Transamerica B-Share

This Rate Sheet Prospectus Supplement (this “supplement”) applies to the above listed Transamerica variable annuities and should be read and retained with the prospectus. If You would like another copy of the current prospectus, please call us at (800) 525-6205.

All Rate Sheet Prospectus Supplements are also available on the EDGAR system at www.sec.gov. Please see the SEC file number table below for your applicable product.

We are issuing this Rate Sheet Prospectus Supplement to provide the rider fee percentages, valuation frequency, minimum benefit age, protection level percentages, required allocations, and the withdrawal percentages that we are currently offering for the Transamerica Principal Optimizer^SM rider as described in the prospectus.

The information listed below applies to applications signed on or after and rider election forms received on or after May 1, 2021.

The rider fee percentages, valuation frequency, minimum benefit age, protection level percentage, required allocations and withdrawal percentages set forth in the Rate Sheet Prospectus Supplement may not be superseded or changed until a new Rate Sheet Prospectus Supplement is filed at least 10 business days prior to the effective date of the new Rate Sheet Prospectus Supplement.

For riders issued as part of the new policy application process. In order to receive the rider terms below we must receive Your completed application within 7 calendar days from the date that this supplement is no longer effective, and the policy must be funded within 60 calendar days from the date that this supplement is no longer effective. If these conditions are not met, Your application will be considered not in good order and additional paperwork may be required to issue the policy with the applicable rates in effect at that time.

For riders issued to existing policy Owners. In order to receive the terms listed below, Your rider election form must be signed and received in good order while this supplement is in effect. If Your rider election form is received in good order after this supplement is no longer in effect, You will receive the rider terms that are in effect on the date Your rider election form is received in good order. Election forms must be received in good order while the New York Stock Exchange is open for regular trading to get same-day pricing of the transaction. Election forms received in good order on non-business days or after our close of business will get next-day pricing.

The rider fee, protection level and withdrawal percentages applicable to Your policy will not change for the life of Your policy (unless subject to an automatic step-up or an optional reset as described in the Automatic Step-Up and Optional Reset sections of Your prospectus. At the time of an automatic step-up or an optional reset the rider fee percentage may increase but will not exceed the maximum in effect when the rider was elected. At the time of an optional reset the protection level percentage may decrease but will never be less than the minimum protection level percentage in effect when the rider was elected.) The premium and rebalance allocation requirements, minimum benefit age and valuation frequency will not change for the life of Your policy.

This Supplement must be accompanied or preceded by the current Prospectus dated May 1, 2021.

^** The withdrawal percentage is determined by the number of rider years and the annuitant’s age (or the annuitant’s spouse’s age if younger and the joint life option is elected) at the time of the first withdrawal taken on or after the rider anniversary immediately following the annuitant’s (or the annuitant’s spouse’s if younger and the joint life option is elected) attainment of the minimum benefit age.

This Supplement must be accompanied or preceded by the current Prospectus dated May 1, 2021.

All Rate Sheet Prospectus Supplements are also available on the EDGAR system at www.sec.gov. Please see the SEC file number table below for your applicable product.

We are issuing this supplement to provide rider fee percentages, growth percentage, growth duration, valuation frequency, minimum benefit age and withdrawal percentages that we are offering for the Retirement Income Max^® 1.2 rider as described in the prospectus.

The information listed below applies to applications signed on or after and rider election forms received on or after May 1, 2021.

The rider fee percentages, growth percentage, growth duration, valuation frequency, minimum benefit age and withdrawal percentages set forth in the Rate Sheet Prospectus Supplement may not be superseded or changed until a new Rate Sheet Prospectus Supplement is filed at least 10 business days prior to the effective date of the new Rate Sheet Prospectus Supplement.

For riders issued to existing policy Owners: In order to receive the terms listed below, Your rider election form must be signed and received in good order while this supplement is in effect. If Your rider election form is received in good order after this supplement is no longer in effect, You will receive the rider terms that are in effect on the date Your rider election form is received in good order. Election forms must be received in good order while the New York Stock Exchange is open for regular trading to get same-day pricing of the transaction. Election forms received in good order on non-business days or after our close of business will get next-day pricing.

The rider fee and withdrawal percentages applicable to Your policy will not change for the life of Your policy (unless subject to an automatic step-up as described in the Automatic Step-Up section of Your prospectus). At the time of an automatic step-up the rider fee percentage may change. (The rider fee percentage will not exceed the maximum fee percentage in effect when You purchased the rider). The growth duration and percentage, minimum benefit age and valuation frequency will not change for the life of Your policy.

This Supplement must be accompanied or preceded by the current Prospectus dated May 1, 2021.

^* The withdrawal percentage is determined by the annuitant’s age (or the annuitant’s spouse’s age if younger and the joint life option is elected) at the time of the first withdrawal taken on or after the benefit anniversary immediately following the annuitant’s (or the annuitant’s spouse’s if younger and the joint life option is elected) attainment of minimum benefit age.

This Supplement must be accompanied or preceded by the current Prospectus dated May 1, 2021.

All Rate Sheet Prospectus Supplements are also available on the EDGAR system at www.sec.gov. Please see the SEC file number table below for your applicable product.

We are issuing this supplement to provide the rider fee percentage, growth percentage, growth duration, valuation frequency, minimum benefit age and withdrawal percentages that we are currently offering for the Retirement Income Choice^® 1.7 rider as described in the prospectus.

The information listed below applies to applications signed on or after and rider election forms received on or after May 1, 2021.

For riders issued as part of the new policy application process. In order to receive the terms listed below we must receive Your completed application within 7 calendar days from the date that this supplement is no longer effective, and the policy must be funded within 60 calendar days from the date that this supplement is no longer effective. If these conditions are not met, Your application will be considered not in good order and additional paperwork may be required to issue the policy with the applicable rates in effect at that time.

The rider fee and withdrawal percentages applicable to Your policy will not change for the life of Your policy (unless subject to an automatic step-up as described in the Automatic Step-Up section of Your prospectus). At the time of an automatic step-up the rider fee percentage and the rider withdrawal percentages may change. (The rider fee percentage will not exceed the maximum fee percentage in effect when You purchased the rider). The growth duration and percentage, minimum benefit age and valuation frequency will not change for the life of Your policy.

This Supplement must be accompanied or preceded by the current Prospectus dated May 1, 2021.

^* The withdrawal percentage is determined by the annuitant’s age (or the annuitant’s spouse’s age if younger and the joint life option is elected) at the time of the first withdrawal taken on or after the rider anniversary immediately following the annuitant’s (or the annuitant’s spouse’s if younger and the joint life option is elected) attainment of the minimum benefit age.

This Supplement must be accompanied or preceded by the current Prospectus dated May 1, 2021.

All Rate Sheet Prospectus Supplements are also available on the EDGAR system at www.sec.gov. Please see the SEC file number table below for your applicable product.

We are issuing this Rate Sheet Prospectus Supplement to provide the rider fee percentage, valuation frequency, minimum benefit age, required allocations and withdrawal percentages that we are currently offering for the Transamerica Income Edge^SM 1.2 rider as described in the prospectus.

The information listed below applies to applications signed on or after and rider election forms received on or after May 1, 2021.

The rider fee percentage, valuation frequency, minimum benefit age, required allocations and withdrawal percentages set forth in the Rate Sheet Prospectus Supplement may not be superseded or changed until a new Rate Sheet Prospectus Supplement is filed at least 10 business days prior to the effective date of the new Rate Sheet Prospectus Supplement.

The rider fee and withdrawal percentages applicable to Your policy will not change for the life of Your policy (unless subject to an automatic step-up as described in the Automatic Step-Up section of Your prospectus. At the time of an automatic step-up the rider fee percentage may increase but will not exceed the maximum in effect when the rider was elected). The premium and rebalance allocation requirements, minimum benefit age and valuation frequency will not change for the life of Your policy.

This Supplement must be accompanied or preceded by the current Prospectus dated May 1, 2021.

TRANSAMERICA B-SHARE VARIABLE ANNUITY

Transamerica Life Insurance Company
Separate Account VA B (EST. 1/19/1990)
4333 Edgewood Road NE
Cedar Rapids, Iowa 52499-0001
(800)525-6205
www.transamerica.com

Transamerica Financial Life Insurance Company
Separate Account VA BNY (EST. 9/27/1994)
Administrative Office
4333 Edgewood Road NE
Cedar Rapids, Iowa 52499-0001
(800)525-6205
www.transamerica.com

This prospectus describes information You should know before You purchase a Transamerica B-Share Variable Annuity(“B-Share”). The prospectus describes a contract between each Owner and joint Owner (“You”) and Transamerica Life Insurance Company or Transamerica Financial Life Insurance Company (“us,” “we,” “our” or “Company”). This is an individual, deferred, flexible premium variable annuity. This variable annuity allows You to allocate Your premium payments among the Fixed Account (if available) and the Subaccounts that invest in underlying fund portfolios.

This prospectus and the underlying fund prospectuses give You important information about the policies and the underlying fund portfolios. When delivered in connection with the sale of a new B-Share Variable Annuity Policy, this prospectus must be accompanied by the applicable Rate Sheet Prospectus Supplements that specify the current rider fee, growth rate percentage (if applicable), valuation frequency, minimum benefit age, withdrawal percentage, protection level percentage (if applicable), and required allocations (if applicable). Please read them carefully before You invest and keep them for future reference. You can also contact us to get a Statement of Additional Information (“SAI”) free of charge. The SAI contains more information about this policy. A registration statement, including the SAI, has been filed with the Securities and Exchange Commission (“SEC”) and the SAI is incorporated herein by reference. The prospectus and SAI can also be obtained from the SEC's website (www.sec.gov). The table of contents of the SAI is included at the end of this prospectus. The Securities and Exchange Commission has not approved or disapproved these securities, or passed upon the adequacy of this prospectus. Any representation to the contrary is a criminal offense.

This variable annuity may not be suitable for everyone. This variable annuity may not be appropriate for people who do not have a long investment time horizon and is not appropriate for people who intend to engage in market timing or other frequent (disruptive) trading. You will get no additional tax advantage from this variable annuity if You are investing in a variable annuity through a tax-advantaged retirement plan (such as a 401(k) plan or Individual Retirement Account (“IRA”)). This prospectus is not intended to provide tax, accounting or legal advice.

We are not an investment adviser nor are we registered as such with the SEC or any state securities regulatory authority. We are not acting in any fiduciary capacity with respect to Your policy nor are we acting in any capacity on behalf of any tax-advantaged retirement plan. This information does not constitute personalized investment advice or financial planning advice.

We want to let You know that beginning January 1, 2021, we will no longer mail copies of shareholder reports for funds in Your portfolio. This change is permitted by regulations adopted by the Securities and Exchange Commission. Instead, the reports will be made available on our website. We’ll let You know by mail each time a report is posted. The notification will have a URL for accessing the report.

If You’ve already elected to receive documents from us electronically, You’re not affected by this change. You’re already receiving an email with a link to the reports so there’s nothing You need to do.

You do have the option of continuing to receive paper copies of all future shareholder reports free of charge. If You’d like this option, give us a call at (800)525-6205, Monday through Thursday 8 - 6:30, or Friday 8 - 5:30 ET.

Prospectus Date: May 1, 2021
Statement of Additional Information Date: May 1, 2021

The Subaccounts currently available under this policy invest in the following underlying fund portfolios:

SUBACCOUNT	UNDERLYING FUND PORTFOLIO
AB Balanced Wealth Strategy Portfolio - Class B	AB Balanced Wealth Strategy Portfolio - Class B
AB Growth and Income Portfolio - Class B	AB Growth and Income Portfolio - Class B
American Funds - Asset Allocation Fund Class 4	American Funds - Asset Allocation Fund Class 4
American Funds - The Bond Fund of America^SM - Class 4	American Funds - The Bond Fund of America^SM - Class 4
American Funds - Growth Fund - Class 4	American Funds - Growth Fund - Class 4
American Funds - Growth-Income Fund - Class 4	American Funds - Growth-Income Fund - Class 4
American Funds - International Fund - Class 4	American Funds - International Fund - Class 4
American Funds - New World Fund^® - Class 4	American Funds - New World Fund^® - Class 4
DFA VA Global Bond Portfolio - Institutional Class	DFA VA Global Bond Portfolio - Institutional Class
Fidelity ^® VIP Balanced Portfolio - Service Class 2	Fidelity ^® VIP Balanced Portfolio - Service Class 2
Fidelity ^® VIP Consumer Staples - Initial Class	Fidelity ^® VIP Consumer Staples - Initial Class
Fidelity ^® VIP Contrafund^® Portfolio - Service Class 2	Fidelity ^® VIP Contrafund^® Portfolio - Service Class 2
Fidelity ^® VIP Energy Portfolio - Service Class 2	Fidelity ^® VIP Energy Portfolio - Service Class 2
Fidelity ^® VIP Health Care Portfolio - Service Class 2	Fidelity ^® VIP Health Care Portfolio - Service Class 2
Fidelity ^® VIP Mid Cap Portfolio - Service Class 2	Fidelity ^® VIP Mid Cap Portfolio - Service Class 2
Fidelity ^® VIP Technology Portfolio - Initial Class	Fidelity ^® VIP Technology Portfolio - Initial Class
Fidelity ^® VIP Utilities Portfolio - Initial Class	Fidelity ^® VIP Utilities Portfolio - Initial Class
Fidelity ^® VIP Value Strategies Portfolio - Service Class 2	Fidelity ^® VIP Value Strategies Portfolio - Service Class 2
State Street Total Return V.I.S. Fund - Class 3	State Street Total Return V.I.S. Fund - Class 3
TA 60/40 Allocation - Service Class	Transamerica 60/40 Allocation VP - Service Class
TA Aegon High Yield Bond - Service Class	Transamerica Aegon High Yield Bond VP - Service Class
TA Aegon Sustainable Equity Income - Service Class	Transamerica Aegon Sustainable Equity Income VP - Service Class
TA Aegon U.S. Government Securities - Service Class	Transamerica Aegon U.S. Government Securities VP - Service Class
TA American Funds Managed Risk - Balanced - Service Class	Transamerica American Funds Managed Risk VP - Service Class
TA BlackRock Global Real Estate Securities - Service Class	Transamerica BlackRock Global Real Estate Securities VP - Service Class
TA BlackRock Government Money Market - Service Class	Transamerica BlackRock Government Money Market VP - Service Class
TA BlackRock iShares Edge 40- Service Class	Transamerica BlackRock iShares Edge 40 VP - Service Class
TA BlackRock iShares Edge 50 - Service Class	Transamerica BlackRock iShares Edge 50 VP - Service Class
TA BlackRock iShares Edge 75 - Service Class	Transamerica BlackRock iShares Edge 75 VP - Service Class
TA BlackRock iShares Edge 100 - Service Class	Transamerica BlackRock iShares Edge 100 VP - Service Class
TA BlackRock Tactical Allocation - Service Class	Transamerica BlackRock Tactical Allocation VP - Service Class
TA Goldman Sachs 70/30 - Service Class	Transamerica Goldman Sachs 70/30 Allocation VP - Service Class
TA International Growth - Service Class	Transamerica International Growth VP - Service Class
TA Janus Balanced - Service Class	Transamerica Janus Balanced VP - Service Class
TA Janus Mid-Cap Growth - Service Class	Transamerica Janus Mid-Cap Growth VP - Service Class
TA JPMorgan Asset Allocation - Conservative - Service Class	Transamerica JPMorgan Asset Allocation - Conservative VP – Service Class
TA JPMorgan Asset Allocation - Growth - Service Class	Transamerica JPMorgan Asset Allocation - Growth VP – Service Class
TA JPMorgan Asset Allocation - Moderate - Service Class	Transamerica JPMorgan Asset Allocation - Moderate VP – Service Class
TA JPMorgan Asset Allocation - Moderate Growth - Service Class	Transamerica JPMorgan Asset Allocation - Moderate Growth VP – Service Class
TA JPMorgan Core Bond - Service Class	Transamerica JPMorgan Core Bond VP - Service Class
TA JPMorgan Enhanced Index - Service Class	Transamerica JPMorgan Enhanced Index VP – Service Class
TA JPMorgan International Moderate Growth - Service Class	Transamerica JPMorgan International Moderate Growth VP – Service Class

SUBACCOUNT	UNDERLYING FUND PORTFOLIO
TA JPMorgan Mid Cap Value - Service Class	Transamerica JPMorgan Mid Cap Value VP–Service Class
TA JPMorgan Tactical Allocation - Service Class	Transamerica JPMorgan Tactical Allocation VP - Service Class
TA Legg Mason Dynamic Allocation - Balanced - Service Class	Transamerica Legg Mason Dynamic Allocation - Balanced VP - Service Class
TA Legg Mason Dynamic Allocation - Growth - Service Class	Transamerica Legg Mason Dynamic Allocation - Growth VP - Service Class
TA Madison Diversified Income - Service Class	Transamerica Madison Diversified Income VP - Service Class
TA Managed Risk - Balanced ETF - Service Class	Transamerica Managed Risk - Balanced ETF VP - Service Class
TA Managed Risk - Conservative ETF - Service Class	Transamerica Managed Risk - Conservative ETF VP - Service Class
TA Managed Risk - Growth ETF - Service Class	Transamerica Managed Risk - Growth ETF VP - Service Class
TA Market Participation Strategy - Service Class	Transamerica Market Participation Strategy VP - Service Class
TA Morgan Stanley Capital Growth - Service Class	Transamerica Morgan Stanley Capital Growth VP – Service Class
TA Morgan Stanley Global Allocation - Service Class	Transamerica Morgan Stanley Global Allocation VP - Service Class
TA Morgan Stanley Global Allocation Managed Risk - Balanced - Service Class	Transamerica Morgan Stanley Global Allocation Managed Risk - Balanced VP - Service Class
TA MSCI EAFE Index - Service Class	Transamerica MSCI EAFE Index VP - Service Class
TA Multi-Managed Balanced - Service Class	Transamerica Multi-Managed Balanced VP – Service Class
TA PIMCO Tactical - Balanced - Service Class	Transamerica PIMCO Tactical - Balanced VP - Service Class
TA PIMCO Tactical - Conservative - Service Class	Transamerica PIMCO Tactical - Conservative VP - Service Class
TA PIMCO Tactical - Growth - Service Class	Transamerica PIMCO Tactical - Growth VP - Service Class
TA PIMCO Total Return - Service Class	Transamerica PIMCO Total Return VP – Service Class
TA PineBridge Inflation Opportunities - Service Class	Transamerica PineBridge Inflation Opportunities VP - Service Class
TA QS Investors Active Asset Allocation - Conservative - Service Class	Transamerica QS Investors Active Asset Allocation - Conservative VP - Service Class
TA QS Investors Active Asset Allocation - Moderate - Service Class	Transamerica QS Investors Active Asset Allocation - Moderate VP - Service Class
TA QS Investors Active Asset Allocation - Moderate Growth - Service Class	Transamerica QS Investors Active Asset Allocation - Moderate Growth VP - Service Class
TA Rothschild & Co Large Cap Value - Service Class	Transamerica Rothschild & Co Large Cap Value VP - Service Class
TA S&P 500 Index - Service Class	Transamerica S&P 500 Index VP - Service Class
TA Small Mid Cap Value - Service Class	Transamerica Small/Mid Cap Value VP – Service Class
TA T. Rowe Price Small Cap - Service Class	Transamerica T. Rowe Price Small Cap VP – Service Class
TA TS&W International Equity - Service Class	Transamerica TS&W International Equity VP – Service Class
TA WMC US Growth - Service Class	Transamerica WMC US Growth VP – Service Class
Vanguard ^® VIF Balanced Portfolio	Vanguard ^® VIF Balanced Portfolio
Vanguard ^® VIF Conservative Allocation Portfolio	Vanguard ^® VIF Conservative Allocation Portfolio
Vanguard ^® VIF Mid-Cap Index Portfolio	Vanguard ^® VIF Mid-Cap Index Portfolio
Vanguard ^® VIF Moderate Allocation Portfolio	Vanguard ^® VIF Moderate Allocation Portfolio

iii

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GLOSSARY OF TERMS

Accumulation Unit - An accounting unit of measure used in calculating the Policy Value in the Separate Account before the Annuity Commencement Date. For more information on unit values, including how they are calculated after the Annuity Commencement Date, please see the Statement of Additional Information.

Adjusted Policy Value - The Policy Value increased or decreased by any Excess Interest Adjustment.

Administrative Office - Transamerica Life Insurance Company and Transamerica Financial Life Insurance Company, Attention: Customer Care Group, 4333 Edgewood Road NE, Cedar Rapids, IA 52499, (800) 525-6205.

Annuitant - The person on whose life any annuity payments involving life contingencies will be based.

Annuitize (Annuitization) - When You switch from the accumulation phase to the income phase and we begin to make annuity payments to You (or Your payee).

Annuity Commencement Date - The date upon which annuity payments are to commence. This date may not be later than the last day of the policy month following the month in which the Annuitant attains age 99 (earlier if required by state law).

Annuity Payment Option - A method of receiving a stream of annuity payments selected by the Owner.

Assumed Investment Return or AIR - The annual effective rate shown in the contract that is used in the calculation of each variable annuity payment.

Business Day - A day when the New York Stock Exchange is open for regular trading. Business Day may be referred to as Market Day in Your policy.

Cash Value - The Adjusted Policy Value less any applicable Surrender Charge.

Death Proceeds - The amount payable upon death.

Excess Interest Adjustment - A positive or negative adjustment to amounts paid out or transferred from the Fixed Account Guaranteed Period Options prior to the end of the guaranteed period. The adjustment reflects changes in the interest rates declared by us since the date any payment was received by, or an amount was transferred to, the Guaranteed Period Option. The Excess Interest Adjustment can either decrease or increase the amount to be received by the Owner upon withdrawals, surrenders, or commencement of annuity payments, depending upon whether there has been an increase or decrease in interest rates, respectively. The Excess Interest Adjustment will not decrease the interest credited to Your policy below the guaranteed minimum. The Excess Interest Adjustment does not apply to policies issued in New York by Transamerica Financial Life Insurance Company.

Fixed Account - One or more investment options under the policy that are part of our general assets and are not in the Separate Account.

Guaranteed Lifetime Withdrawal Benefit - Any optional benefit under the policy that provides a guaranteed minimum withdrawal benefit, including the Transamerica Principal Optimizer^SM rider, the Retirement Income Max^® 1.2 rider, the Retirement Income Choice^® 1.7 rider and the Transamerica Income Edge^SM 1.2 rider.

Guaranteed Minimum Accumulation Benefit - A benefit under the optional Transamerica Principal Optimizer^SM (TPO) rider that provides a guaranteed future value.

Guaranteed Period Options - The various guaranteed interest rate periods of the Fixed Account which we may offer and into which premium payments may be paid or amounts transferred when available.

Nurse - A licensed registered Nurse or licensed practical Nurse.

Nursing Care - Skilled or intermediate care performed by a Nurse.

Owner (You, Your) - The person who may exercise all rights and privileges under the policy.

Physician - A doctor of medicine or osteopathy as set forth in Section 186 (r)(1) of the Social Security Act, as amended who is legally authorized to practice medicine and surgery within the United States by the jurisdiction in which he or she performs such function or action.

Policy Date - The date shown on the policy data page attached to the policy and the date on which the policy becomes effective.

Policy Value - On or before the Annuity Commencement Date, the Policy Value is equal to the Owner's:

•	premium payments; minus

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•	gross withdrawals (withdrawals plus the Surrender Charge on the portion of the requested withdrawal that is subject to the surrender charge plus or minus any Excess Interest Adjustment plus taxes (on the withdrawal)); plus
•	interest credited in the Fixed Account; plus
•	accumulated gains in the Separate Account; minus
•	accumulated losses in the Separate Account; minus
•	service charges, rider fees, premium taxes, transfer fees, and other charges (including those imposed upon termination), if any.

Policy Year - A Policy Year begins on the Policy Date and on each anniversary thereafter.

Separate Account - Separate Account VA B and Separate Account VA BNY, Separate Accounts established and registered as unit investment trusts under the Investment Company Act of 1940, as amended (the “1940 Act”), to which premium payments under the policies may be allocated.

Separate Account Value - The portion of the Policy Value that is invested in the Separate Account.

Stable Account - A Fixed Account option, only available if You elect the Transamerica Income Edge^SM 1.2 rider or the Transamerica Principal Optimizer^SM rider, to which You must allocate a portion of Your premium payments and Policy Value. Assets in the Stable Account are not subject to Separate Account Annual Expenses as set forth under FEE TABLE AND EXPENSE EXAMPLES.

Static Allocation - An investment option that invests different percentages of the Policy Value in some or all of the Subaccounts available within the policy.

Subaccount - A subdivision within the Separate Account, the assets of which are invested in a specified underlying fund portfolio.

Surrender Charge Free Amount - The amount that can be withdrawn each Policy Year without incurring any Surrender Charges. Please see “EXPENSES – Surrender Charges” for more explanation.

Valuation Period - The period of time from one determination of Accumulation Unit values and Annuity Unit values to the next subsequent determination of those values. Such determination shall be made generally at the close of business on each Business Day.

Written Notice - Written Notice, signed by the Owner, that gives us the information we require and is received in good order at the Administrative Office. For some transactions, we may accept an electronic notice or telephone instructions. Such electronic notice must meet the requirements for good order that we establish for such notices.

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INTRODUCTION

How to buy this variable annuity

√ Choose between qualified and non-qualified⁽¹⁾⁽²⁾

	Qualified Policy^(1,3) Minimum Initial Deposit		Non-Qualified Policy Minimum Initial Deposit^(1,4)		Surrender Charge Period		Mortality & Expense Risk and Administrative Charges
B-Share	$1,000		$5,000		7 years		1.15%

⁽¹⁾	We currently issue new policies to the following plans: Traditional IRAs, Roth IRAs, SIMPLE IRAs, SEP-IRAs, 457(f) plans (in certain circumstances) and Section 401(a) plans (including profit sharing plans, defined benefit pension plans, defined contribution pension plans, 401(k) plans, combination defined benefit/contribution plans). If You purchase the policy as an individual retirement annuity or as part of a 403(b) plan, 457 plan, a pension plan, a profit sharing plan (including a 401(k) plan, or certain other employer sponsored programs, Your policy is referred to as a qualified policy. If You purchase the policy other than as part of any arrangement described in the preceding sentence, the policy is referred to as a non-qualified policy.
⁽²⁾	This table does not show underlying fund portfolio expenses, annual service charge and optional rider fees.
⁽³⁾	Includes anticipated premium at time of application from transfers or rollovers as indicated on Your application or electronic order form.
⁽⁴⁾	Includes anticipated premium at time of application from 1035 exchanges as indicated on Your application or electronic order form.

√ Choose investment options

•	Subaccounts – Invest in underlying funds representing a range of investment strategies, objectives and asset classes.
•	Fixed Account - A fixed interest account (if available).

Subject to limitations, You may move Your Policy Value among each of these investment options.

√ Choose optional guaranteed benefits (if desired)*

Lifetime Withdrawal Benefits	Transamerica Principal Optimizer^{SM(1, 2)} (Provides protection of assets, retirement income for life with a broad range of investment choices)
Lifetime Withdrawal Benefits – No Longer Available	Retirement Income Max^® 1.2⁽¹⁾(Provides retirement income for life with a conservative range of investment choices) Retirement Income Choice^® 1.7^{(1, 3)}(Provides retirement income for life and income for long term care with a broad range of investment choices) Transamerica Income Edge^SM1.2⁽¹⁾(Provides retirement income for life with a broad range of investment choices)
Death Benefits	Return of Premium⁽¹⁾(Total premiums, minus withdrawals) Annual Step-Up⁽¹⁾(Largest Policy Value on any policy anniversary prior to 81^st birthday minus withdrawals)
Death Benefits – No Longer Available	Additional Death Distribution^SM(1)(Pays an additional death benefit amount (based on earnings) Additional Death Distribution+^SM(1)(Pays an additional death benefit amount (based on benefit base)
Liquidity Rider	Liquidity Rider (Reduces surrender charge to four years)

⁽¹⁾	Investment or other restrictions may apply.

⁽²⁾	Also includes an accumulation benefit.
⁽³⁾	Also includes an optional death benefit.
*	Additional fees apply. Optional benefits may not be available for all policies, in all states, at all times or through all financial intermediaries.

Table of Contents

FEE TABLE AND EXPENSE EXAMPLES

The following describes the fees and expenses that You will pay when buying, owning, and surrendering the policy. Please be certain to review the notes following the fee table and expense examples for further information about the fees and charges presented. The order of the notes follows the order in which the fees and charges under the policy are presented in the fee tables and the expense examples.

The fee table reflects the maximum charges unless otherwise noted.

The first section describes the fees and expenses that You will pay at the time that You buy the policy, surrender the policy, transfer Cash Value between investment options, or request special services. State premium taxes may also be deducted. State premium taxes currently range from 0% - 3.5%. Excess Interest Adjustments may be made to amounts surrendered (partial and full), transferred or applied to Annuity Payment Options from Cash Value from the Fixed Account. (All fees are maximum for purchases made while this prospectus is effective unless otherwise noted.)

Share Classes	B-Share	B-Share with Liquidity Rider
Owner Transaction Expenses:
Front-End Sales Load On Purchase Payments	0%	0%
Contingent Deferred Surrender Charges (as a percentage of premium surrendered or withdrawn)⁽¹⁾
Number of Years Since Premium Payment Date
Year 1	8%	8%
Year 2	8%	8%
Year 3	7%	7%
Year 4	6%	6%
Year 5	5%	0%
Year 6	4%	0%
Year 7	3%	0%
Year 8 or more	0%	0%
Transfer Fee⁽²⁾	$10	$10
Special Service Fee⁽³⁾	$50*	$50*

The next section describes the fees and expenses that You will pay periodically during the time that You own the policy, not including underlying fund portfolio fees and expenses. (All fees are maximum for purchases made while this prospectus is effective unless otherwise noted.)

Share Class		B-Share
Annual Service Charge⁽⁴⁾		$50
Separate Account Annual Expenses (as a percentage, annually, of average Separate Account Value)⁽⁵⁾:
Mortality and Expense Risk Fee		1.00%
Administrative Charge		0.15%
Total Base Separate Account Annual Expenses		1.15%
Optional Separate Account Expenses:
Return of Premium Death Benefit (as a percentage, annually, of average Separate Account Value)		0.15%
Annual Step-Up Death Benefit (as a percentage, annually, of average Separate Account Value)		0.35%
Fund Facilitation Fee (as a percentage, annually, of the net asset value of Subaccount)		0.60%
Liquidity Rider (as a percentage, annually, of average Separate Account Value)		0.50%
Total Separate Account Annual Expenses with Highest Optional Separate Account Expenses		2.60%
Optional Death Benefit Riders – No Longer Available
Additional Death Distribution^SM (annual charge based on Policy Value)		0.25%
Additional Death Distribution+^SM (annual charge based on Policy Value)		0.55%

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	Maximum
Optional Guaranteed Lifetime Withdrawal Benefit Riders⁽⁶⁾:
Transamerica Principal Optimizer^SM rider (annual charge - % of the Rider Fee Basis)*	2.50%

	Maximum
Optional Guaranteed Lifetime Withdrawal Benefit Riders – No Longer Available
Retirement Income Max^® 1.2 rider (annual charge - % of Withdrawal Base)*	2.50%
Retirement Income Choice^® 1.7 rider (annual charge - % of Withdrawal Base)
Base Benefit Designated Allocation Group A*	2.50%
Base Benefit Designated Allocation Group B*	2.50%
Base Benefit Designated Allocation Group C*	2.50%
Additional Benefits available with Retirement Income Choice^® 1.7 rider:
Death Benefit - (Single Life Option) (annual charge - % of Withdrawal Base)*	0.55%
Death Benefit - (Joint Life Option) (annual charge - % of Withdrawal Base)*	0.50%
Income Enhancement^SM - (Single Life Option - Not available in NY) (annual charge - % of Withdrawal Base)*	0.45%
Income Enhancement^SM - (Joint Life Option - Not available in NY) (annual charge - % of Withdrawal Base)*	0.65%
Transamerica Income Edge 1.2 rider (annual charge - % of Withdrawal Base)*	2.50%

*The Current rider fee will be less than or equal to the stated Maximum. Your rider fee may increase (or decrease) at the time of any automatic step-up or optional reset. See Automatic Step-Up or Option Reset section. Your rider fee percentage will not exceed the maximum fee percentage shown in this table. The current rider fee will be disclosed in a Rate Sheet Prospectus Supplement. All Rate Sheet Prospectus Supplements are available on the EDGAR system at www.sec.gov (File Numbers 333-233836 for TLIC and 333-233840 for TFLIC).

The next section shows the lowest and highest total operating expenses charged by the underlying fund portfolios for the year ended December 31, 2020 (before any fee waiver or expense reimbursements). Expenses may be higher or lower in future years. More detail concerning each portfolio's fees and expenses is contained in the prospectus for each portfolio.

Total Portfolio Annual Operating Expenses (Expenses that are deducted from portfolio assets, including management fees, distribution and/or service 12b-1 fees, and other expenses)⁽⁷⁾:
Lowest Gross	0.12%
Highest Gross	6.00%

Notes to Fee Table

Owner Transaction Expenses:

1) Maximum Surrender Charge:

The surrender charge, if any is imposed, applies to each premium payment, regardless of how Policy Value is allocated among the investment options. The surrender charge decreases based on the number of years since the premium payment was made.

2) Transfer Fee:

The transfer fee, if any is imposed, applies to each policy, regardless of how Policy Value is allocated among the investment options. There is no fee for the first 12 transfers per Policy Year. For additional transfers, we may charge a fee of $10 per transfer. Currently, we do not charge a transfer fee, but reserve the right to do so.

3) Special Service Fee:

We currently deduct a charge for overnight delivery and duplicate policies. We reserve the right to deduct a charge for special services in the future, including non-sufficient checks on new business; duplicate Form 1099 and Form 5498 tax forms; check copies; printing and mailing previously submitted forms; and asset verification requests from mortgage companies. We may charge a fee for each service performed and fees may vary based on the type of service but will not exceed the maximum Special Service Fee shown above.

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4) Annual Service Charge:

The annual service charge is assessed on each policy anniversary and at the time of surrender. The charge (up to $35) is waived if Your Policy Value or the sum of Your premiums less all withdrawals, is at least $100,000. The current annual service charge is the lesser of $35 per Policy Year or 2% of the Policy Value.

Charge Type		Amount
Service Charge (current)		$35
Maximum Annual Service Charge		$50

5) Separate Account Annual Expenses:

Mortality and Expense Risk and Administrative Fee: The mortality and expense risk and administrative fee shown is for both the accumulation phase and income phase, and is for the base death benefit.

Optional Separate Account Expenses: Any optional Separate Account expense is in addition to the mortality and expense risk and administrative fees.

Fund Facilitation Fee: This daily fee is applied only to Policy Value in the Subaccounts invested in:

Fund		Annualized Fee %
DFA VA Global Bond Portfolio - Institutional Class Vanguard^® VIF Balanced Portfolio Vanguard^® VIF Conservative Allocation Portfolio Vanguard^® VIF Mid-Cap Index Portfolio Vanguard^® VIF Moderate Allocation Portfolio		0.60%
Fidelity ^® VIP Consumer Staples - Initial Class Fidelity^® VIP Technology Portfolio - Initial Class Fidelity^® VIP Utilities Portfolio - Initial Class		0.50%
Fidelity ^® VIP Balanced Portfolio - Service Class 2 Fidelity^® VIP Energy Portfolio - Service Class 2 Fidelity^® VIP Health Care Portfolio - Service Class 2		0.30%
AB Balanced Wealth Strategy Portfolio - Class B American Funds - Asset Allocation Fund Class 4 State Street Total Return V.I.S. Fund - Class 3		0.20%
American Funds - New World Fund^® - Class 4 TA MSCI EAFE Index - Service Class TA S&P 500 Index - Service Class		0.15%
American Funds - Growth Fund - Class 4 American Funds - Growth-Income Fund - Class 4 American Funds - International Fund - Class 4		0.13%
American Funds - The Bond Fund of America^SM - Class 4		0.11%

We charge a fund facilitation fee in order to make certain Subaccounts available as investment choices under the policies. We apply the fee to Subaccounts that invest in underlying fund portfolios that do not provide us with the amount of revenue we require in order for us to meet our expenses and revenue targets. This fee is assessed daily based on the net asset value of Subaccounts that we specify, up to a maximum fee of 0.60%.

Liquidity Rider: If You elect this rider, the fee is only charged for the first four Policy Years.

Total Separate Account Annual Expenses with Highest Optional Separate Account Expenses: This reflects the base Separate Account expenses, the Annual Step-Up Death Benefit fee, the Fund Facilitation fee, and Liquidity Rider, but does not include any other Optional Rider Charges. The death benefits are mutually exclusive.

OPTIONAL RIDERS

In some cases, riders to the policy are available that provide optional benefits. There are additional fees (annualized fee charged on a yearly or quarterly basis, depending on the rider) for those riders.

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6) Optional Guaranteed Lifetime Withdrawal Benefits:

Transamerica Principal Optimizer^SM Rider - Withdrawal Base: We use the greater of the withdrawal base and the guaranteed future value to calculate the rider withdrawal amount. The withdrawal base is also used in the calculation of the rider fee. We use the greater of the withdrawal base and the guaranteed future value to calculate the rider fee. The withdrawal base on the rider date is the Policy Value.

Optional Guaranteed Lifetime Withdrawal Benefits – No Longer Available:

Retirement Income Max^® 1.2 Rider, Retirement Income Choice^® 1.7 Rider and Transamerica Income Edge^SM 1.2 - Withdrawal Base: We use the greater of the withdrawal base and the guaranteed future value to calculate the rider withdrawal amount. The withdrawal base is also used in the calculation of the rider fee.

7) Total Portfolio Annual Operating Expenses:

The fee table information relating to the underlying fund portfolios was provided to us by the underlying fund portfolios, their investment advisers or managers. We have not verified the accuracy of information provided by unaffiliated fund portfolios. Actual future expenses of the portfolios may be greater or less than those shown in the Table. “Gross” expense figures do not reflect any fee waivers or expense reimbursements. Actual expenses may have been lower than those shown in the Table.

Expense Examples⁽¹⁾:

The following Examples are intended to help You compare the cost of investing in the policy with the cost of investing in other variable annuity policies. These costs include owner transaction expenses, policy fees, Separate Account annual expenses, and portfolio fees and expenses.

The Examples assume that You invest $10,000 in the policy for the time periods indicated. The Examples also assume that Your policy has a 5% return each year, the highest Total Portfolio Annual Operating Expenses of any of the portfolios for the year ended December 31, 2020, and the base policy with the combination of available optional features or riders with the highest fees and expenses, including the highest Fund Facilitation Fee, Annual Step-Up Death Benefit, Additional Death Distribution+^SM rider and Retirement Income Choice^® 1.7 rider - Joint Life with additional Death Benefit and Income Enhancement^SM options. Although Your actual costs may be higher or lower, based on these assumptions, Your costs would be:

If the policy is surrendered at the end of the applicable time period:

	B-Share	B-Share w/Liquidity Rider
1 Year	$ 1,924	$ 1,969
3 Years	$ 4,106	$ 4,220
5 Years	$ 6,024	$ 5,697
10 Years	$10,088	$10,149

If the policy is annuitized at the end of the applicable time period or if You do not surrender Your policy:

	B-Share	B-Share w/Liquidity Rider
1 Year	$ 1,204	$ 1,249
3 Years	$ 3,476	$ 3,590
5 Years	$ 5,574	$ 5,697
10 Years	$10,088	$10,149

Please remember that these Examples are illustrations and do not represent past or future expenses. Your actual expenses may be lower or higher than those reflected in the Examples. Similarly, Your rate of return may be more or less than the 5% assumed in the Examples.

For information concerning compensation paid for the sale of the policies, see OTHER INFORMATION - Distribution of the Policies.

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THE ANNUITY

This prospectus describes information You should know before You purchase the Transamerica B-Share Variable Annuity.

An annuity is a contract between You (the Owner) and an insurance company (in this case us), where the insurance company promises to pay You an income in the form of annuity payments. These payments begin on a designated date, referred to as the Annuity Commencement Date. Until the Annuity Commencement Date, Your annuity is in the accumulation phase and the earnings (if any) are generally tax deferred. Tax deferral means You are not taxed until You take money out of Your annuity. After You Annuitize, Your annuity switches to the income phase.

The policy is a “deferred” annuity. You can use the policy to accumulate funds for retirement or other long-term financial planning purposes. Your individual investment and Your rights are determined primarily by Your own policy.

The policy is a “flexible premium” annuity because after You purchase it, You can generally make additional premium payments of at least $50 (but not more than the stated maximum total premium payment amount) until the Annuity Commencement Date. You are not required to make any additional premium payments.

The policy is a “variable” annuity because the value of Your policy can go up or down based on the performance of Your Subaccounts. If You invest in the Separate Account, the amount of money You are able to accumulate in Your policy during the accumulation phase depends upon the performance of Your Subaccounts. You could lose the amount You allocate to the Separate Account. The amount of annuity payments You receive from the Separate Account during the income phase also depends upon the investment performance of Your Subaccounts.

We do not guarantee that the Fixed Account will always be available. If the Fixed Account is offered it will offer interest at a rate(s) that we guarantee will not decrease during the selected guaranteed period. There may be different interest rates for each different guaranteed period that we may offer and that You select.

Do not purchase this policy if You plan to use it, or any of its riders, for resale, speculation, arbitrage, viatication, or any other type of collective investment scheme. Your policy is not intended or designed to be traded on any stock exchange or secondary market. By purchasing this policy, You represent and warrant that You are not using the policy, or any of its riders for resale, speculation, arbitrage, viatication, or any other type of collective investment scheme.

PURCHASE

Policy Issue Requirements

We will not issue a policy unless:

•	we receive in good order (See OTHER INFORMATION - Sending Forms and Transaction Requests in Good Order) all information needed to issue the policy;
•	we receive in good order (at our Administrative Office) a minimum initial premium (including anticipated premiums from 1035 exchanges on nonqualified policies and transfers or rollovers on qualified policies as indicated on Your application or electronic order form) payment;

•	the Annuitant, Owner, and any joint Owner are age 90 or younger (the limit may be lower for qualified policies); and

•	the Owner and Annuitant have an immediate familial relationship.

Please note, certain riders described herein may require a younger age. Please carefully read the applicable rider sections regarding any age limitations.

We reserve the right to reject any application.

Premium Payments

General. You should make checks for premium payments payable to Transamerica Life Insurance Company or Transamerica Financial Life Insurance Company, as applicable, and send them to the Administrative Office. Your check must be honored in order for us to pay any associated annuity payments and benefits due under the policy.

We do not accept cash. We reserve the right to not accept third party checks. A third party check is a check that is made payable to one person who endorses it and offers it as payment to a second person. Checks should normally be payable to us, however, in some circumstances, at our discretion we may accept third party checks that are from a rollover or transfer from other financial institutions. Any third party checks not accepted by us will be returned.

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We reserve the right to reject or accept any form of payment. Any unacceptable forms of payment will be returned.

Initial Premium Requirements. The initial premium payment for nonqualified policies must be at least $5,000 (including anticipated premiums from Internal Revenue Code Section 1035 exchanges as indicated on Your application or electronic order form), and at least $1,000 for qualified policies (including anticipated premiums from transfers or rollovers as indicated on Your application or electronic order form). You must obtain our prior approval to purchase a policy with an amount in excess of our maximum premium amount.

Your initial premium payment may not be credited to Your policy on the day that You leave Your premium payment with Your financial intermediary. Your financial intermediary may take up to seven Business Days to assess whether buying this policy is suitable for You. Your financial intermediary may send us Your initial premium payment while they complete this assessment. Your financial intermediary must also ensure that we have all the information needed for us to process Your policy. We will not begin to process Your policy during this period.

We will first begin our review only once we receive both Your initial premium payment and Your application (or an electronic order form). We will credit Your initial premium payment to Your policy within two Business Days after the Business Day that we receive Your initial premium payment, Your application (or order form) and once we determine that Your policy information is both complete and in good order. This time period is in addition to the time Your financial intermediary may take to complete their part of the process. If we are unable to complete our part of the process within five Business Days after the Business Day that we receive Your initial premium payment and Your application (or electronic order form), then we will notify You or Your financial intermediary, if applicable, and explain why we can't process Your policy. We will also return Your initial premium payment at that time unless You consent to us holding the premium up to 30 days. We must receive Your consent to hold prior to the market close on the fifth Business Day after receipt of the premium. If Your information is not received in good order within 30 days of our receipt of the premium, then it will be returned. We will credit Your initial premium payment within two Business Days after Your information is both complete and in good order.

Neither we nor Your financial intermediary are responsible for lost investment opportunities while we each complete our review processes. Any initial premium payments received by us will be held in our general account until credited to Your policy. You will not earn interest on Your initial premium payment during these review periods.

The date on which we credit Your initial premium payment to Your policy is generally the Policy Date. The Policy Date is used to determine Policy Years, policy quarters, policy months and policy anniversaries.

Additional Premium Payments. You are not required to make any additional premium payments. However, You can generally make additional premium payments during the accumulation phase. Additional premium payments must be at least $50. After the first Policy Year, additional premium payments each Policy Year cannot, in the aggregate, without our prior approval, exceed $25,000 for nonqualified policies and the lesser of (1) the IRS maximum contribution limit or (2) $60,000 for qualified policies. We reserve the right to refuse any additional premium payment in excess of these limits, and if You do not obtain prior approval for premiums in excess of the dollar amounts listed above, the business will be deemed not in good order. We will credit additional premium payments to Your policy as of the Business Day we receive Your premium and required information in good order at our Administrative Office. Additional premium payments must be received in good order before the close of regular trading on the New York Stock Exchange (usually 4:00 p.m. Eastern time) to get same-day pricing of the additional premium payment. Additional premium payments received in good order on non-Business Days or after our close of business on Business Days will receive next-day pricing. See OTHER INFORMATION – Sending Forms and Transaction Requests in Good Order.

Maximum Total Premium Payments. For issue ages 0-80, we reserve the right to require prior approval of any cumulative premium payments over $1,000,000 (this includes subsequent premium payments) for policies with the same Owner or same Annuitant issued by us or an affiliate. We may approve premium payments over $1,000,000 but restrict access to certain optional benefits. For issue ages over 80, we reserve the right to require prior approval of any cumulative premium payments over $500,000 (this includes subsequent premium payments) for policies with the same Owner or same Annuitant issued by us or an affiliate. If You do not obtain prior approval for premium payments in excess of the dollar amounts listed above, the business will be deemed not in good order.

Allocation of Premium Payments. When You purchase a policy, we will allocate Your premium payment to the investment choices You select. Your allocation must be in whole percentages and must total 100%. We will allocate additional premium payments the same way, unless You request a different allocation. You could lose the amount You allocate to the Subaccounts.

If You allocate premium payments to the Dollar Cost Averaging program (if it is available), You must give us instructions regarding the Subaccount(s) to which transfers are to be made or we cannot accept Your premium payment.

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You may change allocations for future additional premium payments by sending written instructions to our Administrative Office, or by telephone, or other electronic means acceptable to us, subject to the limitations described in ADDITIONAL FEATURES - Telephone and Electronic Transactions, or any other means acceptable to us. The allocation change will apply to premium payments received on or after the date we receive the change request in good order.

We reserve the right to restrict or refuse any premium payment.

Policy Value

You should expect Your Policy Value to change from Valuation Period to Valuation Period. A Valuation Period begins at the close of regular trading on the New York Stock Exchange on each Business Day and ends at the close of regular trading on the next succeeding Business Day. A Business Day is each day that the New York Stock Exchange is open for business. Regular trading on the New York Stock Exchange usually closes at 4:00 p.m., Eastern Time. Holidays are generally not Business Days.

INVESTMENT OPTIONS

This policy offers You a means of investing in various underlying fund portfolios offered by different investment companies (by investing in the corresponding Subaccounts). The companies that provide investment advice and administrative services for the underlying fund portfolios offered through this policy are listed in the “Appendix - Underlying Fund Portfolios Associated with the Subaccounts”.

The general public may not purchase shares of any of these underlying fund portfolios. The names and investment objectives and policies may be similar to other portfolios managed by the same investment adviser or manager that are sold directly to the public. You should not expect the investment results of the underlying fund portfolios to be the same as those of other portfolios.

More detailed information, including an explanation of the portfolios' fees and investment objectives, may be found in the current prospectuses for the underlying fund portfolios, which accompany this prospectus. You should read the prospectuses for the underlying fund portfolios carefully before You invest.

Note: If You received a summary prospectus for any of the underlying fund portfolios listed in “Appendix - Underlying Fund Portfolios Associated with the Subaccounts,” please follow the instructions on the first page of the summary prospectus to obtain a copy of the full underlying fund prospectus or its statement of additional information.

Selection of Underlying Fund Portfolios

The underlying fund portfolios offered through this variable annuity are selected by us, and we may consider various factors, including, but not limited to, asset class coverage, the strength of the adviser's or sub-adviser's reputation and tenure, brand recognition, performance, volatility, hedge ability, and the capability and qualification of each investment firm. Another factor that we may consider is whether the underlying fund portfolio or its service providers (e.g., the investment adviser or sub-advisers) or its affiliates will make payments to us or our affiliates. For additional information about these arrangements, see EXPENSES - Revenue We Receive. We review the portfolios periodically and may remove a portfolio, or limit its availability to new premium payments and/or transfers of Cash Value if we determine that a portfolio no longer satisfies one or more of the selection criteria, and/or if the portfolio has not attracted significant allocations from Owners. We have included the Transamerica Series Trust (“TST”) underlying fund portfolios at least in part because they are managed by one of our affiliates, Transamerica Asset Management, Inc. (“TAM”).

We have developed this variable annuity in cooperation with one or more distributors, and may include certain underlying fund portfolios based on their recommendations. Their selection criteria may differ from our selection criteria.

If You elect a Guaranteed Lifetime Withdrawal Benefit rider, as discussed later in this prospectus, we require You to allocate Your Policy Value to designated investment options. This requirement is intended to reduce the Company’s costs and risks associated with offering the rider, and we select which underlying fund portfolios to make available under the riders with these factors in mind. Certain designated investment options invest in underlying fund portfolios with volatility control strategies, which could limit full participation in market gains and the growth of the riders. See the Investment Restrictions section below for information regarding the potential impact of volatility control strategies on the value of the Guaranteed Lifetime Withdrawal Benefit riders.

Designated investment options, including those that invest in underlying fund portfolios with volatility control strategies, are also available to contract Owners who do not elect a Guaranteed Lifetime Withdrawal Benefit rider. Although volatility control strategies are intended to help limit overall volatility and reduce the effects of significant market downturns during periods of high market volatility, providing policy Owners with the opportunity for smoother performance and better risk adjusted returns, such strategies could limit Your full participation in market gains and ability to maximize potential growth of Your Policy Value.

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You are responsible for choosing the Subaccounts which invest in the underlying fund portfolios, and the amounts allocated to each, that are appropriate for Your own individual circumstances and Your investment goals, financial situation, and risk tolerance. Because investment risk is borne by You, decisions regarding investment allocations should be carefully considered. We do not recommend or endorse any particular underlying fund portfolio and we do not provide investment advice.

In making Your investment selections, we encourage You to thoroughly investigate all of the information regarding the underlying fund portfolios that are available to You, including each underlying fund portfolio's prospectus, statement of additional information and annual and semi-annual reports. Other sources such as the underlying fund's website provide more current information, including information about any regulatory actions or investigations relating to a fund or underlying fund portfolio. After You select underlying fund portfolios for Your initial premium payment, You should monitor and periodically re-evaluate Your allocations to determine if they are still appropriate.

You bear the risk of any decline in the Cash Value of Your policy resulting from the performance of the underlying fund portfolios You have chosen.

We do not guarantee that any of the Subaccounts will always be available for premium payments, allocations, or transfers.

We reserve the right to limit the number of Subaccounts You are invested in at any one time.

If You elect certain optional riders, You will be subject to investment restrictions. In the future, we may change the investment restrictions.

Not all Subaccounts may be available for all policies, in all states, or through all financial intermediary firms.

Static Allocation

You may also allocate a certain percentage of Your Policy Value to Static Allocations that we may make available as additional investment options. We may limit the number of Static Allocations You can simultaneously invest in. A Static Allocation is a static asset allocation model that invests certain percentages of the Policy Value in some or all of the Subaccounts currently available within Your policy. In other words, a Static Allocation is not a portfolio of underlying fund portfolios with one Accumulation Unit value, but rather direct investment in a certain allocation of Subaccounts. Please see “Appendix – Static Allocations” for the Subaccounts and percentages of each that make up each of the Static Allocations that are currently available for investment. There is no additional charge with investing in a Static Allocation.

You may not make transfers among the underlying Subaccounts of a Static Allocation. However, You may transfer between a Static Allocation and any of the Subaccounts available under Your policy. Any transfer into or out of a Static Allocation will be treated as any other transfer to or from an investment option. We will proportionately deduct any withdrawals You take from the Subaccounts in a Static Allocation.

In order to maintain a Static Allocations’ specified Subaccount allocation percentages, quarterly rebalancing is required and will occur on the last day of the calendar quarter.

We may terminate a Static Allocation at any time in response to changes to underlying investment options, changes in market conditions, or for other business purposes. For example, if a Subaccount within a Static Allocation is closed to new investments or liquidates, we will terminate the affected Static Allocation.

When a Static Allocation is terminated, future rebalancing of the Static Allocation will cease and that Static Allocation will be closed to new investments. “Closed to new investments” means You cannot allocate additional amounts (either through policy transfers or additional premiums) to the Static Allocation after the closure date. You will be given notice and opportunity to reallocate the Policy Value in the affected Static Allocation to one or more available Subaccounts (including other Static Allocations that may be available at that time). If instructions are not received for reallocation, the Policy Value will remain in the underlying Subaccounts of the terminated Static Allocation, if available, until such time that we receive updated allocation instructions.

Addition, Deletion, or Substitution of Investment Options

We cannot and do not guarantee that any of the Subaccounts will always be available for premium payments, allocations, or transfers. We retain the right, subject to any applicable law, to make certain changes to the Separate Account and its investment options. We reserve the right to add new Subaccounts or close existing Subaccounts. We also reserve the right to eliminate the shares of any portfolio held by a Subaccount and to substitute shares of other underlying fund portfolios or of other registered open-end management investment companies. To the extent required by applicable law, substitutions of shares attributable to Your interest in a Subaccount will not be made without prior notice to You and the prior regulatory approval. Nothing contained herein shall prevent the Separate Account from purchasing other securities for other series or classes of variable annuity policies, or from affecting an exchange between series or classes of variable annuity policies on the basis of Your requests.

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New Subaccounts may be established when, in our sole discretion, marketing, tax, investment or other conditions warrant. Any new Subaccounts may be made available to existing Owners on a basis to be determined by us. Each additional Subaccount will purchase shares in an underlying fund portfolio or other investment vehicle. We may also close one or more Subaccounts if, in our sole discretion, marketing, tax, investment or other conditions warrant such change. In the event any Subaccount is closed, we will notify You and request a reallocation of the amounts invested in the closed Subaccount. If we do not receive additional instructions, any subsequent premium payments, or transfers (including Dollar Cost Averaging transactions or asset rebalance programs transactions) into a closed Subaccount will be re-allocated to the remaining available investment options according to the investment allocation instructions You previously provided. If Your previous investment allocation instructions do not include any available investment options, we will require new instructions. If we do not receive new instructions, the requested transaction will be canceled and any premium payment will be returned. Under asset rebalance programs the value remaining in the closed Subaccount will be excluded from any future rebalancing. The value of the closed Subaccount will continue to fluctuate due to portfolio performance, and may exceed the original rebalance percentages You requested. As You consider Your overall investment strategy within Your policy, You should also consider whether or not to re-allocate the value remaining in the closed Subaccount to another investment option. If You decide to re-allocate the value of the closed Subaccount, You will need to provide us with instructions. Under certain situations involving death benefit adjustments for continued policies, if an investment option is closed to new investment, the amount that would have been allocated thereto will instead be allocated pro rata to the other current investment options You have value allocated to and which are open to new investment.

In the event of any such substitution or change, we may, by appropriate endorsement, make such changes in the policies as may be necessary or appropriate to reflect such substitution or change. Furthermore, if deemed to be in the best interests of persons having voting rights under the policies, the Separate Account may be (1) operated as a management company under the 1940 Act or any other form permitted by law, (2) deregistered under the 1940 Act in the event such registration is no longer required or (3) combined with one or more other separate accounts. To the extent permitted by applicable law, we also may (1) transfer the assets of the Separate Account associated with the policies to another account or accounts, (2) restrict or eliminate any voting rights of Owners or other persons who have voting rights as to the Separate Account, (3) create new separate accounts, (4) add new Subaccounts to or remove existing Subaccounts from the Separate Account, or combine Subaccounts or (5) add new underlying fund portfolios, or substitute a new underlying fund portfolio for an existing underlying fund portfolio.

In addition, a Subaccount could become no longer available due to the liquidation of its corresponding underlying fund portfolio. To the extent permitted by applicable law, upon advance notice to You and unless You otherwise instruct us, we will:

1)	Re-allocate any Policy Value in the liquidated fund to the money market Subaccount or a Subaccount investing in another underlying fund portfolio designated by us; and
2)	Allocate any subsequent Purchase Payments and/or transfers (including Dollar Cost Averaging transactions or asset rebalance programs transactions) to the other Subaccounts You have selected.

The Fixed Account

We do not guarantee that the Fixed Account will always be available. If available, premium payments allocated and amounts transferred to the Fixed Account become part of our general account. Interests in the general account have not been registered under the Securities Act of 1933 (the “1933 Act”), nor is the general account registered as an investment company under the 1940 Act. Accordingly, neither the general account nor any interests therein are generally subject to the provisions of the 1933 or 1940 Acts. Disclosures relating to interests in the general account are, however, subject to certain generally applicable provisions of the federal securities laws relating to the accuracy of statements made in a registration statement.

While we do not guarantee that the Fixed Account will always be available for investment, we do guarantee that the interest credited to the Fixed Account when available will not be less than the guaranteed minimum effective annual interest rate shown on Your policy (the “guaranteed minimum”). We determine credited rates, which are guaranteed for at least one year, in our sole discretion. You bear the risk that we will not credit interest greater than the guaranteed minimum. At the end of the Guaranteed Period Option You selected, the value in that Guaranteed Period Option will automatically be transferred into the money market Subaccount or if a money market Subaccount is unavailable to a new Guaranteed Period Option of the same length (or the next shorter period if the same period is no longer offered) at the current interest rate for that period. You can transfer to another investment option by giving us notice within 30 days before the end of the expiring guaranteed period.

Surrenders, withdrawals, transfers, and amounts applied to an Annuity Payment Option from a Guaranteed Period Option of the Fixed Account prior to the end of the guaranteed period are generally subject to an Excess Interest Adjustment. See ACCESS TO YOUR MONEY - Excess Interest Adjustment for more information about when an Excess Interest Adjustment applies. This adjustment will also be made to amounts that You apply to an Annuity Payment Option. The Excess Interest Adjustment will not decrease the interest credited to Your policy below the guaranteed minimum. Please see “Appendix – Excess Interest Adjustment Examples” for an example showing the effect of a hypothetical Excess Interest Adjustment calculation.

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We also guarantee that upon full surrender Your Cash Value attributable to the Fixed Account will not be less than the amount required by the applicable nonforfeiture law at the time the policy is issued.

If You select the Fixed Account, when it is available, Your money will be placed with our other general assets. Assets in the Stable Account are not subject to Separate Account Annual Expenses as set forth under FEE TABLE AND EXPENSE EXAMPLES. The amount of money You are able to accumulate in the Fixed Account during the accumulation phase depends upon the total interest credited. The amount of each annuity payment You receive during the income phase from the fixed portion of Your policy will remain level for the entire income phase. The interest credited as well as principal invested in the Fixed Account is based on our claims-paying ability.

We reserve the right to refuse any premium payment or transfer to the Fixed Account.

Transfers

During the accumulation phase, You may make transfers to or from any investment option within certain limitations. Transfers out of a Guaranteed Period Option of the Fixed Account are limited to the following:

•	Transfers at the end of a guaranteed period.
•	Transfers of amounts equal to interest credited. This may affect Your overall interest-crediting rate, because unless otherwise directed transfers are deemed to come from the oldest premium payment first.
•	Other than at the end of a guaranteed period, transfers of amounts from the Guaranteed Period Option in excess of amounts equal to interest credited, are subject to an Excess Interest Adjustment. If it is a negative adjustment, the maximum amount You can transfer in any one Policy Year may be limited to 25% of the amount in that Guaranteed Period Option, less any previous transfers during the current Policy Year. If it is a positive adjustment, we do not limit the amount that You can transfer. (Note: This restriction may prolong the period of time it takes to transfer the full amount in the Guaranteed Period Option of the Fixed Account. You should carefully consider whether investment in the Fixed Account meets Your needs and investment criteria.) Please see “Appendix - Excess Interest Adjustment Examples” for an example showing the effect of a hypothetical Excess Interest Adjustment calculation.

In general, each transfer from a Subaccount must be at least $500, or the entire Subaccount value if less than $500. Transfers of interest from a Guaranteed Period Option of the Fixed Account must be at least $50. If less than $500 remains as a result of the transfer, then we reserve the right to include that amount in the transfer. Transfer requests must be received in good order while the New York Stock Exchange is open for regular trading to get same-day pricing of the transaction. Transfer requests received in good order on non-Business Days or after our close of business on Business Days will get next-day pricing. See OTHER INFORMATION - Sending Forms and Transaction Requests in Good Order.

The number of transfers permitted may be limited and a $10 charge for each transfer in excess of 12 in any Policy Year may apply. Currently, we do not charge a transfer fee but reserve the right to do so in the future. We reserve the right to prohibit transfers to the Fixed Account.

During the income phase, You may transfer values out of any Subaccount; however, You cannot transfer values out of the Fixed Account. The minimum amount that can be transferred during this phase is the lesser of $10 of monthly income, or the entire monthly income of the annuity units in the Subaccount from which the transfer is being made.

Transfers made by telephone, or other electronic means acceptable to us, are subject to the limitations described in ADDITIONAL FEATURES - Telephone and Electronic Transactions.

Additional Restrictions for the Transamerica Income Edge^SM 1.2 and the Transamerica Principal Optimizer^SM. If You elected the Transamerica Income Edge^SM 1.2 rider or choose to elect the Transamerica Principal Optimizer^SM rider, a certain percentage of Your Policy Value must be allocated to the Stable Account, the select investment options and the flexible investment options as specified below. See Transamerica Income Edge^SM1.2 – Required Allocations and Transamerica Principal Optimizer^SM - Required Allocations. Any transfer requests to and from the select investment options and flexible investment options will be validated using the prior Business Day’s Policy Value to ensure compliance with the required allocations for rebalancing at the time of the request. Transfer requests that do not comply with the required allocations for rebalancing will be deemed not in good order. Changes in Policy Values due to market movements on other dates will not be treated as a violation of the required allocations. Transfers to the Stable Account are not permitted except at the time of election of the rider. Transfers from the Stable Account are not permitted except upon termination of the rider.

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Market Timing and Disruptive Trading

Statement of Policy. This variable annuity policy was not designed to accommodate market timing or frequent or large transfers among the Subaccounts or between the Subaccounts and the Fixed Account. (Both frequent and large transfers may be considered disruptive.)

Market timing and disruptive trading can adversely affect You, other Owners, beneficiaries and underlying fund portfolios. The adverse effects may include: (1) dilution of the interests of long-term investors in a Subaccount if purchases or transfers into or out of an underlying fund portfolio are made at prices that do not reflect an accurate value for the underlying fund portfolio’s investments (some market timers attempt to do this through methods known as “time-zone arbitrage” and “liquidity arbitrage”); (2) an adverse effect on portfolio management, such as (a) impeding a portfolio manager’s ability to seek or sustain an investment objective; (b) causing the underlying fund portfolio to maintain a higher level of cash than would otherwise be the case; or (c) causing an underlying fund portfolio to liquidate investments prematurely (or otherwise at an inopportune time) in order to pay withdrawals or transfers out of the underlying fund portfolio; and (3) increased brokerage and administrative expenses. These costs are borne by all Owners invested in those Subaccounts, not just those making the transfers.

We have developed policies and procedures with respect to market timing and disruptive trading (which vary for certain Subaccounts at the request of the corresponding underlying fund portfolios) and we do not make special arrangements or grant exceptions to accommodate market timing or potentially disruptive trading. As discussed herein, we cannot detect or deter all market timing or potentially disruptive trading. Do not invest with us if You intend to conduct market timing or potentially disruptive trading.

Detection. We employ various means in an attempt to detect and deter market timing and disruptive trading. However, despite our monitoring we may not be able to detect nor halt all harmful trading. In addition, because other insurance companies (and retirement plans) with different policies and procedures may invest in the underlying fund portfolios, we cannot guarantee that all harmful trading will be detected or that an underlying fund portfolio will not suffer harm from market timing and disruptive trading among Subaccounts of variable products issued by these other insurance companies or retirement plans.

Deterrence. If we determine You or anyone acting on Your behalf is engaged in market timing or disruptive trading, we may take one or more actions in an attempt to halt such trading. Your ability to make transfers is subject to modification or restriction if we determine, in our sole opinion, that Your exercise of the transfer privilege may disadvantage or potentially harm the rights or interests of other Owners (or others having an interest in the variable insurance products). As described below, restrictions may take various forms, but under our current policies and procedures will include loss of expedited transfer privileges. We consider transfers by telephone, fax, overnight mail, or the Internet to be “expedited” transfers. This means that we would accept only written transfer requests with an original signature transmitted to us only by U.S. mail. We may also restrict the transfer privileges of others acting on Your behalf, including Your registered representative or an asset allocation or investment advisory service.

We reserve the right to reject any premium payment or transfer request from any person without prior notice, if, in our judgment, (1) the premium payment or transfer, or series of premium payments or transfers, would have a negative impact on an underlying fund portfolio's operations, or (2) if an underlying fund portfolio would reject or has rejected our purchase order or has instructed us not to allow that purchase or transfer, or (3) because of a history of market timing or disruptive trading. We may impose other restrictions on transfers, or even prohibit transfers for any Owner who, in our view, has abused, or appears likely to abuse, the transfer privilege on a case-by-case basis. We may, at any time and without prior notice, discontinue transfer privileges, modify our procedures, impose holding period requirements or limit the number, size, frequency, manner, or timing of transfers we permit. Because determining whether to impose any such special restrictions depends on our judgment and discretion, it is possible that some Owners could engage in disruptive trading that is not permitted for others. We also reserve the right to reverse a potentially harmful transfer if an underlying fund portfolio refuses or reverses our order; in such instances some Owners may be treated differently than others in that some transfers may be reversed and others allowed. For all of these purposes, we may aggregate two or more trades or variable insurance products that we believe are connected by Owner or persons engaged in trading on behalf of Owners.

In addition, transfers for multiple policies invested in the Transamerica Series Trust underlying fund portfolios which are submitted together may be disruptive at certain levels. At the present time, such aggregated transactions likely will not cause disruption if less than one million dollars total is being transferred with respect to any one underlying fund portfolio (a smaller amount may apply to smaller portfolios). Please note that transfers of less than one million dollars may be disruptive in some circumstances and this general amount may change quickly.

Please note: If You engage a third party investment adviser for asset allocation services, then You may be subject to these transfer restrictions because of the actions of Your investment adviser in providing these services.

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In addition to our internal policies and procedures, we will administer Your variable annuity to comply with any applicable state, federal, and other regulatory requirements concerning transfers. We reserve the right to implement, administer, and charge You for any fee or restriction, including redemption fees, imposed by any underlying fund portfolio. To the extent permitted by law, we also reserve the right to defer the transfer privilege at any time that we are unable to purchase or redeem shares of any of the underlying fund portfolios.

Under our current policies and procedures, we do not:

•	impose redemption fees on transfers; or
•	expressly limit the number or size of transfers in a given period except for certain Subaccounts where an underlying fund portfolio has advised us to prohibit certain transfers that exceed a certain size; or
•	provide a certain number of allowable transfers in a given period.

Redemption fees, transfer limits, and other procedures or restrictions imposed by the underlying fund portfolios or our competitors may be more or less successful than ours in deterring market timing or other disruptive trading and in preventing or limiting harm from such trading.

In the absence of a prophylactic transfer restriction (e.g., expressly limiting the number of trades within a given period or limiting trades by their size), it is likely that some level of market timing and disruptive trading will occur before it is detected and steps taken to deter it (although some level of market timing and disruptive trading can occur with a prophylactic transfer restriction). As noted above, we do not impose a prophylactic transfer restriction and, therefore, it is likely that some level of market timing and disruptive trading will occur before we are able to detect it and take steps in an attempt to deter it.

Please note that the limits and restrictions described herein are subject to our ability to monitor transfer activity. Our ability to detect market timing or disruptive trading may be limited by operational and technological systems, as well as by our ability to predict strategies employed by Owners (or those acting on their behalf) to avoid detection. As a result, despite our efforts to prevent harmful trading activity among the variable investment options available under this variable insurance product, there is no assurance that we will be able to detect or deter market timing or disruptive trading by such Owners or intermediaries acting on their behalf. Moreover, our ability to discourage and restrict market timing or disruptive trading may be limited by decisions of state regulatory bodies and court orders that we cannot predict.

Furthermore, we may revise our policies and procedures in our sole discretion at any time and without prior notice, as we deem necessary or appropriate (1) to better detect and deter harmful trading that may adversely affect other Owners, other persons with material rights under the variable insurance products, or underlying fund shareholders generally, (2) to comply with state or federal regulatory requirements, or (3) to impose additional or alternative restrictions on Owners engaging in market timing or disruptive trading among the investment options under the variable insurance product. In addition, we may not honor transfer requests if any variable investment option that would be affected by the transfer is unable to purchase or redeem shares of its corresponding underlying fund portfolio.

Underlying Fund Portfolio Frequent Trading Policies. The underlying fund portfolios may have adopted their own policies and procedures with respect to frequent purchases and redemptions of their respective shares. Underlying fund portfolios may, for example, assess a redemption fee (which we reserve the right to collect) on shares held for less than a certain period of time. The prospectuses for the underlying fund portfolios describe any such policies and procedures. The frequent trading policies and procedures of an underlying fund portfolio may be different, and more or less restrictive, than the frequent trading policies and procedures of other underlying fund portfolios and the policies and procedures we have adopted for our variable insurance products to discourage market timing and disruptive trading. Owners should be aware that we do not monitor transfer requests from Owners or persons acting on behalf of Owners against, nor do we apply, the frequent trading policies and procedures of the respective underlying fund portfolios that would be affected by the transfers.

Owners should be aware that we are required to provide to an underlying fund portfolio or its payee, promptly upon request, certain information about the trading activity of individual Owners, and to restrict or prohibit further purchases or transfers by specific Owners or persons acting on their behalf, identified by an underlying fund portfolio as violating the frequent trading policies established for the underlying fund portfolio.

Omnibus Orders. Owners and other persons with material rights under the variable insurance products also should be aware that the purchase and redemption orders received by the underlying fund portfolios generally are “omnibus” orders from intermediaries such as retirement plans and Separate Accounts funding variable insurance products. The omnibus orders reflect the aggregation and netting of multiple orders from individual retirement plan participants and individual Owners of variable insurance products. The omnibus nature of these orders may limit the underlying fund portfolios' ability to apply their respective frequent trading policies and procedures.

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We cannot guarantee that the underlying fund portfolios will not be harmed by transfer activity relating to the retirement plans or other insurance companies that may invest in the underlying fund portfolios. These other insurance companies are responsible for their own policies and procedures regarding frequent transfer activity. If their policies and procedures fail to successfully discourage harmful transfer activity, it may affect other Owners of underlying fund portfolio shares, as well as the Owners of all of the variable annuity or life insurance policies, including ours, whose variable investment options correspond to the affected underlying fund portfolios. In addition, if an underlying fund portfolio believes that an omnibus order we submit may reflect one or more transfer requests from Owners engaged in market timing and disruptive trading, the underlying fund portfolio may reject the entire omnibus order and thereby delay or prevent us from implementing Your request.

Investment Restrictions

If You elect certain optional riders, You will be subject to investment restrictions requiring You to invest in certain underlying fund portfolios, which may be referred to (depending on Your rider) as designated investment options, flexible investment options and/or select investment options. In addition, the Transamerica Income Edge^SM 1.2 rider and the Transamerica Principal Optimizer^SM rider may require You to invest in the Stable Account.

One or more of the underlying fund portfolios that may be designated, flexible or select investment options under an optional rider, in part, may include a volatility control strategy. Volatility control strategies, in periods of high market volatility, could limit Your participation in market gains; this may conflict with Your investment objectives by limiting Your ability to maximize potential growth of Your Policy Value and, in turn, the value of any guaranteed benefit that is tied to investment performance. Volatility control strategies are intended to help limit overall volatility and reduce the effects of significant market downturns during periods of high market volatility, providing policy Owners with the opportunity for smoother performance and better risk adjusted returns. Volatility control (and similar terms) can encompass a variety of investment strategies of different types and degrees; therefore, You should read the applicable annuity and underlying fund portfolio prospectuses carefully to understand how these investment strategies may affect Your Policy Value and rider benefits. Our requirement to invest in accordance with certain investment options, which may include volatility control, may reduce our costs and risks associated with the applicable riders. You pay an additional fee for the rider benefits which, in part, pays for protecting the rider benefit base from investment losses. Since the rider benefit base does not decrease as a result of investment losses, volatility control strategies might not provide meaningful additional benefit to You. You should carefully evaluate with Your financial professional whether to invest in underlying fund portfolios with volatility control strategies, taking into consideration the potential positive or negative impact that such strategy may have on Your investment objectives, Your Policy Value and the benefits under the riders. If You determine that funds with volatility control strategies are not consistent with Your investment objectives, other investment options are available under the riders that do not invest in funds that utilize volatility control strategies.

For more information about the underlying fund portfolios and the investment strategies they employ, please refer to the underlying fund portfolios' current prospectuses.

EXPENSES

There are charges and expenses associated with Your policy that reduce the return on Your investment in the policy. In addition to the following charges, there are optional benefits that if selected, assess additional charges. Please see ADDITIONAL FEATURES for more information.

Surrender Charges

During the accumulation phase, You can surrender part (referred to as a “withdrawal”) or all of the Cash Value (referred to as a “surrender”) (restrictions may apply to qualified policies). We may apply a surrender charge to compensate us for start-up expenses of the policy relating to sales, including commissions to registered representatives and other promotional expenses.

You can take a withdrawal of up to 10% of Your premium payments each Policy Year free of surrender charges. This amount is referred to as the Surrender Charge Free Amount and is determined at the time of surrender. (This amount is not cumulative, so not surrendering anything in one year does not increase the Surrender Charge Free Amount in subsequent years.) If the withdrawal is in excess of the Surrender Charge Free Amount, You might have to pay a surrender charge, which is a contingent deferred sales charge, on the excess amount.

For example, assume Your premium is $100,000 and Your Policy Value is $106,000 at the beginning of the second Policy Year and You request a withdrawal of $30,000. Since that amount is more than Your Surrender Charge Free Amount ($10,000), You would pay a surrender charge of $1,600 on the remaining $20,000 [8% of ($30,000 - $10,000)]. Likewise, assume Your Policy Value is $80,000 (premium payments $100,000) at the beginning of the second Policy Year and You surrender Your policy. You would pay a surrender charge of $7,200 [8% of ($100,000 - ($100,000 x 10%))].

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You can generally choose to receive the full amount of a requested withdrawal by directing us to deduct any applicable surrender charge (and any applicable Excess Interest Adjustment) from Your remaining Policy Value. You receive Your Cash Value upon full surrender.

Surrender charges and Excess Interest Adjustments are waived if You withdraw money under the Nursing Care and Terminal Condition Withdrawal Option or the Unemployment Waiver.

For surrender charge purposes, earnings are considered to be withdrawn first, then the oldest premium is considered to be withdrawn next. Please note, while there is no surrender charge on the withdrawal of earnings, withdrawn earnings count towards Your Surrender Charge Free Amount. This means that withdrawing earnings will reduce (possibly to zero) Your Surrender Charge Free Amount (10% of premium payments) for that Policy Year.

Keep in mind that withdrawals may be taxable and, if taken before age 59½, may be subject to a 10% federal penalty tax. For tax purposes, withdrawals from nonqualified policies are considered to come from taxable earnings first.

We may elect to reduce or eliminate the amount of the surrender charge when the policy is sold under circumstances which reduce our sales or other expenses or when required to by regulation or regulatory authority.

Liquidity Rider Surrender Charge Schedule. The optional Liquidity Rider reduces the number of years each premium payment is subject to surrender charges from seven years to four years. The surrender charge schedule is the same as the B-Share without the Liquidity rider during the first four years for each premium payment. There is an extra charge for this rider.

Excess Interest Adjustment

Surrenders, withdrawals, transfers, amounts applied when a death benefit is calculated, and amounts applied to an annuity option from the Fixed Account may be subject to an Excess Interest Adjustment. This adjustment could retroactively reduce the interest credited in the Fixed Account to the guaranteed minimum or increase the amount credited. This adjustment may also apply to amounts applied to an Annuity Payment Option. However, please note that a death benefit will not be reduced if the Excess Interest Adjustment results in a decrease in the Cash Value available to You. Please see “Appendix - Excess Interest Adjustment Examples” for an example showing the effect of a hypothetical Excess Interest Adjustment calculation. The Excess Interest Adjustment plays a role in calculating the total interest credited to the Fixed Account.

Mortality and Expense Risk Fees

We charge a fee as compensation for bearing certain mortality and expense risks under the policy. This fee is assessed daily based on the net asset value of each Subaccount. Examples of such risks include a guarantee of annuity rates, the death benefit, certain expenses of the policy (including distribution related expenses), and assuming the risk that the current charges will be insufficient in the future to cover costs of selling, distributing and administering the policy.

If this charge does not cover our actual costs, we absorb the loss. Conversely, if the charge more than covers actual costs, the excess is added to our surplus. We expect to profit from this charge. We may use any profit for any proper purpose, including distribution expenses.

Administrative Charges

We deduct a daily administrative charge to cover the costs of supporting and administering the policy (including certain distribution-related expenses). This charge is equal to a percentage of the daily net asset value of each Subaccount during both the accumulation phase and the income phase.

Premium Taxes

A deduction is also made for premium taxes, if any, imposed on us by a state, municipality or other government agency. The tax, currently ranging from 0% to 3.50%, is assessed at the time premium payments are made or when annuity payments begin. We pay the premium tax at the time it is imposed. We will, at our discretion, deduct the total amount of premium taxes, if any, from the Policy Value when such taxes are due to the applicable taxing authority, You begin receiving annuity payments, You surrender the policy or a death benefit is paid.

Federal, State and Local Taxes

We may in the future deduct charges from the policy for any taxes we incur because of the policy. However, no deductions are being made at the present time.

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Special Service Fees

Transfer Fee

You are generally allowed to make 12 free transfers per Policy Year before the Annuity Commencement Date. If You make more than 12 transfers per Policy Year, we reserve the right to charge for each additional transfer. Premium payments, Asset Rebalancing, and Dollar Cost Averaging transfers do not count as one of Your free transfers. All transfer requests made at the same time are treated as a single transfer. Currently, we are not charging for transfers, but reserve the right to do so in the future.

Service Charge

During the accumulation phase, an annual service charge of $35 (but not more than 2% of the Policy Value) is charged on each policy anniversary and at surrender. The service charge is waived (up to a maximum of $35) if Your Policy Value or the sum or Your premiums, less all withdrawals, is at least $100,000.

Fund Facilitation Fee

We charge a fund facilitation fee in order to make certain Subaccounts available as investment options under the policies. We apply the fee to Subaccounts that invest in underlying fund portfolios that do not provide us with the amount of revenue we require in order for us to meet our expenses and revenue targets. This fee is assessed daily based on the net asset value of Subaccounts that we specify, up to a maximum fee of 0.60%.

Optional Benefits

If You elect to purchase optional benefits, we will deduct an additional fee. For some optional benefits the fee is assessed against the daily net asset value of each Subaccount and for others it is deducted from each investment option in proportion to the amount of Policy Value in each investment option. Please refer to the FEE TABLE AND EXPENSE EXAMPLES for the list of fees for each optional benefit and ADDITIONAL FEATURES for more information.

Underlying Fund Portfolio Fees and Expenses

The value of the assets in each Subaccount will reflect the fees and expenses paid by the underlying fund portfolios. The lowest and highest underlying fund portfolio expenses for the previous calendar year are found in FEE TABLE AND EXPENSE EXAMPLES in this prospectus. See the prospectuses for the underlying fund portfolios for more information.

Reduced Fees and Charges

We may, at our discretion, reduce or eliminate certain fees and charges for certain policies (including employer-sponsored savings plans) which may result in decreased costs and expenses.

Revenue We Receive

This prospectus describes generally the payments that we (and/or our affiliates) may directly or indirectly receive from the underlying fund portfolios, their advisers, sub-advisers, distributors or affiliates thereof, in connection with certain administrative, marketing and other support services we (and/or our affiliates) provide and expenses we incur in offering and selling our variable insurance products. These arrangements are described further below. While only certain of the types of payments described below may be made in connection with Your particular policy, all such payments may nonetheless influence or impact actions we (and/or our affiliates) take, and recommendations we (and our affiliates) make, regarding each of the variable insurance products that we (and our affiliates) offer, including Your policy.

We (and/or our affiliates) may receive some or all of the following types of payments:

• Rule 12b-1 Fees. We and/or our affiliate, Transamerica Capital, Inc. (“TCI”) who is the principal underwriter for the policies, indirectly receive 12b-1 fees from certain underlying fund portfolios available as investment options under our variable insurance products. Any 12b-1 fees received by TCI that are attributable to our variable insurance products are then credited to us. These fees range from 0.00% to 0.45% of the average daily assets of the certain underlying fund portfolios attributable to the policies and to

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certain other variable insurance products that we and our affiliates issue. These fees are paid from the underlying fund portfolios’ assets. Policy Owners, through their indirect investment in the underlying fund portfolios, bear the costs of 12b-1 fees (see the prospectuses for the underlying funds for more information).

• Administrative, Marketing and Support Service Fees (“Support Fees”). As noted above, an investment adviser, sub-adviser, administrator and/or distributor (or affiliates thereof) of the underlying fund portfolios may make payments to us and/or our affiliates, including TCI. These payments may be derived, in whole or in part, from the profits the investment adviser or sub-adviser realized on the advisory fee deducted from underlying fund portfolio assets. Policy Owners, through their indirect investment in the underlying fund portfolios, bear the costs of these advisory fees (see the prospectuses for the underlying funds for more information). However, amounts paid from an investment adviser’s or sub-adviser’s (or other service provider’s) revenues are not paid from the underlying portfolios’ assets. The amount of the payments we (or our affiliates) receive is generally based on a percentage of the assets of the particular underlying fund portfolios attributable to the policy and to certain other variable insurance products that our affiliates and we issue. These percentages differ and the amounts may be significant. Some advisers or sub-advisers (or other affiliates) pay us more than others.

The following chart provides the maximum combined percentages of Support Fees and underlying fund portfolio fees (i.e. sub-transfer agent, Rule 12b-1, and Shareholder Services) that we anticipate will be paid to us on an annual basis.

Incoming Payments to Us and/or TCI
Fund		Maximum Fee % of assets
TRANSAMERICA SERIES TRUST (“TST”)		0.25%
AB VARIABLE PRODUCTS SERIES FUND, INC.		0.45%
AMERICAN FUNDS INSURANCE SERIES^® TRUST		0.50%
FIDELITY ^® VARIABLE INSURANCE PRODUCTS FUND		0.395%
STATE STREET VARIABLE INSURANCE SERIES FUNDS, INC.		0.45%

NOTES TO INCOMING PAYMENTS TABLE:

Maximum Fee % of assets: Payments are based on a percentage of the average assets of each underlying fund portfolio owned by the Subaccounts available under this policy and under certain other variable insurance products offered by our affiliates and us. We and/or TCI may continue to receive 12b-1 fees and administrative fees on funds invested in Subaccounts that are closed to new premium payments, depending on the terms of the agreements supporting those payments and on the services provided.

TST: Because TST is managed by TAM, an affiliate of ours, there are additional benefits to us and our affiliates for amounts You allocate to the TST underlying fund portfolios, in terms of our and our affiliates’ overall profitability. These additional benefits may be significant. Payments or other benefits may be received from TAM. Such payments or benefits may be entered into for a variety of purposes, such as to allocate resources to us and to provide administrative services to the policyholders who invest in Subaccounts that invest in the TST underlying fund portfolios. These payments or benefits may take the form of internal credits, recognition, or cash payments. A variety of financial and accounting methods may be used to allocate resources and profits to us. Additionally, if a TST portfolio is subadvised by an entity that is affiliated with us, we may retain more revenue than on those TST portfolios that are subadvised by non-affiliated entities. During 2020 we received approximately $230.4 million for Transamerica Life Insurance Company and $16.4 million for Transamerica Financial Life Insurance Company in benefits from TAM pursuant to these arrangements. This includes the 0.25% amount in the above chart. We anticipate receiving comparable amounts in the future.

Fidelity ^® Variable Insurance Products Fund: We receive this percentage once $100 million in fund shares are held by the Subaccounts of ours and our affiliates.

Other Payments. TCI also serves as the wholesale distributor for the policies, and in that capacity directly or indirectly receives additional amounts or different percentages of assets under management from certain advisers and sub-advisers to the underlying fund portfolios (or their affiliates) with regard to variable insurance products and/or mutual funds that are issued by us and our affiliates. These amounts may be derived, in whole or in part, from the profits the investment adviser or sub-adviser receives from the advisory fee deducted from underlying fund portfolio assets. Owners, through their indirect investment in the underlying fund portfolios, bear the costs of these advisory fees. Certain advisers and sub-advisers of the underlying fund portfolios (or their affiliates):

•	may each directly or indirectly pay TCI conference sponsorship or marketing allowance payments that provides such advisers and sub-advisers with access to TCI's wholesalers at TCI's national and regional sales conferences as well as internal and external meetings and events that are attended by TCI's wholesalers and/or other TCI employees.
•	may provide our affiliates and/or selling firms with wholesaling services to assist us in the distribution of the policies.
•	may provide us and/or certain affiliates and/or selling firms with occasional gifts, meals, tickets or other compensation as an incentive to market the underlying fund portfolios and to assist with their promotional efforts. The amounts may be significant and these arrangements provide the adviser or sub-adviser (or other affiliates) with increased access to us and to our affiliates involved in the distribution of the policies.

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For the calendar year ended December 31, 2020, TCI and its affiliates received payments that totaled approximately $1.9 million. The firms that paid to participate in TCI sponsored events included but were not limited to the following: Aegon Asset Management • Alliance Bernstein • Allianz Global Investors • American Century Investments • Amundi Pioneer Asset Management • Barrow, Hanley, Mewhinney & Strauss, LLC • BlackRock Investment Management, LLC • BNY Mellon • Capital Group • Charles Schwab Investment Management • Columbia Threadneedle Investments • Dimensional Fund Advisers • Fidelity Investments • Franklin Templeton Investments• Goldman Sachs Asset Management • Hartford Funds • Ivy Investments• Janus Henderson Investors • John Hancock Investments • Legg Mason Global Asset Management • Milliman Financial Risk Management LLC • MFS Investment Management • Morgan Stanley Investment Management Inc. • Neuberger Berman • New York Life/Mainstay Investments • PGIM Investments • Pacific Investment Management Company • PineBridge Investments LLC • Principal Global Investors • Putnam Investments • QMA • Rockefeller Capital Management • Systematic Financial Management • T. Rowe Price • Thompson Siegel & Walmsley LLC • The Vanguard Group, Inc. • Virtus Investment Partners • Wellington Management Company LLP and Wells Fargo Asset Management.

Please note some of the aforementioned managers and/or sub-advisers may not be associated with underlying fund portfolios currently available in this product.

Proceeds from certain of these payments by the underlying fund portfolios, the advisers, the sub-advisers and/or their affiliates may be used for any corporate purpose, including payment of expenses (1) that we and our affiliates incur in promoting, marketing, and administering the policy, and (2) that we incur, in our role as intermediary, in promoting, marketing, and administering the underlying fund portfolios. We and our affiliates may profit from these payments.

For further details about the compensation payments we make in connection with the sale of the policies, see OTHER INFORMATION - Distribution of the Policies in this prospectus.

ACCESS TO YOUR MONEY

During the accumulation phase, You can have access to the money in Your policy in the following ways:

•	by taking a withdrawal or surrender; or
•	by taking systematic payouts (See ADDITIONAL FEATURES - Systematic Payout Option for more details).

Surrenders and Withdrawals

During the accumulation phase, if You take a full withdrawal (surrender) You will receive Your Cash Value. If You want to take a withdrawal, in most cases it must be for at least $500. Certain optional benefits have specific requirements regarding the order in which withdrawals can be taken from investment options. Unless You tell us otherwise, we will take the withdrawal from each of the investment options in proportion to the Policy Value. Surrenders may be referred to as withdrawals on Your policy statement and other documents.

You may elect to take up to the Surrender Charge Free Amount each Policy Year without incurring a surrender charge. Remember that any withdrawal You take will reduce the Policy Value, and the amount of the death benefit. See DEATH BENEFIT, for more details. A withdrawal also may have a negative impact on certain other benefits and guarantees of Your policy. See ADDITIONAL FEATURES, for more details.

Withdrawals in excess of the Surrender Charge Free Amount may be subject to a surrender charge. Withdrawals from the Fixed Account may be subject to an Excess Interest Adjustment. Income taxes, federal tax penalties and certain restrictions may apply to any withdrawals You take.

Withdrawals from qualified policies may be restricted or prohibited.

During the income phase, You will receive annuity payments under the Annuity Payment Option You select; however, You generally may not take any other withdrawals.

Delay of Payment and Transfer

Payment of any amount due from the Separate Account for a surrender, a death benefit, or the death of the Owner of a nonqualified policy, will generally occur within seven days from the date we receive in good order all required information at our Administrative Office. We may defer such payment from the Separate Account if:

•	the New York Stock Exchange is closed other than for usual weekends or holidays or trading on the Exchange is otherwise restricted;
•	an emergency exists as defined by the SEC or the SEC requires that trading be restricted; or
•	the SEC permits a delay for the protection of Owners.

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Transfers of amounts from the Subaccounts also may be deferred under these circumstances. In addition, if, pursuant to SEC rules, the Transamerica BlackRock Government Money Market VP portfolio (or any money market portfolio offered under this policy) suspends payment of redemption proceeds in connection with a liquidation of the portfolio, then we may delay payment of any transfer, surrender, withdrawal, loan, or death benefit from the TA BlackRock Government Money Market Subaccount until the portfolio is liquidated.

Any payment or transfer request which is not in good order will cause a delay. See OTHER INFORMATION - Sending Forms and Transaction Requests in Good Order.

Federal laws designed to counter terrorism and prevent money laundering by criminals might in certain circumstances require us to reject a premium payment and/or “freeze” an Owner's account. If these laws apply in a particular situation, we would not be allowed to pay any request for withdrawals, or death benefits, make transfers, or continue making annuity payments absent instructions from the appropriate federal regulator. We may also be required to provide information about You and Your policy to government agencies or departments.

Pursuant to the requirements of certain state laws, we reserve the right to defer payment of the Cash Value from the Fixed Account for up to six months. We may defer payment of any amount until Your premium payment check has cleared Your bank.

Excess Interest Adjustment

Surrenders, withdrawals, transfers, and amounts applied to an annuity option, from a Guaranteed Period Option of the Fixed Account before the end of its guaranteed period (the number of years You specified the money would remain in the Guaranteed Period Option) may be subject to an Excess Interest Adjustment. If, at the time of such transactions the guaranteed interest rate set by us for the applicable period has risen since the date of the initial guarantee, the Excess Interest Adjustment will result in a lower Cash Value (but not below the Excess Interest Adjustment floor described in “Appendix - Excess Interest Adjustment Examples”). However, if the guaranteed interest rate for the applicable period has fallen since the date of the initial guarantee, the Excess Interest Adjustment will result in a higher Cash Value upon withdrawal, surrender or transfer. Please see “Appendix - Excess Interest Adjustment Examples” to see how the Excess Interest Adjustment is calculated and illustrative examples using hypothetical values.

Any amount withdrawn in excess of the cumulative interest credited for that Guaranteed Period Option is generally subject to an Excess Interest Adjustment. An Excess Interest Adjustment may also be made on amounts applied to an Annuity Payment Option.

The formula that will be used to determine the Excess Interest Adjustment is:

S* (G-C)* (M/12)
S	=	Is the amount (before surrender charges, premium taxes and the application of any Guaranteed Minimum Death Benefits, if any) being surrendered, withdrawn, transferred, paid upon death, or applied to an income option that is subject to the Excess Interest Adjustment;
G	=	Is the guaranteed interest rate for the guaranteed period applicable to “S”;
C	=	Is the current guaranteed interest rate then being offered on new premium payments for the next longer option period than “M”. If this policy form or such an option period is no longer offered, “C” will be the U.S. Treasury rate for the next longer maturity (in whole years) than “M” on the 25th day of the previous calendar month,
M	=	Number of months remaining in the current option period for “S”, rounded up to the next higher whole number of months; and
*	=	Multiplication

Please see “Appendix - Excess Interest Adjustment Examples” for more detailed information concerning the Excess Interest Adjustment calculation.

There will be no Excess Interest Adjustment on any of the following:

•	withdrawals or transfers of cumulative interest credited for that Guaranteed Period Option;
•	Nursing Care and Terminal Condition Waiver withdrawals;
•	Unemployment Waiver withdrawals;
•	transfers from a Dollar Cost Averaging fixed source;
•	withdrawals to satisfy any minimum distribution requirements;
•	systematic withdrawals, which do not exceed cumulative interest credited at the time of payment; and
•	the Stable Account as defined in the glossary.

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Please note that in these circumstances You will not receive a higher Cash Value if interest rates have fallen nor will You receive a lower Cash Value if interest rates have risen.

The Excess Interest Adjustment may not be applicable for all policies.

Signature Guarantee

As a protection against fraud, we require a signature guarantee (i.e., Medallion Signature Guarantee as required by us) for the following transaction requests:

•	Any withdrawals or surrenders over $250,000 unless it is a custodial owned annuity;
•	Any non-electronic disbursement request made on or within 15 days of a change to the address of record for the policy Owner’s account;
•	Any electronic fund transfer instruction changes on or within 15 days of an address change;
•	Any withdrawal or surrender when we have been directed to send proceeds to a different personal address from the address of record for that Owner. PLEASE NOTE: This requirement will not apply to requests made in connection with exchanges of one annuity for another with the same Owner in a “tax-free exchange”;
•	Any withdrawal or surrender when we do not have an originating or guaranteed signature on file unless it is a custodial owned annuity;
•	Any other transaction we require.

We may change the specific requirements listed above, or add signature guarantees in other circumstances, at our discretion if we deem it necessary or appropriate to help protect against fraud. For current requirements, please refer to the requirements listed on the appropriate form or call us at (800)525-6205.

You can obtain a Medallion signature guarantee from more than 7,000 financial institutions across the United States and Canada that participate in a Medallion signature guarantee program. The best source of a Medallion signature guarantee is a bank, savings and loan association, brokerage firm, or credit union with which You do business. A notary public cannot provide a Medallion signature guarantee. Notarization will not substitute for a Medallion signature guarantee.

ANNUITY PAYMENTS (THE INCOME PHASE)

Upon the Annuity Commencement Date, which is the date Your policy is Annuitized and annuity payments begin, Your annuity switches from the accumulation phase to the income phase. You can generally change the Annuity Commencement Date by giving us 30 days notice with the new date or age. Unless required by state law this date cannot be earlier than the third policy anniversary. The latest Annuity Commencement Date generally cannot be later than the last day of the month following the month in which the Annuitant attains age 99 (earlier if required by state law).

Before the Annuity Commencement Date, if the Annuitant is alive, You may choose an Annuity Payment Option or change Your election. If the Annuitant dies before the Annuity Commencement Date, the death benefit is payable in a lump sum or under one of the Annuity Payment Options (unless the surviving spouse is eligible to and elects to continue the policy). If the Annuitant dies after the Annuity Commencement Date, no death benefit is payable and any remaining guaranteed payment will be paid to the beneficiary as provided for in the annuity income option elected.

Your policy may not be “partially” Annuitized, i.e., You may not apply a portion of Your Policy Value to an annuity option while keeping the remainder of Your policy in force.

Unless You specify otherwise, the Owner will receive the annuity payments. After the Annuitant's death, the beneficiary You designate at Annuitization will receive any remaining guaranteed payments.

Annuity Payment Options

The policy provides several Annuity Payment Options (also known as income options) that are described below. You may choose any combination of Annuity Payment Options. We will use Your Adjusted Policy Value to provide these annuity payments. If the Adjusted Policy Value on the Annuity Commencement Date is less than $2,000, we reserve the right to pay it in one lump sum in lieu of applying it under an Annuity Payment Option. You can receive annuity payments monthly, quarterly, semi-annually, or annually. (We reserve the right to change the frequency if annuity payments would be less than the amount specified in Your policy.) We may require proof of life before making annuity payments.

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In deciding on which Annuity Payment Option to elect, You must decide if fixed or variable payments are better for You. If You choose to receive fixed annuity payments, then the amount of each payment will be set on the Annuity Commencement Date and will not change. You may, however, choose to receive variable annuity payments. The dollar amount of the first variable annuity payment will be determined in accordance with the annuity payment rates set forth in the applicable table contained in the policy. The dollar amount of additional variable annuity payments will vary based on the investment performance of the Subaccount(s) You select. The dollar amount of each variable annuity payment after the first may increase, decrease, or remain constant. If the actual investment performance (net of fees and expenses) exactly matched the Assumed Investment Return of 3% at all times, the amount of each variable annuity payment would remain constant. If actual investment performance (net of fees and expenses) exceeds the Assumed Investment Return, the amount of the variable annuity payments would increase.

For example, assume the first monthly variable annuity payment is $500.00, further assume that the investment performance for the 1^st month is an 8.00% annual rate of return, then the second monthly variable annuity payment would increase to $501.37. Conversely, if actual investment performance (net of fees and expenses) is lower than the Assumed Investment Return, the amount of the variable annuity payments would decrease. Continuing from the previous example, further assume that the investment performance for the 2^nd month is a -2.00% annual rate of return, then the 3^rd monthly variable payment would decrease to $498.88.

You must also decide if You want Your annuity payments to be guaranteed for the Annuitant's lifetime, a period certain, or a combination thereof. Generally, annuity payments will be lower if You combine a period certain, guaranteed amount, or liquidity with a lifetime guarantee (e.g., Life Income with 10 years Certain and Life with Guaranteed Return of Policy proceeds). Likewise, annuity payments will also generally be lower the longer the period certain (because You are guaranteed payments for a longer time).

A charge for premium taxes and an Excess Interest Adjustment may be made when annuity payments begin.

The Annuity Payment Options currently available are explained below. Some options are fixed only.

Income for a Specified Period (fixed only). We will make level annuity payments only for a fixed period. No funds will remain at the end of the period. If Your policy is a qualified policy, this annuity payment option may not satisfy minimum required distribution rules. Consult a financial professional before electing this option.

Income of a Specified Amount (fixed only). Payments are made for any specified amount until the amount applied to this option, with interest, is exhausted. This will be a series of level annuity payments followed by a smaller final annuity payment. If Your policy is a qualified policy, this annuity payment option may not satisfy minimum required distribution rules. Consult a financial professional before electing this option.

Life Income. You may choose between:

•	No Period Certain (fixed or variable) - Payments will be made only during the Annuitant's lifetime. The last annuity payment will be the payment immediately before the Annuitant's death. If You choose this option and the Annuitant dies before the due date of the first annuity payment no payments will be made.
•	10 Years Certain (fixed or variable) - Payments will be made for the longer of the Annuitant's lifetime or ten years.
•	Guaranteed Return of Policy Proceeds (fixed only) - Payments will be made for the longer of the Annuitant's lifetime or until the total dollar amount of annuity payments we made to You equals the Annuitized amount (i.e., the Adjusted Policy Value less premium tax, if applicable).

Joint and Survivor Annuity. You may choose:

•	No Period Certain (fixed or variable) - Payments are made during the joint lifetime of the Annuitant and a joint Annuitant of Your selection. Annuity payments will be made as long as either person is living. If You choose this option and both joint Annuitants die before the due date of the first annuity payment no payments will be made.
•	10 Year Certain (fixed only) - Payments will be made for the longer of the lifetime of the Annuitant and joint Annuitant or ten years.

Other Annuity Payment Options may be arranged by agreement with us. Some Annuity Payment Options may not be available for all policies, all ages or we may limit certain Annuity Payment Options to ensure they comply with the applicable tax law provisions.

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NOTE CAREFULLY

IF:

•	You choose Life Income with No Period Certain or a Joint and Survivor Annuity with No Period Certain; and
•	the Annuitant dies (or both joint Annuitants die) before the due date of the second (third, fourth, etc.) annuity payment;

THEN:

•	we may make only one (two, three, etc.) annuity payments.

IF:

•	You choose Income for a Specified Period, Life Income with 10 Years Certain, Life Income with Guaranteed Return of Policy Proceeds, or Income of a Specified Amount; and
•	the person receiving annuity payments dies prior to the end of the guaranteed period;

THEN:

•	the remaining guaranteed annuity payments will be continued to a new payee, or their present value may be paid in a single sum.

We will not pay interest on amounts represented by uncashed annuity payment checks if the postal or other delivery service is unable to deliver checks to the payee's address of record. The person receiving annuity payments is responsible for keeping us informed of his/her current address.

You must Annuitize Your policy no later than the maximum Annuity Commencement Date specified in Your policy (earlier for certain distribution channels) or a later date if agreed to by us. If You do not elect an Annuity Payment Option, the default option will be variable payments under Life with 10 Years Certain. If any portion of the default Annuitization is a variable payout option, then annuity units will be purchased proportionally based off Your available current investment allocations. Please note, all benefits (including guaranteed minimum death benefits and living benefits) terminate upon Annuitization. The only benefits that remain include the guarantees provided under the terms of the annuity option.

Please Note: If You Annuitize before the maximum Annuity Commencement Date, the payments You receive under the Annuity Payment Options may be less than the guaranteed minimum payments You are entitled to under a GLWB rider (if elected). Please consult Your financial professional about the advisability of Annuitization before the maximum commencement date and the Annuity Payment options available to You.

DEATH BENEFIT

We will pay a death benefit to Your beneficiary, under certain circumstances, if the Annuitant dies during the accumulation phase. If there is a surviving Owner(s) when the Annuitant dies, the surviving Owner(s) will receive the death benefit instead of the listed beneficiary. The person receiving the death benefit may choose an Annuity Payment Option (if You pick a variable Annuity Payment Option fees and expenses will apply), or may choose to receive the death benefit as a lump sum withdrawal. The guarantees of these death benefits are based on our claims-paying ability. No death benefit will be payable upon or after the Annuity Commencement Date. Please note that there is a mandatory Annuity Commencement Date. See ANNUITY PAYMENTS (THE INCOME PHASE) section in this prospectus.

We will determine the amount of and process the death benefit proceeds, if any are payable on a policy, upon receipt at our Administrative Office of satisfactory proof of the Annuitant's death, directions regarding how to process the death benefit, and any other documents, forms and information that we need (collectively referred to as “due proof of death”). For policies with multiple beneficiaries, we will process the death benefit when the first beneficiary provides us with due proof of their share of the Death Proceeds. We will not pay any remaining beneficiary their share until we receive due proof of death from that beneficiary. Such beneficiaries continue to bear the investment risk until they submit due proof of death. Please note, we may be required to remit the death benefit proceeds to a state prior to receiving “due proof of death.” See OTHER INFORMATION - Abandoned or Unclaimed Property.

Please Note: Such due proof of death must be received in good order to avoid a delay in processing the death benefit claim. See OTHER INFORMATION - Sending Forms and Transaction Requests in Good Order.

The death benefit proceeds remain invested in the Separate Account in accordance with the allocations made by the policy Owner until the beneficiary has provided us with due proof of death. Once we receive due proof of death, investments in the Separate Account may be reallocated in accordance with the beneficiary's instructions.

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We may permit the beneficiary to give a “one-time” written instruction to reallocate the Policy Value in the Separate Account to the money market Subaccount after the death of the Annuitant. If there is more than one beneficiary, all beneficiaries must agree to the reallocation instructions. This one-time reallocation will be permitted if the beneficiary provides satisfactory evidence of the Annuitant's death (satisfactory evidence may include a certified death certificate).

When We Pay A Death Benefit

We will pay a death benefit IF:

•	You are both the Annuitant and sole Owner of the policy; and
•	You die before the Annuity Commencement Date.

We will pay a death benefit to You (Owner) IF:

•	You are not the Annuitant; and
•	the Annuitant dies before the Annuity Commencement Date.

Please note: If there is a surviving Owner(s) when the Annuitant dies, the surviving Owner(s) will receive the death benefit (i.e., the surviving Owner(s) takes the place of any beneficiary designation).

If the designated beneficiary receiving the death benefit is the surviving spouse of the Owner, then he or she may elect, if eligible, to continue the policy as the new Annuitant and Owner, instead of receiving the death benefit. See DEATH BENEFIT - Spousal Continuation. All currently existing surrender charges will be waived.

When We Do Not Pay A Death Benefit

We will not pay a death benefit IF:

•	You are the Owner but not the Annuitant; and
•	You die prior to the Annuity Commencement Date.

Please note: If an Owner (who is not the Annuitant) dies before the Annuitant, the amount payable will be equal to the Cash Value. Distribution requirements apply upon the death of any Owner. Generally, upon the Owner's death (who is not the Annuitant) the entire interest must be distributed within five years. See TAX INFORMATION for a more detailed discussion of the distribution requirements under the Code.

If an Owner (who is not the Annuitant) dies during the accumulation phase, the Cash Value will be paid to the person or entity first listed below who is alive or in existence on the date of that death:

•	any surviving Owner(s);
•	primary beneficiary(ies);
•	contingent beneficiary(ies); or
•	deceased Owner's estate.

Deaths After the Annuity Commencement Date

The amount payable, if any, on or after the Annuity Commencement Date depends on the annuity income option.

IF:

•	You are not the Annuitant; and
•	You die on or after the Annuity Commencement Date; and
•	the entire guaranteed amount in the policy has not been paid;

THEN:

•	the remaining portion of such guaranteed amount in the policy will continue to be distributed at least as rapidly as under the method of distribution being used as of the date of Your death.

IF:

•	You are the Owner and Annuitant; and
•	You die after the Annuity Commencement Date; and
•	the Annuity Payment Option You selected did not have or no longer has a guaranteed period;

THEN:

•	no additional payments will be made.

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Owner Death

•	any surviving Owner(s);
•	primary beneficiary(ies);
•	contingent beneficiary(ies); or
•	deceased Owner's estate.

Spousal Continuation

If the sole primary beneficiary is the spouse of the deceased, upon the Owner's or the Annuitant's death, the beneficiary may elect to continue the policy in his or her own name. Upon the Annuitant's death if such election is made, the Policy Value will be adjusted upward (but not downward) to an amount equal to the death benefit amount determined upon such election and receipt of due proof of death of the Annuitant. Any excess of the death benefit amount over the Policy Value will be allocated to each applicable investment option in the ratio that the Policy Value in the investment option bears to the total Policy Value. The terms and conditions of the policy that applied prior to the Annuitant's death will continue to apply, with certain exceptions described in the policy. For purposes of the death benefit on the continued policy, the death benefit is calculated in the same manner as it was prior to continuation on the date the spouse continues the policy. See TAX INFORMATION - Same Sex Relationships for more information concerning spousal continuation involving same sex spouses.

For these purposes, if the sole primary beneficiary of the policy is a revocable grantor trust and the spouse of the Owner/Annuitant is the sole grantor, trustee, and beneficiary of the trust and the trust is using the spouse of the Owner/Annuitant's social security number at the time of claim, she or he shall be treated as the Owner/Annuitant's spouse. In those circumstances, the Owner/Annuitant's spouse will be treated as the beneficiary of the policy for purposes of applying the spousal continuation provisions of the policy.

For these purposes, if the Owner is an individual retirement account within the meaning of IRC sections 408 or 408A and if the Annuitant's spouse is the sole primary beneficiary of the Annuitant's interest in such account, the Annuitant's spouse will be treated as the beneficiary of the policy for purposes of applying the spousal continuation provisions of the policy.

Amount of Death Benefit

Death benefit provisions may differ from state to state. The death benefit may be paid as a lump sum, as annuity payments or as otherwise permitted by the Company in accordance with applicable law. The amount of the death benefit depends on the guaranteed minimum death benefit option, if any, You choose when You buy the policy. The “base policy” death benefit will generally be the greatest of:

•	the Policy Value on the date we receive the required information in good order at our Administrative Office;
•	the Cash Value on the date we receive in good order the required information at our Administrative Office (this will be more than the Policy Value if there is a positive Excess Interest Adjustment that exceeds the surrender charge);
•	the Fixed Account portion of the minimum required Cash Value plus the Separate Account portion of the Policy Value, on the date we receive the required information in good order at our Administrative Office; and
•	the guaranteed minimum death benefit (if one was elected) on the date of death; plus premium payments, minus gross withdrawals, from the date of death to the date the death benefit is paid. Please see “Appendix - Death Benefit” for illustrative examples regarding death benefit calculations.

Please note: The death benefit terminates upon Annuitization.

Guaranteed Minimum Death Benefit

The guaranteed minimum death benefit terminates upon Annuitization and there is a mandatory Annuity Commencement Date. On the policy application, You may choose the Annual Step-Up death benefit or the Return of Premium (age limitations may apply) for an additional fee. After the policy is issued, You cannot make an election and the death benefit cannot be changed.

The guaranteed minimum death benefit (unless you choose the Annual Step-Up or Return of Premium death benefit) is equal to your policy value as of the date due proof of death is provided.

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Annual Step-Up Death Benefit

Under this option, on each policy anniversary prior to Your 81st birthday, a new “stepped-up” death benefit is determined and becomes the guaranteed minimum death benefit for that Policy Year. This “step-up” death benefit is equal to:

•	the largest Policy Value on the Policy Date or on any policy anniversary prior to the earlier of the Annuitant's date of death or the Annuitant's 81st birthday; plus
•	any premium payments since the date of any policy anniversary with the largest Policy Value; minus
•	any adjusted withdrawals (please see “Appendix - Death Benefit”) since the date of the policy anniversary with the largest Policy Value to the date of death; minus
•	withdrawals from the date of death to the date the death benefit is paid.

The Annual Step-Up Death Benefit is not available if You or the Annuitant is 76 or older on the Policy Date. There is an extra charge for this death benefit. See FEE TABLE AND EXPENSE EXAMPLES.

Designated Investment Options. If You elected the Annual Step-Up Death Benefit, You must allocate 100% of Your Policy Value to one or more of the designated investment options approved for the Annual Step-Up Death Benefit. See “Appendix - Designated Investment Options” for a complete listing of available investment options. Requiring that You designate 100% of Your Policy Value to the designated investment options, some of which employ strategies that are intended to reduce the risk of loss and/or manage volatility, may reduce investment returns and may reduce the likelihood that we will be required to use our own assets to pay amounts due under this benefit.

Please note:

•	You may transfer amounts among the designated investment options; however, You cannot transfer any amount to any other Subaccount if You elect this death benefit.
•	We have processes and procedures in place that will prevent allocation to a Subaccount that is not a designated investment option. These processes and procedures include restricting transfers requested by telephone and internet.

Please note: You will not receive an optional guaranteed minimum death benefit if You do not choose one when You purchase Your policy.

Return of Premium Death Benefit

The Return of Premium Death Benefit is equal to:

•	total premium payments; minus
•	any adjusted withdrawals (please see “Appendix - Death Benefit”) as of the date of death; minus
•	withdrawals from the date of death to the date the death benefit is paid.

This benefit is not available if You or the Annuitant is 86 or older on the Policy Date. There is an extra charge for this death benefit. See FEE TABLE AND EXPENSE EXAMPLES.

Designated Investment Options. If You elected the Return of Premium Death Benefit, You must allocate 100% of Your Policy Value to one or more of the designated investment options approved for the Return of Premium Death Benefit. See “Appendix - Designated Investment Options” for a complete listing of available designated options. Requiring that You designate 100% of Your Policy Value to the designated investment options, some of which employ strategies that are intended to reduce the risk of loss and/or manage volatility, may reduce investment returns and may reduce the likelihood that we will be required to use our own assets to pay amounts due under this benefit.

Please note:

•	You may transfer amounts among the designated investment options; however, You cannot transfer any amount to any other Subaccount if You elect this death benefit.
•	We have processes and procedures in place that will prevent allocation to a Subaccount that is not a designated investment option. These processes and procedures include restricting transfers requested by telephone and internet.

