Transamerica Financial Foundation IUL II Review (2026)
Written and reviewed by Hans Goldstein, licensed insurance producer, NPN 20602398 · CA Insurance License #4273294Last reviewed · Published October 3, 2026
Editorial review by a licensed agent who may earn a commission. No insurer pays for placement or grades. Hans is paid a commission by the insurer if you buy a policy through him. For life insurance, ask and he will tell you what he earns on your specific policy.
The brochure's own math
Transamerica deserves credit for publishing worked examples (Transamerica FFIUL II living benefits brochure, 07/25). Here they are next to the same cases from its older version (older Transamerica guide):
Living-benefit payouts from Transamerica's own materials (hypothetical examples)
| Case (carrier example) | Amount accelerated | Paid, FFIUL II | Share | Older version |
|---|---|---|---|---|
| Terminal illness, age 53, 8 months to live, $500,000 face | $500,000 | $462,103 | 92% | n/a |
| Heart attack at 48, 10-year life expectancy, $250,000 face | $225,000 | $122,258 | 54% | $52,294 (23%) |
| Chronic illness at 45, $300,000 face | $75,252 | $22,285 | about 30% | $8,554 of $72,000 (12%) |
Two lessons. First, the closer the insured is to death, the closer the payout gets to the amount accelerated; a 45-year-old with a chronic illness who may live for decades gets a fraction. Second, product design matters: the same heart attack paid 54% on the new version and 23% on the old one. "Up to" is a ceiling, not a check.
AI voices. Education, not tax or legal advice. Hans is paid a commission if you buy a policy through him. Comment LIVING on the video for the checklist.
Goldstein Scorecard: Financial Foundation IUL II
Goldstein Scorecard · Goldstein Index v1 · graded Oct 3, 2026 · how we grade →
Transamerica · vs. other indexed universal life policies · Draft grades on public data. Grades are shown on the page only and are Hans's editorial view.
| Dimension (weight) | Grade | One-line take |
|---|---|---|
| Cap / participation strength (15%) | Pending | No current public cap sheet found; Hans to pull the current rate sheet |
| Floor and guaranteed minimums (5%) | B+ | 0.75% floor, above the usual 0% (secondary source). [1] as of Jul 2025 re-grading |
| Loan options and current loan rate (15%) | B+ | Low-cost standard loan (2.75% charged, 2% credited) and a cheaper preferred loan after year 10 (secondary source). [2] as of Feb 2026 re-grading |
| COI and charge drag (15%) | Pending | Charge schedules are in the policy form and illustration, not public; graded from the standardized case |
| Living-benefit riders (10%) | B | All three triggers at no upfront cost, with the carrier's own examples showing the discount: 92% terminal, 54% heart attack, about 30% chronic. [3] as of Jul 2025 re-grading |
| Overloan protection (5%) | Pending | No overloan protection rider found in public materials; confirm |
| Illustration conservatism (AG 49-A/B) (10%) | Pending | Graded from the illustrated rate in the standardized case vs peers |
| Carrier strength (10%) | B+ | AM Best A, affirmed 2/13/2026. [4] as of Feb 13, 2026 re-grading |
| Cash value at years 10/20 vs peers (standard case) (15%) | Pending | Needs Hans's standardized illustration (WinFlex/iPipeline), on file before grading |
| Guaranteed minimum cap disclosed (disclosure, not weighted) | Yes | 2% lowest guaranteed minimum cap (on the Basic S&P 500 Index Account (no IAMC) 1-yr cap); loan rate guarantee: 3.00% standard yrs 1-10, 2.25% preferred yrs 11+ (current 2.75%/2.00%). (secondary: BGA-hosted carrier document) [5] as of 2026-04 |
| OVERALL | Incomplete | No overall grade yet: only 40% of the Index weight can be graded from public data (those dimensions average B+). The overall grade waits for Hans's standardized case (M45 preferred nonsmoker, $12,000/yr to 65, max-funded Option B to A, plus a minimum-funded case at the same death benefit). |
On public data, Financial Foundation IUL II grades strongest on no single dimension yet. 5 of 9 dimensions wait for a standardized illustration, so treat this as a starting point, not a verdict. Neutral summary of the scorecard, not a personal recommendation.
