On Wednesday, May 14 th, Transamerica re-entered the variable universal life market with their NEW Journey VUL.This is an accumulation-oriented product that performs very well in maximum distribution solves.Pricing for this product seems to be very well calculated; it is an aggressively positioned product in the VUL accumulation market.
Assuming an 8% gross IR, Journey VUL falls within the top 5 for most of the scenarios we benchmark; it is the most competitive for distribution solves for about 50% of those scenarios. Pricing is in-line with other key players in the VUL accumulation marketplace. When #1, it’s within a slight margin; when it’s not number one, it manages to stay within 5% of the best distribution amount for almost every scenario.Assuming a 6% gross IR, competitive positioning declines, which means that this product is somewhat interest rate sensitive.Even though it loses a position or two, most of the time, it still ranks within top 3 under age 50.
As expected, cash surrender values at age 65 and death benefits at age 65 reflect strong accumulation and perform very well against the competition. Targets lackluster and rank in the 3 rd to 4th quartile.
Journey VUL was evaluated for endowment solves, which tend to fall middle of the pack.For this product, Trans targeted overfunded accumulation sales, and impresses a minimum premium threshold for full pays.We will be incorporating Journey VUL into the variable universal life endowment solves; however, it should really be considered as an accumulation-oriented product.
Journey VUL was added to the website on Monday, May 19th.