Please note: You will not receive an optional guaranteed minimum death benefit if You do not choose one when You purchase Your policy.

The Guaranteed Minimum Death Benefit may vary for certain policies and may not be available for all policies, in all states, at all times or through all financial intermediaries. Once You elect a death benefit and Your policy is issued, Your death benefit cannot be changed and You will not be impacted by a decision to discontinue offering any particular guaranteed minimum death benefit to new sales.

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Adjusted Withdrawal

When You request a withdrawal, Your guaranteed minimum death benefit will be reduced by an amount called the adjusted withdrawal. Under certain circumstances, the adjusted withdrawal may be more than the dollar amount of Your withdrawal request. This will generally be the case if the guaranteed minimum death benefit exceeds the Policy Value at the time of withdrawal. It is also possible that if a death benefit is paid after You have taken a withdrawal, then the total amount paid could be less than the total premium payments.

The formula used to calculate the adjusted withdrawal amount is: adjusted withdrawal = amount of the withdrawal x (the current Death Proceeds prior to the withdrawal / Policy Value prior to the withdrawal).

We have included a detailed explanation of this adjustment with examples in the “Appendix - Death Benefit.” This is referred to as “adjusted withdrawal” in Your policy. If You have a qualified policy, minimum required distributions rules may require You to request a withdrawal.

TAX INFORMATION

NOTE: We have prepared the following information on federal taxes as a general discussion of the subject. It is not intended as tax advice to any taxpayer. The federal tax consequences discussed herein reflects our understanding of current law, and the law may change. No representation is made regarding the likelihood of continuation of the present federal tax law or of the current interpretations by the Internal Revenue Service. The discussion briefly references federal estate, gift and generation-skipping transfer taxes, but principally discusses federal income taxes. No attempt is made to consider any applicable state or other income tax laws, any state and local estate or inheritance tax, or other tax consequences of ownership or receipt of distributions under the policy. You should consult Your own financial professional about Your own circumstances.

Introduction

Deferred annuity policies are a way of setting aside money for future needs like retirement. Congress recognized how important saving for retirement is and provided special rules in the Internal Revenue Code (the “Code”) for annuities. Simply stated, these rules generally provide that individuals will not be taxed on the earnings, if any, on the money held in an annuity policy until withdrawn. This is referred to as tax deferral. When a non-natural person (e.g., corporation or certain trusts) owns a nonqualified policy, the policy will generally not be treated as an annuity for tax purposes. Thus, the Owner must generally include in income any increase in the Policy Value over the investment in the policy during each taxable year.

There are different rules as to how You will be taxed depending on how You take the money out and the type of policy-qualified or nonqualified.

If You purchase the policy as an individual retirement annuity or as a part of a 403(b) plan, 457 plan, a pension plan, a profit sharing plan (including a 401(k) plan), or certain other employer sponsored retirement programs, Your policy is referred to as a qualified policy. There is no additional tax deferral benefit derived from placing qualified funds into a variable annuity. Features other than tax deferral should be considered in the purchase of a qualified policy. There are limits on the amount of contributions You can make to a qualified policy. Other restrictions may apply including terms of the plan in which You participate. To the extent there is a conflict between a plan's provisions and a policy's provisions, the plan's provisions will control.

If You purchase the policy other than as part of any arrangement described in the preceding paragraph, the policy is referred to as a nonqualified policy.

You will generally not be taxed on increases in the value of Your policy, whether qualified or nonqualified, until a distribution occurs (e.g., as a surrender, withdrawal, or as annuity payments). However, You may be subject to current taxation if You assign or pledge or enter into an agreement to assign or pledge any portion of the policy. You may also be subject to current taxation if You make a gift of a nonqualified policy without valuable consideration. All amounts received from the policy that are includible in income are taxed at ordinary income rates; no amounts received from the policy are taxable at the lower rates applicable to capital gains.

The Internal Revenue Service (“IRS”) has not reviewed the policy for qualification as an IRA annuity, and has not addressed in a ruling of general applicability whether the death benefit options and riders available, with the policy, if any, comport with IRA qualification requirements.

The value of living and death benefit options and riders elected may need to be taken into account in calculating minimum required distributions from a qualified plan/or policy.

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We may occasionally enter into settlements with Owners and beneficiaries to resolve issues relating to the policy. Such settlements will be reported on the applicable tax form (e.g., Form 1099) provided to the taxpayer and the taxing authorities.

Taxation of Us

We are at present taxed as a life insurance company under part I of Subchapter L of the Code. The Separate Account is treated as a part of us and, accordingly, will not be taxed separately as a “regulated investment company” under Subchapter M of the Code. We do not expect to incur any federal income tax liability with respect to investment income and net capital gains arising from the activities of the Separate Account retained as part of the reserves under the policy. Based on this expectation, it is anticipated that no charges will be made against the Separate Account for federal income taxes. If in future years, any federal income taxes are incurred by us with respect to the Separate Account, we may make a charge to that account. We may benefit from any dividends received or foreign tax credits attributable to taxes paid by certain underlying fund portfolios to foreign jurisdictions to the extent permitted under federal tax law.

Tax Status of a Nonqualified Policy

Diversification Requirements. In order for a nonqualified variable policy which is based on a segregated asset account to qualify as an annuity policy under Section 817(h) of the Code, the investments made by such account must be “adequately diversified” in accordance with Treasury Regulations. The Regulations apply a diversification requirement to each of the Subaccounts. Each Separate Account, through its underlying fund portfolios and their portfolios, intends to comply with the diversification requirements of the Regulations. We have entered into agreements with each underlying fund portfolio company that require the portfolios to be operated in compliance with the Regulations but we do not have control over the underlying fund portfolio companies. The Owners bear the risk that the entire contract could be disqualified as an annuity policy under the Code due to the failure of a Subaccount to be deemed to be “adequately diversified.”

Owner Control. In some circumstances, Owners of variable policies who retain excessive control over the investment of the underlying Separate Account assets may be treated as the Owners of those assets and may be subject to tax on income produced by those assets. In Revenue Ruling 2003-91, the IRS stated that whether the Owner of a variable policy is to be treated as the Owner of the assets held by the insurance company under the policy will depend on all of the facts and circumstances.

Revenue Ruling 2003-91 also gave an example of circumstances under which the Owner of a variable policy would not possess sufficient control over the assets underlying the policy to be treated as the Owner of those assets for federal income tax purposes. To the extent the circumstances relating to the issuance and ownership of a policy vary from those described in Revenue Ruling 2003-91, Owners bear the risk that they will be treated as the Owner of Separate Account assets and taxed accordingly.

We believe that the Owner of a policy should not be treated as the Owner of the underlying assets. We reserve the right to modify the policies to bring them into conformity with applicable standards should such modification be necessary to prevent Owners of the policies from being treated as the Owners of the underlying Separate Account assets. Concerned Owners should consult their own financial professionals regarding the tax matter discussed above.

Distribution Requirements . The Code requires that nonqualified policies contain specific provisions for distribution of policy proceeds upon the death of any Owner. In order to be treated as an annuity policy for federal income tax purposes, the Code requires that such policies provide that if any Owner dies on or after the annuity starting date and before the entire interest in the policy has been distributed, the remaining portion must be distributed at least as rapidly as under the method in effect on such Owner's death. If any Owner dies before the annuity starting date, the entire interest in the policy must generally be distributed (1) within 5 years after such Owner's date of death or (2) to (or for the benefit of) a designated beneficiary, over the life of such designated beneficiary (or over a period not extending beyond the life expectancy of such beneficiary) and such distribution begin not later than 1 year after the date of the Owner’s death (also known as a “stretch” payout). The designated beneficiary must be an individual. The only method we use for making distribution payments from a nonqualified “stretch” payment option is the required minimum distribution method as set forth in Revenue Ruling 2002-62. The applicable payments are calculated using the Single Life Expectancy Table set forth in Treasury Regulations § 1.401(a)(9)-9, A-1. However, if upon such Owner's death the Owner's surviving spouse is the designated beneficiary of the policy, then the policy may be continued with the surviving spouse as the new Owner. If any Owner is a non-natural person (except in the case of certain grantor trusts), then for purposes of these distribution requirements, the primary Annuitant shall be treated as an Owner and any death or change of such primary Annuitant shall be treated as the death of an Owner.

The nonqualified policies contain provisions intended to comply with these requirements of the Code. No regulations interpreting these requirements of the Code have yet been issued and thus no assurance can be given that the provisions contained in the policies satisfy all such Code requirements. The provisions contained in the policies will be reviewed and modified if necessary to assure that they comply with the Code requirements when clarified by regulation or otherwise.

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Taxation of a Nonqualified Policy

The following discussion assumes the policy qualifies as an annuity policy for federal income tax purposes.

In General. Code Section 72 governs taxation of annuities in general. We believe that an Owner who is an individual will not be taxed on increases in the value of a policy until such amounts are surrendered or distributed. For this purpose, the assignment, pledge, or agreement to assign or pledge any portion of the Policy Value as collateral for a loan generally will be treated as a distribution of such portion. You may also be subject to current taxation if You make a gift of a nonqualified policy without valuable consideration. The taxable portion of a distribution is taxable as ordinary income.

Non-Natural Persons. Pursuant to Section 72(u) of the Code, a nonqualified policy held by a taxpayer other than a natural person generally will not be treated as an annuity policy under the Code; accordingly, an Owner who is not a natural person will recognize as ordinary income for a taxable year the excess, if any, of the Policy Value over the “investment in the contract”. There are some exceptions to this rule and a prospective purchaser of the policy that is not a natural person should discuss these rules with a competent financial professional. A policy owned by a trust using the grantor's social security number as its taxpayer identification number will be treated as owned by the grantor (natural person) for the purposes of our application of Section 72 of the Code. Consult a financial professional for more information on how this may impact Your policy.

Different Individual Owner and Annuitant

If the Owner and Annuitant on the policy are different individuals, there may be negative tax consequences to the Owner and/or beneficiaries under the policy if the Annuitant predeceases the Owner including, but not limited, to the assessment of penalty tax and the loss of certain death benefit distribution options. You may wish to consult Your legal counsel or financial professional if You are considering designating a different individual as the Annuitant on Your policy to determine the potential tax ramifications of such a designation.

Annuity Starting Date

This section makes reference to the annuity starting date as defined in Section 72 of the Code and the applicable regulations. Generally, the definition of annuity starting date will correspond with the definition of Annuity Commencement Date used in Your policy and the dates will be the same. However, in certain circumstances, Your annuity starting date and Annuity Commencement Date will not be the same date. If there is a conflict between the definitions, we will interpret and apply the definitions in order to ensure Your policy maintains its status as an annuity policy for federal income tax purposes. You may wish to consult a financial professional for more information on when this issue may arise.

It is possible that at certain advanced ages a policy might no longer be treated as an annuity contract if the policy has not been Annuitized before that age or have other tax consequences. You should consult with a financial professional about the tax consequences in such circumstances.

Taxation of Annuity Payments

Although the tax consequences may vary depending on the Annuity Payment Option You select, in general, for nonqualified and certain qualified policies, only a portion of the annuity payments You receive will be includable in Your gross income.

In general, the excludable portion of each annuity payment You receive will be determined as follows:

•	Fixed payments-by dividing the “investment in the policy” on the annuity starting date by the total expected return under the policy (determined under Treasury regulations) for the term of the payments. This is the percentage of each annuity payment that is excludable.
•	Variable payments-by dividing the “investment in the policy” on the annuity starting date by the total number of expected periodic payments. This is the amount of each annuity payment that is excludable.

The remainder of each annuity payment is includable in gross income. Once the “investment in the policy” has been fully recovered, the full amount of any additional annuity payments is includable in gross income and taxed as ordinary income. The “investment in the policy” is generally equal to the premiums You pay for the policy, reduced by any amounts You have previously received from the policy that are excludible from gross income.

If You select more than one Annuity Payment Option, special rules govern the allocation of the policy's entire “investment in the policy” to each such option, for purposes of determining the excludable amount of each payment received under that option. We advise You to consult a competent financial professional as to the potential tax effects of allocating amounts to any particular Annuity Payment Option.

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If, after the annuity starting date, annuity payments stop because an Annuitant died, the excess (if any) of the “investment in the policy” as of the annuity starting date over the aggregate amount of annuity payments received that was excluded from gross income may possibly be allowable as a deduction on Your tax return.

Taxation of Surrenders and Withdrawals - Nonqualified Policies

When You surrender Your policy, You are generally taxed on the amount that Your surrender proceeds exceeds the “investment in the policy”. The “investment in the policy” is generally equal to the premiums You pay for the policy, reduced by any amounts You have previously received from the policy that are excludible from gross income. Withdrawals are generally treated first as taxable income to the extent of the excess in the Policy Value over the “investment in the policy.” Distributions taken under the systematic payout option are treated for tax purposes as withdrawals, not annuity payments. In general, loans, pledges, and collateral assignments as security for a loan are taxed in the same manner as withdrawals and surrenders. You may also be subject to current taxation if You make a gift of a nonqualified policy without valuable consideration. All taxable amounts received under a policy are subject to tax at ordinary rather than capital gain tax rates.

If Your policy contains an Excess Interest Adjustment feature (also known as a market value adjustment), then Your Policy Value immediately before a policy withdrawal (or transaction taxed like a withdrawal) may have to be increased by any positive Excess Interest Adjustments that result from the transaction. There is, however, no definitive guidance on the proper tax treatment of Excess Interest Adjustments, and You may want to discuss the potential tax consequences of an Excess Interest Adjustment with Your financial professional.

The Code also provides that amounts received from the policy that are includible in gross income (including the taxable portion of some annuity payments) may be subject to a penalty tax. The amount of the penalty tax is equal to 10% of the amount that is includable in income. Some withdrawals and other amounts will be exempt from the penalty tax. Amounts received that are not subject to the penalty tax include, among others, any amounts: (1) paid on or after the taxpayer reaches age 59½; (2) paid after an Owner (or where the Owner is a non-natural person, an Annuitant) dies; (3) paid if the taxpayer becomes disabled (as that term is defined in the Code); (4) paid in a series of substantially equal payments made annually (or more frequently) over the life of the taxpayer or the joint life of the taxpayer and the taxpayer's designated beneficiary; (5) paid under an immediate annuity; or (6) which come from premium payments made prior to August 14, 1982. Regarding the disability exception, because we cannot verify that the Owner is disabled, we will report such withdrawals to the IRS as early withdrawals with no known exception from the penalty tax.

Other exceptions may be applicable under certain circumstances and special rules may be applicable in connection with the exceptions enumerated above. You may wish to consult a financial professional for more information regarding the imposition of penalty tax.

Guaranteed Lifetime Withdrawal Benefits

For policies with a Guaranteed Lifetime Withdrawal Benefit or a Guaranteed Minimum Accumulation Benefit the application of certain tax rules, particularly those rules relating to distributions from Your policy, are not entirely clear. It is possible that the withdrawal base (with respect to the Guaranteed Lifetime Withdrawal Benefits) and the guaranteed future value (with respect to the Guaranteed Minimum Accumulation Benefit) could be taken into account to determine the Policy Value that is used to calculate required distributions and the amount of the distribution that would be included in income. The proper treatment of the Income Enhancement Option under a Guaranteed Lifetime Withdrawal Benefit is unclear. It is possible that the IRS could determine that the benefit provides some form of long term care insurance. In that event, the Internal Revenue Service may determine the Income Enhancement Option is an incidental benefit with adverse consequences for qualification as an Individual Retirement Annuity, You could be treated as in receipt of some amount of income attributable to the value of the benefit even though You have not received a payment from Your policy, and the amount of income attributable to guaranteed lifetime withdrawal payments could be affected. In addition, if the Income Enhancement Benefit causes an increase in payments calculated to meet the Required Minimum Distribution requirements it may violate the rules governing such distributions with adverse tax consequences. In view of this uncertainty, You should consult a financial professional with any questions.

Aggregation

All nonqualified deferred annuity policies that are issued by us (or our affiliates) to the same Owner (policyholder) during the same calendar year are treated as one annuity for purposes of determining the amount includable in the Owner's income when a taxable distribution (other than annuity payments) occurs. If You are considering purchasing multiple policies from us (or our affiliates) during the same calendar year, You may wish to consult with Your financial professional regarding how aggregation will apply to Your policies.

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Tax-Free Exchanges of Nonqualified Policies

We may issue the nonqualified policy in exchange for all or part of another annuity contract that You own. Such an exchange will be tax free if certain requirements are satisfied. If the exchange is tax free, Your investment in the policy immediately after the exchange will generally be the same as that of the annuity contract exchanged, increased by any additional premium payment made as part of the exchange. Your Policy Value immediately after the exchange may exceed Your investment in the policy. That excess may be includable in income should amounts subsequently be withdrawn or distributed from the policy (e.g., as a withdrawal, surrender, annuity income payment or death benefit).

If You exchange part of an existing contract for the policy, and within 180 days of the exchange You received a payment other than certain annuity payments (e.g., You take a withdrawal) from either contract, the exchange may not be treated as a tax free exchange. Rather, some or all of the amount exchanged into the policy could be includible in Your income and subject to a 10% penalty tax.

You should consult Your financial professional in connection with an exchange of all or part of an annuity contract for the policy, especially if You may take a withdrawal from either contract within 180 days after the exchange.

Medicare Tax

Distributions from nonqualified annuity policies are considered “investment income” for purposes of the Medicare tax on investment income. Thus, in certain circumstances, a 3.8% tax may be applied to some or all of the taxable portion of distributions (e.g., earnings) to individuals, trusts, and estates whose income exceeds certain threshold amounts. We are required to report distributions taken from nonqualified annuity policies as being potentially subject to this tax. While distributions from qualified policies are not subject to the tax, such distributions may be includable in income for purposes of determining whether certain Medicare Tax thresholds have been met. As such, distributions from Your qualified policy could cause Your other investment income to be subject to the tax. Please consult a financial professional for more information.

Same Sex Relationships

Same sex couples have the right to marry in all states. The parties to each marriage that is valid under the law of any state will each be treated as a spouse as defined in this policy. Individuals in other arrangements, such as civil unions, registered domestic partnerships, or other similar arrangements, that are treated as a valid marriage under the applicable state law, will each be treated as a spouse as defined in this policy for state law purposes. However, individuals in other arrangements that are not recognized as marriage under the relevant state law, will not be treated as married or as spouses as defined in this policy for federal tax purposes. Therefore, exercise of the spousal continuation provisions of this policy or any riders by individuals who do not meet the definition of “spouse” may have adverse tax consequences and/or may not be permissible. Please consult a financial professional for more information on this subject.

Taxation of Death Benefit Proceeds

Amounts may be distributed from the policy because of Your death or the death of the Annuitant. Generally, such amounts should be includable in the income of the recipient: (1) if distributed in a lump sum, these amounts are taxed in the same manner as a surrender; (2) if distributed via withdrawals, these amounts are taxed in the same manner as surrenders; or (3) if distributed under an Annuity Payment Option, these amounts are taxed in the same manner as annuity payments.

Transfers, Assignments or Exchanges of Policies

A transfer of ownership or assignment of a policy, the designation of an Annuitant or payee or other beneficiary who is not also the Owner, the exchange of a policy and certain other transactions, or a change of Annuitant other than the Owner, may result in certain income or gift tax consequences to the Owner that are beyond the scope of this discussion. An Owner contemplating any such transaction or designation should contact a competent financial professional with respect to the potential tax effects.

Charges

It is possible that the IRS may take a position that fees for certain optional benefits (e.g., death benefits other than the Return of Premium death benefit) are deemed to be taxable distributions to You. In particular, the IRS may treat fees associated with certain optional benefits as a taxable withdrawal, which might also be subject to a tax penalty if the withdrawal occurs prior to age 59½. Although we do not believe that the fees associated with any optional benefit provided under the policy should be treated as taxable withdrawals, the tax rules associated with these benefits are unclear, and we advise that You consult Your financial professional prior to selecting any optional benefit under the policy.

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Federal Estate, Gift and Generation-Skipping Transfer Taxes

The estate and gift tax unified credit basic exclusion amount is $10,000,000, subject to inflation adjustments (using the C-CPI-U), for taxable years beginning after December 31, 2017, and before January 1, 2026. The maximum rate is 40%.

The uncertainty as to how the current law might be modified in the future underscores the importance of seeking guidance from a competent professional to help ensure that Your estate plan adequately addresses Your needs and that of Your beneficiaries under all possible scenarios.

Federal Estate Taxes. While no attempt is being made to discuss the Federal estate tax implications of the policy in detail, a purchaser should keep in mind that the value of an annuity policy owned by a decedent and payable to a beneficiary by virtue of surviving the decedent is included in the decedent's gross estate. Depending on the terms of the annuity policy, the value of the annuity included in the gross estate may be the value of the lump sum payment payable to the designated beneficiary or the actuarial value of the payments to be received by the beneficiary. Consult an estate planning professional for more information.

Generation-Skipping Transfer Tax. Under certain circumstances, the Code may impose a “generation skipping transfer tax” when all or part of an annuity policy is transferred to, or a death benefit is paid to, an individual two or more generations younger than the Owner. Regulations issued under the Code may require us to deduct the tax from Your policy, or from any applicable payment, and pay it directly to the IRS.

Qualified Policies

The qualified policy is designed for use with several types of tax-qualified retirement plans which are briefly described below. The tax rules applicable to participants and beneficiaries in tax-qualified retirement plans vary according to the type of plan and the terms and conditions of the plan. Special favorable tax treatment may be available for certain types of contributions and distributions. Adverse tax consequences may result from contributions in excess of specified limits, distributions prior to age 59½ (subject to certain exceptions), distributions that do not conform to specified commencement and minimum distribution rules, and in other specified circumstances. The distribution rules under Section 72(s) of the Code do not apply to annuities provided under a plan described in Sections 401(a), 403(a), 403(b), 408 or 408A of the Code, but other similar rules may. Some retirement plans are subject to distribution and other requirements that are not incorporated into the policies or our policy administration procedures. Owners, employers, participants, and beneficiaries are responsible for determining that contributions, distributions, and other transactions with respect to the policies comply with applicable law.

Traditional Individual Retirement Annuities. In order to qualify as a traditional individual retirement annuity under Section 408(b) of the Code, a policy must satisfy certain conditions: (i) the Owner must be the Annuitant; (ii) the policy generally is not transferable by the Owner, e.g., the Owner may not designate a new Owner, designate a contingent Owner or assign the policy as collateral security; (iii) subject to special rules, the total premium payments for any calendar year may not exceed the amount specified in the Code for the year, except in the case of a rollover amount or contribution under Section 402(c), 402(e)(6), 403(a)(4), 403(b)(8), 403(b)(10), 408(d)(3) or 457(e)(16) of the Code; (iv) annuity payments or withdrawals according to the requirements in the IRS regulations (minimum required distributions) must begin no later than April 1 of the calendar year following the calendar year in which the Annuitant attains age 72 (or age 70½ if the Annuitant attained 70½ before 1/1/2020); (v) an Annuity Payment Option with a period certain that will guarantee annuity payments beyond the life expectancy of the Annuitant and the beneficiary may not be selected; (vi) certain payments of death benefits must be made in the event the Annuitant dies prior to the distribution of the Policy Value; (vii) the entire interest of the Owner is non-forfeitable; and (viii) the premiums must not be fixed. Policies intended to qualify as traditional individual retirement annuities under Section 408(b) of the Code contain such provisions. Amounts in the individual retirement annuity (other than nondeductible contributions) generally are taxed only when distributed from the annuity. Distributions prior to age 59½ (unless certain exceptions apply) are subject to a 10% penalty tax.

SIMPLE and SEP IRAs are types of IRAs that allow employers to contribute to IRAs on behalf of their employees. SIMPLE IRAs permit certain small employers to establish SIMPLE plans as provided by section 408(p) of the Code, under which employees may elect to defer to a SIMPLE IRA a specified percentage of compensation. The sponsoring employer is required to make matching or non-elective contributions on behalf of employees. Distributions from SIMPLE IRAs are subject to the same restrictions that apply to IRA distributions. Subject to certain exceptions, distributions prior to age 59½ are subject to a 10 percent penalty tax, which is increased to 25 percent if the distribution occurs within the first two years after the commencement of the employee's participation in the plan. SEP IRAs permit employers to make contributions to IRAs on behalf of their employees, up to a specified dollar amount for the year and subject to certain eligibility requirements as provided by Section 408(k) of the Code. Distributions from SEP IRAs are subject to the same rules that apply to IRA distributions and are taxed as ordinary income.

The IRS has not reviewed this policy for qualification as a traditional IRA, SIMPLE IRA or SEP IRA, and has not addressed in a ruling of general applicability whether any death benefits available under the policy comport with qualification requirements.

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Roth Individual Retirement Annuities (Roth IRA). The Roth IRA, under Section 408A of the Code, contains many of the same provisions as a traditional IRA. However, there are some differences. First, the contributions are not deductible and must be made in cash or as a rollover or transfer from another Roth IRA, a traditional IRA or other allowed qualified plan. A rollover from or conversion of an IRA to a Roth IRA may be subject to tax. The ability to make cash contributions to Roth IRAs is available to individuals with earned income and whose modified adjusted gross income is under a specified dollar amount for the year. Subject to special rules, the amount per individual that may be contributed to all IRAs (Roth and traditional) is an amount specified in the Code for the year. Secondly, the distributions are taxed differently. The Roth IRA offers tax-free distributions when taken 5 tax years after the first contribution to any Roth IRA of the individual and taken after one of the following: attaining age 59½, to pay for qualified first time home buyer expenses (lifetime maximum of $10,000), or due to death or disability. All other distributions are subject to income tax when taken from earnings and may be subject to a penalty tax unless an exception applies. Please note that specific tax ordering rules apply to Roth IRA distributions. Unlike the traditional IRA, there are no minimum required distributions during the Owner's lifetime; however, minimum required distributions at death are generally the same as for traditional IRAs.

The IRS has not reviewed this policy for qualification as a Roth IRA, and has not addressed in a ruling of general applicability whether any death benefits available under the policy comport with qualification requirements.

Section 403(b) Plans. Under Section 403(b) of the Code, payments made by public school systems and certain tax exempt organizations to purchase policies for their employees are generally excludable from the gross income of the employee, subject to certain limitations. However, such payments may be subject to Federal Insurance Contributions Act (FICA or Social Security) taxes. The policy includes a death benefit that in some cases may exceed the greater of the premium payments or the Policy Value. Additionally, in accordance with the requirements of the Code, Section 403(b) annuities generally may not permit distribution of (i) elective contributions made in years beginning after December 31, 1988, and (ii) earnings on those contributions, and (iii) earnings on amounts attributed to elective contributions held as of the end of the last year beginning before January 1, 1989, unless certain events have occurred. Specifically distributions of such amounts will be allowed only upon the death of the employee, on or after attainment of age 59½, severance from employment, disability, or financial hardship, except that income attributable to elective contributions may not be distributed in the case of hardship. These rules may prevent the payment of guaranteed withdrawals under a Guaranteed Lifetime Withdrawal Benefit prior to age 59½. For policies issued after 2008, amounts attributable to non-elective contributions may be subject to distribution restrictions specified in the employer's section 403(b) plan. Employers using the policy in connection with Section 403(b) plans may wish to consult with their financial professional.

Pursuant to tax regulations, we generally are required to confirm, with Your 403(b) plan sponsor or otherwise, that surrenders, loans or transfers You request from a 403(b) policy comply with applicable tax requirements before we process Your request. We will defer such payments You request until all information required under the tax law has been received. By requesting a surrender or transfer, You consent to the sharing of confidential information about You, the policy, and transactions under the policy and any other 403(b) policies or accounts You have under the 403(b) plan among us, Your employer or plan sponsor, any plan administrator or record keeper, and other product providers.

Pension and Profit-Sharing Plans. Sections 401(a) and 403(a) of the Code permit employers to establish various types of retirement plans for employees and self-employed individuals to establish qualified plans for themselves and their employees. Such retirement plans may permit the purchase of the policies to accumulate retirement savings. Adverse tax consequences to the plan, the participant or both may result if the policy is assigned or transferred to any individual as a means to provide benefit payments. Contributions to and distributions from such plans are limited by the Code and may be subject to penalties.

Deferred Compensation Plans. Section 457(b) of the Code, while not actually providing for a qualified plan as that term is normally used, provides for certain deferred compensation plans established and maintained by state and local governments (and their agencies and instrumentalities) and tax exempt organizations. Under such plans a participant may be able to specify the form of investment in which his or her participation will be made. For non-governmental Section 457(b) plans, all such investments, however, are typically owned by, and are subject to, the claims of the general creditors of the sponsoring employer. Depending on the terms of the particular plan, a non-government employer may be entitled to draw on deferred amounts for purposes unrelated to its Section 457(b) plan obligations. In general, all amounts received under a non-governmental Section 457 plan are taxable in the year paid (or in the year paid or made available in the case of a non-governmental 457(b) plan). Distributions from non-governmental 457(b) plans are subject to federal income tax withholding as wages, distributions from governmental 457(b) plans are subject to withholding as “eligible rollover distributions” as described in the section entitled “Withholding.” below. Contributions to and distributions from such plans are limited by the Code and may be subject to penalties. Deferred compensation plans of governments and tax-exempt entities that do not meet the requirements of Section 457(b) are taxed under Section 457(f), which means compensation deferred under the plan is included in gross income in the first year in which the compensation is not subject to substantial risk of forfeiture.

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Ineligible Owners-Qualified

We currently will not issue new policies to/or for the following plans: 403(a), 403(b), 412(i)/412(e)(3), 419, 457 (we will in certain limited circumstances accept 457(f) plans), employee stock ownership plans, Keogh/H.R.-10 plans and any other types of plans at our sole discretion.

Taxation of Surrenders and Withdrawals - Qualified Policies

In the case of a withdrawal under a qualified policy (other than from a deferred compensation plan under Section 457 of the Code), a pro rata portion of the amount You receive is taxable, generally based on the ratio of Your “investment in the policy” to Your total account balance or accrued benefit under the retirement plan. Your “investment in the policy” generally equals the amount of any non-deductible premium payments made by You or on Your behalf. If You do not have any non-deductible premium payments, Your investment in the contract will be treated as zero.

In addition, a penalty tax may be assessed on amounts surrendered from the policy prior to the date You reach age 59½, unless You meet one of the exceptions to this rule which are similar to the penalty exceptions for distributions from nonqualified policies discussed above. However, the exceptions applicable for qualified policies differ from those provided to nonqualified policies. You may wish to consult a financial professional for more information regarding the application of these exceptions to Your circumstances. You may also be required to begin taking minimum distributions from the policy by a certain date. The terms of the plan may limit the rights otherwise available to You under the policy.

Qualified Plan Required Distributions

For qualified plans under Section 401(a), 403(a), 403(b), and 457, the Code requires that distributions generally must commence no later than the later of April 1 of the calendar year following the calendar year in which the Owner (or plan participant) (i) reaches age 72 (or 70½ if he/she attained 70½ prior to 1/1/2020) or (ii) retires, and must be made in a specified form or manner. If a participant is a “5 percent Owner” (as defined in the Code), or in the case of an IRA (other than a Roth IRA which is not subject to the lifetime required minimum distribution rules), distributions generally must begin no later than April 1 of the year following the calendar year in which the Owner (or plan participant) reaches age 72 (or 70½ if he/she attained 70½ prior to 1/1/2020). The actuarial present value of death and/or living benefit options and riders elected may need to be taken into account in calculating required minimum distributions. Please consult with your financial professional to learn more about an optional living or death benefit prior to purchase.

Each Owner is responsible for requesting distributions under the policy that satisfy applicable tax rules. We do not attempt to provide more than general information about the use of the policy with the various types of retirement plans. Purchasers of policies for use with any retirement plan should consult their legal counsel and financial professional regarding the suitability of the policy.

The Code generally requires that interest in a qualified policy be non-forfeitable.

You should consult Your legal counsel or financial professional if You are considering purchasing an enhanced death benefit or other optional rider, or if You are considering purchasing a policy for use with any qualified retirement plan or arrangement.

Optional Living Benefits

For policies with a Guaranteed Lifetime Withdrawal Benefit or a Guaranteed Minimum Accumulation Benefit the application of certain tax rules, particularly those rules relating to distributions from Your policy, are not entirely clear. The tax rules for qualified policies may impact the value of these optional benefits. Additionally, the actions of the qualified plan as contract holder may cause the qualified plan participant to lose the benefit of the Guaranteed Lifetime Withdrawal Benefit. In view of this uncertainty, You should consult a financial professional before purchasing this policy as a qualified policy.

Withholding

The portion of any distribution under a policy that is includable in gross income will be subject to federal income tax withholding unless the recipient of such distribution elects not to have federal income tax withheld. Election forms will be provided at the time distributions are requested or taken. The amount of withholding varies according to the type of distribution. The withholding rates applicable to the taxable portion of periodic payments (other than eligible rollover distributions) are the same as the withholding rates generally applicable to payments of wages. A 10% withholding rate applies to the taxable portion of non-periodic payments. Regardless of whether You elect not to have federal income tax withheld, You are still liable for payment of federal income tax on the taxable portion of the payment. For qualified policies taxable, “eligible rollover distributions” from Section 401(a) plans, Section 403(a) annuities, Section 403(b) tax-sheltered annuities, and governmental 457 plans are subject to a mandatory federal income tax withholding of 20%. An eligible rollover distribution is any distribution from such a plan, other than specified distributions such as distributions required by the Code, distributions in a specified annuity form or hardship distributions. The 20% withholding does

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not apply, however, to nontaxable distributions or if (i) the employee (or employee's spouse or former spouse as beneficiary or alternate payee) chooses a “direct rollover” from the plan to a tax-qualified plan, IRA, Roth IRA or 403(b) tax-sheltered annuity or to a governmental 457 plan that agrees to separately account for rollover contributions; or (ii) a non-spouse beneficiary chooses a “direct rollover” from the plan to an IRA established by the direct rollover.

Annuity Purchases by Residents of Puerto Rico

The IRS has announced that income received by residents of Puerto Rico under life insurance or annuity policies issued by a Puerto Rico branch of a United States life insurance company is U.S.-source income that is generally subject to United States federal income tax.

Annuity Policies Purchased by Non-resident Aliens and Foreign Corporations

The discussion above provided general information (but not tax advice) regarding U.S. federal income tax consequences to annuity Owners that are U.S. persons. Taxable distributions made to Owners who are not U.S. persons will generally be subject to U.S. federal income tax withholding at a 30% rate, unless a lower treaty rate applies. In addition, distributions may be subject to state and/or municipal taxes and taxes that may be imposed by the Owner's country of citizenship or residence. Prospective foreign Owners are advised to consult with a qualified financial professional regarding U.S., state, and foreign taxation for any annuity policy purchase.

Foreign Account Tax Compliance Act (“FATCA”)

If the payee of a distribution from the policy is a foreign financial institution (“FFI”) or a non-financial foreign entity (“NFFE”) within the meaning of the Code as amended by the Foreign Account Tax Compliance Act (“FATCA”), the distribution could be subject to U.S. federal withholding tax on the taxable amount of the distribution at a 30% rate irrespective of the status of any beneficial Owner of the policy or the distribution. The rules relating to FATCA are complex, and a financial professional should be consulted if an FFI or NFFE is or may be designated as a payee with respect to the policy.

Possible Tax Law Changes

Although the likelihood and nature of legislative or regulatory changes is uncertain, there is always the possibility that the tax treatment of the policy could change by legislation, regulation, or otherwise. You should consult a financial professional with respect to legal or regulatory developments and their effect on the policy.

We have the right to modify the policy to meet the requirements of any applicable laws or regulations, including legislative changes that could otherwise diminish the favorable tax treatment that annuity Owners currently receive.

ADDITIONAL FEATURES

Systematic Payout Option

You can select at any time during the accumulation phase to receive regular withdrawals from Your policy by using the systematic payout option. Any systematic withdrawal in excess of the cumulative interest credited from the Guaranteed Period Options at the time of the withdrawal may be subject to an Excess Interest Adjustment. Any systematic withdrawal in excess of your remaining Surrender Charge Free Amount may be subject to a surrender charge. Any systematic withdrawal could reduce Your rider values (perhaps significantly). Systematic withdrawals can be taken monthly, quarterly, semi-annually, or annually. Each withdrawal must be at least $40. Monthly and quarterly systematic withdrawals must generally be taken by electronic funds transfer directly to Your checking or savings account. There is no charge for this benefit.

Keep in mind that withdrawals under the systematic payout option may be taxable, and if taken before age 59½, may be subject to a 10% federal penalty tax.

Liquidity Rider

The optional Liquidity Rider reduces the number of years each premium payment is subject to surrender charges. You can only elect this rider at the time You purchase the policy.

The Liquidity Rider may vary for certain policies and may not be available for all policies, in all states, at all times or through all financial intermediaries. We may discontinue offering this benefit at any time for new sales. In some cases, a benefit not available through a financial intermediary may be obtained by contacting us directly. For more information on the options available for electing a benefit, please contact Your financial intermediary or our Administrative Office.

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Surrender Charge Schedule. The Liquidity Rider reduces the number of years each premium payment is subject to surrender charges from seven years to four years. The surrender charge will remain unchanged from that of the B-Share without the Liquidity Rider for the first four years.

Rider Fee. There is an additional charge for this rider which is a percentage of the daily net asset value in the Separate Account which is deducted in calculating the Accumulation Unit values. The rider fee is only charged for the first four policy years.

Accumulation Unit Values. We intend to administer the removal of the Liquidity Rider fee by changing to a different class of Accumulation Units. This will result in adjusting the number of Accumulation Units and adjusting the unit value of the Subaccounts in which You were invested once the Liquidity Rider fee is no longer charged. The elimination of the fee and the adjustment in the number of Accumulation Units and unit values will not affect Policy Values.

Termination. The rider is irrevocable.

Please note:

•	This feature terminates upon Annuitization and there is a mandatory Annuity Commencement Date.
•	We may credit interest in the Fixed Account (if available) at a different rate if You select this rider.
•	The Liquidity Rider is not suitable for You if You are purchasing the policy for a long term investment.

Additional Death Distribution^SM – No Longer Available

The optional Additional Death Distribution^SM rider pays an additional amount (based on rider earnings, if any, since the rider was issued) when a death benefit is payable during the accumulation phase under Your policy, in certain circumstances. The Additional Death Distribution^SM is only available for issue ages through age 75. The Additional Death Distribution^SM is only available with the Return of Premium Death Benefit or the Annual Step-Up Death Benefit. Please Note: This rider may not be issued or added to Inherited IRAs (whether a qualified stretch or a 10-year delay) or a nonqualified annuity under which death benefits are being distributed under a nonqualified stretch withdrawal option. The Additional Death Distribution benefit is based on our claims-paying ability.

The Additional Death Distribution^SM may vary for certain policies and may not be available for all policies, in all states, at all times or through all financial intermediaries. We may discontinue offering this benefit at any time for new sales, which includes new sales to existing policyowners. In some cases, a benefit not available through a financial intermediary may be obtained by contacting us directly. For more information on the options available for electing a benefit, please contact Your financial intermediary or our Administrative Office.

Additional Death Distribution^SM Benefit Amount. The Additional Death Distribution^SM is payable only if You elected the rider prior to the death triggering the payment of the policy death benefit and a death benefit is payable under the policy. The Additional Death Distribution^SM is equal to:

•	the Additional Death Distribution^SM factor (see below); multiplied by
•	the rider earnings, if any, on the date the death benefit is calculated.

Rider earnings are policy gains accrued and not previously withdrawn since the rider date. This amount is equal to the current Policy Value minus the Policy Value on the rider date minus premiums paid after the rider date plus amounts withdrawn after the rider date that exceed rider earnings on the date of the withdrawal. No benefit is payable under the Additional Death Distribution^SM rider if there are no rider earnings on the date the death benefit is calculated.

If You purchase Your policy as part of a 1035 exchange or add the Additional Death Distribution^SM rider after You purchase the policy, rider earnings do not include any gains before the 1035 exchange or the date the Additional Death Distribution^SM is added to Your policy.

The Additional Death Distribution^SM factor is 40% for issue ages under 71 and 25% for issue ages 71-75, based on the Annuitant’s age.

No benefit is paid under the rider unless (a) the rider is in force, (b) a death benefit is payable on the policy, and (c) there are rider earnings when the death benefit is calculated.

For purposes of computing taxable gains, both the death benefit payable under the policy and the Additional Death Distribution^SM will be considered.

Please see “Appendix - Additional Death Distribution Rider” for an example which illustrates the Additional Death Distribution^SM payable as well as the effect of a withdrawal on the Additional Death Distribution^SM benefit amount.

Spousal Continuation. If a spouse is eligible to and elects to continue the policy as the new Owner instead of receiving a death benefit and Additional Death Distribution^SM, the spouse will generally receive a one-time Policy Value increase equal to the Additional Death Distribution^SM. At this time the rider will terminate. The spouse will have the option of immediately re-electing the rider through age

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75 if the Additional Death Distribution benefit is still being offered. Certain Owners may have the option to continue the rider without receiving the one-time Policy Value increase. See TAX INFORMATION - Tax Status of a Nonqualified Policy - Distribution Requirements. (The payment of a death benefit under the policy is triggered by the death of the Annuitant.)

Rider Fee. There is an additional charge for this rider which is a percentage of the Policy Value which is deducted annually on each rider anniversary prior to Annuitization. We will also deduct this fee upon full surrender of the policy or other termination of the rider. The rider fee is deducted pro rata from each investment option. The fee is deducted even during periods when the Additional Death Distribution^SM would not pay any benefit (because there are no rider earnings).

Termination. The rider will remain in effect until:

•	You cancel it by notifying our Administrative Office in writing,
•	the policy is Annuitized or surrendered,
•	the Policy Value becomes zero, or
•	the Additional Death Distribution^SM is paid or added to the Policy Value under a spousal continuation.

Once terminated, the Additional Death Distribution^SM may be re-elected if still being offered; however, a new rider will be issued and the additional death benefit will be re-determined. Please note that if the rider is terminated and then re-elected, it will only cover gains, if any, since it was re-elected and the terms of the new rider may be different than the terminated rider.

Please note: This feature terminates upon Annuitization.

Additional Death Distribution+^SM – No Longer Available

The optional Additional Death Distribution+^SM rider pays an additional amount (based on the benefit base) when a death benefit is payable during the accumulation phase under Your policy, in certain circumstances. The Additional Death Distribution+^SM is only available for issue ages through age 69. The Additional Death Distribution+^SM is only available with the Return of Premium Death Benefit or the Annual Step-Up Death Benefit. Please Note: This rider may not be issued or added to Inherited IRAs (whether a qualified stretch or a 10-year delay) or a nonqualified annuity under which death benefits are being distributed under a nonqualified stretch withdrawal option. The Additional Death Distribution+ benefit is based on our claims-paying ability.

The Additional Death Distribution+^SM may vary for certain policies and may not be available for all policies, in all states, at all times or through all financial intermediaries. We may discontinue offering this benefit at any time for new sales, which includes new sales to existing policyowners. In some cases, a benefit not available through a financial intermediary may be obtained by contacting us directly. For more information on the options available for electing a benefit, please contact Your financial intermediary or our Administrative Office.

Additional Death Distribution+^SM Benefit Amount. An additional death benefit is only payable if a death benefit is paid on the base policy to which the rider is attached. The amount of the additional benefit is dependent on the amount of time that has passed since the rider date as follows:

•	If a death benefit is payable within the first five years after the rider date, the additional benefit amount will be equal to the sum of all Additional Death Distribution+ rider fees paid since the rider date.
•	If a death benefit is payable after five years following the rider date, the additional benefit will be equal to the rider benefit base multiplied by the rider benefit percentage.

The rider benefit base at any time is equal to the Policy Value less any premium payments added after the rider date.

The rider benefit percentage equals 30% for issue ages 0 - 69 based on the Annuitant’s age.

No benefit is payable under the Additional Death Distribution+^SM if the Policy Value on the date the death benefit is paid is less than the premium payments after the rider date.

For purposes of computing taxable gains, both the death benefit payable under the policy and the additional benefit will be considered.

Please see “Appendix - Additional Death Distribution+^SM Rider” for an example that illustrates the additional death benefit payable as well as the effect of a withdrawal on the Additional Death Distribution+^SM benefit amount.

Spousal Continuation. If a spouse is eligible to and elects to continue the policy as the new Owner instead of receiving the death benefit and Additional Death Distribution+^SM, then the spouse will generally receive a one-time Policy Value increase equal to the Additional Death Distribution+^SM. At this time the rider will terminate. The spouse will have the option of immediately re-electing the rider through age 69 if the Additional Death Distribution+ benefit is still being offered. Certain Owners may have the option to continue the rider without receiving the one-time Policy Value increase. See TAX INFORMATION - Tax Status of a Nonqualified Policy - Distribution Requirements. (The payment of a death benefit under the policy is triggered by the death of the Annuitant.)

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Rider Fee. There is an additional charge for this rider which is a percentage of the Policy Value, which, is deducted annually on each rider anniversary prior to Annuitization. We will also deduct this fee upon full surrender of the policy or other termination of the rider.

Please note: The rider fee is deducted pro rata from each investment option. The fee is deducted even during periods when the rider would not pay any benefits.

Termination. The rider will remain in effect until:

•	You cancel it by notifying our Administrative Office in writing in good order,
•	the policy is Annuitized or surrendered,
•	the Policy Value becomes zero, or
•	the additional death benefit is paid or added to the Policy Value under a spousal continuation.

Please note: This feature terminates upon Annuitization.

Nursing Care and Terminal Condition Waiver

No surrender charges or Excess Interest Adjustments will apply if You take a withdrawal ($1,000 minimum), under certain circumstances, because You or Your spouse has been:

•	confined in a hospital or nursing facility for 30 days in a row after the policy issue date; or
•	diagnosed with a terminal condition after the policy issue date (usually a life expectancy of 12 months or less).

You may exercise this benefit at any time during the accumulation phase. This benefit is also available to the Annuitant or Annuitant's spouse if the Owner is not a natural person. There is no restriction on the maximum amount You may withdraw under this benefit. There is no charge for this benefit.

The Nursing Care and Terminal Condition Waiver may vary for certain policies and may not be available for all policies, in all states or at all times.

Unemployment Waiver

No surrender charges or Excess Interest Adjustments will apply to withdrawals after You or Your spouse become unemployed due to:

•	involuntary termination of employment
•	involuntary lay off;

In order to qualify, You (or Your spouse, whichever is applicable) must have been:

•	employed full time for at least two years prior to becoming unemployed;
•	employed full time on the Policy Date;
•	unemployed for at least 60 days in a row at the time of withdrawal;
•	must have a minimum Cash Value at the time of withdrawal of $5,000; and
•	You (or Your spouse) must be receiving unemployment benefits.

You must provide written proof from Your State's Department of Labor, which verifies that You qualify for and are receiving unemployment benefits at the time of withdrawal.

You may use this benefit at any time during the accumulation phase and for so long as You meet the criteria specified above. This benefit is also available to the Annuitant or Annuitant's spouse if the Owner is not a natural person. There is no restriction on the maximum amount You may withdraw under this benefit. There is no charge for this benefit.

The Unemployment Waiver may vary for certain policies and may not be available for all policies, in all states or at all times.

Telephone and Electronic Transactions

Currently, certain transactions may be made by telephone or other electronic means acceptable to us upon our receipt of the appropriate authorization. We may discontinue this option at any time. To access information and perform transactions electronically, we require You to create an account with a username and password, and to maintain a valid e-mail address.

We will not be liable for following instructions communicated by telephone or electronically we reasonably believe to be genuine. We will employ reasonable procedures to confirm that instructions we receive are genuine. Our procedures require You to provide information to verify Your identity when You call us and we will record conversations with You. We may also require written confirmation of the request. When someone contacts our Administrative Office and follows our procedures, we will assume You are

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authorizing us to act upon those instructions. For electronic transactions through the internet, You will need to provide Your username and password. You are responsible for keeping Your password confidential and must notify us of any loss, theft or unauthorized use of Your password.

Telephone and other electronic transactions must be received in good order while the New York Stock Exchange is open for regular trading to get same-day pricing of the transaction. Transactions received in good order on non-Business Days or after our close of business on Business Days will get next-day pricing. See OTHER INFORMATION – Sending Forms and Transaction Requests in Good Order. Please note that the telephone and/or electronic device transactions may not always be available. Any telephone, fax machine or other electronic device, whether it is Yours, Your service provider's, or Your financial representative(s) can experience outages or slowdowns for a variety of reasons. These outages or slowdowns may delay or prevent our processing of Your request if the volume of transactions is unusually high, we might not have anyone available, or lines available, to take Your transaction. Although we have taken precautions to limit these problems, we cannot promise complete reliability under all circumstances. If You are experiencing problems, You should make Your request by writing to our Administrative Office.

We reserve the right to revoke Your telephone and other electronic transaction privileges at any time without revoking all Owners' privileges. We may deny telephone and electronic transaction privileges to market timers or disruptive traders.

Dollar Cost Averaging Program

During the accumulation phase, You may instruct us to automatically make transfers into one or more Subaccounts in accordance with Your allocation instructions. This is known as Dollar Cost Averaging. While Dollar Cost Averaging buys more Accumulation Units when prices are low and fewer Accumulation Units when prices are high, it does not guarantee profits or assure that You will not experience a loss.

Dollar Cost Averaging programs that may be available under Your policy:

•

Traditional – You may specify the dollar amount to be transferred and the number of transfers, or just the number of transfers, in which case we will calculate the amount to be transferred. Unless a specified date is requested, transfers will begin as soon as the program is started. A minimum of $500 per transfer is required. The minimum number of transfers is 6 monthly transfers or 4 quarterly transfers, and the maximum is 24 monthly transfers or 8 quarterly transfers. You can elect to transfer from the Fixed Account, money market or other specified Subaccount. If You elect to transfer from the Fixed Account, or if You elect to transfer from the money market or other specified Subaccount and only the number of transfers is provided, we will transfer 100% of the remaining value in the elected source fund for the final transfer. If the money market or other Subaccount is elected as the source fund and a specified dollar amount is provided with the number of transfers, You must choose if You want to transfer all remaining value out of the source fund or if You would like any remaining value to stay within the Subaccount.

•

Special – You may only elect either a six or twelve month program. Transfers will begin as soon as the program is started. You cannot transfer from another investment option into a Special Dollar Cost Averaging program. This program is only available for new premium payments, requires transfers from a fixed source, and may credit a higher or lower interest rate than a traditional program. A minimum of $500 per transfer is required ($3,000 or $6,000 to start a 6-month or 12-month program, respectively). If the value in the source fund is less than the scheduled transfer, 100% of the value remaining in the source fund will be transferred for the final transfer.

Unless a specific date is requested, the Dollar Cost Averaging program will begin the next Business Day after we have received in good order all necessary information and the minimum required amount. See OTHER INFORMATION - Sending Forms and Transaction Requests in Good Order. Dollar Cost Averaging can be set up on any day of the month. If a certain date does not exist for a specific month (e.g. 29^th, 30^th, or 31^st), the Dollar Cost Averaging will move forward to the 1^st of the following month for that month only and return to the specified date once it is available. If we receive additional premium payments while a Dollar cost Averaging program is running, and You instruct us to add it to the Dollar Cost Averaging program, the amount of the Dollar Cost Averaging transfers will increase proportionally.

NOTE CAREFULLY:

New Dollar Cost averaging instructions are required to start a new Dollar Cost Averaging program once the previous Dollar Cost Averaging program has completed. Additional premium payments, absent new allocation instructions, received after a Dollar Cost Averaging program has completed, will be allocated according to the current premium payment allocations at that time but will not reactivate a completed Dollar Cost Averaging program.

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IF:

•	we do not receive all necessary information to begin or restart a Dollar Cost Averaging program

THEN:

•	any amount allocated to a fixed source will be invested in that fixed source but will be transferred to the money market investment option within 30 days of allocation to fixed source if new Dollar Cost Averaging instructions are not received;
•	any amount allocated to a variable source will be invested in that variable source and will remain in that variable investment option; and
•	new Dollar Cost Averaging instructions will be required to begin a Dollar Cost Averaging program.

You should consider Your ability to continue a Dollar Cost Averaging program during all economic conditions. Transfers from a Dollar Cost Averaging fixed source are not subject to an Excess Interest Adjustment. A Dollar Cost Averaging program can be used in conjunction with Asset Rebalancing and may be available with the Guaranteed Lifetime Withdrawal Benefits. Any amount in the Dollar Cost Averaging source account or any Fixed Account are ignored for the purposes of Asset Rebalancing. There is no charge for this benefit.

The Dollar Cost Averaging Program may vary for certain policies and may not be available for all policies, in all states or at all times. See Your policy for availability of the Fixed Account options. We reserve the right to terminate the availability of any Dollar Cost Averaging program at any time.

Asset Rebalancing

During the accumulation phase You can instruct us to automatically rebalance the amounts in Your Subaccounts to maintain Your desired asset allocation. This feature is called asset rebalancing and can be started and stopped at any time. If a transfer is requested, we will honor the requested transfer and discontinue asset rebalancing. New instructions are required to start asset rebalancing. Asset rebalancing ignores amounts in the Fixed Account. You can choose to rebalance monthly, quarterly, semi-annually, or annually. Asset rebalancing can be used in conjunction with a Guaranteed Lifetime Withdrawal Benefit. There is no charge for this benefit. We reserve the right to terminate the availability of any asset rebalancing program at any time.

Guaranteed Lifetime Withdrawal Benefits

You may choose Guaranteed Lifetime Withdrawal Benefits by electing the Transamerica Principal Optimizer^SM rider.

You may have elected one of the following optional riders under the policy that offers Guaranteed Lifetime Withdrawal Benefits. Effective March 31, 2021 these riders are no longer available.

•	Retirement Income Max^® 1.2 rider
•	Retirement Income Choice^® 1.7 rider
•	Transamerica Income Edge^SM 1.2 rider

Please Note: There are investment restrictions associated with these benefits that can limit participation in market gains. Withdrawals taken in excess of the prescribed limits (rider withdrawal amount) will reduce the amount of the benefit and may eliminate the benefit altogether, if the amount of the excess withdrawal exceeds the Policy Value at the time of the withdrawal. Withdrawals taken while the contract value is greater than zero are withdrawals of the Owner’s own money (not the Company’s). You should consult with tax and financial professionals to determine which of these riders, if any, is appropriate for You.

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Transamerica Principal Optimizer^SM Rider

If You elect the Transamerica Principal Optimizer^SM rider identified below, which provides certain guaranteed benefits, the Company requires a certain percentage of Your Policy Value to be allocated to the Stable Account, with the remainder to be allocated to the select investment options and flexible investment options. One of more of the select investment options and flexible investment options may include a volatility control strategy. Volatility control strategies, in periods of high market volatility, could limit Your participation in market gains; this may conflict with Your investment objectives by limiting Your ability to maximize potential growth of Your Policy Value and, in turn, the value of any guaranteed benefit that is tied to investment performance. Volatility control strategies are intended to help limit overall volatility and reduce the effects of significant market downturns during periods of high market volatility, providing policy Owners with the opportunity for smoother performance and better risk adjusted returns. Volatility control (and similar terms) can encompass a variety of investment strategies of different types and degrees; therefore, You should read the applicable annuity and underlying fund portfolio prospectuses carefully to understand how these investment strategies may affect Your Policy Value and rider benefits. The Company’s requirement to invest in accordance with the required allocations, which may include volatility control strategies, may reduce our costs and risks associated with this rider. You pay an additional fee for the rider benefits which, in part, pays for protecting the rider benefit base from investment losses. Since the rider benefit base does not decrease as a result of investment losses, volatility control strategies might not provide meaningful additional benefit to You. You should carefully evaluate with Your financial professional whether to allocate to Subaccounts that invest in underlying funds with volatility control strategies, taking into consideration the potential positive or negative impact that such strategy may have on Your investment objectives, Your Policy Value and the benefits under the Transamerica Principal Optimizer^SM rider. If You determine that funds with volatility control strategies are not consistent with Your investment objectives, other investment options are available under the Transamerica Principal Optimizer^SM rider that do not invest in funds that utilize volatility control strategies.