Best for: Families who want living-benefit triggers built in at no upfront charge on a mainstream IUL.
Look elsewhere if: You want a charged chronic or LTC rider that pays close to full value, or caps from a carrier-published (not brokerage-hosted) sheet.
- Ask: what is the guaranteed minimum cap and the guaranteed minimum participation rate in the contract for each index account? Not today's cap, the floor the cap can never go below.
- Why it matters: today's cap is not guaranteed. The insurer can lower caps on your policy over time, all the way down to that contractual minimum. Guaranteed minimum caps we have seen published run from 0.25% to 4% (insurer documents, 2024 to 2026), and several insurers don't publish theirs at all. That is a very different worst case.
- Many agents cannot answer this question on the spot. If yours can't, ask them to find it in the policy form or the illustration's guaranteed assumptions before you sign.
Where the insurer publishes it, the Goldstein Scorecard shows the guaranteed minimum cap; otherwise it says "not publicly disclosed". Caps, participation rates, loan rates, charges and dividends are not guaranteed and can change.
An honest presentation of anything non-guaranteed uses words like "up to", "could" or "illustrated at". If you hear "will" about cash value, index credits, loan income or a living-benefit payout ("this policy will pay you 80%", "you will have $1 million at 65"), treat it as a red flag. Only the guaranteed column and the contract's stated guarantees are promises; ask the person to show you where the word "guaranteed" appears.
Get your Transamerica FFIUL II graded.
Send your email and I'll send the in-force illustration request letter. Return the illustration and I'll grade your policy within one business day.
We’ll email it to you. Hans Goldstein · NPN 20602398.
Rather talk it through? Or book 15 minutes on Hans’s calendar.
The annual and lifetime limits
For chronic illness, the brochure caps acceleration at 24% of the face per year and 90% over the policy's life. A chronic claim is therefore paid as a series of annual elections, each discounted, not as one lump sum. That pace and discount are why California requires accelerated benefits to say they are not long-term care insurance (living benefits vs long-term care).
Fact sheet: Financial Foundation IUL II
| Item | Detail | As of | Source |
|---|---|---|---|
| AM Best rating | A (affirmed 2/13/2026) | Feb 13, 2026 | AM Best: Transamerica rating affirmation (2/13/2026) |
| Living benefits | Terminal illness benefit automatic; chronic and critical illness at no cost until used; chronic maximum 24% of face per year, 90% lifetime | Jul 2025 | Transamerica Financial Foundation IUL II living benefits brochure (07/25) |
| Living-benefit examples | Carrier examples: terminal (8 months to live) paid 92% of the amount accelerated; heart attack at 48 with a 10-year life expectancy paid 54%; chronic illness at 45 paid about 30% | Jul 2025 | Transamerica Financial Foundation IUL II living benefits brochure (07/25) |
| Cap history | Changed cap rates (some up, some down) on a subset of older in-force IUL products effective 12/16/2023 | Dec 16, 2023 | Transamerica changed cap rates on index accounts of a subset of previously sold IUL products effective December 16, 2023 (some up, some down); no change to floors or participation rates (as of 2023-12-12) |
| Caps and floor | Current caps are not in a public consumer document; ask for the current rate sheet | Oct 3, 2026 | not published by the insurer (checked 10/3/2026) |
Caps, participation rates, loan rates, charges and dividends are not guaranteed and can change. Confirm current figures in the carrier's latest disclosure and the California policy form before you buy.
The 2023 cap change, stated once
Transamerica changed cap rates on the index accounts of a subset of previously sold IUL products effective December 16, 2023; some went up and some down (NFG Brokerage summary). It shows that caps are current, not permanent, at any carrier. FFIUL II's current caps are not in a public consumer document, so the cap grade stays pending. When you get a rate sheet, check whether any higher-cap account carries an annual index account charge: that charge comes out whether the index rises or not.
