IUL lapse simulator: Transamerica Financial Foundation IUL II (sample policy)
Female, issue age 49, Preferred Elite · $100,000 face · Guideline Premium Test. Policy facts: no-lapse minimum $74.91/mo (guarantee runs 16 years, to Dec 3, 2041 at age 65) · target premium $1,907/yr ≈ $158.92/mo · illustrated premium $200/mo for 16 years · $5,632/yr ≈ $469.33/mo guarantees coverage to age 121 · 7-pay MEC limit $7,447/yr.
Increasing = $100k + policy value
Cash surrender value by age
Fit allZoom to flat-rate scenariosCash surrender valueDeath benefit
Year by yearClick a scenario card above to switch the table.
How this works. Monthly policy mechanics are taken from the policy contract: the premium expense charge (current 4%, guaranteed 6%), the $10/$12 policy fee, the per-unit charge (guaranteed $0.89 per $1,000 per month, including any face increase), cost of insurance on the net amount at risk, the 0.06%/month index account charge, one-year index segments credited at maturity on the starting value minus half of the deductions, the 15-year surrender charge, the cumulative no-lapse test, and the Guideline Premium Test corridor. Transamerica doesn't publish current cost-of-insurance rates, so the current charges were worked out backwards from the illustration's 3.5% ledger. Using those charges, the model then reproduces the illustration's 7.25% ledger independently within about $160 over 72 years, the 3.5% ledger within $1, and the guaranteed ledger within $44, with the same lapse years (22 and 40).
Lapse rule. During the first 16 years the policy can't lapse while cumulative premiums ≥ $74.91 × months elapsed; if charges exceed the value, the shortfall carries as a negative balance that must be repaid by Dec 3, 2041. Otherwise it lapses when the cash surrender value can't cover the monthly charges (a 61-day grace period follows; not modeled). Lapse ages are the age at that point.
Historical replay. The illustration's 2005–2024 credited rates for the chosen account (after its cap, participation rate and 0.75% floor) are applied in order from the start year, then repeated. Current charges apply. Carrier illustrations aren't allowed to show these: the maximum illustrated rate is 7.25% (6.50% for Basic S&P). Caps and participation rates can change. Past index results don't predict future crediting.
Limits. This is a model, not a carrier illustration. Loans, withdrawals and riders aren't modeled, and the Guideline Premium Test limit on very large premiums isn't enforced. Current charges can change at Transamerica's discretion; the guaranteed column is the contractual worst case.