Variable Annuity I-Share II

The Transamerica Variable Annuity I-Share offers a living benefit designed to provide protected growth opportunity.

The Market

At nearly $2 trillion in size¹, it’s no surprise that nearly half of investors own an annuity, and even more are interested in the idea of guaranteed lifetime income.² Annuities are often purchased by investors to generate guaranteed lifetime income, but can provide additional benefits to potentially help increase retirement income, maximize tax-efficiency of assets, or ensure a legacy for loved ones.

Why DPL Likes the Transamerica Variable Annuity I-Share II

The Transamerica Variable Annuity I-Share II offers a low-cost option for tax-deferred accumulation, with an optional Guaranteed Minimum Accumulation Benefit (GMAB), Transamerica Principal Optimizer^SM.

Transamerica Principal Optimizer^SM: Provides a 7- and 10-year option for principal protection, with up to 90% and 100% of premium payments protected from market downside, respectively. Investors can allocate up to 70% of assets to equities with uncapped growth on policy value.

How to Think About Commission-Free VAs

When your client needs:

ANNUITY RESCUE+:  For clients looking to move assets from their high-cost traditional annuity into a low-cost, Commission-Free product, a “1035 exchange” may be appropriate. Annuity Rescue+ may help clients achieve:

• Low cost — if the goal is simply to achieve the lowest cost, DPL recommends using an investment-only variable annuity.

• Guaranteed income — often clients purchase an annuity because they like the guaranteed income feature. Depending on your investment approach, DPL will find the product that is best suited for you and your client.

• Tax-efficient withdrawal — if your client needs to begin taking income from an annuity, DPL can bring products and strategies to tax-efficiently withdraw funds.

• Return of premium — utilizing a 1035 exchange into a solution with a return of premium benefit can be a thoughtful way of essentially “locking in gains,” as the amount of the new premium will include any gains from the previous annuity. DPL brings several very low-cost and innovative strategies.

TAX DEFERRED GROWTH:  For high income earners, low-cost annuities can provide tax deferral to benefit portfolio growth during a client’s accumulation phase. Studies show that tax deferral can add 1.00% to 2.00% of additional net return to a client’s portfolio, when locating tax-inefficient investments within the annuity.³

GUARANTEED LIFETIME INCOME:  While other product types are generally better options for guaranteed lifetime income, variable annuities can provide the greatest investment flexibility of the product types that offer this feature — potentially generating additional growth of the portfolio. It may be more appropriate to use a low-cost VA during the accumulation phase and then, when the client is ready to begin taking out guaranteed lifetime income, move into the best available income product.