Jane Dotson
Transamerica offers a flexible premium variable life insurance policy called the TFLIC Freedom Elite Builder II. The policy provides long-term life insurance coverage with the opportunity for tax-deferred cash value accumulation. The cash value of the policy will increase or decrease depending on various factors, including the investment performance of the subaccounts, the premiums paid, the fees and charges deducted, and the effects of any policy transactions. The policy includes a no-lapse period guarantee, which ensures that the policy will not lapse before the no-lapse date stated in the policy, as long as the total premiums paid are equal to or exceed the sum of the minimum monthly guarantee premiums. The policy also offers a grace period of 61 days, during which the policyowner can make a sufficient payment to prevent the policy from lapsing.
| Characteristics | Values |
|---|---|
| Premium Expense Charge | 6% of premiums during the first ten Policy years on Policies with a specified amount in force of less than $250,000 (band 1), and 2.5% of premiums thereafter; and 3.0% of all premiums during the first ten Policy years on Policies with a specified amount in force from $250,000 - $499,999 (band 2), and 2.5% of premiums thereafter. There is no premium expense charge for Policies with a specified amount of $500,000 or higher (band 3). |
| Cash Withdrawal Charge | 2.0% of the amount withdrawn, not to exceed $25 |
| Surrender Charge | Depends on the insured's issue age, gender and underwriting class on the Policy date or date of specified amount increase |
| Transfer Charge | $25 for each transfer in excess of 12 per Policy year |
| Loan Interest Charge | 2.75% of the amount of the loan |
| Cash Withdrawal Charge | $25 or 2% of the amount withdrawn, whichever is less |
What You'll Learn
What is the grace period for Transamerica life insurance?
Transamerica's TFLIC Freedom Elite Builder II policy offers a 61-day grace period. If your policy fails to meet certain conditions, Transamerica will notify you that it has entered a 61-day grace period and will lapse without value unless you make a sufficient payment during the grace period.
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How long is the grace period for Transamerica life insurance?
Transamerica offers a flexible premium variable life insurance policy called the TFLIC Freedom Elite Builder II. The policy includes a no-lapse guarantee, which states that the policy will not lapse before the no-lapse date stated in the policy, as long as the total premiums paid are equal to or exceed the sum of the minimum monthly guarantee premiums. The no-lapse guarantee will not be effective if sufficient minimum monthly guarantee premiums are not paid.
If the policy enters a grace period, it will lapse without value unless sufficient payment is made during the grace period. The grace period is 61 days, during which the policyowner must make a sufficient payment to keep the policy in force.
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Does Transamerica life insurance have a reinstatement period?
Transamerica offers a reinstatement period for its life insurance policy. If the policy lapses or is surrendered while a loan is outstanding, the policyowner will realize taxable income equal to the lesser of the gain in the policy or the sum of the excess of the loan balance and any cash received on surrender over the policyowner's basis in the policy. If the policy is a MEC or becomes a MEC within two years of taking a loan, the amount of the outstanding indebtedness will be taxed as if it were a withdrawal from the policy.
If the policy lapses or terminates due to volatility in the investment performance of the underlying portfolios or another reason, the policyowner may incur tax consequences at an unexpected time. The policy can be reinstated within five years after it has lapsed, provided that the insured meets the insurability requirements and pays the amount required by Transamerica.
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What happens if you miss a payment on Transamerica life insurance?
Transamerica's TFLIC Freedom Elite Builder II policy has a 61-day grace period. If your policy fails to meet certain conditions, Transamerica will notify you that it has entered this grace period and will lapse without value unless you make a sufficient payment during this time.
Transamerica also offers a no-lapse period guarantee, which states that your policy will not lapse before the no-lapse date shown on your policy schedule, as long as you have paid sufficient minimum guarantee premiums. The no-lapse period guarantee will not be effective if you do not pay sufficient minimum monthly guarantee premiums.
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How do you reinstate Transamerica life insurance?
Transamerica offers a grace period for reinstating a lapsed policy. If your Transamerica life insurance policy lapses, you have five years from the date of lapse to reinstate it. To do so, you must meet the insurability requirements and pay the amount required by the company.
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Frequently asked questions
Transamerica offers a no-lapse period guarantee for the TFLIC Freedom Elite Builder II policy. This means that the policy will not lapse before the no-lapse date stated in the policy, as long as the total premiums paid are equal to or exceed the sum of the minimum monthly guarantee premiums. The no-lapse date is specified in the policy.
If you do not pay the minimum monthly guarantee premium, you increase the risk of your policy lapsing. Transamerica will notify you if you need to pay additional premiums to keep the no-lapse guarantee in effect.
You can reinstate your Transamerica life insurance policy within five years of it lapsing, provided that the insured meets the insurability requirements and you pay the required amount.
