For producer use only. Not for client presentation. 11 The TransSecurity SM Solution Creating Opportunities for Future Generations

For producer use only. Not for client presentation.1 1

The TransSecuritySM Solution

Creating Opportunitiesfor Future Generations

For producer use only. Not for client presentation.

Challenges to Your Business

Changing Environment High-net-worth market

Estate Tax laws

Premium Financing

Guaranteed products


Mass Affluent Marketplace

MIDDLE MARKET(less than $1 Million)

MASS AFFLUENT($1 - $5 Million)

HIGH-NET-WORTH($5 Million +)


Standard of Living:The Next Generation

Source: Where America Stands, CBS News Poll, May 2010

Better or Worse Off?


Challenges to the Opportunity of Future Generations

Budget deficits

Increased taxes & slower recovery

Real estate & equity depreciation


2010 Projected Deficit

Congress of the United States Congressional Budget Office

Source: The Budget and Economic Outlook: Fiscal Years 2010 to 2020, Congressional Budget Office as of January 2010

2020 Projected Debt Current Debt

$12 Trillion $21 Trillion$1.3 Trillion

The Federal Debt


12 days to spend $1 Million

Rate of Spending = $1 per second

The Federal Debt

32,000 years to spend $1 Trillion

32 years to spend $1 Billion


A Legacy of Government Debt

Federal Obligation: $546,668 per household

Source: “Leap in U.S. debt hits taxpayers with 12% more red ink,” USA Today, May 28, 2009


State Revenues Worsening

Center on Budget and Policy Priorities

Sales Tax Revenues Income Tax


State Budget Cuts

Center on Budget and Policy PrioritiesAt least 39 states have cut programs:

Public Health Elderly /DisabledK-12 Education

Higher EducationState Workforce


The Myth of Averages

Chart Source: Standard & Poor’s Index Services, Monthly Returns

“The biggest myth is that the stock market returns,

on average, about 10% a year.”

Source: “Let's Bury The Myth Of Averages,” Forbes, February 23, 2009

0

2.5%

-2.5%

-5%

-5.6

S&P® 500 (total returns, %) as of 12/31/2009

-0.9

3 Years 5 Years 10 Years

+0.4


Client Mindset

Today’s Clients

Should they keep working longer?

Scale back their standard of living now to conserve money for later?

What standard of living will their grandchildren have?

Will their grandchildren have access to quality education?

Future Generations

Lower income

Higher taxes

Fewer entitlements

Less purchasing power

Fewer opportunities

“Leave less to your heirs. Or even nothing at all.”

Source: “Baby Boomers To Kids: Kiss Your Inheritance Goodbye,” The Wall Street Journal, July 2009





The TransSecurity Solution

Cash available to loved onesto sustain desired lifestyle



Cash available to loved onesto sustain desired lifestyle



Independent of external factors

TaxesInvestments

Economic ConditionsCareer Choices


A GuaranteedPolicy

GuaranteedIncomeStrategy

InnovativeFinancial

Underwriting




Guaranteed Death Benefit The “ACE” Advantage:

- TransACE UL- TransACE Survivor UL

Tax-favored status Tax-free buildup of gain Income & Estate Taxes

High Internal Rate of Return

Non-correlated to stock market

A Guaranteed Policy


Meet Mork and Mindy

Mork, age 65, married to Mindy, age 60

2 adult children, 2 grandchildren

Wants to provide for children and grandchildren


Like many, Mork has struggled trying to “time the market.”

The results have been less than favorable….


A Guaranteed Policy


Male, Age 65Female, Age 60

Standard Non-Smokers

TransACE Survivor®

Premium: $25,636 Death Benefit: $2,000,000


A Guaranteed Policy

* Original issue ages: Male, 65; Female, 60


15 $2,000,000 18.88%

20 $2,000,000 11.73%

25 $2,000,000 7.92%

30 $2,000,000 5.61%

Year Net Death Benefit Internal Rate of Return



Guaranteed Death Benefit The “ACE” Advantage:

- TransACE UL- TransACE Survivor UL

Tax-favored status Tax-free buildup of gain Income & Estate Taxes

High Internal Rate of Return

Non-correlated to stock market

A Guaranteed Policy



A GuaranteedPolicy


InnovativeFinancial

Underwriting


“70% of those who come into sudden money end up losing it all because of their inability to deal with the practical, financial and emotional issues involved.1”

1 MSN.com as quoted in http://www.pacificawealth.com/financial_planning_services/sudden_money_recipients.asp (2010)2 Camelot Group Plc (2003)3 Certified Financial Planner Board of Standards, Inc (2003)

Dangers of Sudden Wealth

44% of lottery winners spent their winnings within five years2

Nearly one-third of lottery winners become bankrupt3

30%

70%


Income Protection Option (IPO)

Available at no additional cost May include multiple beneficiaries

5 – 25 years / $100 min.$10,000 min. $10,000 min.

Guaranteed Monthly Income StreamInitial Lump Sum

Back-EndLump Sum

Guaranteed Income Strategy



Meet Joanie and Chachi

Chachi, age 55, married to Joanie, age 53

3 adult children, 2 grandchildren

Wants to provide for Joanie and his children

Wants to maintain control and flexibility over his legacy


TransSecurity Solution: TransACE® UL policy with the IPO on Chachi*

Beneficiary Initial Lump SumGuaranteed Monthly

Income (15 Years)Final Lump Sum

Joanie(Spouse) 0 0

Al(Child) 0

Jenny(Child)

Richie(Child) 0

Totals $125,000 $6,000(per month for 15 years)

$150,000

Chachi’s Plan

*A portion of each monthly payment and a portion of the final lump sum are reportable as interest income. The policy illustration provides the tax-reportable percentage for each monthly income payment and the final lump sum based on a 3% guaranteed minimum interest rate and the illustrated face amount. Upon the insured’s death, the actual taxable portion of each monthly payment will be calculated and communicated to the beneficiary(ies) based on the actual payout amounts. The taxable portion of the final lump sum payment will be determined when the payment is made.

$25,000Dream Wedding

Mortgage PayoffChachi's

Final Expenses

$100,000= $75,000 + $25,000

Mortgage Private School Tuition

$4,000

$50,000Business

Expansion

$1,000

Medical Bills

$50,000College Expenses for Al's Children

$50,000Post-grad Degree

Living Expenses

$1,000

000


IPO Offers Flexibility




Joanie(Spouse) 0 0

Al(Child) 0

Jenny(Child)

Richie(Child) 0


$150,000


Mortgage PayoffChachi's

Final Expenses

$100,000= $75,000 + $25,000


$4,000

$50,000Business

Expansion

$1,000

Medical Bills



Living Expenses

$1,000

0

$25,000Start-up Capital

for business

$500

$4,500


IPO Offers Control




Joanie(Spouse) 0 0

Al(Child) 0

Jenny(Child)

Richie(Child) 0


$150,000


Chachi's Final Expenses

$100,000= $75,000 + $25,000


$4,500

$50,000Business

Expansion

$1,000

Medical Bills



Living Expenses

$500$25,000Start-up Capital

for business

0

0

0

0

0

0

0

0

$6,000 $150,000

$125,000


IPO Calculator on TransWare

Death Benefit: $1,094,716Annual Lifetime Premium: $13,612*

*Male, 55, Preferred, Non-smoker



A GuaranteedPolicy


InnovativeFinancial

Underwriting


Previous Guidelines

Estate Tax liability Multiple of salary Current in-force policies

NEW Guidelines

50% of current net-worth Growth factor: 7% Multiple of salary Current in-force policies