Transamerica Principal Optimizer^SM - Summary

You may elect to purchase the optional Transamerica Principal Optimizer^SM rider which provides You with both a Guaranteed Lifetime Withdrawal Benefit and a Guaranteed Minimum Accumulation Benefit. The Transamerica Principal Optimizer^SM rider is only available during the accumulation phase and requires that You allocate a certain percentage of Your Policy Value to the Stable Account and to select investment options and flexible investment options, some of which are designed to help manage our risk and support the guarantees under the rider. The maximum issue age may be lower if required by state law. If You elect the Transamerica Principal Optimizer^SM rider You cannot elect the Retirement Income Max ^® 1.2, Retirement Income Choice ^® 1.7 or the Transamerica Income Edge^SM 1.2 riders. The tax rules for qualified policies may limit the value of this rider. Please Note: There are investment restrictions associated with this benefit that can limit participation in market gains. Withdrawals taken in excess of the prescribed limits (rider withdrawal amount) will reduce the amount of the benefit and may eliminate the benefit altogether, if the amount of the excess withdrawal exceeds the Policy Value at the time of the withdrawal. The fee for the rider will not be reduced for any investment losses to Policy Value and, in fact, may be increased if there are withdrawals taken in excess of the rider withdrawal amount. Withdrawals taken while the contract value is greater than zero are withdrawals of the Owner’s own money (not the Company’s). Please consult a qualified financial professional before electing the Transamerica Principal Optimizer^SM rider for a qualified policy.

Please Note: This rider may not be issued to or added to Inherited IRAs (whether a qualified stretch or a 10-year delay) or a nonqualified annuity under which death benefits are being distributed under a nonqualified stretch withdrawal option. The benefits under the Transamerica Principal Optimizer^SM rider are based on our claims-paying ability.

The Transamerica Principal Optimizer^SM rider may vary for certain policies and may not be available for all policies, in all states, at all times or through all financial intermediaries. We may discontinue offering this benefit at any time for new sales, which includes new sales to existing policyowners. In some cases, a benefit not available through a financial intermediary may be obtained by contacting us directly. For more information on the options available for electing a benefit, please contact Your financial intermediary or our Administrative Office.

If You elect the Transamerica Principal Optimizer^SM rider, a certain percentage of Your Policy Value on the rider date must be allocated to the Stable Account, the select investment options and the flexible investment options, as specified in the applicable Rate Sheet Prospectus Supplement. Transfers to and from the Stable Account are not permitted. Withdrawals from the Stable Account are not permitted until all other investment options are depleted of value. Withdrawals from the flexible investment options and select investment options, will be deducted on a pro-rata basis from each investment option You have allocated to. If You do not wish to maintain the required allocation percentages for the investment options, the rider must be terminated, subject to the termination restrictions and requirement of the rider, prior to making any transfer. Additional detail regarding the required allocation is provided in the Transamerica Principal Optimizer^SM - Required Allocations section, below.

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You should view the Transamerica Principal Optimizer^SM rider as a way to permit You to invest in variable investment options while still having Your Policy Value and liquidity protected to the extent provided by the Transamerica Principal Optimizer^SM rider.

Please note:

•	You do not have any protection under the Guaranteed Minimum Accumulation Benefit unless You hold the policy with the rider until the end of the applicable waiting period (10 or 7 years).
•	The longer You wait to start making withdrawals under the benefit, the less time You have to benefit from the Guaranteed Lifetime Withdrawal Benefit due to the decreasing life expectancy as You age. On the other hand, the longer You wait to begin making withdrawals, the higher Your withdrawal percentage may be, and the more opportunities You will have to lock in a high withdrawal base. Withdrawals will decrease the guarantees provided by the Guaranteed Minimum Accumulation Benefit. You should carefully consider when to begin making withdrawals. There is a risk that You will not begin making withdrawals at the most financially beneficial time for You.
•	All Policy Value must be allocated to the select and flexible investment options and the Stable Account, subject to specified allocation percentages as provided in the Rate Sheet Prospectus Supplement. You should consult with Your financial advisor to assist You in determining whether these investment options and required allocations are suited for Your financial needs and risk tolerance.
•	You will begin paying the rider charge as of the date the rider takes effect, even if You do not begin taking withdrawals for many years, or ever. We will not refund the charges You have paid under the rider if You never choose to take withdrawals and/or if You never receive any payments under the rider.
•	We have designed this rider for You to take withdrawals each rider year that are less than or equal to the rider withdrawal amount. You should not purchase this rider if You plan to take withdrawals in excess of the rider withdrawal amount because such excess withdrawals may significantly reduce or eliminate the value of the guarantees provided by the rider.
•	Because the Guaranteed Lifetime Withdrawal Benefit under this rider is accessed through regular withdrawals that do not exceed the rider withdrawal amount, the rider may not be appropriate for You if You do not foresee a need for liquidity and Your primary objective is to take the maximum advantage of the tax deferral aspect of the policy.
•	Any withdrawal in any rider year that is in excess of the rider withdrawal amount is an excess withdrawal. The rider year begins on the rider date and thereafter on each rider anniversary.
•	An excess withdrawal will impact the withdrawal base on a greater than dollar-for-dollar basis when the Policy Value, after the rider withdrawal amount is withdrawn, is less than the rider withdrawal base and may eliminate the benefits. See “Appendix - Hypothetical Adjusted Withdrawals – Transamerica Principal Optimizer^SM and Transamerica Income Edge^SM 1.2 Riders”.
•	Upon receiving due proof of death of the Annuitant (or the death of the surviving spouse if the joint option is elected), the Transamerica Principal Optimizer^SM rider terminates and all benefits thereunder cease.
•	You may terminate the rider by providing Written Notice to us requesting termination during the 30 days following the fifth rider anniversary or every fifth rider anniversary thereafter. See Termination section, below.
•	If Your Policy Value reaches zero, the Company may require satisfactory evidence a person is alive if a payment is based on that person being alive. For example, a notarized letter may be provided as satisfactory evidence a person is living.
•	The tax rules for qualified policies may limit the value of this rider. Please consult a qualified financial professional before electing the Transamerica Principal Optimizer^SM rider for a qualified policy.
•	Withdrawals up to the rider withdrawal amount are not subject to an Excess Interest Adjustment.

Like all withdrawals, withdrawals up to the rider withdrawal amount, while this rider is in effect also:

•	reduce Your Policy Value by the amount of the withdrawal;
•	reduce Your base policy death benefit and other benefits;
•	reduce the Guaranteed Minimum Accumulation Benefit;
•	may be subject to surrender charges if the withdrawal is greater than the Surrender Charge Free Amount;
•	may be subject to income taxes and federal tax penalties (see TAX INFORMATION); and
•	may be limited or restricted under certain qualified policies. (See TAX INFORMATION - Qualified Policies and TAX INFORMATION - Optional Living Benefits).

Transamerica Principal Optimizer^SM - Guaranteed Minimum Accumulation Benefit

If You elect the Transamerica Principal Optimizer^SM rider, we will provide a guaranteed future value. This benefit is intended to provide a level of protection regardless of the performance of the variable investment options You select. The level of protection under the Guaranteed Minimum Accumulation Benefit may not be 100% of Your premium payments and is only in effect for the term of the elected option.

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Guaranteed Future Value. We guarantee that, on the guaranteed future value date (ten, or seven years after You elect the rider, depending on the waiting period elected), Your Policy Value will at least equal Your guaranteed future value. The guaranteed future value on the rider date (i.e., the date the rider is added to the policy) is equal to the Policy Value multiplied by the protection level percentage of the elected waiting period. After the rider date (up to and including the guaranteed future value date) the guaranteed future value is equal to:

•	the guaranteed future value on the rider date; plus
•	a percentage of subsequent premium payments (as described below); multiplied by
•	the protection level percentage; less
•	subsequent adjusted withdrawals (as described below).

Unless an optional reset is chosen, after the guaranteed future value date, the guaranteed future value equals zero and there will be no guaranteed future value adjustment.

Subsequent Premium Payments. The percentage of subsequent premium payments that will be added to the guaranteed future value is as follows:

	10 Year	7 Year
During Rider Year	Percent of subsequent premiums added to guaranteed future value	Percent of subsequent premiums added to guaranteed future value
1	100%	100%
2	90%	90%
3	80%	80%
4	70%	70%
5	60%	60%
6	50%	50%
7	50%	0%
8	50%
9	50%
10	0%

Guaranteed Future Value Adjusted Withdrawals. If You take a withdrawal, even withdrawals under the Guaranteed Lifetime Withdrawal Benefit, it will reduce Your guaranteed future value. The amount of the reduction is referred to as the adjusted withdrawal amount, which will be equal to the greater of:

•	the guaranteed future value immediately prior to the withdrawal multiplied by the percentage reduction in the Policy Value resulting from the gross withdrawal; or
•	the gross withdrawal amount.

(The gross withdrawal amount is the amount You request, plus any surrender charges that may be applicable.)

In other words, if Your Policy Value is greater than the guaranteed future value at the time You take a withdrawal, then Your guaranteed future value is reduced by the same amount we reduce Your Policy Value. However, if Your Policy Value is less than the guaranteed future value at the time You take a withdrawal, then Your guaranteed future value will be reduced by more than the amount by which we reduce Your Policy Value.

See the “Appendix – Hypothetical Adjusted Withdrawals – Transamerica Principal Optimizer^SM and Transamerica Income Edge^SM 1.2 Riders” to this prospectus for examples showing the effect of hypothetical withdrawals in more detail, including withdrawals that reduce the guaranteed future value by more than the amount of the gross withdrawal.

Guaranteed Minimum Accumulation Benefit. After the waiting period (ten years or seven years after You elect the rider, depending on the waiting period elected), and on the guaranteed future value date, if the Policy Value is less than the guaranteed future value, we will calculate an amount equal to the difference between Your Policy Value (the Policy Value will then be subject to investment risk) and the guaranteed future value, and this amount will be added on the guaranteed future value date. This addition will not be considered premium and will not increase Your withdrawal base or any other policy benefits. After the guaranteed future value date, the guaranteed future value will be zero, unless an optional reset is elected.

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Example. Assume You are age 65 and make a single premium payment of $100,000, the guaranteed future value is $100,000 and the protection level percentage is 100%. You do not take any withdrawals or add any additional premium payments. If, on the guaranteed future value date, Your Policy Value has declined to $90,000 because of negative investment performance, then we will add $10,000 ($100,000 x 100% - $90,000) to Your Policy Value.

Optional Reset. On each rider anniversary, up to and including the rider anniversary on or following the Annuitant’s (or the Annuitant’s spouse’s, if older and the joint life option is elected) 85^th birthday You may elect to reset the guaranteed future value date and the guaranteed future value once each rider year. Upon optional reset, the waiting period originally elected (ten years or seven years) will begin from the most recent rider anniversary. The guaranteed future value will be set to equal the Policy Value multiplied by the protection level percentage as of the date the reset election is processed.

Your request must be received, in a manner acceptable to us, no later than 30 days following the most recent rider anniversary. The optional reset does not require termination of the existing rider. The existing rider will continue with the same rider effective date and features.

At the time of an optional reset the protection level percentage may be changed, but will never be less than the minimum protection level percentage disclosed. Additionally, the rider fee percentage may be changed at the time of an optional reset, but the fee percentage will never be more than the maximum fee percentage in effect when the rider was elected.

The optional reset will only impact the Guaranteed Minimum Accumulation Benefit and does not impact the Guaranteed Lifetime Withdrawal Benefit or any other values of the policy.

You have the right to revoke an optional reset within 30 days following the date on which the optional reset was effective, if the rider fee percentage increases beyond the rider fee percentage immediately prior to the rider anniversary, or the protection level percentage decreases. If You revoke an optional reset, You must notify us in a manner acceptable to us, however, You will remain eligible for future optional resets. If an optional reset is revoked, the guaranteed future value date, guaranteed future value, rider fee percentages and protection level percentages will be reversed to the values and dates that were in effect for Your rider immediately prior to the election of the optional reset.

Example. Assume You are age 65 and make a single premium payment of $100,000 on January 31^st of the current year with a 10 year waiting period. The guaranteed future value date will be set to 10 years from that date and the guaranteed future value is $100,000 assuming a protection level percentage is 100%. On the first rider anniversary, Your Policy Value has increased to $110,000 and You choose an optional reset. This results in a new guaranteed future value date 10 years from the date of the optional reset and a new guaranteed future value of $110,000 assuming the protection level percentage remains at 100%.

Please note: You do not have any protection under the Guaranteed Minimum Accumulation Benefit unless You hold the policy with the rider until the end of the applicable waiting period. If You think that You may terminate the policy or elect to start receiving annuity payments (or if You must begin taking required minimum distributions) before the guaranteed future value date, electing the rider may not be in Your best interests.

Transamerica Principal Optimizer^SM - Guaranteed Lifetime Withdrawal Benefit

If You elect the Transamerica Principal Optimizer^SM rider, You can receive up to the rider withdrawal amount each rider year. Such rider withdrawal amounts will first be made as withdrawals from Your Policy Value (excluding the Stable Account until other investment options are depleted of value). If Your Policy Value goes to zero by other than an excess withdrawal, rider withdrawal amounts will continue as payments from us. Rider withdrawal amounts may begin the rider year immediately following the Annuitant’s (or the Annuitant’s spouse if younger and the joint life option is elected) attainment of the minimum benefit age, and may last until the Annuitant’s (or surviving spouse’s if joint life option is elected) death unless Your withdrawal base is reduced to zero because of an “excess withdrawal.” See Withdrawal Base Adjustments section below for more information. A rider year begins on the rider date (the date the rider becomes effective) and thereafter on each anniversary of that date. The withdrawal percentage that is used to determine Your rider withdrawal amount and required allocations will be disclosed in a Rate Sheet Prospectus Supplement included with Your prospectus. All Rate Sheet Prospectus Supplements are available on the EDGAR system at www.sec.gov (File Numbers 333-233836 for TLIC and 333-233840 for TFLIC).

Of course, You can always withdraw an amount up to Your Cash Value pursuant to Your right under the policy although withdrawals that are excess withdrawals will reduce Your withdrawal base and future GLWBs. See “Appendix - Hypothetical Adjusted Withdrawals – Transamerica Principal Optimizer^SM and Transamerica Income Edge^SM 1.2 Riders” for examples showing the effect of hypothetical withdrawals in more detail.

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Transamerica Principal Optimizer^SM - Rider Withdrawal Amount

You can withdraw up to the rider withdrawal amount in any rider year (after attainment of the minimum benefit age) from Your policy without causing an excess withdrawal. See Withdrawal Base Adjustments below.

The rider withdrawal amount is zero if the Annuitant (or the Annuitant’s spouse if younger and the joint life option is elected) has not attained the minimum benefit age on the rider date and remains zero until the first day of the rider year after the Annuitant (or the Annuitant’s spouse if younger and the joint life option is elected) has attained the minimum benefit age. On the first day of the rider year after the Annuitant (or the Annuitant’s spouse if younger and the joint life option is elected) has attained the minimum benefit age the rider withdrawal amount is equal to the withdrawal base multiplied by the withdrawal percentage. See applicable Rate Sheet Prospectus Supplement for the applicable minimum benefit age and withdrawal percentages. Surrender charges may apply if Your rider withdrawal amount exceeds Your Surrender Charge Free Amount.

For qualified policies: If the plan participant (generally the Annuitant) attains age 72 (or age 70½ if the Annuitant attained 70½ before 1/1/2020), the rider withdrawal amount for that rider year (and each subsequent rider year) is equal to the greater of:

•

the rider withdrawal amount described above; or

•

an amount equal to any minimum required distribution amount, if any. For riders added on the Policy Date, the minimum required distribution during the first rider year is based on the initial premium (initial premium could include premium from transfers received after the policy effective date, but must be deemed initial premium). For riders added after the Policy Date, if the policy to which the rider is attached was in force on December 31^st of the previous year, the minimum required distribution for the first rider year is calculated using the year-end Policy Value plus any actuarial present value from the previous year. For riders added after the Policy Date and the policy to which the rider is attached was not in force on December 31^st of the previous year, the minimum required distribution for the first rider year is based on the Policy Value on the rider date. The minimum required distribution is calculated based on the rules established by the IRS. The minimum required distribution may only be used if all of the following are true:

a.	the policy to which this rider is attached is a tax-qualified policy for which the IRS minimum required distributions are required,
b.	the minimum required distributions do not start prior to the Annuitant’s attained age of 72 (or age 70½ if the Annuitant attained 70½ before 1/1/2020),
c.	the minimum required distributions are based on either the Uniform Lifetime table or the Joint Life and Last Survivor Expectancy table,
d.	the minimum required distributions are based on age of the living Annuitant. The minimum required distributions cannot be based on the age of someone who is deceased,
e.	the minimum required distributions are based only on the policy to which this rider is attached,
f.	the minimum required distributions are only for the current rider year. Amounts carried over from past rider years are not considered, and
g.	If an excess withdrawal is taken in the previous rider year, the minimum required distribution will not be used in calculating the rider withdrawal amount. If the minimum required distribution amount (determined as set forth above) exceeds the rider withdrawal amount, the excess will be treated as an excess under the rider.

If any of the above are not true, then the minimum required distribution is equal to zero and it is not available as a rider withdrawal amount.

Only amounts calculated as set forth above can be used as the rider withdrawal amount. If the minimum required distribution amount (determined as set forth above) exceeds the rider withdrawal amount, the excess will not be treated as an excess withdrawal under the rider.

If Your Policy Value reaches zero:

•

by means other than an excess withdrawal, then You cannot make premium payments and all other policy features, benefits and guarantees (except those provided by this rider) are terminated. If Your Policy Value reaches zero by other than an excess withdrawal, and the rider remains in force, we will, unless otherwise instructed, make payments using the current payment instructions on file with us that are equal to the rider withdrawal amount divided by the frequency of payments. If the Annuitant (or younger of Annuitant or Annuitant’s spouse if the joint option is elected) has attained the minimum benefit age and a systematic payout option is not active at the time the Policy Value equals zero, a payment will be established. Unless instructed otherwise, the default frequency will be monthly, unless the amount does not meet the minimum systematic payout requirements in Your policy. If that occurs, we reserve the right to change the frequency and amount in order to meet the minimum systematic payout requirements. If the minimum benefit age has not been attained, payments will begin on the rider anniversary following

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	the attainment of the minimum benefit age. Once the payment amount and frequency are established, they cannot be changed and no additional withdrawals will be allowed. Furthermore, any remaining minimum required Cash Value will be paid on the later of the Annuitant’s or the Annuitant’s spouse’s death.
•	due to an excess withdrawal, then Your policy will terminate resulting in the termination of this rider. An excess withdrawal that does not cause Your Policy Value to equal zero will not terminate the rider.

Please note:

•	If the rider is added prior to the Annuitant (or the Annuitant’s spouse if younger and the joint life option is elected) attaining the minimum benefit age, the rider withdrawal amount will be zero until the beginning of the rider year after the Annuitant (or the Annuitant’s spouse if younger and the joint life option is elected) has attained the minimum benefit age, however, You will still be charged a rider fee upon electing the rider.
•	Any amount withdrawn in a rider year (including any surrender charge) in excess of the rider withdrawal amount is an excess withdrawal.
•	The rider year begins on the rider date and thereafter on each rider anniversary.
•	You cannot carry over any portion of Your rider withdrawal amount that is not withdrawn during a rider year for withdrawal in a future rider year. This means that if You do not take the entire rider withdrawal amount during a rider year, You cannot take more than the rider withdrawal amount in the next rider year and maintain the riders’ guarantees.
•	We will not refund charges that have been paid up to the point of terminating the policy or receiving annuity payments.
•	Excess withdrawals may cause You to lose the benefit of the rider.
•	The select and flexible investment options may be changed by us in the future. Any changes to investment allocation requirements will not affect existing policy Owners with an active rider.

Withdrawals under the Guaranteed Lifetime Withdrawal Benefit also:

•	reduce Your Policy Value;
•	reduce the guaranteed future value;
•	reduce Your death benefit and other benefits;
•	may be subject to surrender charges if the withdrawal is greater than the Surrender Charge Free Amount;
•	may be subject to income taxes and federal tax penalties (See TAX INFORMATION).

Rate Sheet Prospectus Supplement

The rider fee percentages, valuation frequency, minimum benefit age, protection level percentage, required allocations and withdrawal percentages are disclosed in the Rate Sheet Prospectus Supplement. We periodically issue new Rate Sheet Prospectus Supplements that may reflect different rider fee percentages, valuation frequency, minimum benefit age, protection level percentage, required allocations and withdrawal percentages than the previous Rate Sheet Prospectus Supplements. All Rate Sheet Prospectus Supplements are available on the EDGAR system at (File Numbers 333-233836 for TLIC and 333-233840 for TFLIC).

For riders issued as part of the new policy application process: In order to receive the applicable rider fee percentages, valuation frequency, minimum benefit age, protection level percentage, required allocations and withdrawal percentages, Your application must be signed while the Rate Sheet Prospectus Supplement is effective, we must receive Your completed application within 7 calendar days from the date that the supplement is no longer effective, and the policy must be funded within 60 calendar days from the date that the supplement is no longer effective. If these conditions are not met, Your application will be considered not in good order and additional paperwork may be required to issue the policy with the applicable rates in effect at that time.

For riders issued to existing policy Owners: In order to receive the applicable rider fee percentages, valuation frequency, minimum benefit age, protection level percentage, required allocations and withdrawal percentages age, Your rider election form must be signed and received in good order while the Rate Sheet Prospectus Supplement is in effect. If Your rider election form is received in good order after the Rate Sheet Prospectus Supplement is no longer in effect, You will receive the rider terms that are in effect on the date Your rider election form is received in good order. Election forms must be received in good order while the New York Stock Exchange is open for regular trading to get same-day pricing of the transaction. Election forms received in good order on non-business days or after our close of business will get next-day pricing.

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Transamerica Principal Optimizer^SM – Withdrawal Percentage

We use the withdrawal percentage to calculate the rider withdrawal amount. The withdrawal percentage is determined by the Annuitant’s age (or the Annuitant's spouse's age if younger and the joint life option is elected) at the time of the first withdrawal taken on or after the rider anniversary immediately following the Annuitant’s (or the Annuitant's spouse's if younger and the joint life option is elected) attainment of the minimum benefit age.

The withdrawal percentage is disclosed in the Rate Sheet Prospectus Supplement. All Rate Sheet Prospectus Supplements are available on the EDGAR system at www.sec.gov (File Numbers 333-233836 for TLIC and 333-233840 for TFLIC).

Please note: Once established, the withdrawal percentage will not change except in certain instances involving automatic step-ups. Withdrawal percentages will change when an automatic step-up occurs and You had crossed into another age band prior to the automatic step-up, see Automatic Step-Up section below.

Transamerica Principal Optimizer^SM – Withdrawal Base

We use the withdrawal base to calculate the rider withdrawal amount and the rider fee. The withdrawal base on the rider date is the Policy Value. During any rider year, the withdrawal base is equal to the withdrawal base on the rider date or most recent rider anniversary, plus subsequent premium payments, less subsequent withdrawal base adjustments due to excess withdrawals.

On each rider anniversary, the withdrawal base will equal the greatest of:

1. the current withdrawal base;

2. the Policy Value on the rider anniversary; and

3. the highest Policy Value in the previous year based on the valuation frequency. (see Automatic Step-Up below).

Item 3 above will be zero if there have been any excess withdrawals in the current rider year.

See “Appendix - Hypothetical Adjusted Withdrawals – Transamerica Principal Optimizer^SM and Transamerica Income Edge^SM 1.2 Riders” which illustrates the hypothetical example of the withdrawal base calculation.

Please note:

•	We determine the withdrawal base solely to calculate the rider withdrawal amount and rider fee.
•	Your withdrawal base is not a Cash Value, a surrender value, or a death benefit. It is not available for withdrawal, it is not a minimum return for any Subaccount, and it is not a guarantee of Policy Value.
•	Because the withdrawal base is generally equal to the Policy Value on the rider date, the rider withdrawal amount may be lower if You delay electing the rider and the Policy Value decreases before You elect the rider.

Transamerica Principal Optimizer^SM – Automatic Step-Up

On each rider anniversary the rider will receive an automatic step-up if the withdrawal base is set equal to item 2 or 3 from Transamerica Principal Optimizer^SM – Withdrawal Base section above. If neither value is greater than the current withdrawal base no automatic step-up will occur. If the withdrawal percentage has been established due to a previous withdrawal, the withdrawal percentage (as indicated in the Rate Sheet Prospectus Supplement) will increase if You have crossed into another age band prior to the automatic step-up. All Rate Sheet Prospectus Supplements are available on the EDGAR system at www.sec.gov (File Numbers 333-233836 for TLIC and 333-233840 for TFLIC). Please note, the increase is part of the automatic step-up and if no automatic step-up occurs then there will be no withdrawal percentage increase.

On each rider anniversary, the rider fee percentage may increase (or decrease) at the time of any automatic step-up. The rider fee percentage will not exceed the maximum fee percentage in effect when You purchased the rider.

Automatic Step-Up Opt Out. Each time an automatic step-up results in a rider fee percentage increase, You have the option to reject the automatic step-up and reinstate the withdrawal base, withdrawal percentage, and rider fee percentage to their respective amounts immediately before the automatic step-up, provided that You do so within 30 days after the rider anniversary on which the automatic step-up occurred. Changes as a result of the automatic step-up feature will be reversed. We must receive Your rejection (each time You elect to opt out), in good order, at our Administrative Office within the same 30 day period after the rider anniversary on which the automatic step-up occurred. You are not subject to fee increases for any automatic step-up that You opted out of. Opting out of one step-up does not operate as an opt-out of any future step-ups.

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Transamerica Principal Optimizer^SM – Withdrawal Base Adjustments

Cumulative gross withdrawals up to the rider withdrawal amount in any rider year will not reduce the withdrawal base. Any amount of gross withdrawals in excess of the rider withdrawal amount in any rider year (“excess withdrawals”) will reduce the withdrawal base, however, by the greater of the dollar amount of the excess withdrawal (if the Policy Value is greater than the withdrawal base) or a pro rata amount (in proportion to the reduction in the Policy Value when the Policy Value is less than the withdrawal base), possibly to zero. If an excess withdrawal reduces the Policy Value to zero, this rider will terminate. Withdrawal base adjustments occur immediately following excess withdrawals. See “Appendix - Hypothetical Adjusted Withdrawals – Transamerica Principal Optimizer^SM and Transamerica Income Edge^SM 1.2 Riders” for examples showing the effect of hypothetical withdrawals in more detail, including an excess withdrawal that reduces the withdrawal base by a pro rata amount. The effect of an excess withdrawal is amplified if the Policy Value is less than the withdrawal base.

Please Note: You retain all responsibility for monitoring excess withdrawals. If You take regular or scheduled withdrawals please pay particular attention to any excess withdrawal because Your regular or scheduled withdrawals may thereafter all be excess withdrawals that reduce or eliminate Your benefit on an accelerated basis.

Example. Assume You are the Owner and Annuitant and You make a single premium payment of $100,000 when You are 66 years old. Further assume that You do not take any withdrawals or add any additional premium payments, and no automatic step-ups occurred, but that after six years Your Policy Value has declined to $90,000 solely because of negative investment performance. You could receive up to $6,000 each rider year for the rest of Your life based on an assumed withdrawal percentage of 6.0% for the single life option multiplied by an assumed withdrawal base of $100,000 and assuming that:

•	You take Your first withdrawal when You are age 72;
•	You do not withdraw more than the rider withdrawal amount in any one year; and;
•	there are no future automatic step-ups.

Example continued. Assume the same facts as above, but You withdraw $10,000 when You are 72 years old. That excess withdrawal decreases Your future rider withdrawal amount to $5,714.

Because the withdrawal ($10,000) is in excess of the rider withdrawal amount ($6,000) it impacts the withdrawal base on a greater than dollar-for-dollar basis.

Adjusted Withdrawal = Excess Withdrawal Amount * Withdrawal Base prior to the withdrawal / Policy Value after the Rider Withdrawal Amount but prior to the Excess Withdrawal Amount.

Excess withdrawal amount $10,000 - $6,000 = $4,000

Withdrawal base = $100,000

Policy Value after the rider withdrawal amount but prior to the excess withdrawal amount $90,000 - $6,000 = $84,000

Adjusted withdrawal = $4,000 * $100,000 / $84,000 = $4,761.90

New withdrawal base $100,000 - $4,761.90 = $95,238.10

New rider withdrawal amount $95,238.10 * 6% = $5,714.29

See the “Appendix - Hypothetical Adjusted Withdrawals – Transamerica Principal Optimizer^SM and Transamerica Income Edge^SM 1.2 Riders” for examples showing the effect of hypothetical withdrawals in more detail.

Transamerica Principal Optimizer^SM – Required Allocations

If You elect this rider, a certain percentage of Your Policy Value on the rider date must be allocated to the Stable Account, the select investment options and the flexible investment options, in accordance with the percentages specified in the Required Allocations for Premium Payments table contained in the Rate Sheet Prospectus Supplement. All Rate Sheet Prospectus Supplements are available on the EDGAR system at www.sec.gov (File Numbers 333-233836 for TLIC and 333-233840 for TFLIC). After the rider date, the allocation of all subsequent premium payments must also comply with the required allocations for premium payments table contained in the Rate Sheet Prospectus Supplement.

In addition, if You elect this rider, any transfers to and from the select investment options and the flexible investment options must comply with the required allocation percentages for rebalancing specified in the Rate Sheet Prospectus Supplement in effect at the time You elect this rider. Any transfers to and from the select investment options and flexible investment options will be validated using the prior day’s Policy Values to ensure compliance with the required allocation percentages for rebalancing at the time of the request. Transfer requests that do not comply with the required allocation percentages for rebalancing will be deemed not in good order. Changes in Policy Values due to market movements on other dates will not be treated as a violation of the required allocations.

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Transfers to and from the Stable Account (described below) are not permitted. Withdrawals from the Stable Account are not permitted until all other investment options are depleted of value. Withdrawals from the flexible investment options and select investment options will be deducted on a pro-rata basis. If You do not wish to maintain the applicable required allocation percentages, the rider must be terminated, subject to the rider termination restrictions and requirements, prior to making any transfer. The rider will terminate on the date we receive Written Notice from You requesting termination if such notice is received by us during the 30 days following the fifth rider anniversary or any fifth rider anniversary thereafter.

Enrollment in dollar cost averaging is not available while this rider is in effect.

The Stable Account. The Stable Account is a Fixed Account option under Your policy. Premium payments allocated and amounts transferred to the Stable Account become part of our general account. Interests in the general account have not been registered under the 1933 Act, nor is the general account registered as an investment company under the 1940 Act. Accordingly, neither the general account nor any interests therein are generally subject to the provisions of the 1933 or 1940 Acts. Disclosures relating to interests in the general account are, however, subject to certain generally applicable provisions of the federal securities laws relating to the accuracy of statements made in a registration statement.

Allocations applied to the Stable Account will be credited interest based on a fixed rate. The interest rates will be applied in increments of at least one year measured from each premium payment date and will automatically renew and remain in the Stable Account. The interest credited to the Stable Account will not be less than the guaranteed minimum effective annual interest rate shown on Your rider pages (the “guaranteed minimum”). We determine credited rates, which are guaranteed for at least one year, in our sole discretion. You bear the risk that we will not credit interest greater than the guaranteed minimum.

Withdrawals, surrenders, or transfers (upon termination) from the Stable Account will not be subject to an Excess Interest Adjustment.

Upon termination of the rider, all amounts in the Stable Account will be transferred to the money market Subaccount available under Your policy and no additional premium payments will be allowed into the Stable Account. Owners are permitted to provide instructions as to the allocation of the Stable Account proceeds contained in the money market Subaccount to one or more Subaccounts, but such instructions will not be effective prior to the Business Day after rider termination.

We guarantee that upon full surrender Your Cash Value attributable to the Fixed Account will not be less than the amount required by the applicable state nonforfeiture law at the time the policy is issued.

Select and Flexible Investment Options. As described above, if You elect this rider, You must allocate a certain percentage of Your premium payments and Policy Value to the available flexible investment options and select investment options. A complete listing of investment options designated as flexible investment options and select investment options appears in the “Appendix – Transamerica Principal Optimizer^SM and Transamerica Income Edge^SM 1.2 Investment Options”. You will be notified if there are changes made to the investment options within the designated group. Requiring that You allocate a certain percentage of Your premium payments and Policy Value to the designated investment options, some of which invest in underlying funds that employ strategies that are intended to reduce the risk of loss and/or manage volatility, may reduce investment returns and may reduce the likelihood that we will be required to use our own assets to pay amounts due under this benefit.

Rebalancing. While this rider is effective, quarterly rebalancing is required and will take place at the end of each rider quarter on the same date Your rider fee is deducted. If the day rebalancing takes place is not a Business Day, the value of the Accumulation Units redeemed or purchased due to rebalancing will be determined as of the next Business Day. We will automatically transfer amounts among Subaccounts according to the most recent rebalancing allocation instructions on file that comply with the required allocations for rebalancing. On the rider date, Your rebalancing allocation instructions will be established using a ratio of Your current investment allocation instructions for new premium payments.

You will be notified in writing that the required rebalance has been set up, and what the calculated rebalance allocation percentages are prior to the first quarter rebalancing. You may request changes to Your rebalancing allocation instructions before the prior instructions are implemented if we receive notice of Your request in good order prior to the close of the New York Stock Exchange on the day the rebalance is processed. Your rebalancing allocation instructions will be established using a ratio of Your current investment allocation instruction for new premium payments. You may request changes to Your rebalancing allocation instructions while this rider remains effective as long as they comply with the required allocations for rebalancing. Rebalancing will not cease upon the request of any transfer.

See “Appendix – Guaranteed Lifetime Withdrawal Benefit - Transamerica Income Edge^SM 1.2 and Transamerica Principal Optimizer^SM - Rebalancing Examples” which illustrates the initial calculation of rebalancing allocation percentages as well as the rebalancing process.

Please note:

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•	If You do not wish to maintain the required allocations, the rider must be terminated, subject to the rider termination restrictions and requirements, prior to making any transfer. (See, Transamerica Principal Optimizer^SM Rider – Termination, below.)
•	We can change the list of designated flexible and select investment groups at any time. Any changes to investment allocation requirements will not affect policy Owners with an active rider.
•	If an underlying fund portfolio informs us that a portfolio will be liquidated or reorganized, we can eliminate the corresponding select or flexible investment option. If this occurs, You will be required to reallocate values in the affected investment option to other flexible and select investment options in order to meet the allocation requirements. We will provide notice to You if a select or flexible investment option will be eliminated and reallocation is required. If You do not provide us with new instructions in the time specified in our notice, we will move Your money in the affected option to the money market Subaccount to the extent permitted by applicable law.

Transamerica Principal Optimizer^SM - Joint Life Option

If You elect the Transamerica Principal Optimizer^SM rider, then You can also elect to postpone termination of the rider until the later of the Annuitant or Annuitant’s spouse’s death (only if the Annuitant’s spouse is eligible to and elects to continue the policy, see TAX INFORMATION - Tax Status of a Nonqualified Policy - Distribution Requirements). If You elect the Joint Life option, then the withdrawal percentage used to calculate the rider withdrawal amount may be lower than under the single life option. The withdrawal percentage that is used to determine Your rider withdrawal amount will be disclosed in a Rate Sheet Prospectus Supplement included with Your prospectus. This option may not be permitted in the case of certain non-natural Owners. All Rate Sheet Prospectus Supplements are available on the EDGAR system at www.sec.gov (File Numbers 333-233836 for TLIC and 333-233840 for TFLIC).

Please note: If You elect this option:

•	The withdrawal percentage for each “age at the time of the first withdrawal” may be lower if You elect the joint life option.
•	The rider fee may be greater if You elect the joint life option.
•	The Annuitant's spouse (or in certain instances a non-natural entity acting for the benefit of the Annuitant's spouse) must be either a joint Owner along with the Annuitant or the sole primary beneficiary (and there is no joint Owner). (Please see Spousal Continuation section for more detail regarding Annuitant's spouse).
•	A former spouse of the Annuitant cannot continue to keep the policy in force if no longer married to the Annuitant at the time of the Annuitant's death. In that event, the rider will terminate and no additional withdrawals under the rider will be permitted.
•	The Annuitant’s spouse for purposes of this rider cannot be changed to a new spouse.
•	The rider withdrawal percentage is based on the age of the younger of the Annuitant and Annuitant’s spouse.
•	The rider’s issue ages may vary if You elect this option.

Transamerica Principal Optimizer^SM Fees

The rider fee is deducted at the end of each successive rider quarter, on the same day of the month as the rider date. If a day does not exist in a given month, the first day of the following month will be used. If a rider fee is deducted from a Subaccount on a day which is not a Business Day, the value of Accumulation Units redeemed will be determined as of the next Business Day. The rider fee is calculated and stored at issue and at each subsequent rider quarter for the upcoming quarter. The rider fee will be adjusted for additional premium payments, excess withdrawals and optional resets of the Guaranteed Future Value made during the rider quarter. The fee may also be adjusted for non-excess withdrawals made during the rider quarter. It will be deducted automatically from the flexible investment options and the select investment options on a pro rata basis at the end of each rider quarter. After those investment options are depleted of value, the rider fee will be deducted from the Stable Account.

The rider fee percentage may change after the first rider anniversary due to an automatic step-up or election of the optional reset. Your rider fee may increase (or decrease) at the time of any automatic step-up or optional reset. See Automatic Step-Up or Optional Reset sections. The rider fee percentage will not exceed the maximum fee percentage in effect when You purchased the rider. The current rider fee percentage will be disclosed in a Rate Sheet Prospectus Supplement. All Rate Sheet Prospectus Supplements are available on the EDGAR system at www.sec.gov (File Numbers 333-233836 for TLIC and 333-233840 for TFLIC).

For riders issued as part of the new policy application process: In order for the rider percentage fee disclosed in the applicable Rate Sheet Prospectus supplement to apply Your application must be signed on or after the date set forth in the applicable Rate Sheet Prospectus Supplement and must be received in good order within 7 calendar days and funded within 60 calendar days from the date the Rate Sheet Prospectus Supplement is no longer in effect.

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For riders issued to existing policy Owners: In order for the rider fee percentage disclosed in the application Rate Sheet Prospectus Supplement to apply Your rider election form must be signed and received while the applicable Rate Sheet Prospectus Supplement is in effect.

You should not elect this rider without first obtaining the applicable Rate Sheet Prospectus Supplement. You can contact us at www.transamerica.com to receive a Rate Sheet Prospectus Supplement applicable to You.

On an annual basis, in general terms, the rider fee is the rider fee percentage multiplied by the rider fee basis. The rider fee basis is the greater of the withdrawal base and the guaranteed future value. Specifically, the quarterly fee is calculated by multiplying (A) by (B) by (C), where:

(A)	is the rider fee basis;
(B)	is the rider fee percentage; and
(C)	is the number of days in the rider quarter divided by the total number of days in the applicable rider year.

The following example uses these assumed values: Rider Fee Basis = Maximum of Withdrawal Base of $100,000 and Guaranteed Future Value of $105,000; Rider Fee percentage = 1.40%; and 91 total days in the rider quarter.

Example 1: Calculation at rider issue for first quarter rider fee. The rider fee is:

= 105,000*0.0140*(91/365)

= 1,470*(91/365)

= $366.49

A portion of the rider fee will be assessed upon full surrender of the policy or other termination of the rider. The quarterly fee will be adjusted based on the number of days remaining until the end of the next rider quarter and ending on the date of termination.

On each rider anniversary, the rider fee percentage may increase (or decrease) at the time of an automatic step-up or at election of an optional reset. See Automatic Step-Up section and Optional Reset section. The rider fee percentage will not exceed the maximum fee percentage in effect when You purchased the rider. The current rider fee will be disclosed in a Rate Sheet Prospectus Supplement. All Rate Sheet Prospectus Supplements are available on the EDGAR system at www.sec.gov (File Numbers 333-233836 for TLIC and 333-233840 for TFLIC). Please contact Your financial intermediary or call our Administrative Office to determine whether the Rate Sheet Prospectus Supplement has been amended.

Each time an optional reset results in a rider fee percentage increase, You will have the option to reject the automatic step-up and reinstate the withdrawal base, withdrawal percentages and rider fee percentage to their respective amounts immediately before the automatic step-up (adjusted for any subsequent premium payments or withdrawals), provided that You do so within 30 calendar days after the rider anniversary on which the automatic step-up occurred. We must receive Your rejection, in good order, at our Administrative Office within the 30 day period after the rider anniversary on which the automatic step-up occurred.

Each time an automatic step-up results in a rider fee percentage increase beyond the rider fee percentage immediately prior to the rider anniversary, You will have the option to revoke the optional reset and reinstate the guaranteed future value date, guaranteed future value, rider fee percentages and protection level percentages to their respective values and dates that were in effect immediately prior to the election of the optional reset, provided You do so within 30 days following the date on which the optional reset was effective. We must receive Your revocation, in a manner acceptable to us, within the 30 day period following the date on which the optional reset was effective.

Please note regarding the rider fee:

•	Because the rider fee is a percentage of the rider fee basis and the rider fee basis is the greater of the withdrawal base and the guaranteed future value, the rider fee could be a much higher percentage of Your Policy Value, particularly in the event that Your Policy Value decreases significantly.
•	Because the rider fee is a percentage of the rider fee basis, and the rider fee basis is the greater of the withdrawal basis and the guaranteed future value, the amount of the rider fee we deduct will increase if the withdrawal base or guaranteed future value increases (although the percentage(s) may remain the same).

Rider Fee Adjustment for Premium Payments, Excess Withdrawals and Optional Resets. A rider fee adjustment will be calculated for subsequent premium payments and excess withdrawals and optional resets of the guaranteed future value made during the rider quarter, because these events will change the withdrawal base and guaranteed future value. The rider fee adjustment may be positive or negative and will be added to or subtracted from the rider fee to be collected. The fee may be adjusted for non-excess withdrawals made during the rider quarter.

The rider fee adjustment is calculated by multiplying (A) by (B) by (C) where:

(A)	is the rider fee basis change (i.e. rider fee basis after the transaction minus the rider fee basis before the transaction);
(B)	is the rider fee percentage; and

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(C)	is the number of days remaining in the rider quarter divided by the total number of days in the applicable rider year.

The following example uses these assumed values: All initial values as in Example 1; Subsequent Premium = $10,000; and 20 remaining days in the rider quarter.

Example 2: Calculation for first quarter rider fee adjustment for a subsequent premium. The fee adjustment is:

= 10,000*0.0140*(20/365)

= 140*(20/365)

= $7.67

Total fee assessed at the end of the first rider quarter (assuming no further rider fee adjustments):

= 366.49 + 7.627

= $374.16

The following two examples use assumed fees and values. The assumed rider year is not a leap year.

Example 3: Calculation for second quarter fee at beginning of second rider quarter assuming rider fee basis of $115,000 (maximum of Withdrawal Base of $110,000 and Guaranteed Future Value of $115,000) and a fee percentage of 1.40%.

= 110,000*0.0140*(91/365)

= 1,610*(91/365)

= $401.40

Example 4: Calculation for second quarter fee and an excess withdrawal that results in a pro-rata reduction in the withdrawal base and guaranteed future value. Assuming beginning values as in example 3, plus adjustment for gross withdrawal of $10,000 taken with 40 days remaining in the second rider quarter. Assumes withdrawal percentage of 5% of Policy Value of $93,500 prior to the transaction and change in rider fee basis as follows:

Withdrawal Base Adjustment

Rider Withdrawal Amount (RWA) = Withdrawal Base * Withdrawal Percentage = $110,000 * .05 = $5,500
Excess Withdrawal = Difference between assumed withdrawal amount and RWA = $10,000 - $5,500 = $4,500
Withdrawal Base Adjustment = Maximum of Excess Withdrawal and Pro-Rata Withdrawal Amount (Excess Withdrawal * Withdrawal Base prior to withdrawal/Policy Value after RWA has been withdrawn but before excess withdrawal) = Maximum of $4,500 * $110,000/ ($93,500 - $5,500)) = Maximum of $4,500 and $5,625 = $5,625
The new withdrawal base = $110,000 - $5,625 = $104,375

Guaranteed Future Value Adjustment

Guaranteed Future Value Adjustment = Maximum of Gross Withdrawal amount and Pro-Rata Withdrawal Amount (Gross Withdrawal * Guaranteed Future Value prior to withdrawal/Policy Value prior to withdrawal) = Maximum of $10,000 * $115,000/ $93,500) = Maximum of $10,000 and $12,299.47 = $12,299.47
The new guaranteed future value = $115,000 - $12,299.47 = $102,700.53

The Rider Fee Basis after the transaction = Maximum of the Withdrawal Base after the transaction ($104,375) or the Guaranteed Future Value after the transaction ($102,700.53) = $104,375, minus maximum of the Withdrawal Base before the transaction ($110,000) or the Guaranteed Future Value before the transaction ($115,000 ($104,375 - $115,000) = $-10,625.

Fee adjustment as follows:

= $-10,625 * 0.0140 * (40/365)

= $-148.75 * (40/365)

= $-16.30

The total fee assessed at the end of the second rider quarter (assuming no further rider fee adjustments):

= $401.40 - $16.30

= $385.10

Transamerica Principal Optimizer^SM Issue Requirements

We will not issue the Transamerica Principal Optimizer^SM rider if:

•	the Annuitant is age 86 or older (lower if required by state law); or
•	the Annuitant is not an Owner (except in the case of non-natural Owners); or
•	there are more than two Owners.

Furthermore, if the joint life option is elected, we will not issue the Transamerica Principal Optimizer^SM rider if:

•	the Annuitant’s spouse is 86 or older (lower if required by state law); or

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•	the Annuitant’s spouse is not a joint Owner along with the Annuitant; or
•	the Annuitant’s spouse is not the sole primary beneficiary (and there is no joint Owner).

The use of joint life option may not be permitted in the case of certain non-natural Owners.

Termination

The Transamerica Principal Optimizer^SM rider will terminate upon the earliest of the following:

•	the date we receive Written Notice from You requesting termination of the rider if such notice is received before midnight of the 30^th calendar day after You receive the rider;
•	the date we receive Written Notice from You in good order requesting termination of the Transamerica Principal Optimizer^SM rider if such notice is received by us during the 30 days following the fifth rider anniversary and every fifth rider anniversary thereafter;
•	the date of Annuitization (however, if You have reached Your maximum Annuity Commencement Date You may choose an Annuitization option which guarantees You lifetime payments in an amount equal to Your rider withdrawal amount);
•	on or after the Policy Value reaching zero, the date of the Annuitant’s death (or if the joint life option is elected, the later of the Annuitant’s or Annuitant’s spouse’s death);
•	the date the policy to which this rider is attached changes ownership or assignment which violates the Owner and Annuitant relationship requirements contained in the rider;
•	the date an excess withdrawal reduces Your Policy Value to zero;
•	prior to the Policy Value reaching zero, the date on which we receive in good order, required information to process a death claim for the Annuitant (or if the joint life option is elected, the later of the Annuitant’s or Annuitant’s spouse’s death); or
•	termination of Your policy.

Retirement Income Max^® 1.2 Rider – No Longer Available

If You elected the Retirement Income Max^® 1.2 rider identified below, which provides certain guaranteed benefits, the Company requires Your Policy Value to be allocated into designated investment options. One or more of the designated investment options may include a volatility control strategy. Volatility control strategies, in periods of high market volatility, could limit Your participation in market gains; this may conflict with Your investment objectives by limiting Your ability to maximize potential growth of Your Policy Value and, in turn, the value of any guaranteed benefit that is tied to investment performance. Volatility control strategies are intended to help limit overall volatility and reduce the effects of significant market downturns during periods of high market volatility, providing policy Owners with the opportunity for smoother performance and better risk adjusted returns. Volatility control (and similar terms) can encompass a variety of investment strategies of different types and degrees; therefore, You should read the applicable annuity and underlying fund portfolio prospectuses carefully to understand how these investment strategies may affect Your Policy Value and rider benefits. The Company’s requirement to invest in accordance with designated investment options, which may include volatility control, may reduce our costs and risks associated with this rider. You pay an additional fee for the rider benefits which, in part, pay for protecting the rider benefit base from investment losses. Since the rider benefit base does not decrease as a result of investment losses, volatility control strategies might not provide meaningful additional benefit to You. You should carefully evaluate with Your financial professional whether to invest in funds with volatility control strategies, taking into consideration the potential positive or negative impact that such strategy may have on Your investment objectives, Your Policy Value and the benefits under the Retirement Income Max^® 1.2 rider. If You determine that funds with volatility control strategies are not consistent with Your investment objectives, other designated investment options are available under the Retirement Income Max^® 1.2 rider that do not invest in funds that utilize volatility control strategies.

Retirement Income Max^® 1.2 - Summary

If you elected to purchase the optional Retirement Income Max^® 1.2 rider, it provides You with: (1) a Guaranteed Lifetime Withdrawal Benefit; and (2) an opportunity for increases in the rider withdrawal amount. This rider is available during the accumulation phase, and requires that You allocate 100% of Your Policy Value in certain designated investment options which are

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designed to help manage our risk and support the guarantees under the rider. If You elected the Retirement Income Max^® 1.2 rider You cannot elect the Transamerica Principal Optimizer^SM, Retirement Income Choice^® 1.7 or Transamerica Income Edge^SM 1.2 riders. The tax rules for qualified policies may limit the value of this rider. Please Note: There are investment restrictions associated with this benefit that can limit participation in market gains. Withdrawals taken in excess of the prescribed limits (rider withdrawal amount) will reduce the amount of the benefit and may eliminate the benefit altogether, if the amount of the excess withdrawal exceeds the Policy Value at the time of the withdrawal. The fee for the rider will not be reduced for any investment losses to Policy Value and, in fact, may be increased if there are withdrawals taken in excess of the rider withdrawal amount. Withdrawals taken while the contract value is greater than zero are withdrawals of the Owner’s own money (not the Company’s). Please consult a qualified financial professional before electing the Retirement Income Max^® 1.2 rider for a qualified policy.

Please Note: This rider may not be issued or added to Inherited IRAs (whether a qualified stretch or a 10-year delay) or a nonqualified annuity under which death benefits are being distributed under a nonqualified stretch withdrawal option. The benefits under the Transamerica Retirement Income Max^® 1.2 Rider are based on our claims-paying ability.

The Retirement Income Max^® 1.2 rider may vary for certain policies and may not be available for all policies, in all states, at all times or through all financial intermediaries. We may discontinue offering this benefit at any time for new sales, which includes new sales to existing policyowners. In some cases, a benefit not available through a financial intermediary may be obtained by contacting us directly. For more information on the options available for electing a benefit, please contact Your financial intermediary or our Administrative Office.

Under this benefit, You can receive up to the rider withdrawal amount each rider year (first as withdrawals from Your Policy Value and, if necessary because Your Policy Value goes to zero by other than an excess withdrawal, as payments from us for life), starting with the rider year immediately following the Annuitant (or the Annuitant's spouse if younger and the joint life option is elected) attaining the minimum benefit age and lasting until the Annuitant’s (or surviving spouse's if the joint life option is elected) death, unless Your withdrawal base is reduced to zero because of an “excess withdrawal”; see Withdrawal Base Adjustments, below. A rider year begins on the rider date (the date the rider becomes effective) and thereafter on each anniversary of that date. The withdrawal percentage used to determine Your rider withdrawal amount will be disclosed in a Rate Sheet Prospectus Supplement included with Your prospectus. All Rate Sheet Prospectus Supplements are available on the EDGAR system at www.sec.gov (File Numbers 333-233836 for TLIC and 333-233840 for TFLIC).

Of course, You can always withdraw an amount up to Your Cash Value pursuant to Your rights under the policy at Your discretion. See the “Appendix - Hypothetical Adjusted Withdrawals – Retirement Income Max^® 1.2 and Retirement Income Choice^® 1.7 Riders” for examples showing the effect of hypothetical withdrawals in more detail.

Please note:

•	You will begin paying the rider charge as of the date the rider takes effect, even if You do not begin taking withdrawals for many years, or ever. We will not refund the charges You have paid under the rider if You never choose to take withdrawals and/or if You never receive any payments under the rider.
•	We have designed this rider to allow for withdrawals from Your Policy Value each rider year that are less than or equal to the rider withdrawal amount. You should not purchase this rider if You plan to take withdrawals in excess of the rider withdrawal amount, because such excess withdrawals may significantly reduce or eliminate the value of the guarantee provided by the rider.
•	The longer You wait to start making withdrawals under the benefit, the less time You have to benefit from the guarantee because of decreasing life expectancy as You age. On the other hand, the longer You wait to begin making withdrawals, the higher Your withdrawal percentage may be, the higher the withdrawal base due to growth may be, and the more opportunities You will have to lock in a higher withdrawal base. You should carefully consider when to begin making withdrawals. There is a risk that You will not begin making withdrawals at the most financially beneficial time for You.
•	Because the Guaranteed Lifetime Withdrawal Benefit under this rider is accessed through regular withdrawals that do not exceed the rider withdrawal amount, the rider may not be appropriate for You if You do not foresee a need for liquidity and Your primary objective is to take maximum advantage of the tax deferral aspect of the policy.
•	All Policy Value must be allocated to a limited number of specified investment options. You should consult with Your registered representative to assist You in determining whether these certain investment options are suited for Your financial needs and risk tolerance. The investment options are categorized within designated investment groups, each of which may have a different fee and charge.
•	Any withdrawal in any rider year that is in excess of the rider withdrawal amount is an excess withdrawal. The rider year begins on the rider date and thereafter on each rider anniversary.

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•	An excess withdrawal will impact the withdrawal base components on a greater than dollar-for-dollar basis when the Policy Value, after the rider withdrawal amount is withdrawn, is less than the withdrawal base components, and may cause You to lose the benefit of this rider.
•	Upon receiving due proof of death of the Annuitant (or the death of the surviving spouse if the joint option is elected and the surviving spouse was eligible to and elected to continue the policy), the Retirement Income Max^® 1.2 rider terminates and all benefits thereunder cease.
•	You may terminate the rider by providing Written Notice to use requesting termination during the 30 days following the fifth rider anniversary or every fifth rider anniversary thereafter. See Termination section below.
•	If Your Policy Value reaches zero, the Company may require satisfactory evidence a person is alive if a payment is based on that person being alive. For example, a notarized letter may be provided as satisfactory evidence a person is living.
•	The tax rules for qualified policies may limit the value of this rider. Please consult a financial professional before electing the Retirement income Max^® 1.2 rider for a qualified policy.
•	Withdrawals up to the rider withdrawal amount are not subject to an Excess Interest Adjustment.

Like all withdrawals, withdrawals up to the rider withdrawal amount, while this rider is in effect also:

•	reduce Your Policy Value;
•	reduce Your base policy death benefit and other benefits;
•	may be subject to surrender charges if the withdrawal is greater than the Surrender Charge Free Amount;
•	may be subject to income taxes and federal tax penalties (see TAX INFORMATION); and
•	may be limited or restricted under certain qualified policies. (See TAX INFORMATION – Qualified Policies and TAX INFORMATION – Optional Living Benefits).

Retirement Income Max^® 1.2 - Rider Withdrawal Amount

You can withdraw up to the rider withdrawal amount in any rider year (after attainment of minimum benefit age) from Your Policy Value without causing an excess withdrawal. See Withdrawal Base Adjustments below.

The rider withdrawal amount is zero if the Annuitant (or the Annuitant's spouse if younger and the joint life option is elected) has not yet attained the minimum benefit age on the rider date and remains zero until the first day of the rider year after the Annuitant’s (or the Annuitant's spouse's if younger and the joint life option is elected) has attained the minimum benefit age. On the first day of the rider year after the Annuitant (or the Annuitant's spouse if younger and the joint life option is elected) has attained at least the minimum benefit age on the rider date, the rider withdrawal amount is equal to the withdrawal base multiplied by the withdrawal percentage. See applicable Rate Sheet Prospectus Supplement for additional information. Surrender charges may apply if Your rider withdrawal amount exceeds Your Surrender Charge Free Amount.

•

the rider withdrawal amount described above; or

•

a.	the policy to which this rider is attached is a tax-qualified policy for which the IRS minimum required distributions are required,
b.	the minimum required distributions do not start prior to the Annuitant’s attained age of 72 (or 70 ½ if the Annuitant attained 70 ½ before 1/1/2020),
c.	the minimum required distributions are based on either the Uniform Lifetime table or the Joint Life and Last Survivor Expectancy table,
d.	the minimum required distributions are based on age of the living Annuitant. The minimum required distributions cannot be based on the age of someone who is deceased,
e.	the minimum required distributions are based only on the policy to which this rider is attached,

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f.	the minimum required distributions are only for the current rider year. Amounts carried over from past rider years are not considered, and
g.	if an excess withdrawal is taken in the previous rider year, the minimum required distribution will not be used in calculating the rider withdrawal amount. If the minimum required distribution amount (determined as set forth above) exceeds the rider withdrawal amount, the excess will not be treated as an excess withdrawal under the rider.

If any of the above are not true, then the minimum required distribution is equal to zero and it is not available as a rider withdrawal amount.

