Transamerica has been a leader in the foreign national market for years based on their underwriting expertise and sales expertise. Some very talented marketers, with Transamerica’s assistance, has uncovered a very specific illustration design that appeals to this market based on the unique attributes of the TransNavigator IUL and an extremely flexible “cost recovery” design.  Read on to learn more about how to use this TransNavigator and this design on your next IUL case, foreign national or not!

The TransNavigator Cost Recovery Design

Client Profile:

45 to 60 year-old high-net-worth foreign nationals seeking to diversify their assets with a US based investment vehicle that also includes global indices.

Why it Works:

Foreign national clients highly value having access to the premiums paid into the policy, because their investment needs can change. They will often seek diversification by investing in a product based on US currency. With this design, the client has the option to recover the premiums into a policy while diversifying their US based investment in a tax favored product with a global based index.

TransNavigator offers global hindsight in a one-year point-to-point index: Clients receive the better performing of the S&P 500 or the Euro Stoxx 50 at 50% weighting, on the “second place” index, you earn 30% weighting, with 20% fixed in the Hang Seng.

How it competes:

This design was ran against the 10 top carriers in the IUL space. When using a 90th percentile historical illustrated rate for each product based on current caps and floors to create a truly level playing field, no other product can beat this design. Plus, Transamerica’s Global Link foreign national expertise makes the process easier on the client and the agent.

Technical Design Notes:

Design the illustration as follows: 7-pay Non-MEC premium, Option B Death Benefit through year 14. In year 15, illustrate a withdrawal of an amount equal to the total premium paid and a switch to a level death benefit option.  The remaining death benefit should equal the initial face amount and run to age 90-100 using conservative index assumptions (6.5%). Follow this link for a sample illustration.


Transamerica’s dedicated team of international underwriters has many years of experience underwriting these very unique clients. Transamerica has some of the most competitive nexus rules in the industry (ie: the client’s ties to the United States) and also allows for foreign trust ownership of the policy. They have a dedicated email inbox for inquiries on foreign national cases: