Kick-Off to Sales

For producer use only. Not for client presentation.

End-of-Year Tax Strategies

Kick-Off to Sales

For producer use only. Not for client presentation.

James HahnVice President, Sales

Kick-Off to Sales

For producer use only. Not for client presentation.

Victor Sanchez, MBA, CLUAssistant Vice President

End-of-Year Tax Strategies

For producer use only. Not for client presentation.

2011?

2011 Tax Rates???

UNCERTAINTY.

For producer use only. Not for client presentation.

What a Difference a Year May Make

Income Taxes* Current tax brackets of

10%, 15%, 25%, 28%, 33%, and 35% in 2010

Returns to pre-Bush tax rates brackets of 15%, 28%, 31%, 36%, and 39.6% in 2011

Capital gains taxed at 15% in 2010, increases to 20% in 2011

*Congress and President are near compromise on preserving Bush tax cuts for two years.

For producer use only. Not for client presentation.

Qualified Plans

There is still time to implement a qualified plan Must be implemented by 12/31/2010

Documents must be signed

Funding by 2011 tax-filing deadline

For producer use only. Not for client presentation.

Charitable Gifts

Charitable gifts can be made before the year ends Gifts of cash, life insurance or stock Significant tax savings Lead to discussion of other planning options

For producer use only. Not for client presentation.

What a Difference a Year May Make

If Bush tax changes are allowed to lapse*

Estate Tax – jumps from 0% in 2010, to 55% in 2011

Exemption – returns to pre-Bush amount of $1 million

(or $2 million for couples)

Gift Tax – top rate jumps from 35% in 2010, to 55% in 2011

* Congress and President are near compromise on preserving Bush tax cuts for two years.

For producer use only. Not for client presentation.

TransACE Survivor® Guarantees

Flexibility

Control

Prepare for the Unexpected

For producer use only. Not for client presentation.

2010201120122013201420152016

Design for Flexibility

For producer use only. Not for client presentation.

Design for flexibility

TransACE Survivor® Estate Protection Rider

For producer use only. Not for client presentation.

TransACE Survivor®

1 69 $82,402 $2,500,000

2 70 $82,402 $2,500,000

3 71 $82,402 $2,500,000

4 72 $82,402 $2,500,000

Male / Female age 68, Preferred Nonsmokers*

Yr Age Annual Premium

Death Benefit

5 73 $82,402 $2,500,000 $82,778 $2,500,000

With Estate Protection Rider

$82,778 $5,000,000

$82,778 $5,000,000

$82,778 $5,000,000

$82,778 $5,000,000

Annual Premium

Death Benefit

*Based on a 10 Pay Lifetime Guarantee Scenario

For producer use only. Not for client presentation.

Design for flexibility

TransACE Survivor® Honeymoon Provision

For producer use only. Not for client presentation.

TransACE Survivor®

1 69 $0 $111,388 $5,000,000

Year Age

Surrender Value

Accumulation

ValueDeath

Benefit

2 70 $94,888 $229,037 $5,000,000

3 71 $226,509 $351,309 $5,000,000

4 72 $364,436 $478,336 $5,000,0005 73 $507,272 $610,221 $5,000,000

Honeymoon Provision

Waives surrender charges for a full surrender during the first 5 years

*10 Pay Lifetime Guarantee Scenario with an Annual Premium of $164,567. Values shown are based on guaranteed interest and charges

Male / Female age 68, Preferred Nonsmokers*

For producer use only. Not for client presentation.

Design for flexibility

TransACE Survivor® Surrender Penalty Deferral Endorsement

For producer use only. Not for client presentation.

Total Premiums Paid

Design for flexibility.Reduce Death BenefitYears Death Benefit Annual Premium

1 thru 5 $5,000,000 $822,835

1 thru 5 $5,000,000 $ 164,567

6 thru 10 $2,500,000 $19,475

11 thru 33 $2,500,000 $ -----------

Policy guaranteed for life

TransACE Survivor® Male / Female age 68, Preferred Nonsmokers*

6 thru 10 $2,500,000 $920,210

For producer use only. Not for client presentation.

Design for flexibility

TransACE Survivor® Enhanced Surrender Value Endorsement

For producer use only. Not for client presentation.

TransACE Survivor®

10 78 $1,481,103 $1,645,670 $5,000,000

Year AgeEnhanced

Surrender ValueCumulative Premiums Death Benefit

15 83 $1,645,670 $1,645,670 $5,000,000

Enhanced Surrender Value Endorsement

*10 Pay Lifetime Guarantee Scenario with an Annual Premium of $164,567

90% of premiums at the 10th anniversary

100% of premiums at the 15th anniversary

Male / Female age 68, Preferred Nonsmokers*

For producer use only. Not for client presentation.

Enhanced Surrender Value Endorsement

No caps on face amount

No restrictions on age or underwriting status. TransACE Survivor allows for one uninsurable with a 12-month life expectancy.

Available at no additional cost

For producer use only. Not for client presentation.

Estate Planning

Legacy Planning

Does the Estate Tax Matter?

For producer use only. Not for client presentation.

Potential Prospects for Legacy Planning

Age: 45+

Net worth: at least $2 Million

Children from a previous marriage

Family member with special needs

Family business or privately held company

Charitable inclination

For producer use only. Not for client presentation.

Control

A Trust Alternative

For clients who: Don’t want to deal with trust documents

Can’t find a suitable trustee

Won’t have an estate tax liability

For producer use only. Not for client presentation.

5 – 25 years $10,000 min. $10,000 min.

Guaranteed Monthly Income Stream

Initial Lump Sum

Back-EndLump Sum

Income Protection Option

For producer use only. Not for client presentation.

Year End Highlights

TransSecurity

Underwriting Enhancements

Foreign Nationals

Cash Balance Plans

Premium Finance

For producer use only. Not for client presentation.

This material was not intended or written to be used, and cannot be used, to avoid penalties imposed under the Internal Revenue Code. This material was written to support the promotion or marketing of the products, services, and/or concepts addressed in this material. Anyone to whom this material is promoted, marketed, or recommended should consult with and rely solely on their own independent advisors regarding their particular situation and the concepts presented here.

TransACE Survivor® is a nonparticipating, flexible-premium universal life insurance policy issued by Transamerica Life Insurance Company, Cedar Rapids, IA 52499. Policy Form No. 1-12111108 (CVAT), Group Certificate No. 2-72136108 (CVAT) for certificates issued under a group policy issued to the Rhode Island National Consumer Protection Trust. Policy form and number may vary, and this policy may not be available in all jurisdictions.

Transamerica Insurance & Investment Group (“Transamerica”) and its representatives do not give tax or legal advice. This material is provided for informational purposes only and should not be construed as tax or legal advice. Clients and other interested parties must be urged to consult with and rely solely upon their own independent advisors regarding their particular situation and the concepts presented here.

Discussions of the various planning strategies and issues are based on our understanding of the applicable federal tax laws in effect at the time of presentation. However, tax laws are subject to interpretation and change, and there is no guarantee that the relevant tax authorities will accept Transamerica’s interpretations. Additionally, this material does not consider the impact of applicable state laws upon clients and prospects.

Although care is taken in preparing this material and presenting it accurately, Transamerica disclaims any express or implied warranty as to the accuracy of any material contained herein and any liability with respect to it. This information is current as of December 2010.

Kick-Off to Sales

For producer use only. Not for client presentation.

OLA 2055 L 1210

End-of-Year Tax Strategies