If Your Policy Value reaches zero:

•

by means other than an excess withdrawal, then You cannot make premium payments and all other policy features, benefits, and guarantees (except those provided by this rider) are terminated. If Your Policy Value reaches zero by other than an excess withdrawal, and the rider remains in force, we will, unless instructed otherwise, make payments using the current payment instructions on file with us that are equal to the rider withdrawal amount divided by the frequency of payments. If the Annuitant (or younger of Annuitant or Annuitant’s spouse if the joint option is elected) has attained the minimum benefit age and a systematic payment option is not active at the time the Policy Value reaches zero, a payout will be established. Unless instructed otherwise, the default frequency will be monthly, unless the amount does not meet the minimum systematic payout requirements in Your policy. If that occurs, we reserve the right to change the frequency and amount in order to meet the minimum systematic payout requirements. If the minimum benefit age has not been attained, payments will begin on the rider anniversary following the attainment of the minimum benefit age.

•

due to an excess withdrawal, then this rider terminates (as does the policy).

Please note:

•	If the rider is added prior to the Annuitant (or the Annuitant’s spouse if younger and the joint life option is elected) attaining the minimum benefit age, the rider withdrawal amount will be zero until the beginning of the rider year after the Annuitant (or the Annuitant’s spouse if younger and the joint life option is elected) has attained the minimum benefit age, however, You will still be charged a rider fee upon electing the rider.
•	The rider year begins on the rider date and thereafter on each rider anniversary.
•	You cannot carry over any portion of Your rider withdrawal amount that is not withdrawn during a rider year for withdrawal in a future rider year. This means that if You do not take the entire rider withdrawal amount during a rider year, You cannot take more than the rider withdrawal amount in the next rider year and maintain the rider's guarantees.
•	Excess withdrawals may cause You to lose the benefit of the rider.
•	All Policy Value must be allocated to a limited number of specified investment options. (See Designated Investment Options below.)
•	We will not refund charges that have been paid up to the point of terminating the policy or receiving annuity payments.

Rate Sheet Prospectus Supplement

The rider fee percentages, growth percentage, growth duration, valuation frequency, minimum benefit age and withdrawal percentages are disclosed in the Rate Sheet Prospectus Supplement. We periodically issue new Rate Sheet Prospectus Supplements that may reflect different rider fee percentages, growth percentage, growth duration, valuation frequency, minimum benefit age and withdrawal percentages than the previous Rate Sheet Prospectus Supplements. All Rate Sheet Prospectus Supplements are available on the EDGAR system at (File Numbers 333-233836 for TLIC and 333-233840 for TFLIC).

For riders issued as part of the new policy application process: In order to receive the applicable rider fee percentages, growth percentage, growth duration, valuation frequency, minimum benefit age and withdrawal percentages, Your application must be signed while the Rate Sheet Prospectus Supplement is effective, we must receive Your completed application within 7 calendar days from the date that the supplement is no longer effective, and the policy must be funded within 60 calendar days from the date that the supplement is no longer effective. If these conditions are not met, Your application will be considered not in good order and additional paperwork may be required to issue the policy with the applicable rates in effect at that time.

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For riders issued to existing policy Owners: In order to receive the applicable rider fee percentages, growth percentage, growth duration, valuation frequency, minimum benefit age and withdrawal percentages, Your rider election form must be signed and received in good order while the Rate Sheet Prospectus Supplement is in effect. If Your rider election form is received in good order after the Rate Sheet Prospectus Supplement is no longer in effect, You will receive the rider terms that are in effect on the date Your rider election form is received in good order. Election forms must be received in good order while the New York Stock Exchange is open for regular trading to get same-day pricing of the transaction. Election forms received in good order on non-business days or after our close of business will get next-day pricing.

Retirement Income Max^® 1.2 - Withdrawal Percentage

Please Note: Once established, the withdrawal percentage will not change except in certain instances involving automatic step-ups. Withdrawal percentages will change when an automatic step-up occurs and You have crossed into another age band prior to the automatic step-up, see Automatic Step-Up section in the prospectus.

Retirement Income Max^® 1.2 - Withdrawal Base

We use the withdrawal base to calculate the rider withdrawal amount and rider fee. The withdrawal base on the rider date is the Policy Value. Thereafter, the withdrawal base is equal to the greater of the step-up component and the growth component.

Step-Up Component

The step-up component is used to calculate the withdrawal base. The step-up component is equal to the withdrawal base on the rider date. During any rider year, the step-up component is increased by additional premium payments, and is reduced for excess withdrawals.

On each rider anniversary, the step-up component will equal the greatest of:

1. the current step-up component;

2. the Policy Value on the rider anniversary; and

3. the highest Policy Value in the previous rider year based on the valuation frequency. (see Automatic Step-Up below).

Item 3 above will be zero if there have been any excess withdrawals in the current rider year.

Growth Component

The growth component is used to calculate the withdrawal base. The growth component is equal to the withdrawal base on the rider date. During any rider year, the growth component is increased by additional premium payments, and is reduced for excess withdrawals. Growth duration is the time period during which the growth rate percentage may apply.

On each rider anniversary, the growth component will equal A plus (B multiplied by C), where:

(A)	Is the current growth component
(B)	Is the growth basis; and
(C)	Is the growth rate percentage.

Item C above will be zero if there have been any withdrawals in the current rider year or after the growth duration as disclosed in the Rate Sheet Prospectus Supplement.

Automatic Growth Component Stacking

On each rider anniversary after the rider date, the growth component will be set equal to the withdrawal base if the withdrawal base is greater than the growth component.

Growth Basis

The growth basis is used to calculate the growth component. It is equal to the initial growth component on the rider date. During any rider year, the growth basis is increased by additional premium payments, and is reduced for excess withdrawals.

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On each rider anniversary, the growth basis will be set equal to the current growth basis, multiplied by (1+ the growth rate percentage).

The growth rate percentage will be zero if there have been any withdrawals in the current rider year or after the rider anniversary corresponding to the growth duration as disclosed in the Rate Sheet Prospectus Supplement.

Automatic Growth Basis Reset

On each rider anniversary after the rider date, the growth basis will be set equal to the withdrawal base if the withdrawal base is greater than the growth basis.

Please note:

•	We determine the withdrawal base solely to calculate the rider withdrawal amount and rider fee.
•	Your withdrawal base is not a Cash Value, a surrender value, or a death benefit. It is not available for withdrawal, it is not a minimum return for any Subaccount, and it is not a guarantee of Policy Value.
•	Because the withdrawal base is generally equal to the Policy Value on the rider date, the rider withdrawal amount may be lower if You delay electing the rider and the Policy Value decreases before You elect the rider.

•	Because a withdrawal will eliminate the potential application of the growth credit for that rider year, You should consider Your need or possible need to take withdrawals within the growth duration as disclosed in the Rate Sheet Prospectus Supplement in deciding whether to purchase the rider.

See “Appendix - Hypothetical Example of the Withdrawal Base Calculation - Retirement Income Max^® 1.2 Rider” which illustrates the hypothetical example of the withdrawal base calculation.

Retirement Income Max^® 1.2 - Automatic Step-Up

On each rider anniversary the rider receives an automatic step-up if the withdrawal base is set equal to 2 or 3 from the Retirement Income Max^® 1.2 – Withdrawal Base - Step-Up Component section above. If neither value is greater than the current withdrawal base no automatic step-up will occur. If the withdrawal percentage has been established due to a previous withdrawal, the withdrawal percentage (as indicated in the Rate Sheet Prospectus Supplement) will increase if You have crossed into another age band prior to the automatic step-up. All Rate Sheet Prospectus Supplements are available on the EDGAR system at www.sec.gov (File Numbers 333-233836 for TLIC and 333-233840 for TFLIC). Please note, the increase is part of the automatic step-up and if no automatic step-up occurs then there will be no withdrawal percentage increase.

On each rider anniversary the rider fee percentage may increase (or decrease) at the time of any automatic step-up. The rider fee percentage will not exceed the maximum fee percentage in effect when You purchased the rider.

Automatic Step-Up Opt Out. Each time an automatic step-up results in a rider fee percentage increase, You have the option to reject the automatic step-up and reinstate the withdrawal base, step-up component, withdrawal percentage, and rider fee percentage to their respective amounts immediately before the automatic step-up, provided that You do so within 30 days after the rider anniversary on which the automatic step-up occurred. Changes as a result of the automatic step-up feature will be reversed. We must receive Your rejection (each time You elect to opt out), in good order, at our Administrative Office within the same 30 day period after the rider anniversary on which the automatic step-up occurred. You are not subject to fee increases for any Automatic Step-Up that You have opted out of. Opting out of one step-up does not operate as an opt-out of any future step-ups.

Retirement Income Max^® 1.2 - Withdrawal Base Component Adjustments

Cumulative gross withdrawals up to the rider withdrawal amount in any rider year will not reduce the withdrawal base components (growth component, growth basis or step-up component) of the withdrawal base. Any amount of gross withdrawals in excess of the rider withdrawal amount in any rider year (“excess withdrawals”) will reduce the withdrawal base components, however, by the greater of the dollar amount of the excess withdrawal (if the Policy Value is greater than the withdrawal base components) or a pro rata amount (in proportion to the reduction in the Policy Value when the Policy Value is less than the withdrawal base components), possibly to zero. If an excess withdrawal reduces the Policy Value to zero, this rider will terminate. Withdrawal base component adjustments occur immediately following excess withdrawals. See “Appendix - Hypothetical Adjusted Withdrawals - Retirement Income Max^® 1.2 Rider and Retirement Income Choice^® 1.7 Riders ” for examples showing the effect of hypothetical withdrawals in more detail, including an excess withdrawal that reduces the withdrawal base components by a pro rata amount. See “Appendix - Hypothetical Adjusted Withdrawals - Retirement Income Max^® 1.2 Rider and Retirement Income Choice^® 1.7 Riders” for examples showing the effect of hypothetical withdrawals in more detail. The effect of an excess withdrawal is magnified if the policy value is less than the withdrawal base component.

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Example. Assume You are the Owner and Annuitant and You make a single premium payment of $100,000 when You are 66 years old. Further assume that You do not make any withdrawals or additional premium payments, no automatic step-ups occurred, but that after five years Your Policy Value has declined to $90,000 solely because of negative investment performance and rider fees. With an assumed annual growth rate percentage of 7.2%, after 5 years the withdrawal base is equal to $141,570.88. You could receive up to $7,078.54 which is the assumed withdrawal percentage of 5.0% for the single life option multiplied by the withdrawal base of $141,570.88, each rider year for the rest of Your life (assuming that You take Your first withdrawal when You are age 71, that You do not withdraw more than the rider withdrawal amount in any one year and there are no future automatic step-ups.)

Example continued. Assume the same facts as above, but You withdraw $10,000 when You are 71 years old. That excess withdrawal decreases Your future rider withdrawal amount to $6,829.16.

See the “Appendix - Hypothetical Adjusted Withdrawals Retirement Income Max^® 1.2 and Retirement Income Choice^® 1.7 Riders” for examples showing the effect of hypothetical withdrawals in more detail.

Retirement Income Max^® 1.2 - Designated Investment Options

If You elected this rider, You must designate 100% of Your Policy Value into one or more of the designated investment options approved for the Retirement Income Max^® 1.2 rider. See “Appendix - Designated Investment Options” for a complete listing of available investment options. Requiring that You designate 100% of Your Policy Value to the designated investment options, some of which employ strategies that are intended to reduce the risk of loss and/or manage volatility, may reduce investment returns and may reduce the likelihood that we will be required to use our own assets to pay amounts due under this benefit.

Transfers between the designated investment options are allowed as permitted under the policy; however, You cannot transfer any amount (or allocate premium payments) to any non-designated investment option. Within 30 days following the fifth rider anniversary (and each successive fifth rider anniversary), You can terminate this rider. Starting the next Business Day after You terminate Your rider, You may transfer (or allocate premium payments) to a non-designated investment option. Terminating the rider will result in losing all Your benefits under the rider.

Please note:

•	The earliest You can transfer (or allocate premium payments) to a non-designated investment option is the first Business Day after the fifth rider anniversary. You will be required to terminate the rider first. If You terminate the rider You will lose all of its benefits.
•	We can eliminate a designated investment option at any time. If this occurs, then an Owner will be required to reallocate values in the affected designated investment options to other designated investment options that meet the allocation requirements.

Retirement Income Max^® 1.2 - Joint Life Option

If You elected this rider, then You can also elect to postpone termination of the rider until the later of the Annuitant or Annuitant’s spouse’s death (only if the Annuitant’s spouse is eligible to and elects to continue the policy, see TAX INFORMATION - Tax Status of a Nonqualified Policy - Distribution Requirements). If You elected the Joint Life option, then the withdrawal percentage (used to calculate the rider withdrawal amount) may be lower. The withdrawal percentage that is used to determine Your rider withdrawal amount will be disclosed in a Rate Sheet Prospectus Supplement included with Your prospectus. This option may not be permitted in the case of certain non-natural Owners. All Rate Sheet Prospectus Supplements are available on the EDGAR system at (File Numbers 333-233836 for TLIC and 333-233840 for TFLIC).

Please note:

•	The withdrawal percentage for each “age at the time of the first withdrawal” may be lower if You elected this option.

•	The rider fee may be greater if this option is elected.

•

The Annuitant's spouse (or in certain instances a non-natural entity acting for the benefit of the Annuitant's spouse) must be either a joint Owner along with the Annuitant or the sole primary beneficiary (and there is no joint Owner), if You elected this option. (Please see Spousal Continuation section for more detail regarding Annuitant's spouse).

•	A former spouse of the Annuitant cannot continue to keep the policy in force if no longer married to the Annuitant at the time of the Annuitant's death. In that event, the rider will terminate and no additional withdrawals under the rider will be permitted.
•	The Annuitant’s spouse for purposes of this rider cannot be changed to a new spouse.

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•	The rider withdrawal percentage is based on the age of the younger of the Annuitant and Annuitant’s spouse, if You elected this option.
•	The rider's issue ages may vary if You elected this option.

Retirement Income Max^® 1.2 Fees

The rider fee percentage may change after the first rider year due to an automatic step-up. Your rider fee may increase (or decrease) at the time of any automatic step-up. See Automatic Step-Up section. The rider fee percentage will not exceed the maximum fee percentage in effect when You purchased the rider. The current rider fee percentage will be disclosed in a Rate Sheet Prospectus Supplement. All Rate Sheet Prospectus Supplements are available on the EDGAR system at www.sec.gov (File Numbers 333-233836 for TLIC and 333-233840 for TFLIC).

For riders issued as part of the new policy application process: In order for the rider fee percentages disclosed in the applicable Rate Sheet Prospectus supplement to apply Your application must be signed on or after the date set forth in the applicable Rate Sheet Prospectus Supplement and must be received in good order within 7 calendar days and funded within 60 calendar days from the date the Rate Sheet Prospectus Supplement is no longer in effect.

For riders issued to existing policy Owners: In order for the rider fee percentages disclosed in the application Rate Sheet Prospectus Supplement to apply Your rider election form must be signed and received while the applicable Rate Sheet Prospectus Supplement is in effect.

On an annual basis, in general terms, the rider fee is the rider fee percentage multiplied by the withdrawal base. Specifically, the quarterly fee is calculated by multiplying (A) by (B) by (C), where:

(A)	is the withdrawal base;
(B)	is the rider fee percentage; and
(C)	is the number of days in the rider quarter divided by the total number of days in the applicable rider year.

The following example uses these assumed values: Initial Premium = $100,000; Withdrawal Base = $100,000; Rider Fee percentage = 1.25%; and 91 total days in the rider quarter.

Example 1: Calculation at rider issue for first quarter rider fee. The rider fee is:

= 100,000*0.0125*(91/365)

= 1,250*(91/365)

= $311.64

A portion of the rider fee will also be assessed upon full surrender of the policy or other termination of the rider. The quarterly fee will be adjusted based on the number of days remaining until the end of the most recent rider quarter and ending on the date of termination.

On each rider anniversary the rider fee percentage may increase (or decrease) at the time of an automatic step-up. See Automatic Step-Up section. The rider fee percentage will not exceed the maximum fee percentage in effect when You purchased the rider. The current rider fee percentage will be disclosed in a Rate Sheet Prospectus Supplement. All Rate Sheet Prospectus Supplements are available on the EDGAR system at www.sec.gov (File Numbers 333-233836 for TLIC and 333-233840 for TFLIC). Please contact Your financial intermediary or call our Administrative Office to determine whether the Rate Sheet Prospectus Supplement has been amended. Each time an automatic step-up results in a rider fee percentage increase, You will have the option to reject the automatic step-up and reinstate the withdrawal base and rider fee percentage to their respective amounts immediately before the automatic step-up (adjusted for any subsequent premium payments or withdrawals), provided that You do so within 30 calendar days after the rider anniversary on which the automatic step-up occurred. We must receive Your rejection, in good order, at our Administrative Office within the 30 day period after the rider anniversary on which the automatic step-up occurred.

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Please note regarding the rider fee:

•	Because the rider fee is a percentage of the withdrawal base, it could be a much higher percentage of Your Policy Value, particularly in the event that Your Policy Value decreases significantly.
•	Because the rider fee is a percentage of the withdrawal base, the amount of the rider fee we deduct will increase if the withdrawal base increases (although the percentage may remain the same).

Rider Fee Adjustment for Premium Payments and Excess Withdrawals. A rider fee adjustment will be calculated for subsequent premium payments and excess withdrawals because these events will change the withdrawal base. The rider fee adjustment may be positive or negative and will be added to or subtracted from the rider fee to be collected.

The rider fee adjustment is calculated by multiplying (A) by (B) by (C), where:

(A)	is the withdrawal base change (i.e. withdrawal base after the transaction minus the withdrawal base before the transaction;
(B)	is the rider fee percentage; and
(C)	is the number of days remaining in the rider quarter divided by the total number of days in the applicable rider year.

The following example uses these assumed values: All initial values as in Example 1; Subsequent Premium = $10,000; and 30 remaining days in the rider quarter.

Example 2: Calculation for first quarter rider fee adjustment for a subsequent premium. The fee adjustment is:

= 10,000*0.0125*(30/365)

= 125*(30/365)

= $10.27

Total fee assessed at the end of the first rider quarter (assuming no further rider fee adjustments):

= 311.64 + 10.27

= $321.91

Retirement Income Max^® 1.2 Issue Requirements

We will not issue the Retirement Income Max^® 1.2 rider if:

•	the Annuitant is age 86 or older (lower if required by state law); or
•	the Annuitant is not also an Owner (except in the case of non-natural Owners); or
•	there are more than two Owners.

Furthermore, if the joint life option is elected, we will not issue the Retirement Income Max^® 1.2 rider if:

•	the Annuitant’s spouse is 86 or older (lower if required by state law); or
•	the Annuitant’s spouse is not a joint Owner along with the Annuitant; or
•	the Annuitant’s spouse is not the sole primary beneficiary (and there is no joint Owner).

The use of joint life option may not be permitted in the case of certain non-natural Owners.

Termination

The Retirement Income Max^® 1.2 rider will terminate upon the earliest of the following:

•	the date we receive Written Notice from You requesting termination of the rider if such notice is received before midnight of the 30^th calendar day after You receive the rider;
•	the date we receive Written Notice from You requesting termination of the rider if such notice is received by us during the 30 days following the fifth rider anniversary or every fifth rider anniversary thereafter;
•	prior to Your Policy Value reaching zero, the date we receive in good order required information to process a death claim upon the death of the Annuitant (or if the joint life option was elected, the death of the Annuitant’s spouse if that spouse was eligible to and elected to continue the policy as the surviving spouse);
•	on or after Your Policy Value reaching zero, upon the death of the Annuitant (or if the joint life option was elected, the death of the Annuitant’s spouse if that spouse was eligible to and elected to continue the policy as the surviving spouse);
•	Annuitization (however, if You have reached Your maximum Annuity Commencement Date You may choose an Annuitization option which guarantees You lifetime payments in an amount equal to Your rider withdrawal amount);
•	the date the policy to which this rider is attached is assigned or if the Owner is changed without our approval;
•	the date an excess withdrawal reduces Your Policy Value to zero;
•	60 days after we provide Written Notice, if Policy Value remains in one or more non-Designated Investment Options; or

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•	termination of Your policy.

Retirement Income Choice^® 1.7 Rider – No Longer Available

If You elected the Retirement Income Choice^® 1.7 rider identified below, which provides certain guaranteed benefits, the Company requires Your Policy Value to be allocated into designated investment options. One or more of the designated investment options may include a volatility control strategy. Volatility control strategies, in periods of high market volatility, could limit Your participation in market gains; this may conflict with Your investment objectives by limiting Your ability to maximize potential growth of Your Policy Value and, in turn, the value of any guaranteed benefit that is tied to investment performance. Volatility control strategies are intended to help limit overall volatility and reduce the effects of significant market downturns during periods of high market volatility, providing policy Owners with the opportunity for smoother performance and better risk adjusted returns. Volatility control (and similar terms) can encompass a variety of investment strategies of different types and degrees; therefore, You should read the applicable annuity and underlying fund portfolio prospectuses carefully to understand how these investment strategies may affect Your Policy Value and rider benefits. The Company’s requirement to invest in accordance with designated investment options, which may include volatility control, may reduce our costs and risks associated with this rider. You pay an additional fee for the rider benefits which, in part, pay for protecting the rider benefit base from investment losses. Since the rider benefit base does not decrease as a result of investment losses, volatility control strategies might not provide meaningful additional benefit to You. You should carefully evaluate with Your financial professional whether to invest in funds with volatility control strategies, taking into consideration the potential positive or negative impact that such strategy may have on Your investment objectives, Your Policy Value and the benefits under the Retirement Income Choice^® 1.7 rider. If You determine that funds with volatility control strategies are not consistent with Your investment objectives, other designated investment options are available under the Retirement Income Choice^® 1.7 rider that do not invest in funds that utilize volatility control strategies.

Retirement Income Choice^® 1.7 – Summary

If you elected to purchase the optional Retirement Income Choice^® 1.7 rider, it provides You with: (1) a Guaranteed Lifetime Withdrawal Benefit; and (2) an opportunity for increases in the rider withdrawal amount. This rider is available during the accumulation phase, and requires that You allocate 100% of Your Policy Value in certain designated investment options which are designed to help manage our risk and support the guarantees under the rider. If you elected the Retirement Income Choice^® 1.7 rider you cannot elect the Transamerica Principal Optimizer^SM, Retirement Income Max^® 1.2 or Transamerica Income Edge^SM 1.2 riders. The tax rules for qualified policies may limit the value of this rider. Please Note: There are investment restrictions associated with this benefit that can limit participation in market gains. Withdrawals taken in excess of the prescribed limits (rider withdrawal amount) will reduce the amount of the benefit and may eliminate the benefit altogether, if the amount of the excess withdrawal exceeds the Policy Value at the time of the withdrawal. The fee for the rider will not be reduced for any investment losses to Policy Value and, in fact, may be increased if there are withdrawals taken in excess of the rider withdrawal amount. Withdrawals taken while the contract value is greater than zero are withdrawals of the Owner’s own money (not the Company’s). Please consult a qualified financial professional before electing the Retirement Income Choice^® 1.7 rider for a qualified policy.

Please Note: This rider may not be issued or added to Inherited IRAs (whether a qualified stretch or a 10-year delay) or a nonqualified annuity under which death benefits are being distributed under a nonqualified stretch withdrawal option. The benefits under the Retirement Income Choice^® 1.7 rider are based on our claims-paying ability.

The Retirement Income Choice^® 1.7 rider and additional options may vary for certain policies and may not be available for all policies, in all states, at all times or through all financial intermediaries. We may discontinue offering this benefit at any time for new sales, which includes new sales to existing policyowners. In some cases, a benefit not available through a financial intermediary may be obtained by contacting us directly. For more information on the options for electing a benefit, please contact Your financial intermediary or our Administrative Office.

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withdrawal base is reduced to zero because of an “excess withdrawal”; see Withdrawal Base Adjustments and Rider Death Benefit Adjustments, sections in the prospectus). A rider year begins on the rider date (the date the rider becomes effective) and thereafter on each anniversary of that date. The withdrawal percentage used to determine Your rider withdrawal amount will be disclosed in a Rate Sheet Prospectus Supplement included with Your prospectus. All Rate Sheet Prospectus Supplements are available on the EDGAR system at www.sec.gov (File Numbers 333-233836 for TLIC and 333-233840 for TFLIC).

Of course You can always withdraw an amount up to Your Cash Value pursuant to Your rights under the policy at Your discretion. See Appendix – Hypothetical Adjusted Withdrawals – Retirement Income Max^® 1.2 and Retirement Income Choice^® 1.7 Riders” for examples showing the effect of hypothetical withdrawals in more detail.

Please note:

•	You will begin paying the rider charge as of the date the rider takes effect, even if You do not begin taking withdrawals for many years, or ever. We will not refund the charges You have paid under the rider if You never choose to take withdrawals and/or if You never receive any payments under the rider.
•	We have designed this rider to allow for withdrawals from Your Policy Value each rider year that are less than or equal to the rider withdrawal amount. You should not purchase this rider if You plan to take withdrawals in excess of the rider withdrawal amount, because such excess withdrawals may significantly reduce or eliminate the value of the guarantees provided by the rider.
•	The longer You wait to start making withdrawals under the benefit, the less time You have to benefit from the guarantee because of decreasing life expectancy as You age. On the other hand, the longer You wait to begin making withdrawals, the higher Your withdrawal percentage may be, the higher the withdrawal base due to growth may be, and the more opportunities You will have to lock in a higher withdrawal base. You should carefully consider when to begin making withdrawals. There is a risk that You will not begin making withdrawals at the most financially beneficial time for You.
•	Because the Guaranteed Lifetime Withdrawal Benefit under this rider is accessed through regular withdrawals that do not exceed the rider withdrawal amount, the rider may not be appropriate for You if You do not foresee a need for liquidity and Your primary objective is to take maximum advantage of the tax deferral aspect of the policy.
•	All Policy Value must be allocated to a limited number of specified investment options. The investment options are categorized within designated investment groups, each of which may have a different price point. You should consult with Your registered representative to assist You in determining whether these investment options are suited for Your financial needs and risk tolerance.
•	Any withdrawal in any rider year that is in excess of the rider withdrawal amount is an excess withdrawal. The rider year begins on the rider date and thereafter on each rider anniversary.
•	An excess withdrawal will impact the withdrawal base, the withdrawal base components and rider death benefit (if applicable) on a greater than dollar-for-dollar basis when the Policy Value, after the rider withdrawal amount is withdrawn, is less than the withdrawal base components and rider death benefit and may eliminate the benefit.
•	Any withdrawal will reduce Your rider death benefit (if applicable).
•	Upon receiving due proof of death of the Annuitant (or the death of the surviving spouse if the joint option is elected and the surviving spouse was eligible to and elected to continue the policy), the Retirement Income Choice^® 1.7 rider terminates and all benefits thereunder cease.
•	You may terminate the rider by providing Written Notice to us requesting termination during the 30 days following the fifth rider anniversary or every fifth rider anniversary thereafter. See Termination section below.
•	If Your Policy Value reaches zero, the Company may require satisfactory evidence a person is alive if a payment is based on that person being alive. For example, a notarized letter may be provided as satisfactory evidence a person is living.
•	Retirement Income Choice 1.7 will terminate on the date an excess withdrawal reduces Your Policy Value to zero.
•	We will not refund charges that have been paid up to the point of terminating the policy or receiving annuity payments.
•	The tax rules for qualified policies may limit the value of this rider. Please consult a financial professional before electing the Retirement Income Choice^® 1.7 rider for a qualified policy.
•	Withdrawals up to the rider withdrawal amount are not subject to an Excess Interest Adjustment.

Like all withdrawals, withdrawals up to the rider withdrawal amount while this rider is in effect also:

•	reduce Your Policy Value;
•	reduce Your base policy death benefit and other benefits;
•	may be subject to surrender charges if the withdrawal is greater than the Surrender Charge Free Amount;
•	may be subject to income taxes and federal tax penalties (see TAX INFORMATION); and

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•	may be limited or restricted under certain qualified policies. (See TAX INFORMATION - Qualified Policies and TAX INFORMATION - Optional Living Benefits).

Retirement Income Choice^® 1.7 – Rider Withdrawal Amount

You can withdraw up to the rider withdrawal amount in any rider year (after attaining the minimum benefit age) from Your Policy Value without causing an excess withdrawal. See Withdrawal Base Adjustments and Rider Death Benefit Adjustments below.

The rider withdrawal amount is zero if the Annuitant (or the Annuitant's spouse if younger and the joint life option is elected) has not attained the minimum benefit age on the rider date and remains zero until the first day of the rider year after the Annuitant (or the Annuitant's spouse if younger and the joint life option is elected) has attained the minimum benefit age. On the first day of the rider year after the Annuitant (or the Annuitant's spouse if younger and the joint life option is elected) has attained at least the minimum benefit age, the rider withdrawal amount is equal to the withdrawal base multiplied by the withdrawal percentage. See applicable Rate Sheet Prospectus Supplement for additional information. Surrender charges may apply if Your rider withdrawal amount exceeds Your Surrender Charge Free Amount.

•

the rider withdrawal amount described above; or

•

an amount equal to any minimum required distribution amount, if any. For riders added on the Policy Date, the minimum required distribution during the first rider year is based on the initial premium (initial premium could include premium from transfers received after the policy effective date, but must be deemed initial premium). For riders added after the policy date, if the policy to which the rider is attached was in force on December 31^st of the previous year, the minimum required distribution for the first rider year is calculated using the year-end Policy Value plus any actuarial present value from the previous year. For riders added after the Policy Date and the policy to which the rider is attached was not in force on December 31^st of the previous year, the minimum required distribution for the first rider year is based on the Policy Value on the rider date. The minimum required distribution is calculated based on the rules established by the IRS. The minimum required distribution may only be used if all of the following are true:

a.	the policy to which this rider is attached is a tax-qualified policy for which the IRS minimum required distributions are required,
b.	the minimum required distributions do not start prior to the Annuitant’s attained age of 72 (or age 70 ½ if the Annuitant attained 70½ before 1/1/2020),
c.	the minimum required distributions are based on either the Uniform Lifetime table or the Joint Life and Last Survivor Expectancy table,
d.	the minimum required distributions are based on age of the living Annuitant. The minimum required distributions cannot be based on the age of someone who is deceased,
e.	the minimum required distributions are based only on the policy to which this rider is attached,
f.	the minimum required distributions are only for the current rider year. Amounts carried over from past rider years are not considered, and
g.	if an excess withdrawal is taken in the previous rider year, the minimum required distribution will not be used in calculating the rider withdrawal amount. If the minimum required distribution amount (determined as set forth above) exceeds the rider withdrawal amount, the excess will not be treated as an excess withdrawal under the rider.

If any of the above are not true, then the minimum required distribution is equal to zero and it is not available as a rider withdrawal amount.

If Your Policy Value reaches zero:

•

by means other than an excess withdrawal, then You cannot make further premium payments and all policy features, benefits, and guarantees other than the base Guaranteed Lifetime Withdrawal Benefits and the rider death benefit (if applicable), provided by this rider terminate. If Your Policy Value reaches zero by other than an excess withdrawal, and the rider remains in force, we will unless otherwise instructed, make payments using the current payment instructions on file with us that are equal to the rider withdrawal amount divided by the frequency of payments. If the Annuitant (or younger of Annuitant or Annuitant’s spouse if the joint option is elected) has attained the minimum benefit age and a systematic option is not active at the time the Policy Value reaches zero, a payment will be established. Unless instructed otherwise, the default frequency will be monthly, unless the

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	amount does not meet the minimum systematic payout requirements of Your policy. If that occurs, we reserve the right to change the frequency and amount in order to meet the minimum systematic payout requirement. If the minimum benefit age has not been attained, payments will begin on the rider anniversary following the attainment of the minimum benefit age.
•	due to an excess withdrawal, then the rider terminates (as does the policy).

Please note:

•	If the rider is added prior to the Annuitant (or the Annuitant's spouse if younger and the joint life option is elected) attaining the minimum benefit age, the rider withdrawal amount will be zero until the beginning of the rider year after the Annuitant (or the Annuitant’s spouse if younger and the joint life option is elected) has attained the minimum benefit age, however, You will still be charged a rider fee upon electing the rider.
•	The rider year begins on the rider date and thereafter on each rider anniversary.
•	You cannot carry over any portion of Your rider withdrawal amount that is not withdrawn during a rider year for withdrawal in a future rider year. This means that if You do not take the entire rider withdrawal amount during a rider year, You cannot take more than the rider withdrawal amount in the next rider year and maintain the rider's guarantees.
•	Excess withdrawals may cause You to lose the benefit of the rider.
•	All Policy Value must be allocated to a limited number of specified funds. (See Designated Investment Options below.)

Rate Sheet Prospectus Supplement

For riders issued to existing policy Owners: In order to receive the applicable rider fee percentages, growth percentage, growth duration, valuation frequency, minimum benefit age and withdrawal percentages, Your rider election form must be signed and received in good order while this Rate Sheet Prospectus Supplement is in effect. If Your rider election form is received in good order after the Rate Sheet Prospectus Supplement is no longer in effect, You will receive the rider terms that are in effect on the date Your rider election form is received in good order. Election forms must be received in good order while the New York Stock Exchange is open for regular trading to get same-day pricing of the transaction. Election forms received in good order on non-business days or after our close of business will get next-day pricing.

Retirement Income Choice^® 1.7 - Withdrawal Percentage

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Retirement Income Choice^® 1.7 - Withdrawal Base

Step-Up Component

On each rider anniversary, the step-up component will equal the greatest of:

1. the current step-up component;

2. the Policy Value on the rider anniversary; and

3. the highest Policy Value in the previous rider year based on the valuation frequency. (see Automatic Step-Up below).

Item 3 above will be zero if there have been any excess withdrawals in the current rider year.

Growth Component

On each rider anniversary, the growth component will equal the greater of A plus (B multiplied by C), where:

(A)	Is the current growth component;
(B)	Is the growth basis; and
(C)	Is the growth percentage.

Item C above will be zero if there have been any withdrawals in the current rider year or after the growth duration as disclosed in the Rate Sheet Prospectus Supplement.

Automatic Growth Component Stacking

On each rider anniversary after the rider date, the growth component will be set equal to the withdrawal base if the withdrawal base is greater than the growth component.

Growth Basis

Please note:

•	We determine the withdrawal base solely to calculate the rider withdrawal amount and rider fee.
•	Your withdrawal base is not a Cash Value, a surrender value, or a death benefit. It is not available for withdrawal, it is not a minimum return for any Subaccount, and it is not a guarantee of Policy Value.
•	Because the withdrawal base is generally equal to the Policy Value on the rider date, the rider withdrawal amount may be lower if You delay electing the rider and the Policy Value decreases before You elect the rider.

•

Because a withdrawal will negatively affect the growth component for that rider year, You should consider Your need or possible need to take withdrawals within the growth duration as disclosed in the Rate Sheet Prospectus Supplement in deciding whether to purchase the rider. See “Appendix - Hypothetical Example of the Withdrawal Base Calculation - Retirement Income Choice^® 1.7 Rider” which illustrates the hypothetical examples of the withdrawal base calculation.

Retirement Income Choice^® 1.7 - Automatic Step-Up

On each rider anniversary, the rider receives an automatic step-up if the withdrawal base is set equal to 2 or 3 from the Retirement Income Choice^® 1.7 – Withdrawal Base - Step-Up Component section above. If neither value is greater than the current withdrawal base no automatic step-up will occur. If the withdrawal percentage has been established due to a previous withdrawal, the withdrawal percentage (as indicated in the Rate Sheet Prospectus Supplement) will increase if You have crossed into another age band prior to the automatic step-up. Please note, the increase is part of the automatic step-up and if no automatic step-up occurs then there will be no withdrawal percentage increase.

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Automatic Step-Up Opt Out. Each time an automatic step-up results in a rider fee percentage increase, You have the option to reject the automatic step-up and reinstate the withdrawal base, step-up component, withdrawal percentage, and rider fee percentage to their respective amounts immediately before the automatic step-up, provided that You do so within 30 days after the rider anniversary on which the automatic step-up occurred. Changes as a result of the automatic step-up feature will be reversed. We must receive Your rejection (each time You elect to opt out), in good order, at our Administrative Office within the same 30 day period after the rider anniversary on which the automatic step-up occurred. You are not subject to fee increases for any Automatic Step-Up that You have opted out of. Opting out of one step-up does not operate as an opt-out of any future step-ups.

Retirement Income Choice^® 1.7 - Withdrawal Base Component Adjustments

Cumulative gross withdrawals up to the rider withdrawal amount in any rider year will not reduce the withdrawal base components (growth component, growth basis or step-up component) of the withdrawal base. Any amount of gross withdrawals in excess of the rider withdrawal amount in any rider year (“excess withdrawals”) will reduce the withdrawal base components, however, by the greater of the dollar amount of the excess withdrawal (if the Policy Value is greater than the withdrawal base component) or a pro rata amount (in proportion to the reduction in the Policy Value when the Policy Value is less than the withdrawal base component), possibly to zero. If an excess withdrawal reduces the Policy Value to zero, this rider will terminate. Withdrawal base component adjustments occur immediately following excess withdrawals. See “Appendix - Hypothetical Adjusted Withdrawals – Retirement Income Max^® 1.2 and Retirement Income Choice^® 1.7 Riders” for examples showing the effect of hypothetical withdrawals in more detail, including an excess withdrawal that reduces the withdrawal base component by a pro rata amount. The effect of an excess withdrawal is magnified if the Policy Value is less than the withdrawal base component. See the “Appendix - Hypothetical Adjusted Withdrawals – Retirement Income Max^® 1.2 and Retirement Income Choice^® 1.7 Riders” for examples showing the effect of hypothetical excess withdrawals in more detail.

Example. Assume You are the Owner and Annuitant and You make a single premium payment of $100,000 when You are 66 years old. Further assume that You do not make any withdrawals or subsequent premium payments, no automatic step-ups or growth component stacking occurred, but that after five years Your Policy Value has declined to $90,000 solely because of negative investment performance. With an assumed annual growth rate percentage of 5.5%, after 5 years the withdrawal base is equal to $127,500 which is the greater of the step-up component of $100,000 and the growth component of $127,500. You could receive up to $7,012.50 which is the assumed withdrawal percentage of 5.5% for the single life option multiplied by the withdrawal base of $127,500, each rider year for the rest of Your life (assuming that You take Your first withdrawal when You are age 71, that You do not withdraw more than the rider withdrawal amount in any one year and there are no future automatic step-ups or growth component stacking.)

Example continued. Assume the same facts as above, but You withdraw $10,000 when You are 71 years old. That excess withdrawal decreases Your future rider withdrawal amount to $6,760.05.

See the “Appendix - Hypothetical Adjusted Withdrawals – Retirement Income Max^® 1.2 and Retirement Income Choice^® 1.7 Riders” for examples showing the effect of hypothetical withdrawals in more detail.

Retirement Income Choice^® 1.7 - Designated Investment Options

If You elected this rider, You must designate 100% of Your Policy Value into one or more of the designated investment options available under the respective designated allocation groups that have been approved for the Retirement Income Choice^® 1.7 rider. Each of the designated investment groups (“A”, “B” and “C”) may have different price point. See “Appendix - Designated Investment Options” for a complete listing of available investment options. Requiring that You designate 100% of Your Policy Value to the designated investment options, some of which employ strategies that are intended to reduce the risk of loss and/or manage volatility, may reduce investment returns and may reduce the likelihood that we will be required to use our own assets to pay amounts due under this benefit.

Transfers between the designated investment options are allowed as permitted under the policy; however, You cannot transfer any amount (or allocate premium payments) to any non-designated investment option. Within 30 days following the fifth rider anniversary (and each successive fifth rider anniversary) You can terminate this rider. Starting the next Business Day, You may transfer (or allocate premium payments) to a non-designated investment option. Terminating the rider will result in losing all Your benefits under the rider.

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Please note:

•	The earliest You can transfer (or allocate premium payments) to a non-designated investment option is the first Business Day after the fifth rider anniversary. You will be required to terminate the rider first. If You terminate the rider You will lose all of its benefits.
•	We have processes and procedures in place that will prevent allocation to a Subaccount that is not a designated investment option. These processes and procedures include restricting transfers requested by telephone and internet.
•	We can change a designated allocation group or eliminate a designated investment option at any time. If this occurs, then an Owner will be required to reallocate values in the affected designated investment options to other designated investment options that meet the allocation requirements.

Retirement Income Choice^® 1.7 - Additional Options

You may have elected the following options with this rider (the options are not mutually exclusive):

•	Death Benefit;
•	Joint Life; and
•	Income Enhancement^SM.

There is an additional fee if You elected the Death Benefit and/or the Income Enhancement^SM Benefit option(s) under the rider. There may be an additional fee if the Joint Life option is elected. If You elected the Joint Life option, then the withdrawal percentage (used to calculate the rider withdrawal amount) may be lower. Furthermore, if You elected the Joint Life option in combination with the Death Benefit and/or the Income Enhancement^SM Benefit option(s), then the fee for each of those additional options may be different than under the Single Life option. See Retirement Income Choice^® 1.7 Rider Fees. There may be different issue ages depending upon which options You elect. The rider fee will be disclosed in a Rate Sheet Prospectus Supplement.

Death Benefit. If You elected this rider, You can also elect to add an additional amount to the death benefit payable under the base policy, upon the death of the Annuitant (or if the joint life option is selected, the death of the Annuitant’s spouse if later). The additional amount will be equal to the excess, if any, of the rider death benefit over the greater of any optional guaranteed minimum death benefit or the base policy death benefit. The additional amount can be zero. See DEATH BENEFIT.

Rider Death Benefit. The rider death benefit on the rider date is equal to the withdrawal base . After the rider date, the rider death benefit is equal to:

•	the rider death benefit on the rider date; plus
•	subsequent premium payments; less
•	adjustments for withdrawals (as described under Rider Death Benefit Adjustments, below).

Rider Death Benefit Adjustments. Gross withdrawals up to the rider withdrawal amount in a rider year will reduce the rider death benefit on a dollar-for-dollar basis. Gross withdrawals in excess of the rider withdrawal amount in a rider year will reduce the rider death benefit by the greater of the dollar amount of the excess withdrawal or a pro rata amount (in proportion to the reduction in Policy Value), and possibly to zero. See “Appendix - Hypothetical Adjusted Withdrawals – Retirement Income Max^® 1.2 and Retirement Income Choice^® 1.7 Riders” for examples showing the effect of hypothetical withdrawals in more detail, including an excess withdrawal that results in pro rata adjustments. Rider death benefit adjustments occur immediately following all withdrawals.

Please note:

•	No additional death benefit is payable if the base policy death benefit (including the guaranteed minimum death benefit) exceeds the rider death benefit. The greater the death benefit payable under the guaranteed minimum death benefit selected, the more likely it is that an additional amount will not be payable under the rider death benefit option.
•	Excess withdrawals may eliminate the additional death benefit available with this rider. You will continue to pay the fee for this option, even if the additional death benefit available under the rider is $0.
•	If an Owner who is not the Annuitant dies and the surviving spouse is eligible to and elects to continue the policy, then no additional amount is payable. If the policy is not continued, then the surviving Owner (who is also the sole beneficiary) may elect to receive lifetime annuity payments equal to the rider withdrawal amount divided by the number of payments each year instead of receiving the policy’s Cash Value. See TAX INFORMATION - Tax Status of a Nonqualified Policy - Distribution Requirements. (The payment of a death benefit under the policy is triggered by the death of the Annuitant.)
•	The additional death benefit adjustment differs from the adjusted withdrawal amount for the Guaranteed Minimum Death Benefits described in DEATH BENEFIT - Guaranteed Minimum Death Benefits. Accordingly, withdrawals may affect the additional death benefit differently than the Guaranteed Minimum Death Benefits.

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The additional death benefit payment option may be referred to as “rider death benefit” on Your policy statement and other documents.

Joint Life Option. If You elected this rider, then You can also elect to postpone termination of the rider until the later of the Annuitant or Annuitant’s spouse’s death (only if the Annuitant’s spouse is eligible to and elects to continue the policy, see TAX INFORMATION – Tax Status of a Nonqualified Policy – Distribution Requirements). If You elected the Joint Life option, then the withdrawal percentage used to calculate the rider withdrawal amount may be lower. The withdrawal percentage that is used to determine Your rider withdrawal amount will be disclosed in a Rate Sheet Prospectus Supplement included with Your prospectus. All Rate Sheet Prospectus Supplements are available on the EDGAR system at www.sec.gov (File Numbers 333-233836 for TLIC and 333-233840 for TFLIC).

Please note:

•	The withdrawal percentage for each “age at the time of first withdrawal” may be lower if You elected this option.

•	The rider fee may be greater if this option is elected.

•

•	A former spouse of the Annuitant cannot continue to keep the policy in force if no longer married to the Annuitant at the time of the Annuitant's death. In that event, the rider will terminate and no additional withdrawals under the rider will be permitted.
•	The Annuitant’s spouse for purposes of this rider cannot be changed to a new spouse.

•	The rider withdrawal percentage is based on the age of the younger of the Annuitant and Annuitant’s spouse, if You elected this option.
•	The rider death benefit is not payable until the death of the surviving spouse, if You elected this option.
•	The rider issue ages may vary if You elected this option.

Income Enhancement^SM Option. If You elected this rider, You can also elect to have Your withdrawal percentage increase to 150% of the non-income enhanced withdrawal percentage if either the Annuitant (or the Annuitant’s spouse if the joint life option is elected) is confined, due to a medical necessity in a hospital or nursing facility. Benefits from this option are not available unless the rider has been in effect for 12 months (the “waiting period”) and confinement must meet the elimination period of 90 days within the last 365 days. The elimination period and waiting period can, but do not need to, run concurrently.

Please note:

•	You cannot elect the Income Enhancement^SM Option if the qualifying person or persons is/are already admitted to a hospital or already reside in a nursing facility.
•	Confinement must be prescribed by a Physician based on the individual's inability to sustain themselves outside of a hospital or nursing facility due to physical ailments.
•	The increase to the withdrawal percentage stops when the qualifying person or persons is/are no longer confined as described above.
•	The hospital and/or nursing facility must meet the criteria listed below to qualify for the benefit.

A Qualifying Hospital must meet the following criteria:

•	It is operated pursuant to the laws of the jurisdiction in which it is located;
•	It is operated primarily for the care and treatment of sick and injured persons on an inpatient basis;
•	It provides 24-hour Nursing Service by or under the supervision of Nurses;
•	It is supervised by a staff of one or more licensed Physicians; and
•	It has medical, surgical and diagnostic facilities or access to such facilities.

A Qualifying Nursing Facility must meet the following criteria:

•	It is operated pursuant to the laws and regulations of the state in which it is located as a skilled nursing facility;
•	It provides room and board accommodations;
•	It provides 24-hour nursing services, 7 days a week by on-site Nurses on a continuing inpatient basis;
•	It has a planned program of policies and procedures developed with the advice of, and periodically reviewed by, at least one licensed Physician; and
•	It has a licensed Physician available to supervise; and
•	It performs and maintains clinical assessments based on uniform minimum data as set forth in Section 1819(b)(3)(A) of the Social Security Act, as amended.

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A Qualifying Nursing Facility does not include:

•	Assisted living facilities or residential care facilities;
•	A place primarily for treatment of mental or nervous disorders, drug addiction or alcoholism;
•	A home for the aged, a rest home, community living center or a place that provides domestic, residential, retirement or educational care;
•	Personal care homes, personal care boarding homes, residential care facilities;
•	A rehabilitation hospital or basic care facilities;
•	Adult foster care facilities, congregate care facilities, family and group living assisted living facilities, domiciliary care home, independent living apartments, hotels or motels; or
•	Other facilities similar to those described above.

We will require confirmation of confinement in a qualifying hospital or a qualifying nursing facility while benefit payouts are being received. Confirmation of that confinement will be attained and approved by completing our “Income Enhancement^SM Election and Proof of Confinement Questionnaire” form. This form requires additional proof of confinement which may be a Physician’s statement, a statement from a hospital or nursing facility administrator, or any other information satisfactory to us which may include information from third party or company interviews and/or visits of the facility. If it is determined that the qualifying individual was not confined in an eligible facility as defined above and has received payments under the Income Enhancement^SM Option, those payments could be considered an excess withdrawal and have a negative effect on the rider values. If confinement ceases, You may re-qualify by satisfying another 90-day elimination period requirement.

Retirement Income Choice^® 1.7 Fees

The rider fee is deducted at the end of each successive rider quarter on the same day of the month as the rider date. If a day does not exist in a given month, the first day of the following month will be used. If a rider fee is deducted from a Subaccount on a day which is not a Business Day, the value of the Accumulation Units redeemed will be determined as of the next Business Day. The rider fee will be adjusted for additional premium payments, excess withdrawals, and transfers between designated investment groups during the rider quarter. It will be deducted automatically from Your Policy Value at the end of each rider quarter.

The rider fee percentages may change after the first rider year due to an automatic step-up. Your rider fee may increase (or decrease) at the time of any automatic step-up. See Automatic Step-Up section. The current rider fee percentages will not exceed the maximum fee percentages in effect when You purchased the rider. The current rider fee percentages will be disclosed in a Rate Sheet Prospectus Supplement. All Rate Sheet Prospectus Supplements are available on the EDGAR system at www.sec.gov (File Numbers 333-233836 for TLIC and 333-233840 for TFLIC).

For riders issued as part of the new policy application process: In order for the rider fee percentages disclosed in the applicable Rate Sheet Prospectus supplement to apply, Your application must be signed on or after the date set forth in the applicable Rate Sheet Prospectus Supplement and must be received in good order within 7 calendar days and funded within 60 calendar days from the date the Rate Sheet Prospectus Supplement is no longer in effect.

For riders issued to existing policy Owners: In order for the rider fee percentages disclosed in the application Rate Sheet Prospectus Supplement to apply, Your rider election form must be signed and received while the applicable Rate Sheet Prospectus Supplement is in effect.

On an annual basis, in general terms, the rider fee is the applicable rider fee percentage multiplied by the withdrawal base.

The base quarterly fee is calculated by multiplying (A) by (B) divided by (C) multiplied by (D), where:

(A)	is the withdrawal base;
(B)	is the sum of each designated investment group's rider fee percentage multiplied by the applicable designated investment group's value;
(C)	is the total Policy Value; and
(D)	is the number of days in the rider quarter divided by the total number of days in the applicable rider year.

The following example uses these assumed values: Initial Premium = $100,000; Fund Allocations such that Group A = $50,000, Group B = $30,000, and Group C = $20,000; Withdrawal Base = $100,000; Policy Value = $100,000; Investment Group fee percentages of Group A = 1.45%, Group B = 1.10% and Group C = 0.70%; and 91 total days in the rider quarter.

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Example 1: Calculation at rider issue for the first quarter fee. The rider fee is:

= 100,000 * [(50,000*0.0145) + (30,000*0.0110) + (20,000*0.0070)] / 100,000 * (91/365)

= 100,000 * (725 + 330 + 140) / 100,000 * (91/365)

= 100,000 * 1,195/100,000 * (91/365)

= 1,195 * (91/365)

= $297.93

A portion of the rider fee will also be assessed upon full surrender of the policy or other termination of the rider. The quarterly fee will be adjusted based on the number of days remaining until the end of the next rider quarter for the period beginning on the first day of the most recent rider quarter and ending on the date of termination.

On each rider anniversary the rider fee percentages may increase (or decrease) at the time of an automatic step-up. See Automatic Step-Up section. The rider fee percentage will not exceed the maximum fee percentage in effect when You purchased the rider. The current rider fee percentages will be disclosed in a Rate Sheet Prospectus Supplement which may be amended from time to time by us. Please contact Your financial intermediary or call our Administrative Office to determine whether the Rate Sheet Prospectus Supplement has been amended. All Rate Sheet Prospectus Supplements are available on the EDGAR system at www.sec.gov (File Numbers 333-233836 for TLIC and 333-233840 for TFLIC). Each time an automatic step-up will result in a rider fee percentage increase, You will have the option to reject the automatic step-up and reinstate the withdrawal base and rider fee percentage to their respective amounts immediately before the automatic step-up (adjusted for any subsequent premium payments or withdrawals), provided that You do so within 30 calendar days after the rider anniversary on which the automatic step-up occurred. We must receive Your rejection, in good order, at our Administrative Office within the 30 day period after the rider anniversary on which the automatic step-up occurred.

Please note regarding the rider fee:

•	Because the rider fee is a percentage of the withdrawal base, it could be a much higher percentage of Your Policy Value, particularly in the event that Your Policy Value decreases significantly.
•	Because the rider fee is a percentage of the withdrawal base, the amount of the base rider fee we deduct will increase if the withdrawal base increases (although the percentage(s) may remain the same).
•	If You make a transfer from one designated allocation group to another designated allocation group that has a higher rider fee percentage, then the resulting rider fee will be higher.

The rider fee adjustment is calculated by multiplying (A) by (B) divided by (C) multiplied by (D), where:

(A)	is the withdrawal base change (i.e. withdrawal base after the transaction minus the withdrawal base before the transaction);
(B)	is the sum of each designated investment group's rider fee percentage multiplied by the applicable designated investment group's transaction amount;
(C)	is the total transaction amount; and
(D)	is the number of days remaining in the rider quarter divided by the total number of days in the applicable rider year.

The following example uses these assumed values: All initial values as in Example 1; Subsequent Premium = $10,000, allocated such that Group A = $5,000, Group B = $3,000, and Group C = $2,000; and 30 remaining days in the rider quarter.

Example 2: Calculation of the first quarter rider fee adjustment for a subsequent premium. The fee adjustment is:

= 10,000 * [(5,000*0.0145) + (3,000*0.0110) + (2,000*0.0070)] / 10,000 * (30/365)

= 10,000 * (72.50 + 33 + 14) / 10,000 * (30/365)

= 10,000 * 119.50/10,000 * (30/365)

= 119.50 * (30/365)

= $9.82

Total fee assessed at end of first rider quarter (assuming no further fee adjustments):

= 297.93 + 9.82

= $307.75

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Rider Fee Adjustment for Transfers. For transfers that You make between different designated investment options in different designated allocation groups on other than the first Business Day of a rider quarter, a rider fee adjustment will be applied. This adjustment is necessary because of differences in the rider fee percentages. The adjustment in the rider fee will ensure that You are charged the correct overall rider fee for that quarter. The rider fee adjustment may be positive or negative and will be added to or subtracted from the rider fee to be collected.

The rider fee adjustment for transfers is calculated by multiplying (A) by (B) divided by (C) multiplied by (D), where:

(A)	is the withdrawal base;
(B)	is the sum of each designated investment group's rider fee percentage multiplied by the applicable designated investment group's transaction amount;
(C)	is the total Policy Value; and
(D)	is the number of days remaining in the rider quarter divided by the total number of days in the applicable rider year.

The following example uses these assumed values: All initial values as in Example 1, as well as a subsequent premium payment as in Example 2; Withdrawal Base = $110,000; Policy Value = $90,000; Fund Transfer from Group A = $5,000, into Group B = $3,000, and into Group C = $2,000; and 15 remaining days in the rider quarter.

Example 3: Calculation of the first quarter rider fee adjustment for a fund transfer. The fee adjustment is:

= 110,000 * [(-5,000*0.0145) + (3,000*0.0110) + (2,000*0.0070)] / 90,000 * (15/365)

= 110,000 * (-72.50 + 33 + 14) / 90,000 * (15/365)

= 110,000 * -25.50/90,000 * (15/365)

= -31.17 * (15/365)

= $-1.28

Total fee assessed at end of the first rider quarter (assuming no further rider fee adjustments):

= 307.75 - 1.28

= $306.47

Additional Option Fees. If You elected options with this rider, then You will be charged a fee for each option You elect that is in addition to the rider fee for the base benefit. Each additional fee is charged quarterly before Annuitization and is a percentage of the withdrawal base on each rider anniversary.

We will also deduct a portion of all rider fees, including additional option fees, upon surrender of the policy or other termination of the rider.

Retirement Income Choice^® 1.7 Issue Requirements

We will not issue the Retirement Income Choice^® 1.7 rider if:

•	the Annuitant is 86 or older (lower if required by state law); or
•	the Annuitant is not also an Owner (except in the case of non-natural Owners); or
•	there are more than two Owners.

Furthermore, if the joint life option is elected, we will not issue the Retirement Income Choice^® 1.7 rider if:

•	the Annuitant’s spouse is 86 or older (lower if required by state law); or
•	the Annuitant’s spouse is not a joint Owner along with the Annuitant; or
•	the Annuitant’s spouse is not the primary beneficiary (and there is no joint Owner);

The use of joint life option may not be permitted in the case of certain non-natural Owners.

