A Guide To Fixed Annuities

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A Guide To Fixed Annuities
Fixed Annuity products issued by Transamerica
Life Insurance and Annuity Company, Charlotte,
NC.These products may not be available in all
jurisdictions.
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IS AN ANNUITY RIGHT FOR ME? MAYBE, MAYBE NOT.
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A fixed annuity may be for you if

• You are looking for a steady source of retirement
  income, with low risk.
• You are looking for a way to grow your retirement
  funds and defer taxes.

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What is an Annuity?

• An annuity is a contract issued by an insurance
• company.
• When you buy an annuity the insurance company
  credits interest to your annuity, guarantees
  minimum earnings, and pays income.

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Two Phases in the Life of an Annuity

• The Accumulation Phase
• The Payout Phase, or Annuitization Phase

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The Accumulation Phase

• Single Premium
• Flexible Premium

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Payout Phase - Annuitization

• Income is paid out during the Payout Phase
• The most unique feature of a fixed annuity is
  that it can provide a stream of income that the
  annuitant cannot outlive.

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Is an Annuity Right for you?

• Are you interested in the possibility of reducing
  taxes?
• Do you need to diversify your retirement
  portfolio?
• Have you maximized tax-deferrals through an IRA,
  401(k), or other tax-qualified retirement plans?
• Would you like to secure your retirement income?
• Are you concerned with safety of principal?
• If you said yes to any of these questions then
  an annuity
• may be right for you because it offers security
  coupled
• with tax-deferred growth.1
• 1Tax deferral is only available to individuals.
  It is not available for annuities owned
• by entities such as corporations and most types
  of trusts.

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Tax-Deferred Growth
Because the earnings of an annuity grow
tax-deferred until withdrawn, all your
earnings-plus the money you would normally pay in
taxes remains in the annuity contract to
accumulate interest. With an annuity, you wont
have to pay taxes on your money as it grows, only
as you withdraw it. Generally, you would
withdraw funds at an older age when taxes are
often lower. As a result, your nest egg can grow
even faster!
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Tax-Deferred EarningsComparison Chart
50,000 Principal, 5 Compound Interest, 28 Tax
Bracket
Hypothetical rate used for illustrative purposes
only. Not intended to predict or guarantee any
actual product results. These amounts do not
reflect the effect of fees, charges, and/or tax
penalties that may apply to withdrawals from an
annuity.
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Beneficiary EarningsEnhancement (BEE) Rider

• What happens to your tax-deferred earnings
• when you die?
• Your annuitys earnings go to two parties your
  beneficiaries and the government. Income taxes
  can reduce the value of your earnings by up to
  38.6,2 taking a large bite out of your total
  annuity value.
• 2Based on 2002 IRS Tax Rate Schedules.

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Beneficiary EarningsEnhancement (BEE) Rider

• What can you do?
• Add the Beneficiary Earnings Enhancement (BEE)
  Rider to your annuity from Transamerica Life
  Insurance and Annuity Company. The BEE is a
  smart, flexible way to add value to your annuity
  and pass on more to your loved ones. It adds
  extra cash to your annuity based on what youve
  gained since adding the rider, that can be used
  to offset taxes or other expenses that may be
  incurred after you die.

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Beneficiary EarningsEnhancement (BEE) Rider

• What can you do?
• You can choose to add the BEE to your annuity or
  cancel it at any timeyoure not limited to
  adding it only when you purchase the annuity, or
  only on a policy anniversary. You can even cancel
  the BEE and add it back again later.3 BEE offers
  you extra choices as well as a way to protect
  your annuitys value.
• 3If rider is added after previous termination,
  the additional death benefit amount will be
  recalculated based on the
• new rider date.

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Beneficiary EarningsEnhancement (BEE) Rider

• Heres what your beneficiary gets with the BEE
• For issue ages up to 70 an additional 40 on the
  earnings in the annuity since the rider was
  elected.4 For issue ages 71 to 80 an additional
  25 on the earnings since the rider was elected.4
• (Issue age is the age of the oldest owner at
  the time the rider is added to the contract.5)
• 4Earnings are calculated during the period the
  rider is in effect. Benefit will change if any
  contributions or distributions are made after
• the rider is added.
• 5Rider cannot be added after age 81 of the oldest
  owner. Rider benefit is paid when death proceeds
  are payable
• under the base contract and will be subject to
  taxation in the same manner. No benefit is
  payable if there are no
• earnings on the date the death benefit is
  calculated. Rider benefit is terminated when the
  annuity contract is annuitized
• or surrendered or when the rider benefit is paid.

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WHAT ADVANTAGES DOES A FIXED ANNUITY OFFER?
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Triple-Compounded,Tax Deferred Growth

• Your money earns interest.
• Your interest earns interest.
• The money you would have paid in taxes remains in
  the account, earning interest.

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Guaranteed Interest Rates
Throughout the life of your annuity, you are
guaranteed that your money will earn no less than
the guaranteed interest rate, no matter how the
market performs.
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Access to Your Funds6
You can withdraw a percentage of your annuity
value penalty-free.7 6May not be
available in all jurisdictions. 7Under current
federal tax laws, amounts withdrawn or
distributed may be subject, in whole or in part,
to federal income tax. In addition, a 10 federal
tax penalty may apply if distributions are made
prior to the owner reaching age 59 1/2.
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Protection From Market Risk
Your annuity is safe from the volatility of the
stock and bond markets, with no risk to
principal.8 8Loss of principal may occur
if contract is surrendered prior to the end of
the surrender charge period.
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Beneficiary Protection
Assets can pass directly to beneficiaries,
avoiding the cost and delays of probate.
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Extended Care Waiver6
Penalty-free access to your money upon qualifying
confinement.7 6May not be available in all
jurisdictions. 7Under current federal tax laws,
amounts withdrawn or distributed may be subject,
in whole or in part, to federal income tax. In
addition, a 10 federal tax penalty may apply if
distributions are made prior to the owner
reaching age 59 1/2.
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Flexible Payout Options
Choose from several income options to meet your
needs.
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Guaranteed Income for Life
If outliving your savings is a concern, a fixed
annuity can provide the solution with a steady
stream of periodic payments for the rest of your
life-a retirement income you cant outlive!
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WHY TRANSAMERICA?
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Not all annuitiesor the companies that issue
themare alike. An annuity is only as strong as
the company behind it. Your annuity is backed by
the strength and financial stability of
Transamerica Life Insurance and Annuity Company.
For nearly a century, Transamerica companies have
been leading providers of insurance and
investment products for individuals and
companies.
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Transamerica Life Insurance and Annuity Company
is a member of the AEGON Insurance Group, one of
the leading life insurance and financial services
organizations in the world.
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• Transamerica Life Insurance and Annuity Company
  is a member of the Insurance Marketplace
  Standards Association (IMSA). IMSA is an
  independent organization that was established to
  maintain high standards of market conduct for
  individually sold life and annuity products.
  Rigorous membership requirements and adherence to
  IMSAs Principles and Code of Ethical Market
  Conduct demonstrate our commitment to the highest
  market and business standards.

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PUT A TRANSAMERICA FIXED ANNUITYTO WORK FOR YOU!
The future is now and now is the time to putyour
money to work for you.
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Thank you!