Transamerica introduces annuity rider with guarant

Daily Record Staff//March 4, 2021//

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Transamerica Thursday announced the availability of an optional variable annuity rider for investors seeking protection from market downturns and the opportunity to grow assets and build wealth.

The Transamerica Principal Optimizer offers protection from market losses on an investor’s principal and earnings, the potential of uncapped investment growth, and the freedom to invest 70% of premiums into any investment option available within the annuity.

For an additional fee, Transamerica Principal Optimizer variable annuity customers can enjoy the benefits of:

Protection from market downturns, with up to 100% protection of principal and earnings growth, depending on the length of the benefit elected.
Simplicity from a straightforward strategy with gains credited daily and dividends automatically reinvested.
The flexibility to allocate 70% of all premiums as they wish from a menu of diverse investment options from well-known money managers. The remaining 30% will be allocated to the annuity’s stable value account that offers a guaranteed interest rate.
An optional annual reset feature to lock in gains to their guaranteed future value.

Offered for waiting periods of either seven or ten years, Transamerica Principal Optimizer offers investors the opportunity to protect premium and growth. Even if the policy value falls due to down markets, investors are guaranteed to receive 100% of their initial premium back if they elect and complete the ten-year waiting period. If an investor chooses the seven-year waiting period, they are guaranteed to receive 90% of their initial premium at the end of that waiting period. Optional annual reset is required to lock in earnings growth. At the time of an optional annual reset, this protection level percentage could drop as low as 80%.

If an investor desires to lock in gains to their policy value, they can reset the guaranteed future value and waiting period on the annual rider anniversary. If selected, Transamerica would reset the rider’s waiting period, principal protection with locked-in investment gains, and reset the rider with a different set of potential guarantees at that time.