Transamerica Life Bermuda: A Legacy Built on Nearly 180 Years of Insurance Experience

Transamerica Life Bermuda at a Glance

Key Product Specifications 

Who Can Own the Policy?

Genesis+ IUL 2 is designed to accommodate a range of ownership structures, making it suitable for both personal and business planning needs. It is suitable for:

• Individuals aged 18 or above
• Trustees, where the policy is held within a trust structure
• Corporations, where the policy is registered to a company or partnership (for business insurance needs, in selected countries)

This flexibility allows the policy to be integrated into a broader estate or business succession plan, rather than being limited to direct personal ownership.

The Strongest Reason HNW Families Buy This Policy

Here’s the problem this policy is built to solve:

Wealth is often tied up in illiquid assets: Property, businesses, and investment portfolios. When the owner passes away, beneficiaries can face a large inheritance or estate tax bill. This is due within a limited window, with no easy way to pay it except by selling those very assets, often at a bad time, under pressure, or at a discount.

Example

Suppose someone owns a property worth USD 10 million. On their death, their beneficiaries are required to pay USD 4 million in inheritance tax. Most families in this position don’t have USD 4 million in readily available cash. Thus, they are forced to consider selling the property, taking on debt, or liquidating other investments to cover the bill.

The alternative: Purchase a Genesis+ IUL 2 policy

When the policyholder passes away, the death benefit payout gives beneficiaries the liquidity they may need to settle the inheritance tax bill, without touching the property. The family keeps the asset intact and passes it on as originally intended.

How Does Genesis+ Indexed Universal Life 2 Work?

When you pay your premium, a 6% premium charge is deducted first. The remaining amount becomes your Net Premium.

You can then allocate this amount to the Fixed Account, one or more Index Accounts, or a combination of both. The choice depends on your financial goals.

If you choose an Index Account, your premium is first placed in a Holding Account. Here, it earns the same daily interest as the Fixed Account until the next Segment Start Date. It is then transferred to your selected Index Account.

An Account Value is created based on your premium payments, interest credited, and bonuses where appropriate. Charges for each month, including COI (Cost of Insurance) and other expenses, are deducted from the Account Value.

The remaining amount represents your available policy value, which supports your policy's cash value and death benefit, subject to the terms and conditions of the plan.

Core Insurance Benefits of Genesis+ Indexed Universal Life 2

1. Death Benefit

The Death Benefit is paid out upon the death of the insured. The contractual payout is equal to the higher of (minus any outstanding Policy Loans):

• The Sum Assured of the policy
• The total Account Value calculated on the date of the Insured's death

2. Terminal Illness (TI) Benefit

Policyowners can request an accelerated lifestyle payout of the Death Benefit if the Insured is diagnosed with a Terminal Illness.

• Maximum Lifetime Limit: USD 2,000,000 across all Transamerica Life Insurance policies for the same individual
• Contractual Restrictions: Once a Terminal Illness Benefit is paid, the policy disables further withdrawals, reductions in Sum Assured, the Future Insurability Option, and the Insured Exchange Option

3. Protecting Family Assets

Families can avoid selling property, businesses, or investments under pressure by using insurance proceeds to meet financial obligations.

Genesis+ Indexed Universal Life 2 — Simplified Overview

1. Fixed Account (FA)

The Fixed Account is designed for policyholders who prefer greater stability. Money allocated to this account earns interest declared by Transamerica Life Bermuda.

Key Features Include

This account provides predictable growth regardless of market conditions. It may appeal to individuals seeking capital preservation within their insurance portfolio.

2. Index Account Options (IA)

Money going into an index account first sits in a Holding Account (earning the same rate as the Fixed Account) until the next Segment Start Date. Interest is only calculated and added on the Segment Maturity Date, based on caps and floors.

