Universal life ProdUct GUide - ivari

1 Every life has a life ProdUct GUideUpdated march 26, PLEASE NOTE: Effective April 23, 2012, the following Designated Indices are being substituted with Designated Indices with similar investment objectives. Accordingly, the names of the corresponding Managed Index Interest Options are updated to reflect the new Designated Indices, as listed Indeximaxx Canadian Equity Value Fundimaxx Equity Growth Fundimaxx Equity Value Fundimaxx Global Equity Value FundNEW Designated IndexDynamic Value Fund of CanadaAGF American Growth ClassCI American Value FundDynamic Global Discovery FundThis material has been prepared for the use of Transamerica s advisors in conjunction with other ProdUct information. The intent of this GUide is to provide an overview of the WealthAdvAntAge and EstateAdvAntAge plans. For a precise understanding of the rights and obligations of the policyowner and Transamerica, please refer to the WealthAdvAntAge and EstateAdvAntAge : This GUide is not designed to provide tax, legal, accounting or other professional advice.

2 If you are not a qualified tax advisor, we recommend that you advise your client to seek the advice of a tax professional. It is the owner s responsibility to determine the consequences to him or her under relevant income tax legislation, and Transamerica assumes no liability to the sections that reference tax information provide a summary only of the current principal Canadian federal income tax consequences arising under the Income Tax Act (Canada) and the regulations thereunder to prospective owners of WealthAdvAntAge and EstateAdvAntAge policies who are residents of tax information contained in this GUide is based upon the provisions of the Income Tax Act (Canada), the regulations thereunder currently in effect, all proposed amendments thereto publicly released by the Department of Finance (Canada) prior to the date of printing this GUide and upon Transamerica s understanding of the administrative practices and policies of the Canada Revenue Agency (CRA) currently in effect.

3 The tax About this guideThis GUide contains ProdUct information for WealthAdvAntAge and EstateAdvAntAge policies. This GUide is effective November 28, 2011, and contains ProdUct information for WealthAdvAntAge and EstateAdvAntAge , wherever contained in this ProdUct GUide , neither anticipates any changes in law, whether by legislative, governmental or judicial action, nor does it take into account provincial or foreign income tax legislation or the guaranteesTransamerica makes certain guarantees with respect to WealthAdvAntAge and EstateAdvAntAge. These guarantees do not include: The portion of the total fund value attributable to a particular Index Interest Option. This varies in accordance with fluctuations in the daily interest rate formula for each Index Interest Option. The interest rate applicable to the Index Interest Options.

4 In fact, this interest rate may be either positive or negative, depending on the performance of a particular index. A negative interest rate will reduce the benefits and values under this policy, which include but are not limited to the total fund value, the cash surrender value, the net cash surrender value, the maximum benefit amount for a Living Benefit and the death does not accept responsibility for any errors or omissions contained in these materials. The information contained within this document is current as of the date of publication and is subject to with Accumulation Bonus EstateAdvAntAge Low-Fee This ProdUct is intended to suit policyholders who plan to invest more aggressively and have longer-term financial goals and investment planning time products are intended to suit more conservative policyholders with shorter-term financial goals and investment planning time choose Transamerica s WealthAdvAntAge and EstateAdvAntAge Universal life ?

5 Financial strength and stabilityTransamerica has been helping Canadians achieve financial security since 1927. Over the years, we ve learned that financial peace of mind means different things to different people. Whether it s saving for retirement, protecting family and assets or helping clients achieve their specific goals, their needs are unique. That s why we offer a diverse range of solutions. We want to be there with the insurance and investment options needed at every stage of life story is unique, and that s why we offer more than one Universal life plan. Each plan addresses different needs, so together with your client, you can choose the plan that is best for for the life Canada is a wholly-owned subsidiary of AEGON , one of the largest insurers in the world. Based in the Netherlands, it has major company operations in Hungary, Spain and the , in addition to the Netherlands and Americas.