Where the premium goes, and the cost of insurance ladder
In this model a male 45 paying $10,000 a year loses about 15% of the first 10 years of premium to charges when the policy is max-funded, and about 22% when the same premium buys three times the death benefit. The surrender charge is extra: in year 1 the cash surrender value is about $4,245 of $10,000 (max-funded) and $0 (target-funded), which is why early cash value can feel like half the premium disappeared. A common rule of thumb is that roughly half of early premium goes to charges; in this model that is close for year-one surrender value, and too high for the ongoing charges in a well-funded design.
Hypothetical. Not an illustration of any specific policy. Not a quote. Model on current (non-guaranteed) charges: premium load 10% (years 1-10) then 5%, $10 a month fee, per-$1,000 charge for 10 years, current COI at 80% of 2017 CSO select rates, 6% illustrated crediting. Guaranteed maximum charges are higher. Ask your insurer for the policy's actual charge schedule.
Read it like a ladder. The insurance part of the policy gets more expensive every year: the guaranteed maximum rate is about $8 per $1,000 at 65, $24 at 75 and $82 at 85 (2017 CSO). Each step is small until the late 70s, then the ladder curves up sharply. In a well-funded policy the cash value grows faster than the charges, so the policy carries itself with no extra premium (green). In an underfunded policy the charges eat the cash value from the inside, and the owner must pay more or the policy lapses (red, at 79 here). Real results usually land between those lines, which is why an in-force illustration every few years matters.
Hypothetical. Not an illustration of any specific policy. Not a quote. Male 45, preferred nonsmoker. Charges per the stated model; COI is charged on the net amount at risk (death benefit minus cash value), so the dollar cost depends on both the rate and how much coverage the cash value has not yet replaced. Source for rates: Society of Actuaries, 2017 CSO table 3291.
Who it fits
- A family buyer who wants permanent coverage with automatic terminal benefits and no-cost chronic and critical triggers as a backstop.
- Not a fit: anyone counting on the chronic rider to pay for care at full value, or buying mainly for maximum cash value.
The carrier's full lineup is in the Transamerica review.
Own a Transamerica FFIUL II, or were you quoted one?
Send it over. Within one business day you get a written read on the Goldstein Index: funding level, lapse risk, loan cost and two alternatives.
Already own one? Ask the insurer for an in-force illustration (current and guaranteed). The request letter is on the policy review page.
Rather talk it through? Or book 15 minutes on Hans’s calendar, or call 213-414-2808.
Hans Goldstein · 213-414-2808 · NPN 20602398, independent licensed insurance producer
Frequently asked questions
Sources
- Transamerica Financial Foundation IUL II living benefits brochure (07/25)
- Transamerica: older chronic illness rider guide
- NFG Brokerage: Transamerica IUL cap rate changes effective 12/16/2023
- AM Best: Transamerica rating affirmation (2/13/2026)
Hans Goldstein, CA Insurance License #4273294 · NPN 20602398 · Goldstein & Co. LLC dba Goldstein Insurance Services, CA License #6016830
Contact: hans@hansgoldstein.com · 213-414-2808
General education, not tax or legal advice. Tax treatment depends on your facts and on current law, which can change. Talk to your CPA or estate attorney. Guarantees are backed by the financial strength and claims-paying ability of the issuing insurance company. Guarantees apply only to the contractual terms of the policy. Caps, participation rates, loan rates, charges and dividends are not guaranteed and can change. Hans is paid a commission by the insurer if you buy a policy through him. For life insurance, ask and he will tell you what he earns on your specific policy. Product and company names are trademarks of their owners. Goldstein Insurance Services is an independent agency, not affiliated with or endorsed by any insurer named here. Life insurance requires underwriting; not everyone qualifies. This page describes products in general terms; read the policy and the insurer's disclosures before you buy.