Innovative Financial Underwriting



Example

Female Standard Age 65

Male Standard Age 65

Net Worth: $4.0 Million

Qualify: $5.5 Million Death Benefit

Innovative Financial Underwriting



Calculating Net Worth

Growth Rate Number of Years

To age 65 7% 15

Age 66 to 75 7% 10

Over age 75 7% 7

Age Growth Rate Number of Years


Under New Underwriting Guidelines

Virginia Upton Age 70 Net worth = $2 Million Annual income = $150,000

Virginia would qualify for $2.85 Million in coverage



A GuaranteedPolicy


InnovativeFinancial

Underwriting

A GuaranteedPolicy


InnovativeFinancial

Underwriting



Age 55-75

MIDDLE MARKET(less than $1 Million)

MASS AFFLUENT($1 - $5 Million)

HIGH-NET-WORTH($5 Million +)


Possible Sources of Premium

Lazy asset rescue Money markets/CDs

$3.3 trillion invested in money market funds* $2.6 trillion invested in fixed-rate CDs**

Municipal bonds Annuities

IRAs Premium financing

*Investment Company Institute (February 2010)

**http://www.money-zine.com/Investing/Mutual-Funds/Money-Market-Mutual-Funds (February 2010)


Annuity Max and IRA Max ToolsAnnuity Maximization

IRA Maximization


Top 10 Tools to Target a TransSecurity Sale


Top 10 Tools

Two-minute Client VideoDual-format Tabletop

Client Presentation


Top 10 Tools

CustomizableEmail templates

Consumer FlyerConsumer Guide and Worksheet


Top 10 Tools

IPO Calculator Consumer Illustration


Top 10 Tools

Producer FAQ Producer Flyer


Top 10 Tools

www.transamerica.com/transsecurity


Top 10 Tools

Two-minute client video

Consumer Guide & Worksheet

IPO Calculator

Consumer IllustrationProducer FAQ Producer Flyer

www.transamerica.com/transsecurity

CustomizableEmail templates

Consumer Flyer

Dual-format TabletopClient Presentation



A GuaranteedPolicy


InnovativeFinancial

Underwriting



Financial Security for Children and Grandchildren

50s 60s 70s

This material was not intended or written to be used, and cannot be used, to avoid penalties imposed under the Internal Revenue Code. This material was written to support the promotion or marketing of the products, services, and/or concepts addressed in this material. Anyone to whom this material is promoted, marketed, or recommended should consult with and rely solely on their own independent advisors regarding their particular situation and the concepts presented here.

TransACE® is a nonparticipating, flexible-premium universal life insurance policy issued by Transamerica Life Insurance Company, Cedar Rapids, IA 52499. Policy Form #1-12611107 (CVAT), Group Certificate #2-72336107 (CVAT) for certificates issued under a group policy issued to the Rhode Island National Consumer Protection Trust. Policy form and number may vary, and this policy may not be available in all jurisdictions.

TransACE Survivor® is a nonparticipating, flexible-premium universal life insurance policy issued by Transamerica Life Insurance Company, Cedar Rapids, IA 52499. Policy Form #1-12111108 (CVAT), Group Certificate #2-72136108 for certificates issued under a group policy issued to the Rhode Island National Consumer Protection Trust. Policy form and number may vary and this policy may not be available in all jurisdictions.

Transamerica Life Insurance Company (“Transamerica”) and its representatives do not give tax or legal advice. This material is provided for informational purposes only and should not be construed as tax or legal advice. Clients and other interested parties must be urged to consult with and rely solely upon their own independent advisors regarding their particular situation and the concepts presented here.

Discussions of the various planning strategies and issues are based on our understanding of the applicable federal tax laws in effect at the time of presentation. However, tax laws are subject to interpretation and change, and there is no guarantee that the relevant tax authorities will accept Transamerica’s interpretations. Additionally, this material does not consider the impact of applicable state laws upon clients and prospects.

Although care is taken in preparing this material and presenting it accurately, Transamerica disclaims any express or implied warranty as to the accuracy of any material contained herein and any liability with respect to it. This information is current as of November 2010.

MISC 1365 1110




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For producer use only. Not for client presentation. 11 The TransSecurity SM Solution Creating Opportunities for Future Generations