1. How is universal life different from traditional life insurance?
The major difference is flexibility. T-$aver Plus, Transamerica’s plan, meets the employee’s changing circumstances. The face amount of the certificate can be increased (provided the employee is in good health) or decreased*. The employee's premium can be decreased, skipped, and even stopped as long as there is sufficient cash value to pay for the monthly cost of protection.

 * A decrease in face amount may have adverse tax consequences.

2. What determines the current interest rate?
Current interest rates are determined by existing economic conditions and investment opportunities. While the rate is subject to change, employees are guaranteed that it will never be less that 4%.

3. Who is the beneficiary of the employee's insurance certificate?
The employee selects the beneficiary simply by indicating the name and the relationship on the application.

4. Does this certificate replace any present group insurance?
No. The T-$aver Plus universal life plan neither duplicates nor replaces any of an employee's group coverage. It supplements it. Unlike your group term insurance, this plan builds cash values.

5. When is the certificate effective?
Universal Life Insurance is effective on the certificate effective date.

6. Can the employee keep this insurance if they change jobs?
Yes. This plan is portable. The amount of coverage and the premiums will remain the same. They simply pay premiums directly to Transamerica.

7. How do employees know their certificate value?
Each year they will receive a statement of all financial transactions. It will tell them how much they paid into their certificate and how much interest has been accumulated. It will also show how much has been deducted to pay for the amount of insurance selected.

8. Does the coverage amount decrease as the employee becomes older?
No. It cannot be reduced or canceled by Transamerica. Only the employee can reduce the coverage amount if they choose. (Any unrepaid certificate loans and outstanding loan interest will reduce the certificate's death benefit.)

9. Can the employee put more money into their certificate above the scheduled premium payments?
Yes. They can make lump sum payments directly into their certificate or increase their payroll deduction amount without increasing the death benefit, not to exceed limits set by IRS regulations. By doing so, you will accelerate the cash value growth and earn additional tax deferred interest.

10. Can the insurance company cancel the employee's insurance?
No. Coverage cannot be canceled by Transamerica as long as premium payments are made or sufficient cash accumulation value exists.

11. What happens to the employee's coverage if the cash accumulation value becomes depleted?
The employee will be notified in advance if the cash accumulation value is not sufficient to pay the monthly expenses. The employee may then pay the necessary amount or let the certificate lapse.

12. Can the employee take a loan on the certificate?
Yes, they may borrow from Transamerica against the cash accumulation value of their certificate. The employee chooses how to repay the loan, or whether to repay it. Any outstanding balance will reduce the employee's cash accumulation proceeds and death proceeds accordingly. Transamerica will charge 7.4% annual interest in arrears on the loan balance, which the employee may pay in cash or add to the loan amount. Transamerica will also credit 5.5% annual interest to the cash accumulation value securing the loan.