates, and none of such parties make any representation regarding the advisability of purchasing such policy nor do they have any liability for any errors, omissions, or interruptions of the S&P 500 Index.
Important information regarding EURO STOXX 50® Index:
The EURO STOXX 50® (Index Trademark) is the intellectual property (including registered trademarks) of STOXX Limited, Zurich, Switzerland (“STOXX”), Deutsche Börse Group or their licensors, which is used under license. This fixed indexed life product (“Licensed Product”) is neither sponsored nor promoted, distributed, or in any other manner supported by STOXX, Deutsche Börse Group, or their licensors, research partners, or data providers, and STOXX, Deutsche Börse Group and their licensors, research partners, or data providers do not give any warranty, and exclude any liability (whether in negligence or otherwise) with respect thereto generally or specifically in relation to any errors, omissions, or interruptions in the EURO STOXX 50® or its data.
Important information regarding Fidelity SMID Multifactor IndexSM
The Fidelity Small-Mid Multifactor IndexSM 5% ER, also called the Fidelity SMID Multifactor IndexSM, (the “Index”) is a product of Fidelity Product Services LLC (“FPS”). It is a rules-based index that utilizes a dynamic asset allocation approach which blends multiple factors with the characteristics of stocks of small and mid-capitalization U.S. companies along with U.S. Treasuries, which may reduce volatility over time. Fidelity is a trademark of FMR LLC.
The Index has been licensed for certain purposes by Transamerica Life Insurance Company (“the Company”) on behalf of the Transamerica Financial Choice IULSM (“policy”). This index is based on an excess return design, meaning that index returns are netted against a riske-free return. It is a volatility controlled index, which means that the index composition will change over time and in particular when market volatility changes. The effect of the excess return design and the volatility control may limit returns when equity index returns are high.
The Company exercises sole discretion in determining whether and how the policy will be linked to the value of the Index. FPS does not provide investment advice to the policy owners, nor to any other person or entity with respect to the Index and in no event shall any policy owner be deemed to be a client of FPS. Neither FPS nor any other party involved in, or related to, making, or compiling the Index has any obligation to continue to provide the Index to the Company with respect to the policy.
Neither FPS nor any other party involved in, or related to, making, or compiling the Index makes any representation regarding the Index, Index information, performance, life insurance generally or the policy particularly.
FPS disclaims all warranties, express or implied, including all warranties of merchantability or fitness for a particular purpose or use. FPS shall have no responsibility or liability whatsoever with respect to the policy.
Nikkei Inc. is the sole exclusive owner of the copyright and other intellectual property rights in the Nikkei Stock Average (Nikkei 225℠) itself and the methodology to calculate the Nikkei Stock Average. The intellectual property and any other rights in the marks to indicate Nikkei and the Nikkei 225℠ shall be vested in Nikkei Inc. Nikkei Inc. does not sponsor, support, sell, or market Transamerica Financial Choice IUL℠ II or Transamerica Financial Foundation IUL® II. Transamerica Financial Choice IUL℠ II or Transamerica Financial Foundation IUL® II is managed exclusively at the risk of the Transamerica Life Insurance Company, and Nikkei Inc. shall assume no obligation or responsibility for management of and transactions involving Transamerica Financial Choice IUL℠ II or Transamerica Financial Foundation IUL® II. Nikkei Inc. shall not have the obligation to continuously announce the Nikkei 225℠ and shall not be liable for any error, delay, interruption, suspension, or cessation of announcement thereof. Nikkei Inc. shall have the right to change the description of the stocks included in the Nikkei 225℠, the calculation methodology of the Nikkei 225℠, or any other details of the Nikkei 225℠.