Transamerica IUL Cap Rate Changes

Transamerica is committed to carefully managing their index universal life (IUL) product suite to remain a strong carrier in the marketplace.

Effective December 16, 2023, Transamerica is changing cap rates on index accounts for previously sold IUL products. There are no changes to floors or participation rates. There are no cap rate changes for FCIUL and FFIUL IUL09 (not available in New York) issued on or after June 17, 2023 (SC issued on or after September 1, 2023).

WHY ARE SOME CAP RATES GOING UP WHILE OTHERS ARE GOING DOWN?
Not all IUL products are the same. Over time, economic factors such as capital market volatility, interest rate changes, and other influences can impact the hedging costs differently for each of their products. That’s why Transamerica reviews and manages all our IUL products independently. This helps to minimize the impact of changes and allows to maintain a strong financial position so we can continue offering a competitive suite of products for your clients.

INDEXED ACCOUNT CAP RATE CHANGES EFFECTIVE DECEMBER 16, 2023:

The changes apply to a subset of previously sold Transamerica IUL products. For impacted products (see table), new and/or renewing segments generated on or after December 16, 2023, will have the new cap rate.