Annuitization options allow you to convert your policy value into a stream of guaranteed income that can last for your life, the life of you and a designated second person, or for a specific period of time.


The maximum rate of interest that the index interest rate may be for a crediting period. All current index account options are uncapped, though one or more capped options may become available in the future.

Crediting Period

The time between when an allocation is made to an index account and interest earnings are calculated and credited. During this time the index, participation rate, cap (if applicable) and spread are guaranteed. The participation rate, cap (if applicable) and spread are subject to change in each additional crediting period.

Death Benefit

Should you, as the annuitant, pass away before annuitizing your contract, we pay the death benefit to your beneficiary. The amount of the death benefit will be the greater of the policy value or the minimum required cash value. If the annuitant passes away after annuitization, depending on the annuitization option you choose, we will pay the remaining annuitization payments, if any, to your beneficiary. For more information, please see the death proceeds section of the policy.

Fixed Account

Any portion of your policy value allocated to the fixed account will be credited interest daily based on a fixed rate. The interest rate will be credited for a one year crediting period, with a minimum annual rate of 1% during the surrender charge period and 0.25% after.

Free Withdrawals

The free withdrawal amount is 10% of your total premium payments each policy year. Withdrawals in excess of the free withdrawal amount will be subject to a surrender charge and premium enhancement recapture. Withdrawals and surrender may be subject to federal and state income tax and, except under certain circumstances, will be subject to an additional tax if taken prior to age 59 1/2. Surrender charges are a percentage of the premium amounts withdrawn from the policy value. Premium enhancement recapture applies to the premium enhancement only (not applicable in CT). For surrender charge and premium enhancement recapture schedules, please contact your financial professional for the most current fact sheet.

Index Account

At the beginning of each crediting period, you may allocate your policy value to one or more index accounts. Each index account will include an index and participation rate and a spread. Index accounts are used to calculate interest earnings, if any, at the end of each crediting period. Please see the rate flyer for more information, including guaranteed minimum participation rates and caps and maximum spreads.

Participation Rate

The percentage of any index growth that will be credited to your policy value as interest earnings.

Policy Value

At issue, the policy value is the total of the premium payment plus the premium enhancement. At the beginning of a crediting period, the policy value may be allocated to one or more index accounts or the fixed account. At the end of each crediting period, interest earnings, if any, are added to the policy value. Optional living benefit rider fees will reduce the policy value.


The spread is a percentage that is deducted from the index interest rate when interest is calculated and credited. A spread will never reduce interest earnings in a crediting period below zero percent.

Living Benefit

Transamerica Income Plus® living benefit may be added at any time prior to age 80 or the annuitization of the contract. The living benefit is available for an annual fee of 1% of the Withdrawal Base, which is deducted quarterly from the policy value. This fee percentage can increase in any year when an automatic step-up is applied up to the policy maximum of 1.75%. If the fee percentage increases, the owner has 30 days after the living benefit anniversary to reject an automatic step-up and retains the right to all future automatic step-ups if they reject one. Because the fee is a percentage of the withdrawal base, the amount of the fee will fluctuate if the withdrawal base increases or decreases. The fee could reduce your policy value below your original premium. It is important to note that if you purchase the Transamerica Income Plus® living benefit prior to age 50, the living benefit fee will still be charged even though lifetime income is not available until age 50. Should you pass away while receiving benefits, your beneficiary will receive a death benefit equal to any remaining policy value.

Withdrawal Base

The withdrawal base, initially equal to your policy value, is used to determine the annual living benefit withdrawal amount and rider fee. The withdrawal base can increase through additional premium payments, the guaranteed annual growth rate or through an automatic step-up. Excess withdrawals (amounts greater than the withdrawal base multiplied by the annual withdrawal rate) will reduce the withdrawal base by the greater of pro rata or dollar for dollar. Please request a Statement of Understanding from your financial professional for more information.

Annual Withdrawal Rate

The first withdrawal from your policy will lock in your annual withdrawal rate; however, an automatic step-up in the withdrawal base will increase the annual withdrawal rate if a new attained age band has been achieved.

When you’re ready to begin lifetime income at age 50 or later, this table shows the percentage of the withdrawal base you will receive every year.

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