Termination

The Retirement Income Choice^® 1.7 rider and any additional options will terminate upon the earliest of the following:

•	the date we receive Written Notice from You requesting termination of the rider if such notice is received before midnight of the 30^th calendar day after You receive the rider;
•	the date we receive Written Notice from You requesting termination of the rider if such notice is received by us during the 30 days following the fifth rider anniversary or every fifth rider anniversary thereafter;
•	prior to Your Policy Value reaching zero, the date we receive in good order required information to process a death claim upon the death of the Annuitant (or if the joint life option was elected, the death of the Annuitant’s spouse if that spouse was eligible to and elected to continue the policy as the surviving spouse);
•	on or after Your Policy Value reaching zero, upon the death of the Annuitant (or if the joint life option was elected, the death of the Annuitant’s spouse if that spouse was eligible to and elected to continue the policy as the surviving spouse).

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•	Annuitization (however, if You have reached Your maximum Annuity Commencement Date You may choose an Annuitization option which guarantees You lifetime payments in an amount equal to Your rider withdrawal amount);
•	the date the policy to which this rider is attached is assigned or if the Owner is changed without our approval;
•	the date an excess withdrawal reduces Your Policy Value to zero; or
•	termination of Your policy.

Please note: This rider terminates upon Annuitization and there is a maximum Annuity Commencement Date at which time Your policy will be Annuitized according to its terms. However, if You have reached Your maximum Annuity Commencement Date, we will allow You to Annuitize Your policy and elect to receive lifetime annuity payments which are at least equal to Your rider withdrawal amount (if the rider death benefit is elected, this option also guarantees that if the Annuitant and, if the joint life option was elected, Annuitant’s spouse, should die before the sum of all annuity payments equals or exceeds the rider death benefit on the maximum Annuity Commencement Date, the Annuitant's beneficiary will receive a final payment equal to the difference). Please contact us for more information concerning Your options.

Transamerica Income Edge^SM 1.2 Rider – No Longer Available

If You elected the Transamerica Income Edge^SM 1.2 rider identified below, which provides certain guaranteed benefits, the Company requires a certain percentage of Your Policy Value to be allocated to the Stable Account, with the remainder to be allocated to the select investment options and flexible investment options. One or more of the select investment options and flexible investment options may include a volatility control strategy. Volatility control strategies, in periods of high market volatility, could limit Your participation in market gains; this may conflict with Your investment objectives by limiting Your ability to maximize potential growth of Your Policy Value and, in turn, the value of any guaranteed benefit that is tied to investment performance. Volatility control strategies are intended to help limit overall volatility and reduce the effects of significant market downturns during periods of high market volatility, providing policy Owners with the opportunity for smoother performance and better risk adjusted returns. Volatility control (and similar terms) can encompass a variety of investment strategies of different types and degrees; therefore, You should read the applicable annuity and underlying fund portfolio prospectuses carefully to understand how these investment strategies may affect Your Policy Value and rider benefits. The Company’s requirement to invest in accordance with the required allocations, which may include volatility control strategies, may reduce our costs and risks associated with this rider. You pay an additional fee for the rider benefits which, in part, pay for protecting the rider benefit base from investment losses. Since the rider benefit base does not decrease as a result of investment losses, volatility control strategies might not provide meaningful additional benefit to You. You should carefully evaluate with Your financial professional whether to allocate to Subaccounts that invest in underlying funds with volatility control strategies, taking into consideration the potential positive or negative impact that such strategy may have on Your investment objectives, Your Policy Value and the benefits under the Transamerica Income Edge^SM 1.2 rider. If You determine that underlying funds with volatility control strategies are not consistent with Your investment objectives, other investment options are available under the Transamerica Income Edge^SM 1.2 rider that do not invest in underlying funds that utilize volatility control strategies.

Transamerica Income Edge^SM 1.2 - Summary

If you elected to purchase the optional Transamerica Income Edge^SM 1.2 rider, it provides You with: (1) a Guaranteed Lifetime Withdrawal Benefit; and (2) an opportunity for increases in the rider withdrawal amount. This rider is available during the accumulation phase, and requires that You allocate a certain percentage of Your Policy Value to the Stable Account and to select investment options and flexible investment options some of which are designed to help manage our risk and support the guarantees under the rider. If you elected the Transamerica Income Edge^SM 1.2 rider you cannot elect the Transamerica Principal Optimizer^SM, Retirement Income Choice^® 1.7 or Retirement Income Max^® 1.2 riders. The tax rules for qualified policies may limit the value of this rider. Please Note: There are investment restrictions associated with this benefit that can limit participation in market gains. Withdrawals taken in excess of the prescribed limits (rider withdrawal amount) will reduce the amount of the benefit and may eliminate the benefit altogether, if the amount of the excess withdrawal exceeds the Policy Value at the time of the withdrawal. The fee for the rider will not be reduced for any investment losses to Policy Value and, in fact, may be increased if there are withdrawals taken in excess of the rider withdrawal amount. Withdrawals taken while the contract value is greater than zero are withdrawals of the Owner’s own money (not the Company’s). Please consult a qualified financial professional before electing the Transamerica Income Edge^SM 1.2 rider for a qualified policy.

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Please Note: This rider may not be issued or added to Inherited IRAs (whether a qualified stretch or a 10-year delay) or a nonqualified annuity under which death benefits are being distributed under a nonqualified stretch withdrawal option. The benefits under the Transamerica Income Edge^SM 1.2 rider are based on our claims-paying ability.

The Transamerica Income Edge^SM 1.2 rider may vary for certain policies and may not be available for all policies, in all states, at all times or through all financial intermediaries. We may discontinue offering this benefit at any time for new sales, which includes new sales to existing policyowners. In some cases, a benefit not available through a financial intermediary may be obtained by contacting us directly. For more information on the options available for electing a benefit, please contact Your financial intermediary or our Administrative Office.

If You elected the Transamerica Income Edge^SM 1.2 rider, You can receive up to the rider withdrawal amount each rider year. Such rider withdrawal amounts will first be made as withdrawals from Your Policy Value (excluding the Stable Account until other investment options are depleted of value). If Your Policy Value goes to zero by other than an excess withdrawal, rider withdrawal amounts will continue as payments from us. Rider withdrawal amounts may begin the rider year immediately following the Annuitant’s (or Annuitant’s spouse if younger and the joint life option is elected) attainment of the minimum benefit age, and may last until the Annuitant’s (or surviving spouse’s if joint life option is elected) death unless Your withdrawal base is reduced to zero because of an “excess withdrawal.” See Withdrawal Base Adjustments section below for more information. A rider year begins on the rider date (the date the rider becomes effective) and thereafter on each anniversary of that date. The withdrawal percentage that is used to determine Your rider withdrawal amount and required allocations will be disclosed in a Rate Sheet Prospectus Supplement included with Your prospectus. All Rate Sheet Prospectus Supplements are available on the EDGAR system at www.sec.gov (File Numbers 333-233836 for TLIC and 333-233840 for TFLIC).

Of course, You can always withdraw an amount up to Your Cash Value pursuant to Your rights under the policy although withdrawals that are excess withdrawals will reduce Your withdrawal base and future GLWBs. See “Appendix - Hypothetical Adjusted Withdrawals - Transamerica Principal Optimizer^SM and Transamerica Income Edge^SM 1.2 Riders” for examples showing the effect of hypothetical withdrawals in more detail.

If You elected the Transamerica Income Edge^SM 1.2 rider, a certain percentage of Your Policy Value on the rider date must be allocated to the Stable Account, the select investment options and the flexible investment options, as specified in the applicable Rate Sheet Prospectus Supplement. Transfers to and from the Stable Account are not permitted. Withdrawals from the Stable Account are not permitted until all other investment options are depleted of value. Withdrawals from the flexible investment options and select investment options will be deducted on a pro-rata basis from each investment option You have allocated to. If You do not wish to maintain the required allocation percentages for the investment options, the rider must be terminated, subject to the termination restrictions and requirements of the rider, prior to making any transfer. Additional detail regarding the required allocations is provided in the Required Allocations section, below.

Please note:

•	You will begin paying the rider charge as of the rider date, even if You do not begin taking withdrawals for many years. We will not refund the charges You have paid under the rider if You never choose to take withdrawals and/or if You never receive any payments under the rider.
•	We have designed this rider to allow for withdrawals from Your Policy Value each rider year that are less than or equal to the rider withdrawal amount. You should not purchase this rider if You plan to take withdrawals in excess of the rider withdrawal amount, because such excess withdrawals may significantly reduce or eliminate the value of the guarantee provided by the rider.
•	The longer You wait to start making withdrawals under the benefit, the less time You have to benefit from the guarantee because of decreasing life expectancy as You age. On the other hand, the longer You wait to begin making withdrawals, the higher Your withdrawal percentage may be, and the more opportunities You will have to lock in a higher withdrawal base. You should carefully consider when to begin making withdrawals. There is a risk that You will not begin making withdrawals at the most financially beneficial time for You.
•	Because the Guaranteed Lifetime Withdrawal Benefit under this rider is accessed through regular withdrawals that do not exceed the rider withdrawal amount, the rider may not be appropriate for You if You do not foresee a need for liquidity and Your primary objective is to take maximum advantage of the tax deferral aspect of the policy.
•	All Policy Value must be allocated to the select and flexible investment options and the Stable Account, subject to specified allocation percentages as provided in the Rate Sheet Prospectus Supplement. You should consult with Your financial professional to assist You in determining whether these investment options and required allocations are suited for Your financial needs and risk tolerance.
•	Any withdrawal in any rider year that is in excess of the rider withdrawal amount (including any surrender charge or Excess Interest Adjustment) is an excess withdrawal. The rider year begins on the rider date and thereafter on each rider anniversary.

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•	An excess withdrawal will impact the withdrawal base on a greater than dollar-for-dollar basis when the Policy Value, after the rider withdrawal amount is withdrawn, is less than the rider withdrawal base and may eliminate the benefit. See “Appendix – Hypothetical Adjusted Withdrawals – Transamerica Principal Optimizer^SM and Transamerica Income Edge^SM 1.2 Riders”.
•	Upon receiving due proof of death of the Annuitant (or the death of the surviving spouse if the joint option is elected), the Transamerica Income Edge^SM 1.2 rider terminates and all benefits thereunder cease.
•	You may terminate the rider by providing Written Notice to us requesting termination during the 30 days following the fifth rider anniversary or every fifth rider anniversary thereafter. See Termination section, below.
•	If Your Policy Value reaches zero, the Company may require satisfactory evidence a person is alive if a payment is based on that person being alive. For example, a notarized letter may be provided as satisfactory evidence a person is living.
•	We will not refund charges that have been paid up to the point of terminating the policy or receiving annuity payments.
•	The tax rules for qualified policies may limit the value of this rider. Please consult a financial professional before electing the Transamerica Income Edge^SM 1.2 rider for a qualified policy.
•	Withdrawals up to the rider withdrawal amount are not subject to an Excess Interest Adjustment.

Like all withdrawals, withdrawals up to the rider withdrawal amount, while this rider is in effect also:

•	reduce Your Policy Value by the amount of the withdrawal;
•	reduce Your base policy death benefit and other benefits;
•	may be subject to surrender charges if the withdrawal is greater than the Surrender Charge Free Amount;
•	may be subject to income taxes and federal tax penalties (see TAX INFORMATION); and
•	may be limited or restricted under certain qualified policies. (see TAX INFORMATION – Qualified Policies and TAX INFORMATION – Optional Living Benefits)

Transamerica Income Edge^SM 1.2 - Rider Withdrawal Amount

You can withdraw up to the rider withdrawal amount in any rider year (after attainment of the minimum benefit age) from Your Policy Value without causing an excess withdrawal. See Withdrawal Base Adjustments below.

The rider withdrawal amount is zero if the Annuitant (or the Annuitant's spouse if younger and the joint life option is elected) has not attained the minimum benefit age on the rider date and remains zero until the first day of the rider year after the Annuitant (or the Annuitant's spouse if younger and the joint life option is elected) has attained the minimum benefit age. On the first day of the rider year after the Annuitant (or the Annuitant’s spouse if younger and the joint life option is elected) has attained the minimum benefit age the rider withdrawal amount is equal to the withdrawal base multiplied by the withdrawal percentage. See applicable Rate Sheet Prospectus Supplement for additional information. Surrender charges may apply if Your rider withdrawal amount exceeds Your Surrender Charge Free Amount.

•

the rider withdrawal amount described above; or

•

an amount equal to any minimum required distribution amount, if any. For riders added on the Policy Date, the minimum required distribution during the first rider year is based on the initial premium (initial premium could include premium from transfers received after the policy effective date, but must be deemed initial premium). For riders added after the Policy Date, if the policy to which the rider is attached was in force on December 31st of the previous year, the minimum required distribution for the first rider year is calculated using the year-end Policy Value plus any actuarial present value from the previous year. For riders added after the Policy Date and the policy to which the rider is attached was not in force on December 31st of the previous year, the minimum required distribution for the first rider year is based on the Policy Value on the rider date. The minimum required distribution is calculated based on the rules established by the IRS. The minimum required distribution may only be used if all of the following are true:

a.	the policy to which this rider is attached is a tax-qualified policy for which the IRS minimum required distributions are required,
b.	the minimum required distributions do not start prior to the Annuitant’s attained age of 72 (or age 70 ½ if the Annuitant attained 70½ before 1/1/2020),
c.	the minimum required distributions are based on either the Uniform Lifetime table or the Joint Life and Last Survivor Expectancy table,
d.	the minimum required distributions are based on age of the living Annuitant. The minimum required distributions cannot be based on the age of someone who is deceased,
e.	the minimum required distributions are based only on the policy to which this rider is attached,

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f.	the minimum required distributions are only for the current rider year. Amounts carried over from past rider years are not considered, and
g.	If an excess withdrawal is taken in the previous rider year, the minimum required distribution will not be used in calculating the rider withdrawal amount. If the minimum required distribution amount (determined as set forth above) exceeds the rider withdrawal amount, the excess will not be treated as an excess withdrawal under the rider.

If any of the above are not true, then the minimum required distribution is equal to zero and it is not available as a rider withdrawal amount.

If Your Policy Value reaches zero:

•

due to an excess withdrawal, then Your policy will terminate resulting in the termination of this rider. An excess withdrawal that does not cause Your Policy Value to equal zero will not terminate the rider.

Please note:

•	If the rider is added prior to the Annuitant (or the Annuitant’s spouse if younger and the joint life option is elected) having attained the minimum benefit age, the rider withdrawal amount will be zero until the beginning of the rider year after the Annuitant (or the Annuitant’s spouse if younger and the joint life option is elected) has attained the minimum benefit age birthday, however, You will still be charged a rider fee upon electing the rider.
•	The rider year begins on the rider date and thereafter on each rider anniversary.
•	You cannot carry over any portion of Your rider withdrawal amount that is not withdrawn during a rider year for withdrawal in a future rider year. This means that if You do not take the entire rider withdrawal amount during a rider year, You cannot take more than the rider withdrawal amount in the next rider year and maintain the rider's guarantees.
•	Excess withdrawals may cause You to lose the benefit of the rider.
•	Any amount withdrawn in a rider year (including any surrender charge) in excess of the rider withdrawal amount is an excess withdrawal.
•	The select and flexible investment options may be changed by us in the future. Any changes to investment allocation requirements will not affect existing policy Owners with an active rider.

Rate Sheet Prospectus Supplement

The rider fee percentage, valuation frequency, minimum benefit age, required allocations and withdrawal percentages are disclosed in the Rate Sheet Prospectus Supplement. We periodically issue new Rate Sheet Prospectus Supplements that may reflect different rider fee percentage, valuation frequency, minimum benefit age, required allocations and withdrawal percentages than the previous Rate Sheet Prospectus Supplements. All Rate Sheet Prospectus Supplements are available on the EDGAR system at (File Numbers 333-233836 for TLIC and 333-233840 for TFLIC).

For riders issued as part of the new policy application process: In order to receive the applicable rider fee percentage, valuation frequency, minimum benefit age, required allocations and withdrawal percentages, Your application must be signed while the Rate Sheet Prospectus Supplement is effective, we must receive Your completed application within 7 calendar days from the date that the

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supplement is no longer effective, and the policy must be funded within 60 calendar days from the date that the supplement is no longer effective. If these conditions are not met, Your application will be considered not in good order and additional paperwork may be required to issue the policy with the applicable rates in effect at that time.

For riders issued to existing policy Owners: In order to receive the applicable rider fee percentage, valuation frequency, minimum benefit age, required allocations and withdrawal percentages, Your rider election form must be signed and received in good order while the Rate Sheet Prospectus Supplement is in effect. If Your rider election form is received in good order after the Rate Sheet Prospectus Supplement is no longer in effect, You will receive the rider terms that are in effect on the date Your rider election form is received in good order. Election forms must be received in good order while the New York Stock Exchange is open for regular trading to get same-day pricing of the transaction. Election forms received in good order on non-business days or after our close of business will get next-day pricing.

Transamerica Income Edge^SM 1.2 – Withdrawal Percentage

We use the withdrawal percentage to calculate the rider withdrawal amount. The withdrawal percentage is determined by the Annuitant’s age (or the Annuitant's spouse's age if younger and the joint life option is elected) and rider duration at the time of the first withdrawal taken on or after the rider anniversary immediately following the Annuitant’s (or the Annuitant's spouse's if younger and the joint life option is elected) attainment of the minimum benefit age.

The withdrawal percentage is disclosed in Rate Sheet Prospectus Supplement. All Rate Sheet Prospectus Supplements are available on the EDGAR system at www.sec.gov (File Numbers 333-233836 for TLIC and 333-233840 for TFLIC).

Please note: Once established, the withdrawal percentage will not change except in certain instances involving automatic step-ups. Withdrawal percentages will change when an automatic step-up occurs and You have crossed into another band or duration prior to the automatic step-up. See Automatic Step –Up section below.

Transamerica Income Edge^SM 1.2 – Withdrawal Base

We use the withdrawal base to calculate the rider withdrawal amount and rider fee. The withdrawal base on the rider date is the Policy Value. During any rider year, the withdrawal base is equal to the withdrawal base on the rider date or most recent rider anniversary, plus subsequent premium payments, less subsequent withdrawal base adjustments due to excess withdrawals.

On each rider anniversary, the withdrawal base will equal the greatest of:

1. the current withdrawal base;

2. the Policy Value on the rider anniversary; and

3. the highest Policy Value in the previous year based on the valuation frequency. (see Automatic Step-Up below).

Item 3 above will be zero if there have been any excess withdrawals in the current rider year.

See “Appendix – Hypothetical Example of Withdrawal Base Calculation – Transamerica Principal Optimizer^SM and Transamerica Income Edge^SM 1.2 Riders” which illustrates the hypothetical example of the withdrawal base calculation.

Please note:

•	We determine the withdrawal base solely to calculate the rider withdrawal amount and rider fee.
•	Your withdrawal base is not a Cash Value, a surrender value, or a death benefit. It is not available for withdrawal, it is not a minimum return for any Subaccount, and it is not a guarantee of Policy Value.
•	Because the withdrawal base is generally equal to the Policy Value on the rider date, the rider withdrawal amount may be lower if You delay electing the rider and the Policy Value decreases before You elect the rider.

Transamerica Income Edge^SM 1.2 - Automatic Step-Up

On each rider anniversary, the rider will receive an automatic step-up if the withdrawal base is set equal to the Item 2 or 3 from the Transamerica Income Edge^SM 1.2 – Withdrawal Base section above. If neither is greater than the current withdrawal base no automatic step-up will occur. If the withdrawal percentage has been established due to a previous withdrawal, the withdrawal percentage (as indicated in the Rate Sheet Prospectus Supplement) will increase if You have crossed into another age band or rider year duration prior to the automatic step-up. Please note, the increase is part of the automatic step-up and if no automatic step-up occurs then there will be no withdrawal percentage increase.

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Automatic Step-Up Opt Out. Each time an automatic step-up results in a rider fee percentage increase, You have the option to reject the automatic step-up and reinstate the withdrawal base, withdrawal percentage, and rider fee percentage to their respective amounts immediately before the automatic step-up, provided that You do so within 30 days after the rider anniversary on which the automatic step-up occurred. Changes as a result of the automatic step-up feature will be reversed. We must receive Your rejection (each time You elect to opt out), in good order, at our Administrative Office within the same 30 day period after the rider anniversary on which the automatic step-up occurred. You are not subject to fee increases for any Automatic Step-Up that You have opted out of. Opting out of one step-up does not operate as an opt-out of any future step-ups.

Transamerica Income Edge^SM 1.2 - Withdrawal Base Adjustments

Cumulative gross withdrawals up to the rider withdrawal amount in any rider year will not reduce the withdrawal base. Any amount of gross withdrawals in excess of the rider withdrawal amount in any rider year (“excess withdrawals”) will reduce the withdrawal base, however, by the greater of the dollar amount of the excess withdrawal (if the Policy Value is greater than the withdrawal base) or a pro rata amount (in proportion to the reduction in the Policy Value when the Policy Value is less than the withdrawal base), possibly to zero. If an excess withdrawal reduces the Policy Value to zero, this rider will terminate. Withdrawal base adjustments occur immediately following excess withdrawals. See “Appendix - Hypothetical Adjusted Withdrawals – Transamerica Principal Optimizer^SM and Transamerica Income Edge^SM 1.2 Riders” for examples showing the effect of hypothetical withdrawals in more detail, including an excess withdrawal that reduces the withdrawal base by a pro rata amount. The effect of an excess withdrawal is magnified if the Policy Value is less than the withdrawal base.

Please Note: You retain all responsibility for monitoring excess withdrawals. If You take regular or scheduled withdrawals please pay particular attention to any excess withdrawal because Your regular or scheduled non-excess withdrawals may thereafter become excess withdrawals that reduce or eliminate Your benefit on an accelerated basis.

•	You take Your first withdrawal when You are age 72
•	You do not withdraw more than the rider withdrawal amount in any one year, and
•	there are no future automatic step-ups.

Example continued. Assume the same facts as above, but You withdraw $10,000 when You are 72 years old. That excess withdrawal decreases Your future rider withdrawal amount to $5,714.

Because the withdrawal ($10,000) is in excess of the rider withdrawal amount ($6,000) it impacts the withdrawal base on a greater than dollar-for-dollar basis.

Adjusted Withdrawal = Excess Withdrawal Amount * Withdrawal Base prior to the withdrawal / Policy Value after the Rider Withdrawal Amount but prior to the Excess Withdrawal Amount.

Excess withdrawal amount $10,000 - $6,000 = $4,000

Withdrawal base = $100,000

Policy Value after the rider withdrawal amount but prior to the excess withdrawal amount $90,000 - $6,000 = $84,000

Adjusted withdrawal = $4,000 * $100,000 / $84,000 = $4,761.90

New withdrawal base $100,000 - $4,761.90 = $95,238.10

New rider withdrawal amount $95,238.10 * 6% = $5,714.29

See the “Appendix - Hypothetical Adjusted Withdrawals - Transamerica Principal Optimizer^SM and Transamerica Income Edge^SM 1.2 Riders” for examples showing the effect of hypothetical withdrawals in more detail.

Transamerica Income Edge^SM 1.2 - Required Allocations

If You elected this rider, a certain percentage of Your Policy Value on the rider date must be allocated to the Stable Account, the select investment options and the flexible investment options, in accordance with the percentages specified in the Required Allocations for Premium Payments table contained in the Rate Sheet Prospectus Supplement. All Rate Sheet Prospectus Supplements are available on the EDGAR system at www.sec.gov (File Numbers 333-233836 for TLIC and 333-233840 for TFLIC). After the rider date, the allocation of all subsequent premium payments must also comply with the required allocations for premium payments table contained in the Rate Sheet Prospectus Supplement so long as this rider is in effect.

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In addition, if You elected this rider, any transfers to and from the select investment options and the flexible investment options must comply with the required allocation percentages for rebalancing specified in the Rate Sheet Prospectus Supplement in effect at the time You elect this rider. Any transfers to and from the select investment options and flexible investment options will be validated using the prior day’s Policy Values to ensure compliance with the required allocation percentages for rebalancing at the time of the request. Transfer requests that do not comply with the required allocation percentages for rebalancing will be deemed not in good order. Changes in Policy Values due to market movements on other dates will not be treated as a violation of the required allocations.

Enrollment in dollar cost averaging is not available while this rider is in effect.

Allocations applied to the Stable Account will be credited interest based on a fixed rate. The interest rates will be applied in increments of at least one year measured from each premium payment date and will automatically renew and remain in the Stable Account. The interest credited to the Stable Account will not be less than the guaranteed minimum effective annual interest rate shown on Your policy (the “guaranteed minimum”). We determine credited rates, which are guaranteed for at least one year, in our sole discretion. You bear the risk that we will not credit interest greater than the guaranteed minimum.

Withdrawals, surrenders, or transfers (upon termination) from the Stable Account will not be subject to an Excess Interest Adjustment.

Select and Flexible Investment Options. As described above, if You elected this rider, You must allocate a certain percentage of Your premium payments and Policy Value to the available flexible investment options and select investment options. A complete listing of investment options designated as flexible investment options and select investment options appears in the “Appendix – Transamerica Principal Optimizer^SM and Transamerica Income Edge^SM 1.2 Investment Options”. You will be notified if there are changes made to the investment options within the designated group. Requiring that You allocate a certain percentage of Your premium payments and Policy Value to the designated investment options, some of which invest in underlying funds that employ strategies that are intended to reduce the risk of loss and/or manage volatility, may reduce investment returns and may reduce the likelihood that we will be required to use our own assets to pay amounts due under this benefit.

You will be notified in writing that the required rebalance has been set up, and what the calculated rebalance allocation percentages are, prior to the first quarter rebalancing. You may request changes to Your rebalancing allocation instructions before the prior instructions are implemented if we receive notice of Your request in good order prior to the close of the New York Stock Exchange on the day the rebalance is processed. Your rebalancing allocation instructions will be established using a ratio of Your current investment

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allocation instruction for new premium payments. You may request changes to Your rebalancing allocation instructions while this rider remains effective as long as they comply with the required allocations for rebalancing. Rebalancing will not cease upon the request of any transfer.

See “Appendix – Guaranteed Lifetime Withdrawal Benefit -Transamerica Income Edge^SM 1.2 and Transamerica Principal Optimzer^SM Riders - Rebalancing Examples” which illustrates the initial calculation of rebalancing allocation percentage. On the rider date, Your rebalancing allocation instructions will be established using a ratio of Your current investment allocation instructions for new premium payments.

Please note:

•	If You do not wish to maintain the required allocations, the rider must be terminated, subject to the rider termination restrictions and requirements, prior to making any transfer. (See, Transamerica Income Edge^SM 1.2 Rider - Termination, below.)
•	We can change the list of designated flexible and select investment groups at any time. Any changes to investment allocation requirements will not affect policy Owners with an active rider.
•	If an underlying fund portfolio informs us that a portfolio will be liquidated or reorganized, we can eliminate the corresponding select or flexible investment option. If this occurs, You will be required to reallocate values in the affected investment option to other flexible and select investment options in order to meet the allocation requirements. We will provide notice to You if a select or flexible investment option will be eliminated and reallocation is required. If You do not provide us with new instructions in the time specified in our notice, we will move Your money in the affected option to the money market Subaccount to the extent permitted by applicable law.

Transamerica Income Edge^SM 1.2 - Joint Life Option

If You elected the Transamerica Income Edge^SM 1.2 rider, then You can also elect to postpone termination of the rider until the later of the Annuitant’s or Annuitant’s spouse’s death (only if the Annuitant’s spouse is eligible to and elects to continue the policy, see TAX INFORMATION - Tax Status of a Nonqualified Policy - Distribution Requirements). If You elected the Joint Life option, then the withdrawal percentage used to calculate the rider withdrawal amount may be lower than under the single life option. The withdrawal percentage that is used to determine Your rider withdrawal amount will be disclosed in a Rate Sheet Prospectus Supplement included with Your prospectus. This option may not be permitted in the case of certain non-natural Owners. All Rate Sheet Prospectus Supplements are available on the EDGAR system at www.sec.gov (File Numbers 333-233836 for TLIC and 333-233840 for TFLIC).

Please note: If You elected this option:

•	The withdrawal percentage for each “age at the time of the first withdrawal” may be lower if You elected the joint life option.

•	The rider fee may be greater if this option is elected.
•	The Annuitant's spouse (or in certain instances a non-natural entity acting for the benefit of the Annuitant's spouse) must be either a joint Owner along with the Annuitant or the sole primary beneficiary (and there is no joint Owner). (Please see Spousal Continuation section for more detail regarding Annuitant's spouse).
•	A former spouse of the Annuitant cannot continue to keep the policy in force if no longer married to the Annuitant at the time of the Annuitant's death. In that event, the rider will terminate and no additional withdrawals under the rider will be permitted.
•	The Annuitant’s spouse for purposes of this rider cannot be changed to a new spouse.
•	The rider withdrawal percentage is based on the age of the younger of the Annuitant and Annuitant’s spouse.

•	The rider’s issue ages may vary if You elected this option.

Transamerica Income Edge^SM 1.2 Fees

The rider fee is deducted at the end of each successive rider quarter, on the same day of the month as the rider date. If a day does not exist in a given month, the first day of the following month will be used. If a rider fee is deducted from a Subaccount on a day which is not a Business Day, the value of Accumulation Units redeemed will be determined as of the next Business Day. The rider fee is calculated and stored at issue and at each subsequent rider quarter for the upcoming quarter. The rider fee will be adjusted for any premium additions and excess withdrawals. It will be deducted automatically from the flexible investment options and the select investment options on a pro rata basis at the end of each rider quarter. After those investment options are depleted of value, the rider fee will be deducted from the Stable Account.

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The rider fee percentage may change after the first rider anniversary due to an automatic step-up. Your rider fee may increase (or decrease) at the time of any automatic step-up. See Automatic Step-Up section. The rider fee percentage will not exceed the maximum fee percentage in effect when You purchased the rider. The current rider fee percentage will be disclosed in a Rate Sheet Prospectus Supplement. All Rate Sheet Prospectus Supplements are available on the EDGAR system at www.sec.gov (File Numbers 333-233836 for TLIC and 333-233840 for TFLIC).

For riders issued as part of the new policy application process: In order for the rider fee percentage disclosed in the applicable Rate Sheet Prospectus supplement to apply, Your application must be signed on or after the date set forth in the applicable Rate Sheet Prospectus Supplement and must be received in good order within 7 calendar days and funded within 60 calendar days from the date the Rate Sheet Prospectus Supplement is no longer in effect.

For riders issued to existing policy Owners: In order for the rider fee disclosed percentage in the application Rate Sheet Prospectus Supplement to apply, Your rider election form must be signed and received while the applicable Rate Sheet Prospectus Supplement is in effect.You should not elect this rider without first obtaining the applicable Rate Sheet Prospectus Supplement. You can contact us at www.transamerica.com to receive a Rate Sheet Prospectus Supplement applicable to You.

(A)	is the withdrawal base;
(B)	is the rider fee percentage; and
(C)	is the number of days in the rider quarter divided by the total number of days in the applicable rider year.

The following example uses these assumed values: Initial Premium = $100,000; Withdrawal Base = $100,000; Rider Fee percentage = 1.25%; and 91 total days in the rider quarter.

Example 1: Calculation at rider issue for first quarter rider fee. The rider fee is:

= 100,000*0.0125*(91/365)

= 1,250*(91/365)

= $311.64

A portion of the rider fee will also be assessed upon full surrender of the policy or other termination of the rider. The quarterly fee will be adjusted based on the number of days remaining until the end of the next rider quarter for the period beginning on the first day of the most recent rider quarter and ending on the date of termination.

On each rider anniversary the rider fee percentage may increase (or decrease) at the time of an automatic step-up. See Automatic Step-Up section. The rider fee percentage will not exceed the maximum fee percentage in effect when You purchased the rider. The current rider fee percentage will be disclosed in a Rate Sheet Prospectus Supplement. All Rate Sheet Prospectus Supplements are available on the EDGAR system at www.sec.gov (File Numbers 333-233836 for TLIC and 333-233840 for TFLIC). Please contact Your financial intermediary or call our Administrative Office to determine whether the Rate Sheet Prospectus Supplement has been amended. Each time an automatic step-up results in a rider fee percentage increase, You will have the option to reject the automatic step-up and reinstate the withdrawal base, withdrawal percentages and rider fee percentage to their respective amounts immediately before the automatic step-up (adjusted for any subsequent premium payments or withdrawals), provided that You do so within 30 calendar days after the rider anniversary on which the automatic step-up occurred. We must receive Your rejection, in good order, at our Administrative Office within the 30 day period after the rider anniversary on which the automatic step-up occurred.

Please note regarding the rider fee:

•	Because the rider fee is a percentage of the withdrawal base, it could be a much higher percentage of Your Policy Value, particularly in the event that Your Policy Value decreases significantly.
•	Because the rider fee is a percentage of the withdrawal base, the amount of the rider fee we deduct will increase if the withdrawal base increases (although the percentage(s) may remain the same).

The rider fee adjustment is calculated by multiplying (A) by (B) by (C), where:

(A)	is the withdrawal base change (i.e. withdrawal base after the transaction minus the withdrawal base before the transaction);
(B)	is the rider fee percentage; and
(C)	is the number of days remaining in the rider quarter divided by the total number of days in the applicable rider year.

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The following example uses these assumed values: All initial values as in Example 1; Subsequent Premium = $10,000; and 20 remaining days in the rider quarter.

Example 2: Calculation for first quarter rider fee adjustment for a subsequent premium. The fee adjustment is:

= 10,000*0.0125*(20/365)

= 125*(20/365)

= $6.85

Total fee assessed at the end of the first rider quarter (assuming no further rider fee adjustments):

= $6.85 + $311.64

= $318.49

The following two examples use assumed fees and values. The assumed rider year is not a leap year.

Example 3: Calculation for second quarter fee at beginning of second rider quarter assuming withdrawal base of $110,000 and a fee percentage of 1.25%.

= 110,000*0.0125*(91/365)

= 1,375*(91/365)

= $342.81

Example 4: Calculation for second quarter fee and an excess withdrawal that results in a pro-rata reduction in the withdrawal base. Assuming beginning values as in example 3, plus adjustment for gross withdrawal of $10,000 taken with 40 days remaining in the second rider quarter. Assumes withdrawal percentage of 5% and a Policy Value of $93,500 prior to the transaction and change in withdrawal base as follows:

Fee adjustment as follows:

= $-5,625 * 0.0125 * (40/365)

= $-78.75 * (40/365)

= $-7.71

The total fee assessed at the end of the second rider quarter (assuming no further rider fee adjustments):

= $342.81 - $7.71

= $335.10

The new withdrawal base = $110,000 - $5,625 = $104,375

Transamerica Income Edge^SM 1.2 - Issue Requirements

We will not issue the Transamerica Income Edge^SM 1.2 rider if:

•	the Annuitant is age 86 or older (lower if required by state law); or
•	the Annuitant is not also an Owner (except in the case of non-natural Owners); or
•	there are more than two Owners.

Furthermore, if the joint life option is elected, we will not issue the Transamerica Income Edge^SM 1.2 Rider if:

•	the Annuitant’s spouse is 86 or older (lower if required by state law); or
•	the Annuitant’s spouse is not a joint Owner along with the Annuitant; or
•	the Annuitant’s spouse is not the sole primary beneficiary (and there is no joint Owner).
•	The use of joint life option may not be permitted in the case of certain non-natural Owners.

Termination

The Transamerica Income Edge^SM 1.2 rider will terminate upon the earliest of the following:

•	the date the policy to which this rider is attached terminates;
•	the date of a change in ownership or assignment which violates the Owner and Annuitant relationship requirements as contained in the rider;
•	prior to Your Policy Value reaching zero, the date on which we receive in good order, required information to process a death claim for the Annuitant (or if the joint life option is elected, the later of the Annuitant’s or Annuitant’s spouse’s death);

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•	on or after Your Policy Value equals zero, upon Annuitant’s death (or if the joint life option is elected, the later of the Annuitant’s or Annuitant’s spouse’s death);
•	Annuitization (however, if You have reached Your maximum Annuity Commencement Date You may choose an Annuitization option which guarantees You lifetime payments in an amount equal to Your rider withdrawal amount); or
•	the date we receive Written Notice from You requesting termination if such notice is received by us during the 30 days following the fifth rider anniversary or any fifth rider anniversary thereafter.
•	the date an excess withdrawal reduces Your Policy Value to zero; or
•	The date we receive Written Notice from You requesting termination of the rider if such notice is received before midnight of the 30^th calendar day after You receive the rider.

OTHER INFORMATION

State Variations

The following section describes modifications to this prospectus required by one or more state insurance departments as of the date of this prospectus. Unless otherwise noted, variations apply to all forms of policies we issue. References to certain state's variations do not imply that we actually offer policies in each such state. These variations are subject to change without notice and additional variations may be imposed as specific states approve new riders. The Company will amend this prospectus upon notification of any additional variations received from one or more state insurance departments.

California. Right to Cancel: The policy may be canceled by returning the policy. A refund will be paid within 30 days from the date notice of cancellation was received and refund will include any fees or charges. Owners age 60 or above have a 30 day right to cancel period. Owners age 60 or above also have the option to elect immediate investment in investment options of their choice, and receive Policy Value if they cancel; or, they may allocate the initial premium payment to the money market portfolio for 35 calendar days at the end of which the Policy Value is moved to the investment options of their choice, and they would receive return of premium if they cancel. Transamerica Income Edge^SM 1.2 and Transamerica Principal Optimizer^SM: Owners of the Transamerica Income Edge^SM 1.2 rider and Transamerica Principal Optimizer^SM rider, age 60 or above have the option to elect immediate investment consistent with the allocations permitted in the applicable Rate Sheet Prospectus Supplement, or, they may allocate the initial premium payment to the Stable Account as permitted in the applicable Rate Sheet Prospectus Supplement and the remaining premium to the money market portfolio for 35 calendar days (unless the owner specifies that initial premium should be allocated to the underlying Subaccount(s)) at the end of which the Policy Value is moved to the investment options of their choice consistent with the allocations permitted in the applicable Rate Sheet Prospectus Supplement. The Nursing Care and Terminal Condition and the Unemployment Waivers: are not available. Retirement Income Choice^® 1.7: The Income Enhancement^SM is not available under the Retirement Income Choice^® 1.7 rider. Ownership and Assignment: Restrictions on ownership change and assignments are not permitted.

Florida. Right to Cancel: Owners have a 21 day right to cancel period and will receive return of premium. The Unemployment Waiver is not available. Excess Interest Adjustment is not applied upon Annuitization or death. Annuity Commencement Date: The Annuity Commencement Date is not allowed until after the first Policy Year. Misstatement of Age: The Transamerica Principal Optimizer^SM, Retirement Income Max^® 1.2, Transamerica Retirement Choice^® 1.7 and Transamerica Income Edge^SM 1.2 riders will not terminate due to a misstatement of age.

New York. Right to Cancel: Under the right to cancel provision the premium payment allocated to the Fixed Account, if any, plus the Policy Value in the Separate Account, if any, including any fees and charges is returned. If the policy is a replacement, the right to cancel period is extended to 60 days. Benefits and Features Not Available: Additional Death Distribution^SM rider, Additional Death Distribution+^SM rider and the Income Enhancement^SM under the Retirement Income Choice^® 1.7 rider, the Unemployment Waiver and telephone transactions are not available. Death Benefit: The death benefit payable during the accumulation phase is the greater of Policy Value or guaranteed minimum death benefit, if any. Annuitization: The Policy Value is used upon Annuitization. Annuity Commencement Date: The Annuity Commencement Date cannot be earlier than the first policy anniversary. Rider Fees: Retirement Income Max^® 1.2 and Retirement Income Choice^® 1.7 rider fees cannot be deducted from the Fixed Account if available. Transamerica Principal Optimizer^SM and Transamerica Income Edge^SM 1.2 rider fees cannot be deducted from the Stable Account. Ownership and Assignment: Restrictions on ownership change and assignments are not permitted.

North Dakota. Right to Cancel: Right to cancel period is 20 days.

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Ownership

You, as Owner of the policy, exercise all rights under the policy. You can generally change the Owner at any time by notifying us in writing at our Administrative Office. If we do not have an originating signature or guaranteed signature on file or if the Company suspects fraud, we may require a notarized signature. There may be limitations on Your ability to change the ownership of a qualified policy. An ownership change may be a taxable event.

Beneficiary

The beneficiary designation will remain in effect until changed. The Owner may change the designated beneficiary by sending us Written Notice. The beneficiary's consent to such change is not required unless the beneficiary was irrevocably designated or law requires consent. (If an irrevocable beneficiary dies, the Owner may then designate a new beneficiary.) We will not be liable for any payment made before the Written Notice is received in our Administrative Office. If more than one beneficiary is designated, and the Owner fails to specify their interests, they will share equally. If, upon the death of the Annuitant, there is a surviving Owner(s), then the surviving Owner(s) automatically takes the place of any beneficiary designation.

Right to Cancel Period

You may return Your policy for a refund, but only if You return it within a prescribed period, which is generally 10 days after You receive the policy (for replacements the right to cancel period is generally 30 days), or whatever longer time may be required by state law. The amount of the refund will generally be the premiums paid plus or minus accumulated gains or losses in the Separate Account. You bear the risk of any decline in Policy Value during the right to cancel period. However, if state law or federal tax regulations require we will refund Your original premium payment(s), or surrender value, if greater. We will pay the refund within seven days after we receive in good order within the applicable period at our Administrative Office, Written Notice of cancellation and the returned policy. The policy will then be deemed void.

Assignment

You can also generally assign the policy any time during Your lifetime. We will not be bound by the assignment until we receive Written Notice of the assignment in good order at our Administrative Office and approve it. We reserve the right, except to the extent prohibited by applicable laws, regulations, or actions of the State insurance commissioner, to require that an assignment will be effective only upon acceptance by us, and to refuse assignments or transfers at any time on a non-discriminatory basis. We will not be liable for any payment or other action we take in accordance with the policy before we approve the assignment. There may be limitations on Your ability to assign a qualified policy. An assignment may have tax consequences.

Termination for Low Value

If a withdrawal or fee (including an optional rider fee, administrative fee, or Owner transaction fee) reduces Your Cash Value below the minimum specified in Your policy, we reserve the right to terminate Your policy and send You a full distribution of Your remaining Cash Value. All benefits associated with Your annuity policy will be terminated. Federal law may impose restrictions on our right to terminate certain qualified policies. We do not currently anticipate exercising this right if You have certain optional benefits, however, we reserve the right to do so.

Sending Forms and Transaction Requests in Good Order

We cannot process Your requests for transactions relating to the policy until they are received in good order. “Good order” means the actual receipt of the instructions relating to the requested transaction in writing (or, when appropriate, by telephone or electronically), along with all forms, information and supporting legal documentation necessary to effect the transaction. This information and documentation generally includes, to the extent applicable to the transaction: Your completed application; the policy number; the transaction amount (in dollars or percentage terms); the names and allocations to and/or from the Subaccounts affected by the requested transaction; the dated signatures of all Owners (exactly as registered on the Policy) if necessary; Social Security Number or Taxpayer I.D.; and any other information or supporting documentation that we may require, including any spousal or joint Owner's consents. With respect to purchase requests, “good order” also generally includes receipt of sufficient funds to effect the purchase. We may, in our sole discretion, determine whether any particular transaction request is in good order, and we reserve the right to change or waive any good order requirements at any time.

“Received” or receipt in good order generally means that everything necessary must be received by us, at our Administrative Office specified in the Glossary of Terms. We reserve the right to reject electronic transactions that do not meet our requirements.

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Regulatory Modifications to Policy

We reserve the right to amend the policy or any riders attached thereto as necessary to comply with specific direction provided by state or federal regulators, through change of law, rule, regulation, bulletin, regulatory directives or agreements.

Certain Offers

From time to time, we have (and we may again) offered You some form of payment or incentive in return for terminating or modifying certain guaranteed benefits.

When we make an offer, we may vary the offer amount, up or down, among the same group of policy Owners based on certain criteria such as Policy Value, the difference between Policy Value and any applicable benefit base, investment allocations and the amount and type of withdrawals taken. For example, for guaranteed benefits that have benefit bases that can be reduced on either a pro rata or dollar-for-dollar basis depending on the amount of withdrawals taken, we may consider whether You have taken any withdrawal that has caused a pro rata reduction in Your benefit base, as opposed to a dollar-for-dollar reduction. Also, we may increase or decrease offer amounts from offer to offer. In other words, we may make an offer to a group of policy Owners based on an offer amount, and, in the future, make another offer based on a higher or lower offer amount to the remaining policy Owners in the same group.

If You accept an offer that requires You to terminate a guaranteed benefit and You retain Your policy, we will no longer charge You for the benefit, and You will not be eligible for any future offers related to that type of guaranteed benefit, even if such future offer would have included a greater offer amount or different payment or incentive.

We may also make an offer to You to exchange an existing rider for a different rider.

Mixed and Shared Funding

The underlying fund portfolios may serve as investment vehicles for variable life insurance policies, variable annuity policies and retirement plans (“mixed funding”) and shares of the underlying fund portfolios also may be sold to Separate Accounts of other insurance companies (“shared funding”). While we currently do not foresee any disadvantages to Owners and participants arising from either mixed or shared funding, it is possible that the interests of Owners of various policies and/or participants in various plans for which the underlying fund portfolios serve as investments might at some time be in conflict. We and each underlying fund portfolio’s Board of Directors intend to monitor events in order to identify any material conflicts and to determine what action, if any, to take. Such action could include the sale of underlying fund portfolio shares by one or more of the Separate Accounts, which could have adverse consequences. Such action could also include a decision that separate funds should be established for variable life and variable annuity Separate Accounts. In such an event, we would bear the attendant expenses, but Owners and plan participants would no longer have the economies of scale resulting from a larger combined fund. Please read the prospectuses for the underlying fund portfolios, which discuss the underlying fund portfolios’ risks regarding mixed and shared funding, as applicable. Please see Voting Rights section below for how shares held by the Company would be voted.

Exchanges and/or Reinstatements

You can generally exchange a nonqualified annuity policy for another in a “tax-free exchange” under Section 1035 of the Internal Revenue Code or transfer qualified policies directly to another life insurance company as a “trustee-to-trustee transfer”. Before making an exchange or transfer, You should compare both annuities carefully. Remember that if You exchange or transfer another annuity for the one described in this prospectus, then You may pay a Surrender Charge on the other annuity, and there may be a new surrender charge period under this annuity and other charges may be higher (or lower) and the benefits under this annuity may be different. You should not exchange or transfer another annuity for this one unless You determine, after knowing all the facts, that the exchange or transfer is in Your best interest and not just better for the person trying to sell You this policy (that person will generally earn a commission if You buy this policy through an exchange, transfer or otherwise).

You may ask us to reinstate Your policy after such an exchange, transfer, withdrawal, or surrender and in certain limited circumstances we will allow You to do so by returning the same total dollar amount of funds distributed to the applicable investment options. The dollar amount will be used to purchase new Accumulation Units at the then current price. In the event any Subaccount previously invested in is closed and we don’t receive additional instructions, funds will be reallocated to the remaining available investment options according to the investment allocation instructions You previously provided. Because of changes in market value, Your new Accumulation Units may be worth more or less than the units You previously owned. Generally, unless You return the original company check, Your annuity policy is nonqualified and a portion of the prior withdrawal was taxable, we are required to report the taxable amount from the distribution to the IRS even though the funds have been reinstated. The cost basis will be adjusted accordingly. The taxable amount will be reported on Form 1099-R which You will receive in January of the year following the distribution. We recommend that You consult a tax professional to explain the possible tax consequences of reinstatements.

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Voting Rights

To the extent required by law, we will vote all shares of the underlying fund portfolios held in the Separate Account in accordance with instructions we receive from You and/or other individuals that have voting interests in the portfolios. We will send You and/or other individuals requests for instructions on how to vote those shares. When we receive those instructions, we will vote all of the shares in proportion to those instructions. Accordingly, it is possible for a small number of Owners (assuming there is a quorum) to determine the outcome of a vote, especially if they have large Policy Values. If, however, we determine that we are permitted to vote the shares in our own right, we may do so. Shares owned by the insurance company and its affiliates will also be proportionately voted.

Each person having a voting interest will receive proxy material, reports, and other materials relating to the appropriate portfolio.

Abandoned or Unclaimed Property

Every state has unclaimed property laws that generally provide for escheatment to the state of unclaimed property (including proceeds of annuity, life and other insurance policies) under various circumstances. In addition to the state unclaimed property laws, we may be required to escheat property pursuant to regulatory demand, finding, agreement or settlement. To help prevent such escheatment, it is important that You keep Your contact and other information on file with us up to date, including the names, contact information and identifying information for Owners, insureds, Annuitants, beneficiaries and other payees. Such updates should be communicated in a form and manner satisfactory to us.

Legal Proceedings

We, like other life insurance companies, are subject to regulatory and legal proceedings in the ordinary course of our business. Such legal and regulatory matters include proceedings specific to us and other proceedings generally applicable to business practices in the industry in which we operate. In some lawsuits and regulatory proceedings involving insurers, substantial damages have been sought and/or material settlement payments have been made. Although the outcome of any litigation or regulatory proceeding cannot be predicted with certainty, at the present time, we believe that there are no pending or threatened proceedings or lawsuits that are likely to have a material adverse impact on the Separate Account, on TCI's ability to perform under its principal underwriting agreement, or on our ability to meet our obligations under the policy.

Business Continuity

Our business operations may be adversely affected by volatile natural and man-made disasters, including (but not limited to) hurricanes, earthquakes, terrorism, civil unrest, military action, fires and explosions, pandemic diseases, and other catastrophes (“Catastrophic Events”). Over the past several years, changing weather patterns and climatic conditions have added to the unpredictability and frequency of natural disasters in certain parts of the world. To date, the COVID-19 pandemic has caused significant uncertainty and disruption to government, business operations, and consumer behavior on a global scale. Such uncertainty as to future trends and exposure may lead to financial losses to our businesses. Furthermore, Catastrophic Events may disrupt our operations and result in the loss of, or restricted access to, property and information about Transamerica and its clients. Such events may also impact the availability and capacity of our key personnel. If our business continuity plans do not include effective contingencies for Catastrophic Events, we may experience business disruption, damage to corporate reputation, and damage to financial condition for a prolonged period of time.

Cyber Security

Our operations support complex transactions and are highly dependent on the proper functioning of information technology and communication systems. Any failure of our information technology or communications systems may result in a material adverse effect on our results of operations and corporate reputation.

Any failure of or gap in the systems and processes necessary to support complex transactions and avoid systems failure, fraud, information security failures, processing errors, cyber intrusion, loss of data and breaches of regulation may lead to a materially adverse effect on our results of operations and corporate reputation. In addition, we must commit significant resources to maintain and enhance our existing systems in order to keep pace with applicable regulatory requirements, industry standards and customer preferences. If we fail to maintain secure and well-functioning information systems, we may not be able to rely on information for product pricing, compliance obligations, risk management and underwriting decisions. In addition, we cannot assure investors or consumers that interruptions, failures or breaches in security of these processes and systems will not occur, or if they do occur, that they can be timely detected and remediated. The occurrence of any of these events may have a materially adverse effect on our businesses, results of operations and financial condition.

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A computer system failure or security breach may disrupt our business, damage our reputation and adversely affect our operational results, financial condition and cash flows.

We rely heavily on computer and information systems and internet and network connectivity to conduct a large portion of our business operations. This includes the need to securely store, process, transmit and dispose of confidential information, including personal information, through a number of complex systems. In many cases this also includes transmission and processing to or through commercial customers, business partners (semi-) governmental agencies and third-party service providers. The introduction of new technologies, computer system failures, cyber-crime attacks or security or data privacy breaches may materially disrupt our business operations, damage our reputation, result in regulatory and litigation exposure, investigation and remediation costs, and materially and adversely affect our results of operations, financial condition and cash flows.

The information security risk that we face includes the risk of malicious outside forces using public networks and other methods, including social engineering and the exploitation of targeted offline processes, to attack our systems and information. It also includes inside threats, both malicious and accidental. For example, human error, unauthorized user activity and lack of sufficiently automated processing can result in improper information exposure or use. We also face risk in this area due to our reliance in many cases on third-party systems, all of which may face cyber and information security risks of their own. Third-party administrators or distribution partners used by us or our affiliates may not adequately secure their own information systems and networks, or may not adequately keep pace with the dynamic changes in this area. Potential bad actors that target us and our applicable third parties may include, but are not limited to, criminal organizations, foreign government bodies, political factions, and others.

In recent years information security risk has increased sharply due to a number of developments in how information systems are used by companies such as us, but also by society in general. Threats have increased as criminals and other bad actors become more organized and employ more sophisticated techniques. At the same time companies increasingly make information systems and data available through the internet, mobile devices or other network connections to customers, employees and business partners, thereby expanding the attack surface that bad actors can exploit.

Large, global financial institutions such as us have been, and will continue to be subject to information security attacks for the foreseeable future. The nature of these attacks will also continue to be unpredictable, and in many cases may arise from circumstances that are beyond our control. Especially if and to the extent we fail to adequately invest in defensive infrastructure, timely response capabilities, technology and processes or to effectively execute against our information security strategy, we may suffer material adverse consequences.

To date the highest impact information security incidents that we have experienced are believed to have been the result of e-mail phishing attacks targeted at our business partners and commercial customers. This in turn led to unauthorized use of valid website credentials to engage in fraudulent transactions and improper data exfiltration. Additionally, we have also faced other types of attacks, including but not limited to other types of phishing attacks and distributed denial of service (DDoS) attacks, as well as certain limited cases of unauthorized internal user activity, including activity between other units of Aegon. Although to our knowledge these events have thus far not been material in nature, our management recognizes the need to establish and maintain adequate information security systems that are capable of addressing the possibility of these types of attacks, as well as for the possibility of more significant and sophisticated information security attacks, in the future. There is no guarantee that the measures that we take will be sufficient to stop all types of attacks or mitigate all types of information security or data privacy risks.

We maintain cyber liability insurance to help decrease the impact of cyber-attacks and information security events, subject to the terms and conditions of the policy, however such insurance may not be sufficient to cover all applicable losses that we may suffer.

A breach of data privacy or security obligations may disrupt our business, damage our reputation and adversely affect financial conditions and results of operations.

Pursuant to applicable laws, various government agencies and independent administrative bodies have established numerous rules protecting the privacy and security of personal information and other confidential information held by us. For example, our businesses are subject to laws and regulations enacted by U.S. federal and state governments, including various regulatory organizations relating to the privacy and/or security of the information of customers, employees or others. These laws, among other things, increased compliance obligations, impacted our businesses’ collection, processing and retention of personal data, reporting of data breaches, and provide for penalties for non-compliance. For example, the New York Department of Finance Services (NYDFS), pursuant to its cybersecurity regulation, requires financial institutions regulated by the NYDFS, including certain of our entities, to, among other things, satisfy an extensive set of minimum cyber security requirements, including but not limited to governance, management, reporting, policy, technology and control requirements. Numerous other U.S. laws also impose various information security and privacy related obligations with respect to various Company affiliates operating in the U.S., including but not limited to the Gramm-Leach-Bliley Act and related state laws (GLBA), the California Consumer Privacy Act (CCPA) and the Health Insurance Portability and Accountability Act (HIPAA), among many others. Other legislators and regulators with jurisdiction over our

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businesses are considering, or have already enacted, enhanced information security risk management and privacy rules and regulations. A number of our entities and affiliates are also subject to contractual restrictions with respect to the information of our clients and business partners. The Company, and numerous of its, employees and business partners have access to, and routinely process, the personal information of consumers and employees. We rely on a large number of processes and controls to protect the confidentiality, integrity and availability of personal information and other confidential information that is accessible to, or in the possession of, us, our systems, employees and business partners. It is possible that an employee, business partner or system could, intentionally or unintentionally, inappropriately disclose or misuse personal or confidential information. Our data or data in our possession could also be the subject of an unauthorized information security attack. If we fail to maintain adequate processes and controls or if we or our business partners fail to comply with relevant laws and regulations, policies and procedures, misappropriation or intentional or unintentional inappropriate disclosure or misuse of personal information or other confidential information could occur. Such control inadequacies or non-compliance could cause disrupted operations and misstated or unreliable financial data, materially damage our reputation or lead to increased regulatory scrutiny or civil or criminal penalties or (class action) litigation, which, in turn, could have a material adverse effect on our business, financial condition and results of operations. In addition, we analyze personal information and customer data to better manage our business, subject to applicable laws and regulations and other restrictions. It is possible that additional regulatory or other restrictions regarding the use of such techniques may be imposed. Additional privacy and information security obligations have been imposed by various governments with jurisdiction over the Company or its affiliates in recent years, and more such obligations are likely to be imposed in the near future across our operations. Such restrictions and obligations could have material impacts on our business, financial conditions and/or results of operations.