6 Transamerica is one of Canada s leading providers of life insurance and investment products. Its financial strength is complemented by a solid network of 18,000 accredited advisors located in all major cities across life ProdUct GuideTable of contents1. ProdUct Overview 12. Insurance coverages 4 Coverage and rider issue ages and amounts 4 Coverage types 5 Death benefit options 5 Increasing death benefit 5 Level death benefit 6 During the COI period 6 After the COI period (varies with the COI option) 6 Cost of Insurance (COI) options 7 Mixing COI options 8 Switching COI options 8 Built-in premium tax 8 COI banding 8 Underwriting programs 8 Non-medical underwriting 9 Medical underwriting 9 Overview of required forms 10 Underwriting risk classifications 10 Summary of underwriting program and applicable risk classification by age and face amount 11 Underwriting requirement 12 Underwriting materials 12 Ratings 12 Policies with multiple Universal life coverages 14 Multiple Universal life coverages 14 Base Universal life coverage 15 Multiple life special options 15 Severance Option 17 Change of Primary life Insured Option 17 Joint life coverages 18 Joint last-to-die 18 Joint first-to-die 21 Switching between joint options 23

7 Riders 24 Level Cost Rider 24 TermSelect Riders 243. Investment choices 25 Interest Options 25 Relative risk rating 26 T-Bill Interest Option and Fixed-Rate Interest Options 27 Index Interest Options 28 Asset allocation solutions 32 Investor Profile Questionnaire 32 Index Allocation Interest Options (passive) 33 Managed Portfolio Options 34 imaxx TOP Portfolio Index Interest Options 34 Transamerica Interest Option fact sheets 35 Rates of return 35 Interest Option transactions 35 Allocation instructions 35 Interest Option transfers 354. Client bonuses 36 Meeting market needs with client bonuses 36 Different bonuses for different needs 36 WealthAdvAnTAge Performance Bonus 36 EstateAdvAnTAge Accumulation Bonus option 36 EstateAdvAnTAge low-fee option 37 A closer look at the Universal life client bonuses 38 WealthAdvAnTAge Performance Bonus example 395.

8 Optimizing investments while maintaining tax-exempt status 40 Tax-exempt testing and policy anniversary processing 40 Tax-exempt testing 40 If a policy fails a tax-exempt test 41 If a policy passes a tax-exempt test 41 The 250% rule (or anti-dump-in rule) 41 Maximum premium estimate 41 Recalculating maximum premium estimates) 42 Optimizer Option 42 Eligibility 42 How Optimizer works 42 Optimizing policies with multiple Universal life coverages 42 Changing the Optimizer option 43 Termination 43 Illustrating Optimizer on LifeView 43 Side Account 44 Side Account as a safety net 44 How the Side Account works 44 Universal life ProdUct Guide6.

9 Plan flexibility 45 Easy access to funds when needed 45 Policy loans 45 Policy and coverage surrenders 47 Withdrawal order 50 Taxation of loans, withdrawals and surrenders 50 Easy Interest Option changes when needed 51 Allocation instructions for premiums 51 Interest Option transfers 51 Market Value Adjustments (MVAs) 52 Premium flexibility 53 Planned periodic premiums 53 Minimum premiums 53 Maximum premiums 53 Easy insurance coverage adjustments when needed 54 Increasing the face amount 54 Decreasing the face amount 54 Death benefit option changes 54 COI option changes 547. Living Benefits 55 Qualification 55 Types of disability 55 Benefit amount 56 Payment of benefit amount 56 Face amount adjustment 56 Claims for Living Benefits 56 Occupational disability claim 56 Critical condition disability claim 56 Continuous disability 57 Living Benefits: Definitions and highlights 57 Exclusions for disability claims 58 General exclusions 58 Exclusions for pre-existing conditions 588.

10 Optional Benefits 59 Accidental Death and Dismemberment Rider 59 Schedule of losses 59 Definition of accident 59 Termination 59 Exclusions 59 Children s Insurance Rider 60 Coverage availability 60 Eligibility 61 Paid-up term insurance 61 Conversion 61 Coverage termination 61 Rider termination 61 Payor Waiver Riders 62 Payor Waiver of Monthly Deductions on Death or Disability (PWMD) Rider 62 Payor Waiver of Planned Premiums on Death or Total Disability (PWPP) Rider 62 Common terms and conditions for payor waiver riders 63 Waiver Riders 64 Waiver of Monthly Deductions Rider 64 Waiver of Planned Premiums 659. Policy administration 67 Monthly deductions 67 Lapse and reinstatement process 67 Shortage 67 Key benefits 67 Lapse 67 Reinstatements 67 Anniversary statements and eStatement Library 68 Claims processing 68 Payment of death claims 68 Placing an order for marketing material or forms 69 Special note about edition dates 69 Other sources for marketing materials 69 Illustration systems (LifeView) 6910.