Important: Current Rates Are Not Guaranteed

The cap rates and participation rates shown above (e.g., 9.27%, 11.20%, 9.30%) reflect current rates declared by Transamerica Life Bermuda. The rates may change over time at the company’s discretion. The only components that are contractually guaranteed for the life of the policy are:

• The 0.00% floor rate (you never lose value from a negative index period)
• The minimum guaranteed cap of 3.50% p.a. (for GIA, SIA, and SHIA)
• The minimum guaranteed participation rate of 50% (for VCIA)

Actual index-linked returns depend on market performance and the rates in effect at each Segment Maturity Date, not the currently shown figures.

Bonuses & Guarantees of Genesis+ Indexed Universal Life 2 Plan

• Persistency Bonus: From the later of Year 11 or age 65, an extra 1.00% p.a. is added to all accounts. If your Account Value is bigger than your Sum Assured, the bonus gets scaled down using this formula: 
  Average Monthly Account Value × 1.00% × (Sum Assured ÷ Account Value)

• Cumulative Guarantee: If you fully surrender the policy, TLB checks that your money grew by at least 2.00% p.a. on average over the life of the policy (this check ignores the Persistency Bonus).

Genesis+ Indexed Universal Life 2 Fees & Charges

• Monthly Expense Charge: Charged for the first 15 years; the amount depends on age, health class, gender, smoking status, and more.
• Cost of Insurance (COI): Charged monthly until age 121 and locked for the first 5 years. After that, it can increase but never more than 110% of the original rate.
• Cap Appreciation Charge: Only on the S&P 500 and Shariah accounts, 1% per year, charged monthly (combined balance × 1% ÷ 12).
• Surrender Charges: Apply for the first 15 years if you fully surrender, lapse, reduce your Sum Assured, or withdraw normally.

Additional Features of Genesis+ Indexed Universal Life 2 Plan

• Premiums: Pay as a single lump sum (can be split within Year 1) or spread out (“Planned Premiums”) up to age 121. Extra unscheduled payments are allowed anytime with approval.
• Dollar Cost Averaging: Spread new money into the Index Account gradually via monthly installments instead of all at once.
• Transfers: Fixed → Index happens on the next Segment Start Date (max 4x/year). Index → Fixed, or Index → Index, only happens at Segment Maturity.
• Reduction of Sum Assured: The minimum reduction is $100,000. It cannot be lower than the minimum policy sum assured of $1 million.
• Withdrawals: Allowed after the free-look period. Normal withdrawals reduce your Sum Assured and may trigger a surrender charge.
• Free withdrawals: From Year 6 onward, take out up to 10% of Account Value per year with no charge and no reduction to Sum Assured.
• Policy Loans: Available after free-look. Interest charged at 8.00% p.a. (or 7.40% if paid upfront). Borrowed funds go into a Loan Account earning 5.50% p.a., credited monthly back to the Fixed Account.

Estate Planning and Legacy Solutions

This Transamerica insurance plan includes several advanced features that make it suitable for sophisticated estate planning. These include: 

• Future Insurability Option: For healthy applicants aged 16–60 in Region 1/1S. Gives pre-approval for extra coverage (up to 100% of your Sum Assured, max $20M total) that you can use within 36 months, with no new medical exams needed.
• Insured Exchange Option: Swap out the insured person for someone else (subject to underwriting), with no limit on the number of times this can be used. This can be useful for passing a policy to the next generation.
• Contingent Owner: Name a backup owner who takes over automatically if you (the owner) die before the insured person, skipping probate.
• Death Benefit Payout Choices: Lump sum, instalments (2–20 years, $100,000 minimum, up to 5 beneficiaries), or a mix (25% or 50% upfront, rest in instalments).

A Note on Tax Treatment

Inheritance and estate tax rules vary significantly by country, including thresholds, rates, and what counts as a taxable estate. A qualified tax and estate planning advisor should always confirm how these rules apply to your specific jurisdiction and asset structure before you decide on a Sum Assured.