SOURCE: Transamerica


March 15, 2011 16:32 ET

Transamerica's Income Protection Option Offers Control, Flexibility, Guaranteed Income and Peace of Mind

LOS ANGELES, CA--(Marketwire - March 15, 2011) - Today more than ever, consumers want -- and need -- control, flexibility and guarantees. With the Income Protection Option (IPO) offered by Transamerica Life Insurance Company (TLIC) and Transamerica Financial Life Insurance Company (TFLIC), policy owners can control and structure a guaranteed monthly income stream to beneficiaries, regardless of market conditions.

"The IPO is perfect for today's market. With all that's happened in the financial markets during the last few years, clients are acutely aware that future generations will face an uphill battle just to have the same opportunities enjoyed by the previous generation. Not surprisingly, they're devastated by this," explains Michael Babikian, Senior Vice President and Chief Marketing Officer for Transamerica Insurance & Investment Group, a marketing unit of TLIC and TFLIC. "The IPO is part of a solution that allows clients to structure the death benefit in a way that takes into account their family's specific, long-term needs. This is hugely important at a time when people want to guarantee certain opportunities for their families, but also need the ability to change their plans over time."

The IPO allows the policy owner to determine a monthly guaranteed income stream as well as initial and final lump-sum payments for beneficiaries. "Policy owners can customize the distribution of assets according to their specific goals and circumstances. Particularly in times like these, the peace of mind that comes from an IPO is tremendous. The extra income that the IPO provides can help guarantee future generations the educational, professional and lifestyle opportunities enjoyed by previous generations," explains Babikian. 

For example, with the IPO, based on the face amount of his life insurance policy, Bob Smith can leave an initial lump sum of $250,000 to his wife, and can also elect to leave his children $500/month and his grandchildren $200/month for a specified number of months. This guaranteed monthly income for his loved ones can be used in a variety of ways, including supplementing a monthly income, providing a buffer against unexpected medical bills, creating opportunities for vocational work or increasing access to quality education.

With the IPO, policy owners enjoy flexibility and control over the death benefit payout schedule during the insured's lifetime. If circumstances change -- due to marriage, divorce, or new additions to the family, for example -- the policy owner may change the recipient or the amount of each lump sum or monthly payout. 

A life insurance policy with an IPO is also a viable alternative to a trust, particularly for policy owners who are unlikely to face potential estate tax liability. Much like a trust, an income protection option allows a policy owner to customize the distribution of assets according to his or her specific goals and circumstances. What's more, because legal and administrative expenses typically associated with trust-owned policies do not apply, policy owners can guarantee structured monthly income payments -- which reduce the likelihood that beneficiaries will squander or mismanage their inheritance -- for no additional cost.

Producers and registered representatives interested in learning more about Transamerica's IPO offering should call 1-866-545-9058. Consumers who are interested can call 1-800-PYRAMID.

About Transamerica

Transamerica Insurance & Investment Group, a marketing unit of Transamerica Life Insurance Company (TLIC), offers an array of innovative financial services and products designed to help individuals, families, and businesses build, protect, and preserve their assets. Products and services offered through TIIG are underwritten by TLIC or its affiliated statutory insurance companies, and include term life insurance, universal life insurance, variable universal life insurance, and fixed annuities. TLIC is an AEGON company. AEGON is an international life insurance, pension and investment group based in The Hague, the Netherlands, with businesses in over twenty markets in the Americas, Europe and Asia.

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