In addition, we analyze personal information and customer data to better manage our business subject to applicable laws and regulations and other restrictions. It is possible that additional regulatory or other restrictions regarding the use of such techniques may be imposed. Additional privacy and information security obligations have been imposed by various governments with jurisdiction over Transamerica or its subsidiaries in recent years, and more such obligations are likely to be imposed in the near future across our operations. Such restriction and obligations could have material impacts on our business, financial conditions and/or results of operations.

For a complete description regarding Transamerica’s policies for its websites, including the Privacy Policy and Terms of Use for such websites, please visit: www.transamerica.com/individual/privacy-policy and www.transamerica.com/individual/terms-of-use.

Information About Us

Transamerica Life Insurance Company, located at 4333 Edgewood Road NE, Cedar Rapids, Iowa 52499, is the insurance company issuing the Policy.

We are engaged in the sale of life and health insurance and annuity policies. Transamerica Life Insurance Company was incorporated under the laws of the State of Iowa on April 19, 1961 as NN Investors Life Insurance Company Inc., and is licensed in all states except New York and the District of Columbia, Guam, Puerto Rico, and the U.S. Virgin Islands. Transamerica Financial Life Insurance Company was incorporated under the laws of the State of New York on October 3, 1947 and is licensed in all states and the District of Columbia. We are a wholly-owned indirect subsidiary of Transamerica Corporation which conducts most of its operations through subsidiary companies engaged in the insurance business or in providing non-insurance financial services. All of the stock of Transamerica Corporation is indirectly owned by Aegon N.V. of The Netherlands, the securities of which are publicly traded. Aegon N.V., a holding company, conducts its business through subsidiary companies engaged primarily in the insurance business.

All obligations arising under the policies, including the promise to make annuity payments, and payment of any amounts held in the Fixed Account are general corporate obligations of ours and subject to our claims paying ability. Accordingly, no financial institution, brokerage firm or insurance agency is responsible for our financial obligations arising under the policies.

Financial Condition

We pay benefits under Your policy from our general account assets and/or from Your Policy Value held in the Separate Account. It is important that You understand that payments of the benefits are not assured and depend upon certain factors discussed below.

Assets in the Separate Account. You assume all of the investment risk for Your Policy Value that is allocated to the Subaccounts of the Separate Account. Your Policy Value in those Subaccounts constitutes a portion of the assets of the Separate Account. These assets are segregated and insulated from our general account, and may not be charged with liabilities arising from any other business that we may conduct.

Assets in the General Account. You also may be permitted to make allocations to Guaranteed Period Options of the Fixed Account, which are supported by the assets in our general account. Any guarantees under a policy that exceed Policy Value, such as those associated with any lifetime withdrawal benefit riders and any optional death benefits, are paid from our general account (and not the Separate Account). Therefore, any amounts that we may be obligated to pay under the policy in excess of Policy Value are subject to

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our financial strength and claims-paying ability and our long-term ability to make such payments. The assets of the Separate Account, however, are also available to cover the liabilities of our general account, but only to the extent that the Separate Account assets exceed the Separate Account liabilities arising under the policies supported by it.

We issue other types of insurance policies and financial products as well, and we also pay our obligations under these products from our assets in the general account.

As an insurance company, we are required by state insurance regulation to hold a specified amount of reserves in order to meet all the contractual obligations of our general account. In order to meet our claims-paying obligation we monitor our reserves so that we hold sufficient amounts to cover actual or expected policy and claims payments. In addition, we hedge our investments in our general account, and may require purchasers of certain of the variable insurance products that we offer to allocate premium payments and Policy Value in accordance with specified investment requirements. However, it is important to note that there is no guarantee that we will always be able to meet our claims-paying obligations, and that there are risks to purchasing any insurance product.

State insurance regulators also require insurance companies to maintain a minimum amount of capital, which acts as a cushion in the event that the insurer suffers a financial impairment, based on the inherent risks in the insurer’s operations. These risks include those associated with losses that we may incur as the result of defaults on the payment of interest or principal on our general account assets, which include bonds, mortgages, general real estate investments, and stocks, as well as the loss in market value of these investments. We may also experience liquidity risk if our general account assets cannot be readily converted into cash to meet obligations to our policy Owners or to provide the collateral necessary to finance our business operations.

How to Obtain More Information. We encourage both existing and prospective policy Owners to read and understand our financial statements. We prepare our financial statements on a statutory basis. Our financial statements, which are presented in conformity with accounting practices prescribed or permitted by the Iowa Department of Insurance as well as the financial statements of the Separate Account are located in the Statement of Additional Information (SAI). For a free copy of the SAI, simply call or write us at the phone number or address of our Administrative Office referenced in this prospectus. In addition, the SAI is available on the SEC’s website at www.sec.gov. Our financial strength ratings which reflect the opinions of leading independent rating agencies of our ability to meet our obligations to our policy Owners, are available on our website (www.transamerica.com/individual/what-we-do/about-us/financial-strength/), and the websites of these nationally recognized statistical ratings organizations – A.M. Best Company (www.ambest.com), Moody’s Investors Service (www.moodys.com), and Standard & Poor’s Rating Services (www.standardandpoors.com).

The Separate Account

Each Separate Account receives and invests the premium payments that are allocated to it for investment in shares of the underlying fund portfolios. Each Separate Account is registered with the SEC as a unit investment trust under the 1940 Act. However, the SEC does not supervise the management, the investment practices, or the policies of the Separate Account or us. Income, gains and losses (whether or not realized), from assets allocated to the Separate Account are, in accordance with the policies, credited to or charged against the Separate Account without regard to our other income, gains or losses.

The assets of each Separate Account are held in our name on behalf of the Separate Account and belong to us. However, those assets that underlie the policies are not chargeable with liabilities arising out of any other business we may conduct. The Separate Account may include other Subaccounts that are not available under these policies. We do not guarantee the investment results of the Separate Account.

The Underlying Fund Portfolios

At the time You purchase Your policy, You may allocate Your premium payment to Subaccounts. These are subdivisions of our Separate Account, an account that keeps Your policy assets separate from our company assets. The Subaccounts then purchase shares of underlying fund portfolios set up exclusively for variable annuity or variable life insurance products. These are not the same mutual funds that You buy through Your investment professional even though they may have similar investment strategies and the same portfolio managers. Each underlying fund portfolio has varying degrees of investment risk. Underlying fund portfolios are also subject to separate fees and expenses such as management fees and operating expenses. “Master-feeder” or “fund of funds” invest substantially all of their assets in other mutual funds and will therefore bear a pro-rata share of fees and expenses incurred by both funds. This will reduce Your investment return. Read the underlying fund portfolio prospectuses carefully before investing. We do not guarantee the investment results of any underlying fund portfolio. Certain underlying fund portfolios may not be available in all states and in all share classes. Please see “Appendix - Underlying Fund Portfolios Associated with the Subaccounts” for additional information.

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Other Transamerica Policies

We offer a variety of fixed and variable annuity policies. They may offer features, including investment options, and have fees and charges, that are different from those in the policy offered by this prospectus. Not every policy we issue is offered through every financial intermediary. Some financial intermediaries may not offer and/or limit the offering of certain features or options, as well as limit the availability of the policies, based on issue age, or other criteria established by the financial intermediary. Upon request, Your financial professional can show You information regarding other Transamerica annuity policies that he or she distributes. You can also contact us to find out more about the availability of any of the Transamerica annuity policies.

You should work with Your financial professional to decide whether this policy is appropriate for You based on a thorough analysis of Your particular insurance needs, financial objectives, investment goals, time horizons and risk tolerance.

Distribution of the Policies

Distribution and Principal Underwriting Agreement. We have entered into a principal underwriting agreement with our affiliate, Transamerica Capital, Inc. (TCI), for the distribution and sale of the policies. We pay commissions to TCI which are passed through to selling firms. (See below). We also pay TCI an “override” that is a percentage of total commissions paid on sales of our policies which is not passed through to the selling firms and we may reimburse TCI for certain expenses it incurs in order to pay for the distribution of the policies. TCI may market the policies through bank affiliated firms, national brokerage firms, regional and independent broker-dealers and independent financial planners.

Compensation to Broker-Dealers Selling the Policies. The policies are offered to the public through broker-dealers (“selling firms”) that are licensed under the federal securities laws; the selling firm and/or its affiliates are also licensed under state insurance laws. The selling firms have entered into written selling agreements with us and with TCI as principal underwriter for the policies. We pay commissions through TCI to the selling firms for their sales of the policies.

The selling firms are paid commissions for the promotion and sale of the policies according to one or more schedules. The amount and timing of commissions may vary depending on the selling agreement, and the share purchased, but the commission range is from 1.25% up to 7.2% of premium payments (additional amounts may be paid as overrides to wholesalers).

To the extent permitted by Financial Industry Regulatory Authority (FINRA) rules, the Company and TCI may pay (or allow other broker-dealers to provide) promotional incentives or payments in the form of cash or non-cash compensation or reimbursement to some, but not all, selling firms and their sales representatives. These arrangements are described further below.

The sales representative who sells You the policy typically receives a portion of the compensation we (and our affiliates) pay to the selling firms, depending on the agreement between the selling firm and its representative and the firm's internal compensation program. These programs may include other types of cash and non-cash compensation and other benefits. Ask Your sales representative for further information about the compensation Your sales representative, and the selling firm that employs Your sales representative, may receive in connection with Your purchase of a policy. Also inquire about any compensation arrangements that we and our affiliates may have with the selling firm, including the conflicts of interests that such arrangements may create.

You should be aware that a selling firm or its sales representatives may receive different compensation or incentives for selling one product over another. In some cases, these differences may create an incentive for the selling firm or its sales representatives to recommend or sell the policy to You. You may wish to take such incentives into account when considering and evaluating any recommendation relating to the policies.

Special Compensation Paid to Affiliated Firms. We and/or our affiliates provide paid-in capital to TCI and we or our affiliates may pay all or a portion of the cost of TCI's operating and other expenses, including costs for facilities, legal and accounting services, and other internal administrative functions. We and/or our affiliates also provide TCI with a percentage of total commissions paid on sales of our policies and provide TCI with capital payments that are not contingent on sales.

TCI's registered representatives and supervisors may receive non-cash compensation, such as attendance at conferences, seminars and trips (such as travel, lodging and meals in connection therewith), entertainment, merchandise and other similar items, payments, loans, loan forgiveness or loan guarantees.

Additional Compensation That We, TCI and/or Our Affiliates Pay to Selected Selling Firms. TCI, in connection with the sales of the policies, may pay certain selling firms additional cash amounts in order to receive enhanced marketing services and increased access to their sales representatives. In exchange for providing TCI with access to their distribution network, such selling firms may receive additional compensation or reimbursement for, among other things, the hiring and training of sales personnel, marketing, sponsoring of conferences, meetings, seminars, events, and/or other services they provide to us and our affiliates. To the extent permitted by

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applicable law, We, TCI and other parties may provide the selling firms with occasional gifts, meals, tickets or other non-cash compensation as an incentive to sell the policies. These special compensation arrangements are not offered to all selling firms and the terms of such arrangements may differ among selling firms.

During 2020, in general, payments calculated as a percentage of sales ranged from 7 basis points (0.07%) to 75 basis points (0.75%), payments calculated as a percentage of assets under management ranged from 2.5 basis points (0.025%) to 16 basis points (0.16%), and flat annual fees ranged from $5,000 to $500,000, which included at times payments for a series of meetings and/or events of other broker-dealers and banks.

As of 2020, TCI had revenue sharing agreements with more than 69 brokers and other financial intermediaries including, without limitation:

Advisor Group, Inc.• Ameriprise Financial Services, Inc. • AXA Advisors LLC • BBVA Securities, Inc. • Bruderman Brothers• Cadaret, Grant & Co. • Cambridge Investment Research, Inc. • Centarus Financial, Inc. • Cetera Financial Group, Inc. • CFD Investments, Inc. • Charles Schwab • Citigroup Global Markets, Inc. • Citizens Securities Inc. • CUSO Financial • D.A. Davidson & Co., Inc. • Edward D. Jones & Co., L.P. • Equitable Network, LLC • • Equity Services, Inc. • FSC Securities Corporation • Financial Data Services, Inc. • Geneos Wealth Management, Inc. • GWFS Equities Inc. • GW Sherwold Associates, Inc.• Hantz Financial Services, Inc. • HD Investment Services • Huntington Investment Company • Investacorp, Inc. • Infiniex Investments, Inc. • J.P. Morgan Securities LLC • James T. Borello & Co, • Janney Montgomery Scott, LLC • Kestra Investment Services • KMS Financial Services Inc. • LPL Financial Corp. • Logan Group Securities • M&T Securities, Inc. • Merrill Lynch • MML Investors Services • Morgan Stanley Smith Barney • Mutual of Omaha Investor Services, Inc. • National Financial Services, Inc. • Next Financial • Oppenhaiemer & Co. • Park Avenue Securities• Parkland Securities, LLC • Pershing LLC • Pursche Kaplan Sterling Financial • Raymond James and Associates, Inc. • Raymond James Financial Services, Inc. • RBC Wealth Management • Royal Alliance Associates, Inc. • SagePoint Financial, Inc. • Securian Financial Services, Inc. • Securities America, Inc. • Securities Service Network, Inc. • Sigma Financial Corporation • Stifel Nicolaus & Company Inc. • SunTrust Investment Services Inc.• TD Ameritrade • Triad Advisors, Inc. • Trinity Wealth. • UBS Financial Services Inc.• United Planners Financial Services of America • US Bancorp Investments, Inc. • VOYA Financial Advisors, Inc. • Waddell Reed • Wells Fargo Advisors, LLC • Wentworth Financial Partners • Woodbury Financial Services

For the calendar year ended December 31, 2020 TCI paid approximately $34.4 million to these brokers and other financial intermediaries in connection with revenue sharing arrangements. TCI expects to have revenue sharing arrangements with a number of brokers and other financial intermediaries in 2021, including some or all of the foregoing brokers and financial intermediaries, among others, on terms similar to those discussed above.

No specific charge is assessed directly to Owners or the Separate Account to cover commissions, non-cash compensation, and other incentives or payments described above. We do intend to recoup commissions and other sales expenses and incentives we pay, however, through fees and charges deducted under the policy and other corporate revenue.

TABLE OF CONTENTS OF THE STATEMENT OF ADDITIONAL INFORMATION

Glossary of Terms

The Policy - General Provisions

Investment Experience

Performance

Historical Performance Data

Published Ratings

State Regulation of Us

Administration

Records and Reports

Distribution of the Policies

Voting Rights

Other Products

Custody of Assets

Independent Registered Public Accounting Firm

Other Information

Financial Statements

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APPENDIX

UNDERLYING FUND PORTFOLIOS ASSOCIATED WITH THE SUBACCOUNTS

The following is a list of current underlying fund portfolios available under the policy, which are subject to change as discussed in this prospectus. Please Note: We reserve the right to change investment choices for any optional riders subject to investment restrictions, except as otherwise provided in this prospectus.

SUBACCOUNT ⁽¹⁾	UNDERLYING FUND PORTFOLIO	ADVISOR/SUB-ADVISER
AB VARIABLE PRODUCTS SERIES FUND, INC.
AB Balanced Wealth Strategy Portfolio - Class B	AB Balanced Wealth Strategy Portfolio - Class B	AllianceBernstein L.P.
Investment Objective: Maximize total return consistent with the Adviser's determination of reasonable risk.
AB Growth and Income Portfolio - Class B	AB Growth and Income Portfolio - Class B	AllianceBernstein L.P.
Investment Objective: Long-term growth of capital.
AMERICAN FUNDS INSURANCE SERIES^® TRUST
American Funds - Asset Allocation Fund Class 4	American Funds - Asset Allocation Fund Class 4	Capital Research and Management Company^SM
Investment Objective: High total return (including income and capital gains) consistent with preservation of capital over the long term.
American Funds - The Bond Fund of America^SM - Class 4⁽³⁾	American Funds - The Bond Fund of America^SM - Class 4⁽³⁾	Capital Research and Management Company^SM
Investment Objective: To provide as high a level of current income as is consistent with the preservation of capital.
American Funds - Growth Fund - Class 4	American Funds - Growth Fund - Class 4	Capital Research and Management Company^SM
Investment Objective: To provide growth of capital.
American Funds - Growth-Income Fund - Class 4	American Funds - Growth-Income Fund - Class 4	Capital Research and Management Company^SM
Investment Objective: To achieve long-term growth of capital and income.
American Funds - International Fund - Class 4	American Funds - International Fund - Class 4	Capital Research and Management Company^SM
Investment Objective: To achieve long-term growth of capital.
American Funds - New World Fund^® - Class 4	American Funds - New World Fund^® - Class 4	Capital Research and Management Company^SM
Investment Objective: The fund’s objective is long-term capital appreciation.
DFA INVESTMENT DIMENSIONS GROUP INC.
DFA VA Global Bond Portfolio - Institutional Class	DFA VA Global Bond Portfolio - Institutional Class	Dimensional Fund Advisors LP
Investment Objective: To provide a market rate of return for a fixed income portfolio with low relative volatility of returns.
FIDELITY ^® VARIABLE INSURANCE PRODUCTS FUND
Fidelity ^® VIP Balanced Portfolio - Service Class 2	Fidelity ^® VIP Balanced Portfolio - Service Class 2	Fidelity Management & Research Company
Investment Objective: Seeks income and capital growth consistent with reasonable risk.
Fidelity ^® VIP Consumer Staples - Initial Class	Fidelity ^® VIP Consumer Staples - Initial Class	Fidelity Management & Research Company
Investment Objective: Capital appreciation
Fidelity ^® VIP Contrafund^® Portfolio - Service Class 2	Fidelity ^® VIP Contrafund^® Portfolio - Service Class 2	Fidelity Management & Research Company
Investment Objective: Long-term capital appreciation.
Fidelity ^® VIP Energy Portfolio - Service Class 2	Fidelity ^® VIP Energy Portfolio - Service Class 2	Fidelity Management & Research Company
Investment Objective: Capital appreciation.
Fidelity ^® VIP Health Care Portfolio - Service Class 2	Fidelity ^® VIP Health Care Portfolio - Service Class 2	Fidelity Management & Research Company
Investment Objective: Capital appreciation.
Fidelity ^® VIP Mid Cap Portfolio - Service Class 2	Fidelity ^® VIP Mid Cap Portfolio - Service Class 2	Fidelity Management & Research Company
Investment Objective: Long-term growth of capital.
Fidelity ^® VIP Technology Portfolio - Initial Class	Fidelity ^® VIP Technology Portfolio - Initial Class	Fidelity Management & Research Company
Investment Objective: Capital appreciation.
Fidelity ^® VIP Utilities Portfolio - Initial Class	Fidelity ^® VIP Utilities Portfolio - Initial Class	Fidelity Management & Research Company
Investment Objective: Capital appreciation.
Fidelity ^® VIP Value Strategies Portfolio - Service Class 2	Fidelity ^® VIP Value Strategies Portfolio - Service Class 2	Fidelity Management & Research Company
Investment Objective: Capital appreciation
STATE STREET VARIABLE INSURANCE SERIES FUNDS, INC.
State Street Total Return V.I.S. Fund - Class 3	State Street Total Return V.I.S. Fund - Class 3	SSGA Funds Management, Inc.
Investment Objective: Highest total return, composed of current income and capital appreciation, as is consistent with prudent investment risk.
TRANSAMERICA SERIES TRUST*

Table of Contents

UNDERLYING FUND PORTFOLIOS ASSOCIATED WITH THE SUBACCOUNTS — (Continued)

SUBACCOUNT ⁽¹⁾	UNDERLYING FUND PORTFOLIO	ADVISOR/SUB-ADVISER
TA 60/40 Allocation - Service Class	Transamerica 60/40 Allocation VP - Service Class	Transamerica Asset Management, Inc.
Investment Objective: Seeks long-term capital appreciation and current income.
TA Aegon High Yield Bond - Service Class	Transamerica Aegon High Yield Bond VP - Service Class	Aegon USA Investment Management, LLC
Investment Objective: Seeks a high level of current income by investing in high-yield debt securities.
TA Aegon Sustainable Equity Income - Service Class	Transamerica Aegon Sustainable Equity Income VP - Service Class	Barrow, Hanley, Mewhinney, & Strauss, LLC
Investment Objective: Seeks total return gained from the combination of dividend yield, growth of dividends and capital appreciation.
TA Aegon U.S. Government Securities - Service Class	Transamerica Aegon U.S. Government Securities VP - Service Class	Aegon USA Investment Management, LLC
Investment Objective: Seeks to provide as high level of total return as is consistent with prudent investment strategies.
TA American Funds Managed Risk - Balanced - Service Class	Transamerica American Funds Managed Risk VP - Service Class	Milliman Financial Risk Management LLC
Investment Objective: Seeks to provide total return (including income and capital gains) consistent with preservation of capital over the long term while seeking to manage volatility and provide downside protection.
TA BlackRock Global Real Estate Securities - Service Class	Transamerica BlackRock Global Real Estate Securities VP - Service Class	CBRE Clarion Securities, LLC
Investment Objective: Seeks long-term total return from investments primarily in equity securities of real estate companies. Total return consists of realized and unrealized capital gains and losses plus income.
TA BlackRock Government Money Market - Service Class⁽²⁾	Transamerica BlackRock Government Money Market VP - Service Class⁽²⁾	Aegon USA Investment Management, LLC
Investment Objective: Seeks as high a level of current income as is consistent with preservation of capital and liquidity.
TA BlackRock iShares Edge 40- Service Class	Transamerica BlackRock iShares Edge 40 VP - Service Class	Alliance Bernstein L.P.
Investment Objective: Seeks capital appreciation and current income.
TA BlackRock iShares Edge 50 - Service Class	Transamerica BlackRock iShares Edge 50 VP - Service Class	BlackRock Investment Management, LLC
Investment Objective: Seeks long-term capital appreciation and capital preservation.
TA BlackRock iShares Edge 75 - Service Class	Transamerica BlackRock iShares Edge 75 VP - Service Class	BlackRock Investment Management, LLC
Investment Objective: Seeks long-term capital appreciation with capital preservation as a secondary objective.
TA BlackRock iShares Edge 100 - Service Class	Transamerica BlackRock iShares Edge 100 VP - Service Class	BlackRock Investment Management, LLC
Investment Objective: Seeks long-term capital appreciation.
TA BlackRock Tactical Allocation - Service Class	Transamerica BlackRock Tactical Allocation VP - Service Class	BlackRock Investment Management, LLC
Investment Objective: Seeks capital appreciation with current income as secondary objective.
TA Goldman Sachs 70/30 - Service Class	Transamerica Goldman Sachs 70/30 Allocation VP - Service Class	Goldman Sachs Asset Management, L.P.
Investment Objective: Seeks long-term capital appreciation with current income as a secondary objective.
TA International Growth - Service Class	Transamerica International Growth VP - Service Class	TDAM USA Inc.
Investment Objective: Seeks capital growth.
TA Janus Balanced - Service Class	Transamerica Janus Balanced VP - Service Class	Janus Capital Management LLC
Investment Objective: Seeks long-term capital growth, consistent with the preservation of capital and balanced by current income.
TA Janus Mid-Cap Growth - Service Class	Transamerica Janus Mid-Cap Growth VP - Service Class	Janus Capital Management LLC
Investment Objective: Seeks long-term capital appreciation.
TA JPMorgan Asset Allocation - Conservative - Service Class	Transamerica JPMorgan Asset Allocation - Conservative VP – Service Class	J.P. Morgan Investment Management Inc.
Investment Objective: Seeks current income and preservation of capital.
TA JPMorgan Asset Allocation - Growth - Service Class	Transamerica JPMorgan Asset Allocation - Growth VP – Service Class	J.P. Morgan Investment Management Inc.
Investment Objective: Seeks long-term capital appreciation.
TA JPMorgan Asset Allocation - Moderate - Service Class	Transamerica JPMorgan Asset Allocation - Moderate VP – Service Class	J.P. Morgan Investment Management Inc.
Investment Objective: Seeks capital appreciation and current income.

Table of Contents

UNDERLYING FUND PORTFOLIOS ASSOCIATED WITH THE SUBACCOUNTS — (Continued)

SUBACCOUNT ⁽¹⁾	UNDERLYING FUND PORTFOLIO	ADVISOR/SUB-ADVISER
TA JPMorgan Asset Allocation - Moderate Growth - Service Class	Transamerica JPMorgan Asset Allocation - Moderate Growth VP – Service Class	J.P. Morgan Investment Management Inc.
Investment Objective: Seeks capital appreciation with current income as a secondary objective.
TA JPMorgan Core Bond - Service Class	Transamerica JPMorgan Core Bond VP - Service Class	J.P. Morgan Investment Management Inc.
Investment Objective: Seeks total return, consisting of current income and capital appreciation.
TA JPMorgan Enhanced Index - Service Class	Transamerica JPMorgan Enhanced Index VP – Service Class	J.P. Morgan Investment Management Inc.
Investment Objective: Seeks to earn a total return modestly in excess of the total return performance of the S&P 500^® (including the reinvestment of dividends) while maintaining a volatility of return similar to the S&P 500^®.
TA JPMorgan International Moderate Growth - Service Class	Transamerica JPMorgan International Moderate Growth VP – Service Class	J.P. Morgan Investment Management Inc.
Investment Objective: Seeks capital appreciation with current income as a secondary objective.
TA JPMorgan Mid Cap Value - Service Class	Transamerica JPMorgan Mid Cap Value VP–Service Class	J.P. Morgan Investment Management Inc.
Investment Objective: Seeks growth from capital appreciation.
TA JPMorgan Tactical Allocation - Service Class	Transamerica JPMorgan Tactical Allocation VP - Service Class	J.P. Morgan Investment Management Inc.
Investment Objective: Seeks current income and preservation of capital.
TA Legg Mason Dynamic Allocation - Balanced - Service Class	Transamerica Legg Mason Dynamic Allocation - Balanced VP - Service Class	QS Investors, LLC
Investment Objective: Seeks capital appreciation and income.
TA Legg Mason Dynamic Allocation - Growth - Service Class	Transamerica Legg Mason Dynamic Allocation - Growth VP - Service Class	QS Investors, LLC
Investment Objective: Seeks capital appreciation and income.
TA Madison Diversified Income - Service Class	Transamerica Madison Diversified Income VP - Service Class	Madison Asset Management. LLC
Investment Objective: Seeks high total return through the combination of income and capital appreciation.
TA Managed Risk - Balanced ETF - Service Class	Transamerica Managed Risk - Balanced ETF VP - Service Class	Milliman Financial Risk Management LLC
Investment Objective: Seeks to balance capital appreciation and income.
TA Managed Risk - Conservative ETF - Service Class	Transamerica Managed Risk - Conservative ETF VP - Service Class	Milliman Financial Risk Management LLC
Investment Objective: Seeks current income and preservation of capital.
TA Managed Risk - Growth ETF - Service Class	Transamerica Managed Risk - Growth ETF VP - Service Class	Milliman Financial Risk Management LLC
Investment Objective: Seeks capital appreciation as a primary objective and income as a secondary objective.
TA Market Participation Strategy - Service Class	Transamerica Market Participation Strategy VP - Service Class	Quantitative Management Associates LLC
Investment Objective: Seeks capital appreciation.
TA Morgan Stanley Capital Growth - Service Class	Transamerica Morgan Stanley Capital Growth VP – Service Class	Morgan Stanley Investment Management Inc.
Investment Objective: Seeks to maximize long-term growth.
TA Morgan Stanley Global Allocation - Service Class	Transamerica Morgan Stanley Global Allocation VP - Service Class	Morgan Stanley Investment Management Inc.
Investment Objective: Seeks high total investment return. Total investment return is the combination of capital appreciation and investment income.
TA Morgan Stanley Global Allocation Managed Risk - Balanced - Service Class	Transamerica Morgan Stanley Global Allocation Managed Risk - Balanced VP - Service Class	Milliman Financial Risk Management LLC
Investment Objective: Seeks to provide capital appreciation and income while seeking to manage volatility.
TA MSCI EAFE Index - Service Class	Transamerica MSCI EAFE Index VP - Service Class	SSGA Funds Management, Inc.
Investment Objective: Seeks to track the investment results of an index composed of large- and mid-capitalization developed market equities, excluding the U.S. and Canada.
TA Multi-Managed Balanced - Service Class	Transamerica Multi-Managed Balanced VP – Service Class	J.P. Morgan Investment Management Inc. and Aegon USA Investment Management, LLC
Investment Objective: Seeks to provide a high total investment return through investments in a broadly diversified portfolio of stock, bonds and money market instruments.
TA PIMCO Tactical - Balanced - Service Class	Transamerica PIMCO Tactical - Balanced VP - Service Class	Pacific Investment Management Company LLC
Investment Objective: Seeks combination of capital appreciation and income.

Table of Contents

UNDERLYING FUND PORTFOLIOS ASSOCIATED WITH THE SUBACCOUNTS — (Continued)

SUBACCOUNT ⁽¹⁾	UNDERLYING FUND PORTFOLIO	ADVISOR/SUB-ADVISER
TA PIMCO Tactical - Conservative - Service Class	Transamerica PIMCO Tactical - Conservative VP - Service Class	Pacific Investment Management Company LLC
Investment Objective: Seeks combination of capital appreciation and income.
TA PIMCO Tactical - Growth - Service Class	Transamerica PIMCO Tactical - Growth VP - Service Class	Pacific Investment Management Company LLC
Investment Objective: Seeks combination of capital appreciation and income.
TA PIMCO Total Return - Service Class	Transamerica PIMCO Total Return VP – Service Class	Pacific Investment Management Company LLC
Investment Objective: Seeks maximum total return consistent with preservation of capital and prudent investment management.
TA PineBridge Inflation Opportunities - Service Class	Transamerica PineBridge Inflation Opportunities VP - Service Class	PineBridge Investments LLC
Investment Objective: Seeks maximum real return, consistent with appreciation of capital.
TA QS Investors Active Asset Allocation - Conservative - Service Class	Transamerica QS Investors Active Asset Allocation - Conservative VP - Service Class	QS Investors, LLC
Investment Objective: Seeks current income and preservation of capital.
TA QS Investors Active Asset Allocation - Moderate - Service Class	Transamerica QS Investors Active Asset Allocation - Moderate VP - Service Class	QS Investors, LLC
Investment Objective: Seeks capital appreciation and current income.
TA QS Investors Active Asset Allocation - Moderate Growth - Service Class	Transamerica QS Investors Active Asset Allocation - Moderate Growth VP - Service Class	QS Investors, LLC
Investment Objective: Seeks capital appreciation with current income as secondary objective.
TA Rothschild & Co Large Cap Value - Service Class	Transamerica Rothschild & Co Large Cap Value VP - Service Class	Transamerica Asset Management, Inc. & Levin Capital Strategies, L.P.
Investment Objective: Seeks long-term capital appreciation.
TA S&P 500 Index - Service Class	Transamerica S&P 500 Index VP - Service Class	SSGA Funds Management, Inc.
Investment Objective: Seeks to provide investment results that, before expenses, correspond generally to the price and yield performance of the S&P 500^® Index.
TA Small Mid Cap Value - Service Class	Transamerica Small/Mid Cap Value VP – Service Class	Systematic Financial Management L.P. & Thompson, Siegel & Walmsley LLC
Investment Objective: Seeks to maximize total return.
TA T. Rowe Price Small Cap - Service Class	Transamerica T. Rowe Price Small Cap VP – Service Class	T. Rowe Price Associates, Inc.
Investment Objective: Seeks long-term growth of capital by investing primarily in common stocks of small growth companies.
TA TS&W International Equity - Service Class	Transamerica TS&W International Equity VP – Service Class	Thompson, Siegel & Walmsley LLC
Investment Objective: Seeks maximum long-term total return, consistent with reasonable risk to principal, by investing in a diversified portfolio of common stocks of primarily non-U.S. issuers.
TA WMC US Growth - Service Class	Transamerica WMC US Growth VP – Service Class	Wellington Management Company, LLP
Investment Objective: Seeks to maximize long-term growth.
VANGUARD ^® VARIABLE INSURANCE FUND
Vanguard ^® VIF Balanced Portfolio	Vanguard ^® VIF Balanced Portfolio	Wellington Management Company, LLP
Investment Objective: To provide long-term capital appreciation and reasonable current income.
Vanguard ^® VIF Conservative Allocation Portfolio	Vanguard ^® VIF Conservative Allocation Portfolio	The Vanguard Group, Inc.
Investment Objective: To provide current income and low to moderate capital appreciation.
Vanguard ^® VIF Mid-Cap Index Portfolio	Vanguard ^® VIF Mid-Cap Index Portfolio	Vanguard Equity Investment Group
Investment Objective: Seeks to track the performance of a benchmark index that measures the investment return of mid-capitalization stocks.
Vanguard ^® VIF Moderate Allocation Portfolio	Vanguard ^® VIF Moderate Allocation Portfolio	The Vanguard Group, Inc.
Investment Objective: Seeks to provide capital appreciation and a low to moderate level of current income.

⁽¹⁾	Some Subaccounts may be available for certain policies and may not be available for all policies. You should work with Your registered representative to decide which Subaccount(s) may be appropriate for You based on a thorough analysis of your particular insurance needs, financial objective, investment goals, time horizons, and risk tolerance.
⁽²⁾	There can be no assurance that any money market portfolio offered under this policy will be able to maintain a stable net asset value per share during extended periods of low interest rates, and partly as a result of policy charges, the yield on the money market Subaccount may become extremely low and possibly negative.
⁽³⁾	Effective on or about May 1, 2021 the American Funds - Bond Fund will be renamed American Funds - The Bond Fund of America^SM.

Table of Contents

APPENDIX

Designated Investment Options

The table below identifies the Designated Investment Options available for use with the Guaranteed Minimum Death Benefits and our Guaranteed Lifetime Withdrawal Benefits except for the Transamerica Principal Optimizer^SM and Transamerica Income Edge^SM 1.2 riders. See Appendix - Transamerica Principal Optimizer^SM and Transamerica Income Edge^SM 1.2 Investment Options.

	Return of Premium Death Benefit	Annual Step-Up Death Benefit	Retirement Income Max^® 1.2 Rider	Retirement Income Choice^® 1.7 Rider	Retirement Income Choice^® 1.7 Rider
Subaccounts				Prior to 9/1/2020 Group A, B or C	9/1/2020 and After Group A, B or C
AB Balanced Wealth Strategy Portfolio - Class B	√	√		A	B
AB Growth and Income Portfolio - Class B	√	√		A	A
American Funds - Asset Allocation Fund Class 4	√	√		A	B
American Funds - The Bond Fund of America^SM - Class 4	√	√	√	A	C
American Funds - Growth Fund - Class 4	√	√		A	A
American Funds - Growth-Income Fund - Class 4	√	√		A	A
American Funds - International Fund - Class 4	√	√		A	A
American Funds - New World Fund^® - Class 4	√	√		A	A
DFA VA Global Bond Portfolio - Institutional Class	√	√	√	A	C
Fidelity ^® VIP Balanced Portfolio - Service Class 2	√	√		A	B
Fidelity ^® VIP Consumer Staples - Initial Class	√	√		A	A
Fidelity ^® VIP Contrafund^® Portfolio - Service Class 2	√	√		A	A
Fidelity ^® VIP Energy Portfolio - Service Class 2	√	√		A	A
Fidelity ^® VIP Health Care Portfolio - Service Class 2	√	√		A	A
Fidelity ^® VIP Mid Cap Portfolio - Service Class 2	√	√		A	A
Fidelity ^® VIP Technology Portfolio - Initial Class	√	√		A	A
Fidelity ^® VIP Utilities Portfolio - Initial Class	√	√		A	A
Fidelity ^® VIP Value Strategies Portfolio - Service Class 2	√	√		A	A
State Street Total Return V.I.S. Fund - Class 3	√	√		A	B
TA 60/40 Allocation - Service Class	√	√		A	B
TA Aegon High Yield Bond - Service Class	√	√		A	B
TA Aegon Sustainable Equity Income - Service Class	√	√		A	A
TA Aegon U.S. Government Securities - Service Class	√	√	√	A	C
TA American Funds Managed Risk - Balanced - Service Class⁽¹⁾	√	√		A	B
TA BlackRock Global Real Estate Securities - Service Class	√	√		A	A
TA BlackRock Government Money Market - Service Class	√	√	√	A	C
TA BlackRock iShares Edge 40- Service Class	√	√	√	A	B
TA BlackRock iShares Edge 50 - Service Class	√	√	√	A	B
TA BlackRock iShares Edge 75 - Service Class	√	√		A	B
TA BlackRock iShares Edge 100 - Service Class	√	√		A	A
TA BlackRock Tactical Allocation - Service Class⁽¹⁾	√	√		A	B
TA Goldman Sachs 70/30 - Service Class	√	√		A	B
TA International Growth - Service Class	√	√		A	A

Table of Contents

Designated Investment Options — (Continued)

	Return of Premium Death Benefit	Annual Step-Up Death Benefit	Retirement Income Max^® 1.2 Rider	Retirement Income Choice^® 1.7 Rider	Retirement Income Choice^® 1.7 Rider
Subaccounts				Prior to 9/1/2020 Group A, B or C	9/1/2020 and After Group A, B or C
TA Janus Balanced - Service Class	√	√		A	B
TA Janus Mid-Cap Growth - Service Class	√	√		A	A
TA JPMorgan Asset Allocation - Conservative - Service Class⁽¹⁾	√	√	√	A	B
TA JPMorgan Asset Allocation - Growth - Service Class	√	√		A	A
TA JPMorgan Asset Allocation - Moderate - Service Class⁽¹⁾	√	√	√	A	B
TA JPMorgan Asset Allocation - Moderate Growth - Service Class⁽¹⁾	√	√		A	B
TA JPMorgan Core Bond - Service Class	√	√	√	A	C
TA JPMorgan Enhanced Index - Service Class	√	√		A	A
TA JPMorgan International Moderate Growth - Service Class⁽¹⁾	√	√		A	B
TA JPMorgan Mid Cap Value - Service Class	√	√		A	A
TA JPMorgan Tactical Allocation - Service Class	√	√	√	A	B
TA Legg Mason Dynamic Allocation - Balanced - Service Class⁽¹⁾	√	√	√	A	B
TA Legg Mason Dynamic Allocation - Growth - Service Class⁽¹⁾	√	√		A	B
TA Madison Diversified Income - Service Class	√	√	√	A	B
TA Managed Risk - Balanced ETF - Service Class⁽¹⁾	√	√	√	A	B
TA Managed Risk - Conservative ETF - Service Class⁽¹⁾	√	√	√	A	B
TA Managed Risk - Growth ETF - Service Class⁽¹⁾	√	√		A	B
TA Market Participation Strategy - Service Class⁽¹⁾	√	√		A	B
TA Morgan Stanley Capital Growth - Service Class	√	√		A	A
TA Morgan Stanley Global Allocation - Service Class	√	√		A	B
TA Morgan Stanley Global Allocation Managed Risk - Balanced - Service Class⁽¹⁾	√	√		A	B
TA MSCI EAFE Index - Service Class	√	√		A	A
TA Multi-Managed Balanced - Service Class	√	√		A	B
TA PIMCO Tactical - Balanced - Service Class⁽¹⁾	√	√		A	B
TA PIMCO Tactical - Conservative - Service Class⁽¹⁾	√	√		A	B
TA PIMCO Tactical - Growth - Service Class⁽¹⁾	√	√		A	B
TA PIMCO Total Return - Service Class	√	√	√	A	C
TA PineBridge Inflation Opportunities - Service Class	√	√	√	A	C
TA QS Investors Active Asset Allocation - Conservative - Service Class⁽¹⁾	√	√	√	A	B
TA QS Investors Active Asset Allocation - Moderate - Service Class⁽¹⁾	√	√	√	A	B
TA QS Investors Active Asset Allocation - Moderate Growth - Service Class⁽¹⁾	√	√		A	B
TA Rothschild & Co Large Cap Value - Service Class	√	√		A	A
TA S&P 500 Index - Service Class	√	√		A	A
TA Small Mid Cap Value - Service Class	√	√		A	A
TA T. Rowe Price Small Cap - Service Class	√	√		A	A
TA TS&W International Equity - Service Class	√	√		A	A
TA WMC US Growth - Service Class	√	√		A	A
Vanguard ^® VIF Balanced Portfolio	√	√		A	B

Table of Contents

Designated Investment Options — (Continued)

	Return of Premium Death Benefit	Annual Step-Up Death Benefit	Retirement Income Max^® 1.2 Rider	Retirement Income Choice^® 1.7 Rider	Retirement Income Choice^® 1.7 Rider
Subaccounts				Prior to 9/1/2020 Group A, B or C	9/1/2020 and After Group A, B or C
Vanguard ^® VIF Conservative Allocation Portfolio	√	√	√	A	B
Vanguard ^® VIF Mid-Cap Index Portfolio	√	√		A	A
Vanguard ^® VIF Moderate Allocation Portfolio	√	√		A	B
Fixed Account	√	√	√	A	C

⁽¹⁾This Subaccount invests in an underlying fund portfolio that utilized a volatility management strategy as part of its investment objective and/or principal investment strategy. See “Investment Restrictions” earlier in the prospectus for information on how volatility management strategies may impact Your Policy Value in certain optional riders.

Certain designated investment options may not be available in all states, at all times or through all financial intermediaries. We may discontinue offering any designated investment option at any time. In some cases, a designated investment option not available through a financial intermediary may be obtained by contacting us directly. For more information on the options available for electing a designated investment option, please contact Your financial intermediary or our Administrative Office.

100

Table of Contents

APPENDIX

Transamerica Principal Optimizer^SM AND Transamerica Income Edge^SM1.2 Investment Options

The table below identifies the Select Investment Options and Flexible Investment Options available for use with the Transamerica Principal Optimizer^SM and Transamerica Income Edge^SM1.2 riders.

	Select Investment Options	Flexible Investment Options
Subaccounts
AB Balanced Wealth Strategy Portfolio - Class B		√
AB Growth and Income Portfolio - Class B		√
American Funds - Asset Allocation Fund Class 4		√
American Funds - The Bond Fund of America^SM - Class 4	√
American Funds - Growth Fund - Class 4		√
American Funds - Growth-Income Fund - Class 4		√
American Funds - International Fund - Class 4		√
American Funds - New World Fund^® - Class 4		√
DFA VA Global Bond Portfolio - Institutional Class	√
Fidelity ^® VIP Balanced Portfolio - Service Class 2		√
Fidelity ^® VIP Consumer Staples - Initial Class		√
Fidelity ^® VIP Contrafund^® Portfolio - Service Class 2		√
Fidelity ^® VIP Energy Portfolio - Service Class 2		√
Fidelity ^® VIP Health Care Portfolio - Service Class 2		√
Fidelity ^® VIP Mid Cap Portfolio - Service Class 2		√
Fidelity ^® VIP Technology Portfolio - Initial Class		√
Fidelity ^® VIP Utilities Portfolio - Initial Class		√
Fidelity ^® VIP Value Strategies Portfolio - Service Class 2		√
State Street Total Return V.I.S. Fund - Class 3		√
TA 60/40 Allocation - Service Class		√
TA Aegon High Yield Bond - Service Class		√
TA Aegon Sustainable Equity Income - Service Class		√
TA Aegon U.S. Government Securities - Service Class	√
TA American Funds Managed Risk - Balanced - Service Class⁽¹⁾		√
TA BlackRock Global Real Estate Securities - Service Class		√
TA BlackRock Government Money Market - Service Class	√
TA BlackRock iShares Edge 40- Service Class		√
TA BlackRock iShares Edge 50 - Service Class		√
TA BlackRock iShares Edge 75 - Service Class		√
TA BlackRock iShares Edge 100 - Service Class		√
TA BlackRock Tactical Allocation - Service Class⁽¹⁾		√
TA Goldman Sachs 70/30 - Service Class		√
TA International Growth - Service Class		√
TA Janus Balanced - Service Class		√
TA Janus Mid-Cap Growth - Service Class		√

101

Table of Contents

Transamerica Principal Optimizer^SM AND Transamerica Income Edge^SM1.2 Investment Options — (Continued)

	Select Investment Options	Flexible Investment Options
Subaccounts
TA JPMorgan Asset Allocation - Conservative - Service Class⁽¹⁾		√
TA JPMorgan Asset Allocation - Growth - Service Class		√
TA JPMorgan Asset Allocation - Moderate - Service Class⁽¹⁾		√
TA JPMorgan Asset Allocation - Moderate Growth - Service Class⁽¹⁾		√
TA JPMorgan Core Bond - Service Class	√
TA JPMorgan Enhanced Index - Service Class		√
TA JPMorgan International Moderate Growth - Service Class⁽¹⁾		√
TA JPMorgan Mid Cap Value - Service Class		√
TA JPMorgan Tactical Allocation - Service Class		√
TA Legg Mason Dynamic Allocation - Balanced - Service Class⁽¹⁾		√
TA Legg Mason Dynamic Allocation - Growth - Service Class⁽¹⁾		√
TA Madison Diversified Income - Service Class		√
TA Managed Risk - Balanced ETF - Service Class⁽¹⁾		√
TA Managed Risk - Conservative ETF - Service Class⁽¹⁾		√
TA Managed Risk - Growth ETF - Service Class⁽¹⁾		√
TA Market Participation Strategy - Service Class⁽¹⁾		√
TA Morgan Stanley Capital Growth - Service Class		√
TA Morgan Stanley Global Allocation - Service Class		√
TA Morgan Stanley Global Allocation Managed Risk - Balanced - Service Class⁽¹⁾		√
TA MSCI EAFE Index - Service Class		√
TA Multi-Managed Balanced - Service Class		√
TA PIMCO Tactical - Balanced - Service Class⁽¹⁾		√
TA PIMCO Tactical - Conservative - Service Class⁽¹⁾		√
TA PIMCO Tactical - Growth - Service Class⁽¹⁾		√
TA PIMCO Total Return - Service Class	√
TA PineBridge Inflation Opportunities - Service Class	√
TA QS Investors Active Asset Allocation - Conservative - Service Class⁽¹⁾		√
TA QS Investors Active Asset Allocation - Moderate - Service Class⁽¹⁾		√
TA QS Investors Active Asset Allocation - Moderate Growth - Service Class⁽¹⁾		√
TA Rothschild & Co Large Cap Value - Service Class		√
TA S&P 500 Index - Service Class		√
TA Small Mid Cap Value - Service Class		√
TA T. Rowe Price Small Cap - Service Class		√
TA TS&W International Equity - Service Class		√
TA WMC US Growth - Service Class		√
Vanguard ^® VIF Balanced Portfolio		√
Vanguard ^® VIF Conservative Allocation Portfolio		√
Vanguard ^® VIF Mid-Cap Index Portfolio		√
Vanguard ^® VIF Moderate Allocation Portfolio		√

⁽¹⁾	This Subaccount invests in an underlying fund portfolio that utilized a volatility management strategy as part of its investment objective and/or

102

Table of Contents

APPENDIX

CONDENSED FINANCIAL INFORMATION

The following tables list the accumulation unit value information for accumulation units outstanding for policies with the highest total separate account expenses and policies with the lowest total separate account expenses (including any applicable fund facilitation fees) available on December 31, 2020. Should the total separate account expense applicable to your policy fall between the highest and lowest charges, AND you wish to see a copy of the Condensed Financial Information applicable to your policy, such information is contained in the SAI. You can obtain a copy of the SAI FREE OF CHARGE by contacting us at:

Calling:	(800) 525-6205
Writing:	Transamerica Life Insurance Company Transamerica Financial Life Insurance Company 4333 Edgewood Road NE Cedar Rapids, IA 52499

		Separate Account Expense 2.00%
Subaccount	Year	Beginning AUV	Ending AUV	# Units (National)	# Units (NY)
AB Balanced Wealth Strategy Portfolio - Class B⁽⁴⁾ Subaccount inception date May 1, 2020	2020	$11.942200	$14.525737	0.000	0.000
AB Growth and Income Portfolio - Class B Subaccount inception date May 1, 2020	2020	$14.396393	$18.108206	0.000	0.000
American Funds - Asset Allocation Fund Class 4⁽⁴⁾ Subaccount inception date May 1, 2020	2020	$9.828382	$11.773403	0.000	0.000
American Funds - The Bond Fund of America^SM - Class 4^(7)(10) Subaccount inception date May 1, 2020	2020	$9.990705	$10.342692	0.000	0.000
American Funds - Growth Fund - Class 4⁽⁶⁾ Subaccount inception date May 1, 2020	2020	$9.741556	$14.940242	4,696.243	0.000
American Funds - Growth-Income Fund - Class 4⁽⁶⁾ Subaccount inception date May 1, 2020	2020	$9.757211	$12.399167	0.000	0.000
American Funds - International Fund - Class 4⁽⁶⁾ Subaccount inception date May 1, 2020	2020	$9.824929	$13.848348	0.000	0.000
American Funds - New World Fund^® - Class 4⁽⁵⁾ Subaccount inception date May 1, 2020	2020	$9.797300	$14.219210	0.000	0.000
DFA VA Global Bond Portfolio - Institutional Class⁽¹⁾ Subaccount inception date May 1, 2020	2020	$10.049091	$9.963406	0.000	0.000
Fidelity ^® VIP Balanced Portfolio - Service Class 2⁽³⁾ Subaccount inception date May 1, 2013	2020	$14.748412	$19.056783	0.000	0.000
Fidelity ^® VIP Consumer Staples - Initial Class⁽²⁾ Subaccount inception date	2020	$9.852975	$12.145634	0.000	0.000
Fidelity ^® VIP Contrafund^® Portfolio - Service Class 2 Subaccount inception date May 1, 2020	2020	$18.236942	$24.252219	2,825.900	0.000
Fidelity ^® VIP Energy Portfolio - Service Class 2⁽³⁾ Subaccount inception date May 1, 2020	2020	$9.417856	$10.831805	0.000	0.000
Fidelity ^® VIP Health Care Portfolio - Service Class 2⁽³⁾ Subaccount inception date May 1, 2020	2020	$9.776392	$11.874324	0.000	0.000
Fidelity ^® VIP Mid Cap Portfolio - Service Class 2 Subaccount inception date May 1, 2020	2020	$12.398732	$18.645795	0.000	0.000
Fidelity ^® VIP Technology Portfolio - Initial Class⁽²⁾ Subaccount inception date May 1, 2020	2020	$9.701116	$15.892017	0.000	0.000
Fidelity ^® VIP Utilities Portfolio - Initial Class⁽²⁾ Subaccount inception date May 1, 2020	2020	$9.727681	$11.438705	0.000	0.000
Fidelity ^® VIP Value Strategies Portfolio - Service Class 2 Subaccount inception date May 1, 2020	2020	$11.025807	$16.303426	0.000	0.000
State Street Total Return V.I.S. Fund - Class 3⁽⁴⁾ Subaccount inception date May 1, 2013	2020	$10.992711	$13.242993	0.000	0.000

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		Separate Account Expense 2.00%
Subaccount	Year	Beginning AUV	Ending AUV	# Units (National)	# Units (NY)
TA 60/40 Allocation - Service Class Subaccount inception date May 1, 2020	2020	$10.328350	$12.357542	0.000	0.000
TA Aegon High Yield Bond - Service Class Subaccount inception date May 1, 2020	2020	$10.375883	$12.304268	0.000	0.000
TA Aegon Sustainable Equity Income - Service Class⁽⁸⁾ Subaccount inception date May 1, 2020	2020	$11.767865	$14.524867	0.000	0.000
TA Aegon U.S. Government Securities - Service Class Subaccount inception date May 1, 2020	2020	$10.229074	$10.216281	65,329.006	0.000
TA American Funds Managed Risk - Balanced - Service Class Subaccount inception date May 1, 2020	2020	$10.858619	$12.121187	0.000	0.000
TA BlackRock Global Real Estate Securities - Service Class Subaccount inception date May 1, 2020	2020	$9.038061	$11.093709	0.000	0.000
TA BlackRock Government Money Market - Service Class Subaccount inception date May 1, 2020	2020	$8.940696	$8.822520	0.000	0.000
TA BlackRock iShares Edge 40- Service Class Subaccount inception date May 1, 2020	2020	$11.101042	$12.402037	0.000	0.000
TA BlackRock iShares Edge 50 - Service Class Subaccount inception date May 1, 2020	2020	$11.498137	$13.056720	0.000	0.000
TA BlackRock iShares Edge 75 - Service Class Subaccount inception date March 21, 2016	2020	$11.746673	$14.124862	0.000	0.000
TA BlackRock iShares Edge 100 - Service Class Subaccount inception date May 1, 2020	2020	$12.102324	$15.368521	0.000	0.000
TA BlackRock Tactical Allocation - Service Class Subaccount inception date May 1, 2013	2020	$12.084671	$14.250243	0.000	0.000
TA Goldman Sachs 70/30 - Service Class Subaccount inception date May 1, 2020	2020	$9.999454	$12.521577	0.000	0.000
TA International Growth - Service Class Subaccount inception date May 1, 2020	2020	$10.051676	$14.509721	0.000	0.000
TA Janus Balanced - Service Class Subaccount inception date May 1, 2020	2020	$14.381644	$17.346771	0.000	0.000
TA Janus Mid-Cap Growth - Service Class Subaccount inception date May 1, 2020	2020	$14.274710	$20.255072	1,703.325	0.000
TA JPMorgan Asset Allocation - Conservative - Service Class Subaccount inception date May 1, 2020	2020	$10.951763	$12.853156	0.000	0.000
TA JPMorgan Asset Allocation - Growth - Service Class Subaccount inception date May 1, 2020	2020	$12.420406	$18.414865	0.000	0.000
TA JPMorgan Asset Allocation - Moderate Growth - Service Class Subaccount inception date May 1, 2020	2020	$12.141763	$15.468100	0.000	0.000
TA JPMorgan Asset Allocation - Moderate - Service Class Subaccount inception date May 1, 2020	2020	$11.522376	$13.970447	0.000	0.000
TA JPMorgan Core Bond - Service Class Subaccount inception date May 1, 2020	2020	$10.414128	$10.732252	0.000	0.000
TA JPMorgan Enhanced Index - Service Class Subaccount inception date May 1, 2020	2020	$17.055302	$22.791447	0.000	0.000
TA JPMorgan International Moderate Growth - Service Class Subaccount inception date May 1, 2020	2020	$9.805730	$12.974104	0.000	0.000
TA JPMorgan Mid Cap Value - Service Class Subaccount inception date May 1, 2020	2020	$12.234914	$16.288149	0.000	0.000
TA JPMorgan Tactical Allocation - Service Class Subaccount inception date May 1, 2020	2020	$11.220921	$12.700342	0.000	0.000
TA Legg Mason Dynamic Allocation - Balanced - Service Class Subaccount inception date May 1, 2020	2020	$11.038679	$11.601447	0.000	0.000
TA Legg Mason Dynamic Allocation - Growth - Service Class Subaccount inception date May 1, 2020	2020	$11.407132	$11.898118	0.000	0.000

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CONDENSED FINANCIAL INFORMATION — (Continued)

