Transamerica Is Latest Insurer to Offer Policy That Addresses Estate-Tax Repeal.Transamerica Occidental oc·ci·den·tal or Oc·ci·den·tal adj. Of or relating to the countries of the Occident or their peoples or cultures; western. n. A native or inhabitant of an Occidental country; a westerner. Noun 1. Life Insurance Co., Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. , has become the latest company to offer life insurance customers a way out of their policies should repeal of federal estate taxes extend beyond Dec. 31, 2010. Transamerica now offers a "Sunset Option" on survivorship survivorship n. the right to receive full title or ownership due to having survived another person. Survivorship is particularly applied to persons owning real property or other assets, such as bank accounts or stocks, in "joint tenancy. policies issued since June 7, 2001. The option allows policyholders to fully surrender their in-force contracts in 2010 with no penalties. Surrender charges Surrender Charge A fee levied on a life insurance policyholder upon cancellation of his or her life insurance policy. The fee is used to cover the costs of keeping the insurance policy on the insurance provider's books. on survivorship products typically are applicable for 15 or 20 years. Transamerica developed the option in response to the Economic Growth and Tax Relief Reconciliation Act of 2001, which gradually reduces estate taxes over the next nine years and eliminates them in 2010. The "Sunset Provision A statutory provision providing that a particular agency, benefit, or law will expire on a particular date, unless it is reauthorized by the legislature. Federal and state governments grew dramatically in the 1950s and 1960s. " restores estate taxes Jan. 1, 2011, on the same basis that existed before the act took effect June 7. Owners of Transamerica survivorship policies have the option of splitting survivorship products into two policies. But Joel Seigle of Transamerica Insurance & Investment Group, said that if the estate tax is eventually eliminated, policyholders may want to hold on to their policies to pay the new tax on capital gains or higher state inheritance taxes inheritance tax, assessment made on the portion of an estate received by an individual; it differs from an estate tax, which is a tax levied on an entire estate before it is distributed to individuals. or to enhance the estate value for heirs. Two other companies earlier announced modifications to their life policies. Clarica Life Insurance Co-U.S. introduced its "Wait & See" Survivorship Universal Life product, which guarantees that the single-premium policy will have a cash value at least equal to the premium paid for a 10- or 15-year period. Principal Financial Group launched its Estate Tax Repeal Benefit Rider, available on many of its life policies, that waives surrender charges. |
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