Transamerica Reprices Term Insurance with Adaptability

Independent Distributors and Advisors re-examine how TERMSelect’s adaptable features provide a competitive edge with clients.

TORONTO, July 27, 2004 – Transamerica Life Canada announces the reprice and repositioning of one of Canada’s leading term insurance products, TERMSelect(TM).

New TERMSelect premiums

The term insurance of choice amongst independent insurance advisors is now completely repriced, making TERMSelect “one of the least expensive, full-featured term products to meet the needs of an advisor’s diverse client base,” says Joe Kordovi, AVP & Pricing Actuary, Life Product Marketing and Development. “Moreover, TERMSelect’s quality and respected insurance features have not changed or altered, so clients who are cost-sensitive, can make their premium dollars stretch farther, both now and in the future, should their insurance needs change – it’s excellent insurance value,” he explains.

Affordable TERMSelect Insurance

10-year TERMSelect premiums are now more competitive between the key ages of 35 to 65 and at face amounts over $250,000. 20-year terms, which are growing in popularity, are more competitive across the board, notably at younger ages.

Regardless of the number of coverages selected, there is only one policy fee per policy. Clients also benefit from combined banding, which ensures they are getting the best rates for their total coverage.

TERMSelect – Focus on 10 & 20 year markets

In addition to new rates, TERMSelect is now more focused, offering 10-year and 20-year Renewable and Convertible terms. Non-convertible and 5-year plans will no longer be offered as of July 1, 2004. Advisors have indicated that based on the needs that are being identified by their clients, full-featured 10- and 20-year convertible products are most appealing. Transamerica has focused on building term insurance that would meet the diverse needs of clients, and enable the advisors to recommend the most suitable insurance option.

Adaptable TERMSelect Insurance

With TERMSelect, a client’s insurance plan is easily adapted to keep up with any lifestyle change. “Advisors understand that clients need to know that the coverage they buy today can adapt to the changes in their future, either with family or with their business. They need guaranteed protection that won’t tie them to their current circumstances as their needs change,” emphasizes Kordovi.

TERMSelect is adaptable for life, offering a long list of built in features that give the client flexibility and control of their insurance plan.

  • 10 and 20-year terms
  • Single, joint first or last-to-die and multiple life coverage options
  • Full or partial conversions to eligible whole life and universal life plans
  • Built in options so clients can split a policy or substitute a new life in the future
  • Available on its own or as a rider on term, universal life or Term to 100 insurance
  • Coverage can be mixed so single and joint life coverages can be placed on the same policy now or in the future
  • Wide variety of riders to adapt to changing insurance needs throughout the life of the policy
  • Renewable to a different term, such as from a 10-year to a 20-year term
  • Increase or decrease face amounts (subject to underwriting approval)
  • Change from smoker to non-smoker
  • Convenient prepayment accounts
  • Convertible to industry leading Universal Life and Term to 100 plans

“As a result, the independent advisor can stay on top of the changing insurance needs of their client and can meet those needs more readily and more responsively. It’s another opportunity for advisors to keep building client relationships, and retain clients for the long-term,” explains Kordovi.

TERMSelect Guarantees

TERMSelect’s Renewal Premium is guaranteed at issue, and guaranteed to age 80. There is also guaranteed maintenance of preferred underwriting status at renewal and conversion, as well as guaranteed convertibility to eligible permanent or universal life plans to age 71.

TERMSelect Preferred Underwriting

Transamerica offers five simple underwriting classes with premiums based on a client’s unique health and lifestyle factors on policies with face amounts of $250,000 and higher.

TERMSelect for Families

TERMSelect can be invaluable life insurance adaptable for use in a number of circumstances, such as the need to pay bills, final expenses, to preserve an estate, to provide funding for a future generation, or to insure a mortgage.

TERMSelect for Business

TERMSelect can provide solutions for a client’s business, including funding of Buy-Sell Agreements, ensuring business continuity through Key-Person Insurance, or even funding capital gains tax liabilities.

According to Joe Kordovi, the repricing and repositioning of TERMSelect is in line with Transamerica’s strategy to move toward solutions-based offerings for independent distributors and advisors. “TERMSelect is the ideal term insurance solution, offering low cost insurance now, along with a variety of conversion and rider options for the future, to adapt to a client’s changing needs. That’s why we say that TERMSelect is “adaptable for life.”

The new TERMSelect rates are in effect July 1, 2004, coinciding with the end of the policy fee sale.

Transamerica Life Canada

Transamerica Life Canada provides Canadians with innovative life insurance and investment products and services. Through a national network of 18,000 independent advisors, Transamerica creates better futures for employees, clients and advisors through our core principles: innovation, discipline and expertise.

Transamerica Life Canada is a member of the AEGON Group, one of the world’s largest insurers. AEGON N.V. and Transamerica Life Canada have consistently received strong financial ratings from Standard and Poor’s, Fitch and A.M. Best Company. In 2003, Transamerica Life Canada earned more than $580 million in life insurance premium income and recorded over $8 billion in total assets under management.