		Separate Account Expense 2.00%
Subaccount	Year	Beginning AUV	Ending AUV	# Units (National)	# Units (NY)
TA Madison Diversified Income - Service Class Subaccount inception date May 1, 2020	2020	$12.234749	$13.572352	0.000	0.000
TA Managed Risk - Balanced ETF - Service Class Subaccount inception date May 1, 2020	2020	$11.376349	$12.620688	0.000	0.000
TA Managed Risk - Conservative ETF - Service Class Subaccount inception date May 1, 2020	2020	$11.441831	$12.145927	0.000	0.000
TA Managed Risk - Growth ETF - Service Class Subaccount inception date May 1, 2020	2020	$11.876253	$13.647168	0.000	0.000
TA Market Participation Strategy - Service Class Subaccount inception date May 1, 2020	2020	$13.496477	$15.782337	0.000	0.000
TA Morgan Stanley Capital Growth - Service Class Subaccount inception date May 1, 2013	2020	$29.423723	$55.539330	2,423.181	0.000
TA Morgan Stanley Global Allocation - Service Class Subaccount inception date May 1, 2020	2020	$11.285739	$14.21708	0.000	0.000
TA Morgan Stanley Global Allocation Managed Risk - Balanced - Service Class Subaccount inception date May 1, 2020	2020	$9.510571	$10.789601	0.000	0.000
TA MSCI EAFE Index - Service Class⁽⁴⁾ Subaccount inception date May 1, 2020	2020	$8.697203	$11.536718	0.000	0.000
TA Multi-Managed Balanced - Service Class Subaccount inception date May 1, 2020	2020	$14.245663	$17.178561	0.000	0.000
TA PIMCO Tactical - Balanced - Service Class Subaccount inception date May 1, 2020	2020	$12.298477	$13.604124	0.000	0.000
TA PIMCO Tactical - Conservative - Service Class Subaccount inception date May 1, 2020	2020	$12.201863	$13.318775	0.000	0.000
TA PIMCO Tactical - Growth - Service Class Subaccount inception date May 1, 2020	2020	$12.580560	$14.161849	0.000	0.000
TA PIMCO Total Return - Service Class Subaccount inception date May 1, 2020	2020	$10.334074	$10.641753	0.000	0.000
TA PineBridge Inflation Opportunities - Service Class Subaccount inception date May 1, 2020	2020	$9.043138	$9.589534	0.000	0.000
TA QS Investors Active Asset Allocation - Conservative - Service Class Subaccount inception date May 1, 2020	2020	$10.705679	$11.778420	0.000	0.000
TA QS Investors Active Asset Allocation - Moderate Growth - Service Class Subaccount inception date May 1, 2020	2020	$10.234270	$11.322969	0.000	0.000
TA QS Investors Active Asset Allocation - Moderate - Service Class Subaccount inception date May 1, 2020	2020	$10.468504	$11.619499	0.000	0.000
TA Rothschild & Co Large Cap Value - Service Class⁽⁹⁾ Subaccount inception date May 1, 2020	2020	$7.521544	$9.972636	0.000	0.000
TA S&P 500 Index - Service Class⁽⁵⁾ Subaccount inception date May 1, 2020	2020	$11.618473	$15.346985	0.000	0.000
TA Small Mid Cap Value - Service Class Subaccount inception date May 1, 2020	2020	$12.189568	$17.133079	0.000	0.000
TA T. Rowe Price Small Cap - Service Class Subaccount inception date May 1, 2020	2020	$17.124472	$24.805681	0.000	0.000
TA TS&W International Equity - Service Class Subaccount inception date May 1, 2020	2020	$9.243875	$12.439952	0.000	0.000
TA WMC US Growth - Service Class Subaccount inception date May 1, 2020	2020	$21.742093	$30.925767	1,119.125	0.000
Vanguard ^® VIF Balanced Portfolio⁽¹⁾ Subaccount inception date May 1, 2020	2020	$9.173747	$10.880609	0.000	0.000
Vanguard ^® VIF Conservative Allocation Portfolio⁽¹⁾ Subaccount inception date May 1, 2020	2020	$9.620151	$10.982516	0.000	0.000

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CONDENSED FINANCIAL INFORMATION — (Continued)

		Separate Account Expense 2.00%
Subaccount	Year	Beginning AUV	Ending AUV	# Units (National)	# Units (NY)
Vanguard ^® VIF Mid-Cap Index Portfolio⁽¹⁾ Subaccount inception date May 1, 2020	2020	$16.038171	$22.630736	0.000	0.000
Vanguard ^® VIF Moderate Allocation Portfolio⁽¹⁾ Subaccount inception date May 1, 2020	2020	$9.232552	$11.191813	0.000	0.000

		Separate Account Expense 1.15%
Subaccount	Year	Beginning AUV	Ending AUV	# Units (National)	# Units (NY)
AB Balanced Wealth Strategy Portfolio - Class B⁽⁴⁾ Subaccount inception date May 1, 2020	2020	$12.674418	$15.503815	0.000	0.000
AB Growth and Income Portfolio - Class B Subaccount inception date May 1, 2020	2020	$15.279046	$19.327391	0.000	0.000
American Funds - Asset Allocation Fund Class 4⁽⁴⁾ Subaccount inception date May 1, 2020	2020	$9.828614	$11.840480	34,927.699	0.000
American Funds - The Bond Fund of America^SM - Class 4^(7)(10) Subaccount inception date May 1, 2020	2020	$9.990937	$10.401697	20,274.637	0.000
American Funds - Growth Fund - Class 4⁽⁶⁾ Subaccount inception date May 1, 2020	2020	$9.741789	$15.025253	133,389.799	0.000
American Funds - Growth-Income Fund - Class 4⁽⁶⁾ Subaccount inception date May 1, 2020	2020	$9.757444	$12.469805	69,059.394	0.000
American Funds - International Fund - Class 4⁽⁶⁾ Subaccount inception date May 1, 2020	2020	$9.825162	$13.927172	76,423.959	0.000
American Funds - New World Fund^® - Class 4⁽⁵⁾ Subaccount inception date May 1, 2020	2020	$9.797532	$14.300138	13,599.774	0.000
DFA VA Global Bond Portfolio - Institutional Class⁽¹⁾ Subaccount inception date May 1, 2020	2020	$10.049325	$10.020278	0.000	0.000
Fidelity ^® VIP Balanced Portfolio - Service Class 2⁽³⁾ Subaccount inception date May 1, 2013	2020	$15.434988	$20.057018	2,241.470	0.000
Fidelity ^® VIP Consumer Staples - Initial Class⁽²⁾ Subaccount inception date	2020	$9.853208	$12.214857	0.000	0.000
Fidelity ^® VIP Contrafund^® Portfolio - Service Class 2 Subaccount inception date May 1, 2020	2020	$19.355012	$25.885023	15,486.599	0.000
Fidelity ^® VIP Energy Portfolio - Service Class 2⁽³⁾ Subaccount inception date May 1, 2020	2020	$9.418088	$10.893476	69.119	0.000
Fidelity ^® VIP Health Care Portfolio - Service Class 2⁽³⁾ Subaccount inception date May 1, 2020	2020	$9.776625	$11.941982	8,420.645	0.000
Fidelity ^® VIP Mid Cap Portfolio - Service Class 2 Subaccount inception date May 1, 2020	2020	$13.159113	$19.901360	3,142.306	0.000
Fidelity ^® VIP Technology Portfolio - Initial Class⁽²⁾ Subaccount inception date May 1, 2020	2020	$9.701349	$15.982403	15,810.237	0.000
Fidelity ^® VIP Utilities Portfolio - Initial Class⁽²⁾ Subaccount inception date May 1, 2020	2020	$9.727913	$11.503894	1,046.332	0.000
Fidelity ^® VIP Value Strategies Portfolio - Service Class 2 Subaccount inception date May 1, 2020	2020	$11.702029	$17.401320	0.000	0.000
State Street Total Return V.I.S. Fund - Class 3⁽⁴⁾ Subaccount inception date May 1, 2013	2020	$11.666729	$14.134727	0.000	0.000
TA 60/40 Allocation - Service Class Subaccount inception date May 1, 2020	2020	$10.505870	$12.641248	0.000	0.000
TA Aegon High Yield Bond - Service Class Subaccount inception date May 1, 2020	2020	$11.012028	$13.132746	2,589.542	606.005
TA Aegon Sustainable Equity Income - Service Class⁽⁸⁾ Subaccount inception date May 1, 2020	2020	$12.489545	$15.503032	0.000	0.000
TA Aegon U.S. Government Securities - Service Class Subaccount inception date May 1, 2020	2020	$10.856178	$10.904217	21,504.529	726.039

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CONDENSED FINANCIAL INFORMATION — (Continued)

		Separate Account Expense 1.15%
Subaccount	Year	Beginning AUV	Ending AUV	# Units (National)	# Units (NY)
TA American Funds Managed Risk - Balanced - Service Class Subaccount inception date May 1, 2020	2020	$11.330441	$12.719673	0.000	0.000
TA BlackRock Global Real Estate Securities - Service Class Subaccount inception date May 1, 2020	2020	$9.592287	$11.840749	0.000	0.000
TA BlackRock Government Money Market - Service Class Subaccount inception date May 1, 2020	2020	$9.488872	$9.416652	58,520.414	0.000
TA BlackRock iShares Edge 40- Service Class Subaccount inception date May 1, 2020	2020	$11.781651	$13.237123	0.000	0.000
TA BlackRock iShares Edge 50 - Service Class Subaccount inception date May 1, 2020	2020	$11.907879	$13.598745	15,241.310	0.000
TA BlackRock iShares Edge 75 - Service Class Subaccount inception date March 21, 2016	2020	$12.165295	$14.711212	0.000	0.000
TA BlackRock iShares Edge 100 - Service Class Subaccount inception date May 1, 2020	2020	$12.533664	$16.006508	0.000	0.000
TA BlackRock Tactical Allocation - Service Class Subaccount inception date May 1, 2013	2020	$12.825537	$15.209706	0.000	0.000
TA Goldman Sachs 70/30 - Service Class Subaccount inception date May 1, 2020	2020	$9.999686	$12.592874	1,612.866	0.000
TA International Growth - Service Class Subaccount inception date May 1, 2020	2020	$10.668079	$15.486717	0.000	0.000
TA Janus Balanced - Service Class Subaccount inception date May 1, 2020	2020	$15.263354	$18.514726	1,691.266	0.000
TA Janus Mid-Cap Growth - Service Class Subaccount inception date May 1, 2020	2020	$15.150058	$21.618941	18,171.493	0.000
TA JPMorgan Asset Allocation - Conservative - Service Class Subaccount inception date May 1, 2020	2020	$11.623225	$13.718617	0.000	0.000
TA JPMorgan Asset Allocation - Growth - Service Class Subaccount inception date May 1, 2020	2020	$13.182037	$19.654773	0.000	0.000
TA JPMorgan Asset Allocation - Moderate Growth - Service Class Subaccount inception date May 1, 2020	2020	$12.886186	$16.509577	0.000	0.000
TA JPMorgan Asset Allocation - Moderate - Service Class Subaccount inception date May 1, 2020	2020	$12.228812	$14.911111	57,703.385	0.000
TA JPMorgan Core Bond - Service Class Subaccount inception date May 1, 2020	2020	$11.052566	$11.454904	1,923.852	2,105.606
TA JPMorgan Enhanced Index - Service Class Subaccount inception date May 1, 2020	2020	$18.100973	$24.325915	1,152.129	0.000
TA JPMorgan International Moderate Growth - Service Class Subaccount inception date May 1, 2020	2020	$10.406985	$13.847691	529.718	0.000
TA JPMorgan Mid Cap Value - Service Class Subaccount inception date May 1, 2020	2020	$12.985182	$17.384894	21,418.564	144.600
TA JPMorgan Tactical Allocation - Service Class Subaccount inception date May 1, 2020	2020	$11.908848	$13.555479	7,952.919	0.000
TA Legg Mason Dynamic Allocation - Balanced - Service Class Subaccount inception date May 1, 2020	2020	$11.715505	$12.382714	4,214.715	0.000
TA Legg Mason Dynamic Allocation - Growth - Service Class Subaccount inception date May 1, 2020	2020	$12.106527	$12.699365	2,507.999	0.000
TA Madison Diversified Income - Service Class Subaccount inception date May 1, 2020	2020	$12.931927	$14.427216	24,283.964	0.000
TA Managed Risk - Balanced ETF - Service Class Subaccount inception date May 1, 2020	2020	$12.073859	$13.470531	4,894.921	0.000
TA Managed Risk - Conservative ETF - Service Class Subaccount inception date May 1, 2020	2020	$12.143313	$12.963795	0.000	0.000
TA Managed Risk - Growth ETF - Service Class Subaccount inception date May 1, 2020	2020	$12.604399	$14.566091	0.000	0.000

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CONDENSED FINANCIAL INFORMATION — (Continued)

		Separate Account Expense 1.15%
Subaccount	Year	Beginning AUV	Ending AUV	# Units (National)	# Units (NY)
TA Market Participation Strategy - Service Class Subaccount inception date May 1, 2020	2020	$14.323861	$16.844905	0.000	0.000
TA Morgan Stanley Capital Growth - Service Class Subaccount inception date May 1, 2013	2020	$31.227068	$59.277189	21,228.995	8,001.928
TA Morgan Stanley Global Allocation - Service Class Subaccount inception date May 1, 2020	2020	$11.977738	$15.174404	2,067.774	0.000
TA Morgan Stanley Global Allocation Managed Risk - Balanced - Service Class Subaccount inception date May 1, 2020	2020	$9.964170	$11.368391	0.000	0.000
TA MSCI EAFE Index - Service Class⁽⁵⁾ Subaccount inception date May 1, 2020	2020	$8.922723	$11.902935	0.000	0.000
TA Multi-Managed Balanced - Service Class Subaccount inception date May 1, 2020	2020	$15.119022	$18.335173	0.000	1,795.240
TA PIMCO Tactical - Balanced - Service Class Subaccount inception date May 1, 2020	2020	$13.052494	$14.520164	0.000	0.000
TA PIMCO Tactical - Conservative - Service Class Subaccount inception date May 1, 2020	2020	$12.949930	$14.215580	0.000	0.000
TA PIMCO Tactical - Growth - Service Class Subaccount inception date May 1, 2020	2020	$13.351881	$15.115437	0.000	0.000
TA PIMCO Total Return - Service Class Subaccount inception date May 1, 2020	2020	$10.967607	$11.358320	7,819.379	697.028
TA PineBridge Inflation Opportunities - Service Class Subaccount inception date May 1, 2020	2020	$9.597606	$10.235304	0.000	775.013
TA QS Investors Active Asset Allocation - Conservative - Service Class Subaccount inception date May 1, 2020	2020	$11.362072	$12.571573	0.000	0.000
TA QS Investors Active Asset Allocation - Moderate Growth - Service Class Subaccount inception date May 1, 2020	2020	$10.861835	$12.085516	1,111.725	0.000
TA QS Investors Active Asset Allocation - Moderate - Service Class Subaccount inception date May 1, 2020	2020	$11.110384	$12.401979	1,111.725	0.000
TA Rothschild & Co Large Cap Value - Service Class⁽⁹⁾ Subaccount inception date May 1, 2020	2020	$7.650955	$10.201696	0.000	0.000
TA S&P 500 Index - Service Class⁽⁵⁾ Subaccount inception date May 1, 2020	2020	$11.919641	$15.834043	32,847.320	1,046.879
TA Small Mid Cap Value - Service Class Subaccount inception date May 1, 2020	2020	$12.937088	$18.286720	5,615.825	0.000
TA T. Rowe Price Small Cap - Service Class Subaccount inception date May 1, 2020	2020	$18.174476	$26.475801	21,553.605	93.106
TA TS&W International Equity - Service Class Subaccount inception date May 1, 2020	2020	$9.810791	$13.277683	0.000	190.681
TA WMC US Growth - Service Class Subaccount inception date May 1, 2020	2020	$23.074952	$33.007615	20,047.002	75.570
Vanguard ^® VIF Balanced Portfolio⁽¹⁾ Subaccount inception date May 1, 2020	2020	$9.173963	$10.942622	0.000	0.000
Vanguard ^® VIF Conservative Allocation Portfolio⁽¹⁾ Subaccount inception date May 1, 2020	2020	$9.620377	$11.045134	0.000	0.000
Vanguard ^® VIF Mid-Cap Index Portfolio⁽¹⁾ Subaccount inception date May 1, 2020	2020	$16.038555	$22.759540	43.927	0.000

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		Separate Account Expense 1.15%
Subaccount	Year	Beginning AUV	Ending AUV	# Units (National)	# Units (NY)
Vanguard ^® VIF Moderate Allocation Portfolio⁽¹⁾ Subaccount inception date May 1, 2020	2020	$9.232770	$11.255582	0.000	0.000

⁽¹⁾	The beginning and ending AUV for this fund also reflects a 0.60% Fund Facilitation Fee which is in addition to the Separate Account Expense percentage listed above.
⁽²⁾	The beginning and ending AUV for this fund also reflects a 0.50% Fund Facilitation Fee which is in addition to the Separate Account Expense percentage listed above.
⁽³⁾	The beginning and ending AUV for this fund also reflects a 0.30% Fund Facilitation Fee which is in addition to the Separate Account Expense percentage listed above.
⁽⁴⁾	The beginning and ending AUV for this fund also reflects a 0.20% Fund Facilitation Fee which is in addition to the Separate Account Expense percentage listed above.
⁽⁵⁾	The beginning and ending AUV for this fund also reflects a 0.15% Fund Facilitation Fee which is in addition to the Separate Account Expense percentage listed above.
⁽⁶⁾	The beginning and ending AUV for this fund also reflects a 0.13% Fund Facilitation Fee which is in addition to the Separate Account Expense percentage listed above.
⁽⁷⁾	The beginning and ending AUV for this fund also reflects a 0.11% Fund Facilitation Fee which is in addition to the Separate Account Expense percentage listed above.
⁽⁸⁾	Effective December 1, 2020, Transamerica Barrow Hanley Dividend Focused VP was renamed Transamerica Aegon Sustainable Equity Income VP.
⁽⁹⁾	Effective December 1, 2020, Transamerica Levin Large Cap Value VP was renamed Transamerica Rothschild & Co Large Cap Value VP.
⁽¹⁰⁾	Effective on or about May 1, 2021 the American Funds - Bond Fund will be renamed American Funds - The Bond of Fund America^SM.

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APPENDIX

Excess Interest Adjustment Examples

Surrenders, withdrawals, transfers, death benefits and amounts applied to an annuity option, from a Guaranteed Period Option of the Fixed Account before the end of its guaranteed period (the number of years You specified the money would remain in the Guaranteed Period Option) may be subject to an Excess Interest Adjustment (“EIA”). If, at the time of such transactions the guaranteed interest rate set by us for the applicable period has risen since the date of the initial guarantee, the Excess Interest Adjustment will result in a lower Cash Value. However, if the guaranteed interest rate set by us for the applicable period has fallen since the date of the initial guarantee, the Excess Interest Adjustment will result in a higher Cash Value.

Excess Interest Adjustments will not reduce the Adjusted Policy Value for a Guaranteed Period Option below the premium payments and transfers to that Guaranteed Period Option, less any prior withdrawals and transfers from the Guaranteed Period Option, plus interest at the policy's minimum guaranteed effective annual interest rate. This is referred to as the Excess Interest Adjustment floor.

The formula that will be used to determine the Excess Interest Adjustment is:

S* (G-C)* (M/12)
S	=	Is the amount (before surrender charges, premium taxes and the application of any Guaranteed Minimum Death Benefits, if any) being surrendered, withdrawn, transferred, paid upon death, or applied to an income option that is subject to the Excess Interest Adjustment.
G	=	Is the guaranteed interest rate for the guaranteed period applicable to “S”;
C	=	Is the current guaranteed interest rate then being offered on new premium payments for the next longer option period than “M”. If this policy form or such an option period is no longer offered, “C” will be the U.S. Treasury rate for the next longer maturity (in whole years) than “M” on the 25th day of the previous calendar month; and
M	=	Number of months remaining in the current option period for “S”, rounded up to the next higher whole number of months.
*	=	Multiplication

The following examples are for illustrative purposes only and are calculated using hypothetical values. Your experience will vary based on circumstances at the time of withdrawal. In the following examples ^ denotes exponentiation. Please note the exponentiation represents the compounding of the interest rate.

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Excess Interest Adjustment Examples — (Continued)

Example 1 (Full Surrender, rates increase by 3%):

Assumptions:

Single premium payment = $50,000

Guaranteed period = 5 Years

Guarantee rate = 5.5% per annum

Current Rate = 8.5% per annum

Guaranteed minimum interest rate = 1.50%

Surrender in the middle of Policy Year 2

Summary:
Policy Value at middle of Policy Year 2	= 50,000.00 * (1.055) ^ 1.5 = 54,181.21
Cumulative earnings	= 54,181.21 – 50,000.00 = 4,181.21
Amount free of Excess Interest Adjustment	= 4,181.21
Amount subject to Excess Interest Adjustment	= 54,181.21 – 4,181.21 = 50,000.00
Excess Interest Adjustment floor	= 50,000.00 * (1.015) ^ 1.5 = 51,129.21
Excess Interest Adjustment S(G-C)(M/12) where:	G = .055 C = .085 M = 42 = 50,000.00 * (0.055 * 0.085) * (42/12)
	= -5,250.00, but Excess Interest Adjustment cannot cause the Adjusted Policy Value to fall below the Excess Interest Adjustment floor, so the adjustment is limited to 51,129.21 - 54,181.21 = -3,052.00
Adjusted Policy Value = Policy Value + Excess Interest Adjustment	= 54,181.21 + (-3,052.00) = 51,129.21

Upon full surrender of the policy, the net surrender value (Adjusted Policy Value less any Surrender Charge) will never be less than that required by the non-forfeiture laws of Your state.

Example 2 (Full Surrender, rates decrease by 1%):

Assumptions:

Single premium payment = $50,000

Guaranteed period = 5 Years

Guarantee rate = 5.5% per annum

Current Rate = 4.5% per annum

Guaranteed minimum interest rate = 1.50%

Surrender in the middle of Policy Year 2

Summary:
Policy Value at middle of Policy Year 2	= 50,000.00 * (1.055) ^ 1.5 = 54,181.21
Cumulative earnings	= 54,181.21 – 50,000.00 = 4,181.21
Amount free of Excess Interest Adjustment	= 4,181.21
Amount subject to Excess Interest Adjustment	= 54,181.21 – 4,181.21 = 50,000.00
Excess Interest Adjustment floor	= 50,000.00 * (1.015) ^ 1.5 = 51,129.21
Excess Interest Adjustment S* (G-C)* (M/12) where:	G = .055 C = .045 M = 42 = 50,000.00 * (.055-.045) * (42/12) = 1,750.00
Adjusted Policy Value	= 54,181.21 + 1,750.00 = 55,931.21

Upon full surrender of the policy, the net surrender value will never by less than that required by the non-forfeiture laws of Your state. For the purpose of these illustrations no Surrender Charges are assumed.

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Excess Interest Adjustment Examples — (Continued)

On a withdrawal, we will pay the policyholder the full amount of withdrawal requested (as long as the Policy Value is sufficient). Amounts withdrawn will reduce the Policy Value by an amount equal to:

R - E + SC
R	=	the requested withdrawal;
E	=	the Excess Interest Adjustment; and
SC	=	the Surrender Charges on (EPW - E): where
EPW	=	the excess partial withdrawal amount.

Example 3 (Withdrawal, rates increase by 1%):

Assumptions:

Single premium payment = $50,000

Guaranteed period = 5 Years

Guarantee rate = 5.5% per annum

Current rate = 6.5% per annum

Withdrawal of $20,000 in the middle of Policy Year 2

Summary:
Policy Value at middle of Policy Year 2	= 50,000.00 * (1.055) ^ 1.5 = 54,181.21
Cumulative earnings	= 54,181.21 – 50,000.00 = 4,181.21
Amount free of Excess Interest Adjustment	= 4,181.21
Excess Interest Adjustment S(G-C)(M/12) where:	S = 20,000 – 4,181.21 = 15,818.79 G = .055 C = .065 M = 42 = 15,818.79 * (.055 - .065) * (42/12) = -553.66
Remaining Policy Value at middle of Policy Year 2	= 54,181.21 - (R - E + Surrender Charge) = 54,181.21 - (20,000.00 - (-553.66) + 0.00) = 33,627.55

Example 4 (Partial Withdrawal, rates decrease by 1%):

Assumptions:

Single premium payment = $50,000

Guaranteed period = 5 Years

Guarantee rate = 5.5% per annum

Current rate = 4.5% per annum

Partial Withdrawal of $20,000 in the middle of Policy Year 2

Summary:
Policy Value at middle of Policy Year 2	= 50,000.00 * (1.055) ^ 1.5 = 54,181.21
Cumulative earnings	= 54,181.21 – 50,000.00 = 4,181.21
Amount free of Excess Interest Adjustment	= 4,181.21
Excess Interest Adjustment S(G-C)(M/12) where:	S = 20,000 – 4,181.21 = 15,818.79 G = .055 C = .045 M = 42 = 15,818.79 * (.055 - .045)* (42/12) = 553.66
Remaining Policy Value at middle of Policy Year 2	= 54,181.21 - (R - E + Surrender Charge) = 54,181.21 - (20,000.00 – 553.66 + 0.00) = 34,734.87

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APPENDIX

Death Benefit

Adjusted Withdrawals. If You take a withdrawal, then Your guaranteed minimum death benefit is reduced by an amount called the adjusted withdrawal. The amount of the reduction depends on the relationship between Your Death Proceeds and Policy Value. The adjusted withdrawal is equal to the gross withdrawal multiplied by the Death Proceeds immediately prior to the withdrawal divided by the Policy Value immediately prior to the withdrawal. The formula is AW = GW x (DP/PV) where:

AW = adjusted withdrawal

GW= gross withdrawal

DP = Death Proceeds prior to the withdrawal = greatest of (PV, CV, or GMDB)

PV = Policy Value prior to the withdrawal

GMDB = guaranteed minimum death benefit prior to the withdrawal

CV = Cash Value prior to the withdrawal

The following examples describe the effect of a surrender on the guaranteed minimum death benefit and Policy Value.

Example 1: Death Proceeds Greater than Policy Value

Assumptions:

GMDB = $75,000

PV = $50,000

DP = $75,000

GW = $15,494

AW = $15,494 x ($75,000/$50,000) = $23,241

Summary:
Reduction in guaranteed minimum death benefit	=$23,241
Reduction in Policy Value	=$15,494
New guaranteed minimum death benefit amount	=$51,759
New Policy Value (after withdrawal)	=$34,506

The guaranteed minimum death benefit is reduced more than the Policy Value because the guaranteed minimum death benefit was greater than the Policy Value immediately prior to the withdrawal.

Example 2: Death Proceeds Equal to Policy Value

Assumptions:

GMDB = $50,000

PV = $75,000

DP = $75,000

GW = $15,494

AW = $15,494 x ($75,000/$75,000) = $15,494

Summary:
Reduction in guaranteed minimum death benefit	=$15,494
Reduction in Policy Value	=$15,494
New guaranteed minimum death benefit amount	=$34,506
New Policy Value (after withdrawal)	=$59,506

The guaranteed minimum death benefit and Policy Value are reduced by the same amount because the Policy Value was greater than the guaranteed minimum death benefit immediately prior to the withdrawal.

These examples are for illustrative purposes only. The purpose of these illustrations is to demonstrate how this feature is calculated using hypothetical values. Your experience will vary based on circumstances at the time of withdrawal.

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Death Benefit — (Continued)

Hypothetical Example

In this example, certain death benefit values at various points in time are depicted based on hypothetical assumed rates of performance. This example is for illustrative purposes only and assumes a single $100,000 premium payment by a sole Owner and Annuitant who is age 50. It further assumes no subsequent premium payments or withdrawals. The difference between the two “Policy Value” columns is the fee for the guaranteed minimum death benefit.

End of Year	Net Rate of Return for Fund*	Policy Value (No GMDB Elected)	Policy Value (Return of Premium GMDB Elected)	Return of Premium GMDB	Policy Value (Annual Step-up GMDB Elected)	Annual Step-Up GMDB
Issue	N/A	$100,000	$100,000	$100,000	$100,000	$100,000
1	-4%	$ 94,850	$ 94,700	$100,000	$ 94,500	$100,000
2	18%	$110,832	$110,515	$100,000	$110,093	$110,093
3	15%	$126,182	$125,655	$100,000	$124,955	$124,955
4	-7%	$115,899	$115,226	$100,000	$114,334	$124,955
5	2%	$116,884	$116,033	$100,000	$114,905	$124,955
6	10%	$127,228	$126,127	$100,000	$124,672	$124,955
7	14%	$143,577	$142,146	$100,000	$140,257	$140,257
8	-3%	$137,618	$136,033	$100,000	$133,945	$140,257
9	17%	$159,431	$157,391	$100,000	$154,706	$154,706
10	6%	$167,163	$164,788	$100,000	$161,668	$161,668

The assumed rate does reflect the deduction of a hypothetical fund fee but does not reflect the deduction of any other fees, charges or taxes. The death benefit values do reflect the deduction of hypothetical base policy fees and hypothetical death benefit fees. For purposes of this example we assumed a Mortality and Expense Risk Fee and Administrative Charge of 1.15% for Policy Value, 1.30% for Return of Premium and 1.50% for Annual Step-Up. Different hypothetical returns and fees would produce different results.

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APPENDIX

ADDITIONAL DEATH DISTRIBUTION^SM RIDER – No longer available

The following example illustrates the Additional Death Distribution^SM additional death benefit payable by this rider as well as the effect of a withdrawal on the Additional Death Distribution^SM benefit amount. The Annuitant is less than age 71 on the Rider Date.

Example 1

Assumptions:

Policy Value on the rider date = $100,000

Premiums paid after the rider date before surrender = $25,000

Gross withdrawals after the rider date = $30,000

Policy Value on date of surrender = $150,000

Summary:
Rider earnings on date of surrender (Policy Value on date of surrender – Policy Value on rider date – premiums paid after rider date + surrenders since rider date that exceeded rider earnings = $150,000 - $100,000 - $25,000 + 0):	$ 25,000
Amount of surrender that exceeds rider earnings ($30,000 - $25,000):	$ 5,000
Base policy death benefit (assumed) on the date of death benefit calculation:	$200,000
Policy Value on the date of death benefit calculations:	$175,000
Rider earnings (= Policy Value on date of death benefit calculations – Policy Value on rider date – premiums since rider date + surrenders since rider date that exceeded rider earnings = $175,000 - $100,000 - $25,000 + $5,000):	$ 55,000
Additional death benefit amount (= additional death benefit factor * rider earnings = 40%* $55,000):	$ 22,000
Total death benefit paid (= base policy death benefit plus additional death benefit amount):	$222,000

Example 2

Assumptions:

Policy Value on the rider date = $100,000

Premiums paid after the rider date before surrender = $0

Gross withdrawals after the rider date = $0

Base policy death benefit (assumed) on the date of death benefit calculation = $100,000

Policy Value on the date of death benefit calculations = $75,000

Summary:
Rider earnings (= Policy Value on date of death benefit calculations – Policy Value on rider date – premiums since rider date + surrenders since rider date that exceeded rider earnings = $75,000 - $100,000 - $0 + $0):	$ 0
Additional death benefit amount (= additional death benefit factor * rider earnings = 40%* $0):	$ 0
Total death benefit paid (= base policy death benefit plus additional death benefit amount):	$100,000

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APPENDIX

ADDITIONAL DEATH DISTRIBUTION+^SM RIDER – no longer available

Assume the Additional Death Distribution+^SM rider is added to a new policy opened with $100,000 initial premium payment. The Annuitant is less than age 70 on the rider date. On the first and second rider anniversaries, the Policy Value is $110,000 and $95,000 respectively when the rider fees are deducted. The Annuitant adds a $25,000 premium payment in the 3rd rider year when the Policy Value is equal to $115,000 and then takes a withdrawal of $35,000 during the 4th rider year when the Policy Value is equal to $145,000. After 5 years, the Policy Value is equal to $130,000 and the Death Proceeds are equal to $145,000.

Example 1

Assumptions:

Account value on rider date (equals initial Policy Value since new policy) = $100,000

Additional death benefit during first rider year = $0

Rider fee on first rider anniversary (= rider fee * Policy Value = 0.55% * $110,000) = $605

Additional death benefit during 2nd rider year (= sum of total rider fees paid) = $605

Summary:
Rider fee on second rider anniversary (= rider fee * Policy Value = 0.55% * $95,000)	$ 522.50
Additional death benefit during 3rd rider year (= sum of total rider fees paid = $605 + $522.50)	$ 1,127.50
Rider benefit base in 3rd rider year prior to premium addition (= account value less premiums added since rider date = $115,000 – $0)	$115,000.00
Rider benefit base in 3rd rider year after premium addition (= $140,000 - $25,000)	$115,000.00
Rider benefit base in 4th rider year prior to withdrawal (= account value less premiums added since rider date = $145,000 - $25,000)	$120,000.00
Rider benefit base in 4th rider year after withdrawal = (account value less premiums added since rider date =$110,000 - $25,000)	$ 85,000.00
Rider benefit base in 5th rider year (= $130,000 - $25,000)	$105,000.00
Additional death benefit = rider benefit percentage * rider benefit base = 30% * $105,000	$ 31,500.00
Total Death Proceeds in 5th rider year (= base policy Death Proceeds + additional death benefit amount = $145,000 + $31,500)	$176,500.00

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APPENDIX

Guaranteed Lifetime Withdrawal Benefit - Transamerica Principal Optimizer^SM and Transamerica Income Edge^SM 1.2 riders – REBALANCING EXAMPLES

NOTE: The Transamerica Income Edge^SM 1.2 Rider is no longer available to elect. The following demonstrates, on a purely hypothetical basis, the rebalancing mechanics of this Guaranteed Lifetime Withdrawal Benefit. The investment restrictions, rider fee percentages and withdrawal percentages for Your rider may vary from the percentages used below.

Rebalancing Examples

The following examples assume the initial premium allocations listed in the table below, which we assume satisfy the premium investment requirements provided in the Rate Sheet Prospectus Supplement.

Investment Option Allocations:	Initial Premium Allocations	Initial Premium Allocation Percentages
Stable Account	$ 20,000	20%
Select Investment Option Fund A	$ 13,000	13%
Select Investment Option Fund B	$ 13,000	13%
Select Investment Option Fund C	$ 4,000	4%
Total Select Investment Options	$ 30,000	30%
Flexible Investment Option Fund A	$ 14,000	14%
Flexible Investment Option Fund B	$ 14,000	14%
Flexible Investment Option Fund C	$ 22,000	22%
Total Flexible Investment Options	$ 50,000	50%
Total Investments	$100,000	100%

Example 1: Calculation at rider issue for the rebalance allocations:

The Stable Account portion of the Policy Value is not included in the quarterly Rebalance, therefore the rebalancing allocation percentages are calculated by multiplying the initial premium allocation percentages for the Select Investment Options and Flexible Investment Options by a ratio. The ratio is calculated by taking 100%, divided by 100% less the Stable Account premium allocation percentage. The ratio for this example would be 100% / (100% - 20%) = 1.25.

Investment Option Allocations:	Initial Allocations	Initial Allocation Percentages	Rebalancing Allocation Percentages
Stable Account	$ 20,000	20%	N/A
Total Select Investment Options	$ 30,000	30%	37.5%
Total Flexible Investment Options	$ 50,000	50%	62.5%
Total Investments	$100,000	100%	100%

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APPENDIX

Hypothetical Adjusted withdrawals - Retirement Income Max^® 1.2 and Retirement Income Choice^® 1.7 Riders

This appendix explains the material features of the Retirement Income Max^® 1.2 and Retirement Income Choice^® 1.7 riders which are no longer available to elect.

When a withdrawal is taken, three parts of the Guaranteed Lifetime Withdrawal Benefit can be affected:

1.	Withdrawal Base Components (“WBC”) (Step-Up Component, Growth Component and Growth Basis);
2.	Rider Withdrawal Amount (“RWA”); and
3.	Rider Death Benefit (“RDB”) (if applicable)).

Withdrawal Base Component Adjustments. Gross withdrawals in a rider year up to the rider withdrawal amount will not reduce the withdrawal base components. Gross withdrawals in a rider year in excess of the rider withdrawal amount will reduce the withdrawal base components by an amount equal to the greater of:

1)	the excess gross withdrawal amount; and
2)	a pro rata amount, the result of (A * B) / C, where:

A	is the excess withdrawal (the amount in excess of the rider withdrawal amount remaining prior to the withdrawal);
B	is the withdrawal base component prior to the withdrawal of the excess amount; and
C	is the Policy Value after the rider withdrawal amount has been withdrawn, but prior to the withdrawal of the excess amount.

Rider Death Benefit Adjustments. Gross withdrawals in a rider year will reduce the rider death benefit by the amount equal to the greater of:

1)	the gross withdrawal amount; and
2)	a pro rata amount, the result of (A * B) / C, where:

A	is the gross withdrawal;
B	is the guaranteed future value prior to the gross withdrawal; and
C	is the Policy Value prior to the gross withdrawal.

The following demonstrates, on a purely hypothetical basis, the effects of withdrawals under a Guaranteed Lifetime Withdrawal Benefit. The withdrawal percentages shown may not be available on all riders. Certain features (growth and rider death benefits) may not be available on all riders. For information regarding a specific rider, please refer to that rider section in this prospectus.

Example 1 (Withdrawal Base Components):

Assumptions:

Step-Up Component = $100,000

Growth Component = $95,000

Growth Basis = $95,000

Withdrawal Percentage = 5%

RWA = 5% withdrawal would be $5,000 (5% of the current $100,000 withdrawal base (greater of the step-up component and the growth component))

Gross withdrawal (“GPWD”) = $5,000

Excess withdrawal (“EWD”) = None

Policy Value (“PV”) = $100,000

Question: Is any portion of the withdrawal greater than the rider withdrawal amount?

No. There is no excess withdrawal under the guarantee since no more than $5,000 is withdrawn.

Result. In this example, because no portion of the withdrawal was in excess of $5,000, the withdrawal base components do not change.

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Hypothetical Adjusted withdrawals - Retirement Income Max^® 1.2 and Retirement Income

Choice^® 1.7 Riders — (Continued)

Example 2 (Withdrawal Base Components demonstrating an Excess Withdrawal):

Assumptions:

Step-Up Component = $100,000

Growth Component = $95,000

Growth Basis = $95,000

Withdrawal Percentage = 5%

RWA = 5% withdrawal would be $5,000 (5% of the current $100,000 withdrawal base (greater of the step-up component and the growth component))

GPWD = $7,000

EWD = $2,000 ($7,000 - $5,000)

PV = $90,000

NOTE. For the Guaranteed Lifetime Withdrawal Benefit, because there was an excess withdrawal amount, the withdrawal base needs to be adjusted and a new lower rider withdrawal amount calculated. Had the withdrawal for this example not been more than $5,000, the withdrawal base would remain at $100,000 and the rider withdrawal amount would be $5,000. However, because an excess withdrawal has been taken, the withdrawal base is also reduced (this is the amount the 5% is based on).

New withdrawal base:

Step One. The withdrawal base is reduced only by the amount of the excess withdrawal or the pro rata amount, if greater.

Step Two. Calculate how much the withdrawal base components are affected by the excess withdrawal.

1.	The formula is (EWD * WBC before any adjustments) / (PV - 5% withdrawal)
2.	Step-Up Component = ($2,000 * $100,000) / ($90,000 - $5,000) = $2,352.94
3.	Growth Component = ($2,000 * $95,000) / ($90,000 - $5,000) = $2,235.29
4.	Growth Basis = ($2,000 * $95,000) / ($90,000 - $5,000) = $2,235.29

Step Three. Which is larger, the actual $2,000 excess withdrawal or the pro rata amount?

Step-Up Component: $2,352.94 pro rata amount.

Growth Component: $2,235.29 pro rata amount: and

Growth Basis: $2,235.29 pro rata amount.

Step Four. What is the new withdrawal base component value after the adjustments?

Step-Up Component: $100,000 - $2,352.94 = $97,647.06

Growth Component: $95,000 - $2,235.29 = $92,764.71

Growth Basis: $95,000 - $2,235.29 = $92,764.71

Step Five. What is the new withdrawal base upon which the rider withdrawal amount is based?

Withdrawal Base = Greater of the Step-Up Component ($97,647.06) or the Growth Component ($92,764.71) = $97,647.06

Result. The new withdrawal base is $97,647.06

New rider withdrawal amount:

Because the withdrawal base was reduced (due to the excess withdrawal) we have to calculate a new rider withdrawal amount for the 5% guarantee that will be available starting on the next calendar anniversary. This calculation assumes no more activity prior to the next calendar anniversary.

Question: What is the new rider withdrawal amount?

$97,647.06 (the reduced withdrawal base) * 5% = $4,882.35

Result. Going forward, the maximum You can take out in a year is $4,882.35 without causing an excess withdrawal for the guarantee and further reduction of the withdrawal base (assuming there are no future automatic step-ups).

Example 3 (Rider Death Benefit Option):

Assumptions:

Withdrawal Percentage = 5%

WB = $162,889.46

RDB (optional additional death benefit for additional cost) = $100,000

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Hypothetical Adjusted withdrawals - Retirement Income Max^® 1.2 and Retirement Income

Choice^® 1.7 Riders — (Continued)

RWA = 5% withdrawal would be $8,144 (5% of the then-current $162,889.46 withdrawal base)

GPWD = $8,144.47

EWD = None

PV = $90,000

Step One. Is any portion of the withdrawal greater than the rider withdrawal amount?

No. There is no excess withdrawal under the guarantee if no more than $8,144.47 is withdrawn.

Step Two. What is the rider death benefit after the withdrawal has been taken?

1.	Total to deduct from the rider death benefit is $8,144.47(there is no excess to deduct)
2.	$100,000) - $8,144.47 = $91,855.53

Result. In this example, because no portion of the withdrawal was in excess of $8,144.47, the total withdrawal base and withdrawal base components do not change and the rider death benefit reduces to $91,855.53.

Example 4 (Rider Death Benefit demonstrating an Excess Withdrawal):

Assumptions:

Withdrawal Percentage = 5%

WB = $162,889.46

RDB (optional additional death benefit for additional cost) = $100,000

RWA = 5% withdrawal would be $8,144 (5% of the then-current $162,889.46 withdrawal base)

GPWD = $10,000

EWD = $1,855.53 ($10,000 - $8,144.47)

PV = $90,000

Step One. Is any portion of the total withdrawal greater than the rider withdrawal amount?

Yes. $10,000 - $8,144.47 = $1,855.53 (the excess withdrawal amount).

Step Two. Calculate how much of the rider death benefit is affected by the excess withdrawal.

1.	Formula for pro rata amount is: (EWD * (RDB – 5% withdrawal)) / (PV – 5% withdrawal)
2.	(1,855.53 * ($100,000 - $8,144.47) / ($90,000 - $8,144.47)) = $2,082.21.

Step Three. Which is larger, the actual $1,855.53 excess withdrawal amount or the $2,082.21 pro rata amount?

$2,082.21 pro rata amount.

Step Four. What is the rider death benefit after the withdrawal has been taken?

Total to deduct from the rider death benefit is $8,144.47 (RWA) + $2,082.21 (pro rata excess) = $10,226.68

$100,000 - $10,226.68 = $89,773.32.

Result. The rider death benefit is $89,773.32.

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APPENDIX

Hypothetical Adjusted withdrawals -Transamerica Principal Optimizer^SM and Transamerica Income Edge^SM1.2 Riders

This appendix explains the material features of the Transamerica Principal Optimizer^SM and Transamerica Income Edge^SM 1.2 riders. NOTE: The Transamerica Income Edge^SM 1.2 rider is no longer available to elect.

When a withdrawal is taken, three parts of the Guaranteed Lifetime Withdrawal Benefit can be affected:

1.	Withdrawal Base (“WB”);
2.	Rider Withdrawal Amount (“RWA); and
3.	Guaranteed Future Value (”GFV“)(if applicable)).

Withdrawal Base. Gross withdrawals in a rider year up to the rider withdrawal amount will not reduce the withdrawal base. Gross withdrawals in a rider year in excess of the rider withdrawal amount will reduce the withdrawal base by an amount equal to the greater of:

1)	the excess withdrawal amount; and
2)	a pro rata amount, the result of (A * B) / C, where:

A	is the excess withdrawal (the amount in excess of the rider withdrawal amount remaining prior to the withdrawal);
B	is the withdrawal base prior to the withdrawal of the excess amount; and
C	is the Policy Value after the rider withdrawal amount has been withdrawn, but prior to the withdrawal of the excess amount.

Guaranteed Future Value. Gross withdrawals in a rider year will reduce the guaranteed future value by an amount equal to the greater of:

1)	the gross withdrawal amount; and
2)	a pro rata amount, the result of (A * B) / C, where:

A	is the excess gross withdrawal;
B	is the guaranteed future value prior to the gross withdrawal; and
C	is the Policy Value prior to the gross withdrawal.

The following demonstrates, on a purely hypothetical basis, the effects of partial withdrawals under a Guaranteed Lifetime Withdrawal Benefit. The withdrawal percentages shown may not be available on all riders. Certain features (growth and rider death benefits) may not be available on all riders. For information regarding a specific rider, please refer to that rider section in this prospectus.

Example 1 (Base):

Assumptions:

WB = $100,000

Withdrawal Percentage = 5%

RWA = 5% withdrawal would be $5,000 (5% of the current $100,000 withdrawal base)

Gross withdrawal (”GPWD“) = $5,000

Excess withdrawal (”EWD“) = None

Policy Value (”PV“) = $100,000

Question: Is any portion of the withdrawal greater than the rider withdrawal amount?

No. There is no excess withdrawal under the guarantee since no more than $5,000 is withdrawn.

Result. In this example, because no portion of the withdrawal was in excess of $5,000, the withdrawal base does not change.

Example 2 (Excess Withdrawal):

Assumptions:

WB = $100,000

Withdrawal Percentage = 5%

RWA = 5% withdrawal would be $5,000 (5% of the current $100,000 withdrawal base)

GPWD = $7,000

EWD = $2,000 ($7,000 - $5,000)

PV = $90,000

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Hypothetical Adjusted withdrawals -Transamerica Principal Optimizer^SM and Transamerica

Income Edge^SM1.2 Riders — (Continued)

New withdrawal base:

Step One. The withdrawal base is reduced only by the amount of the excess withdrawal or the pro rata amount, if greater.

Step Two. Calculate how much the withdrawal base is affected by the excess withdrawal.

1.	The formula is (EWD * WB before any adjustments) / (PV – 5% withdrawal)
2.	($2,000 * $100,000) / ($90,000 - $5,000) = $2,352.94

Step Three. Which is larger, the actual $2,000 excess withdrawal or the $2,352.94 pro rata amount?

$2,352.94 pro rata amount.

Step Four. What is the new withdrawal base upon which the rider withdrawal amount is based?

$100,000 - $2,352.94 = $97,647.06

Result. The new withdrawal base is $97,647.06

New rider withdrawal amount:

Because the withdrawal base was adjusted (due to the excess withdrawal) we have to calculate a new rider withdrawal amount for the 5% guarantee that will be available starting on the next calendar anniversary. This calculation assumes no more activity prior to the next calendar anniversary.

Question: What is the new rider withdrawal amount?

$97,647.06 (the adjusted withdrawal base) * 5% = $4,882.35

Example 3 (Guaranteed Future Value):

Assumptions:

GFV = $100,000

GPWD = $10,000

PV = $90,000

Step One. Calculate how much of the guaranteed future value is affected by the gross withdrawal.

1.	Formula for pro rata amount is: (GPWD / PV * GFV)
2.	$10,000 / $90,000 * $100,000) = $11,111.11

Step Two. Which is larger, the actual $10,000 gross withdrawal amount or the $11,111.11 pro rata amount?

$11,111.11 pro rata amount.

Step Three. What is the guaranteed future value after the withdrawal base has been taken?

$100,000 - $11,111.11 = $88,888.89.

Result. The guaranteed future value is $88,888.89.

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APPENDIX

Hypothetical Example of the Withdrawal Base Calculation -Retirement Income Max^® 1.2 rider

The Retirement Income Max^® 1.2 rider can no longer be elected. The following table demonstrates, on a purely hypothetical basis, the withdrawal base calculation for the Retirement Income Max^® 1.2 rider using an initial premium payment of $100,000 for a Single Life Option rider at an issue age of 80. All values shown are post transaction values. The assumed withdrawal percentage in the example below is 6.30%

Rider Year	Hypothetical Policy Value	Subsequent Premium Payment	Withdrawal	Growth Component Adjustment	Step-Up Component Adjustment	Growth Component	Step-Up Component	Withdrawal Base	Rider Withdrawal Amount
	$100,000	$	$	$		$100,000	$100,000	$100,000	$ 6,300
1	$102,000	$	$	$	$	$100,000	$100,000	$100,000	$ 6,300
1	$105,060	$	$	$	$	$100,000	$100,000	$100,000	$ 6,300
1	$107,161	$	$	$	$	$100,000	$100,000	$100,000	$ 6,300
1	$110,376	$	$	$	$	$100,000	$100,000	$100,000	$ 6,300
1	$112,584	$	$	$	$	$100,000	$100,000	$100,000	$ 6,300
1	$115,961	$	$	$	$	$100,000	$100,000	$100,000	$ 6,300
1	$118,280	$	$	$	$	$100,000	$100,000	$100,000	$ 6,300
1	$121,829	$	$	$	$	$100,000	$100,000	$100,000	$ 6,300
1	$124,265	$	$	$	$	$100,000	$100,000	$100,000	$ 6,300
1	$120,537	$	$	$	$	$100,000	$100,000	$100,000	$ 6,300
1	$115,716	$	$	$	$	$100,000	$100,000	$100,000	$ 6,300
1	$109,930	$	$	$	$	$124,265 ³	$124,265	$124,265 ¹	$ 7,829
2	$112,129	$	$	$	$	$124,265	$124,265	$124,265	$ 7,829
2	$115,492	$	$	$	$	$124,265	$124,265	$124,265	$ 7,829
2	$117,802	$	$	$	$	$124,265	$124,265	$124,265	$ 7,829
2	$121,336	$	$	$	$	$124,265	$124,265	$124,265	$ 7,829
2	$124,976	$	$	$	$	$124,265	$124,265	$124,265	$ 7,829
2	$177,476	$50,000	$	$	$	$174,265	$174,265	$174,265	$10,979
2	$175,701	$	$	$	$	$174,265	$174,265	$174,265	$10,979
2	$172,187	$	$	$	$	$174,265	$174,265	$174,265	$10,979
2	$167,022	$	$	$	$	$174,265	$174,265	$174,265	$10,979
2	$163,681	$	$	$	$	$182,979 ³	$177,476	$182,979 ²	$11,528
2	$166,955	$	$	$	$	$182,979	$177,476	$182,979	$11,528
2	$170,294	$	$	$	$	$182,979	$177,476	$182,979	$11,528
3	$166,888	$	$	$	$	$182,979	$177,476	$182,979	$11,528
3	$171,895	$	$	$	$	$182,979	$177,476	$182,979	$11,528
3	$173,614	$	$	$	$	$182,979	$177,476	$182,979	$11,528
3	$178,822	$	$	$	$	$182,979	$177,476	$182,979	$11,528
3	$175,246	$	$	$	$	$182,979	$177,476	$182,979	$11,528
3	$151,741	$	$20,000	$9,676	$9,385	$173,302	$168,091	$173,303	$
3	$154,775	$	$	$	$	$173,302	$168,091	$173,303	$
3	$159,419	$	$	$	$	$173,302	$168,091	$173,303	$
3	$161,013	$	$	$	$	$173,302	$168,091	$173,303	$
3	$165,843	$	$	$	$	$173,302	$168,091	$173,303	$
3	$174,135	$	$	$	$	$173,302	$168,091	$173,303	$

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APPENDIX

Hypothetical Example of the Withdrawal Base Calculation -Retirement Income Choice^® 1.7 Rider

The Retirement Income Choice^® 1.7 Rider can no longer be elected. The following table demonstrates, on a purely hypothetical basis, the withdrawal base calculation for the Retirement Income Choice^® 1.7 Rider using an initial premium payment of $100,000 for a Single Life Option rider at an issue age of 80. All values shown are post transaction values. The assumed withdrawal percentage in the example below is 6.30% and the valuation frequency is annually.

Rider Year	Hypothetical Policy Value	Subsequent Premium Payment	Withdrawal	Growth Component Adjustment	Step-Up Component Adjustment	Growth Component	Step-Up Component	Withdrawal Base	Rider Withdrawal Amount
	$100,000	$	$	$		$100,000	$100,000	$100,000	$ 6,300
1	$102,000	$	$	$	$	$100,000	$100,000	$100,000	$ 6,300
1	$105,060	$	$	$	$	$100,000	$100,000	$100,000	$ 6,300
1	$107,161	$	$	$	$	$100,000	$100,000	$100,000	$ 6,300
1	$110,376	$	$	$	$	$100,000	$100,000	$100,000	$ 6,300
1	$112,584	$	$	$	$	$100,000	$100,000	$100,000	$ 6,300
1	$115,961	$	$	$	$	$100,000	$100,000	$100,000	$ 6,300
1	$118,280	$	$	$	$	$100,000	$100,000	$100,000	$ 6,300
1	$121,829	$	$	$	$	$100,000	$100,000	$100,000	$ 6,300
1	$124,265	$	$	$	$	$100,000	$100,000	$100,000	$ 6,300
1	$120,537	$	$	$	$	$100,000	$100,000	$100,000	$ 6,300
1	$115,716	$	$	$	$	$100,000	$100,000	$100,000	$ 6,300
1	$109,930	$	$	$	$	$109,930 ³	$109,930	$109,930 ¹	$ 6,926
2	$112,129	$	$	$	$	$109,930	$109,930	$109,930	$ 6,926
2	$115,492	$	$	$	$	$109,930	$109,930	$109,930	$ 6,926
2	$117,802	$	$	$	$	$109,930	$109,930	$109,930	$ 6,926
2	$121,336	$	$	$	$	$109,930	$109,930	$109,930	$ 6,926
2	$124,976	$	$	$	$	$109,930	$109,930	$109,930	$ 6,926
2	$177,476	$50,000	$	$	$	$159,930	$159,930	$159,930	$10,076
2	$175,701	$	$	$	$	$159,930	$159,930	$159,930	$10,076
2	$172,187	$	$	$	$	$159,930	$159,930	$159,930	$10,076
2	$167,022	$	$	$	$	$159,930	$159,930	$159,930	$10,076
2	$163,681	$	$	$	$	$159,930	$159,930	$159,930	$10,076
2	$166,955	$	$	$	$	$159,930	$159,930	$159,930	$10,076
2	$170,294	$	$	$	$	$170,294	$170,294	$170,294 ²	$10,729
3	$166,888	$	$	$	$	$170,294	$170,294	$170,294	$10,729
3	$171,895	$	$	$	$	$170,294	$170,294	$170,294	$10,729
3	$173,614	$	$	$	$	$170,294	$170,294	$170,294	$10,729
3	$178,822	$	$	$	$	$170,294	$170,294	$170,294	$10,729
3	$175,246	$	$	$	$	$170,294	$170,294	$170,294	$10,729
3	$151,741	$	$20,000	$9,806	$9,806	$160,488	$160,488	$160,488	$
3	$154,775	$	$	$	$	$160,488	$160,488	$160,488	$
3	$159,419	$	$	$	$	$160,488	$160,488	$160,488	$
3	$161,013	$	$	$	$	$160,488	$160,488	$160,488	$
3	$165,843	$	$	$	$	$160,488	$160,488	$160,488	$
3	$174,135	$	$	$	$	$160,488	$160,488	$160,488	$

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APPENDIX

Hypothetical Example of the Withdrawal Base Calculation -Transamerica Principal Optimizer^SM and Transamerica Income Edge^SM 1.2 riders

The following table demonstrates, on a purely hypothetical basis, the withdrawal base calculation for the Transamerica Principal Optimizer^SM and Transamerica Income Edge^SM 1.2 riders using an initial premium payment of $100,000 for a Single Life Option rider at an issue age of 80. All values shown are post transaction values. The assumed withdrawal percentage in the example below is 6.30% and the valuation frequency is annually. NOTE: The Transamerica Income Edge^SM Rider can no longer be elected.

Rider Year	Hypothetical Policy Value	Subsequent Premium Payment	Withdrawal	Excess WB Adjustment	Withdrawal Base	Rider Withdrawal Amount
	$100,000	$	$	$	$100,000	$ 6,000
1	$102,000	$	$	$	$100,000	$ 6,000
1	$105,060	$	$	$	$100,000	$ 6,000
1	$107,161	$	$	$	$100,000	$ 6,000
1	$110,376	$	$	$	$100,000	$ 6,000
1	$112,584	$	$	$	$100,000	$ 6,000
1	$115,961	$	$	$	$100,000	$ 6,000
1	$118,280	$	$	$	$100,000	$ 6,000
1	$121,829	$	$	$	$100,000	$ 6,000
1	$124,265	$	$	$	$100,000	$ 6,000
1	$120,537	$	$	$	$100,000	$ 6,000
1	$115,716	$	$	$	$100,000	$ 6,000
1	$109,930	$	$	$	$109,930	$ 6,596
2	$112,129	$	$	$	$109,930	$ 6,596
2	$115,492	$	$	$	$109,930	$ 6,596
2	$117,802	$	$	$	$109,930	$ 6,596
2	$121,336	$	$	$	$109,930	$ 6,596
2	$124,976	$	$	$	$109,930	$ 6,596
2	$177,476	$50,000	$	$	$159,930	$ 9,596
2	$175,701	$	$	$	$159,930	$ 9,596
2	$172,187	$	$	$	$159,930	$ 9,596
2	$167,022	$	$	$	$159,930	$ 9,596
2	$163,681	$	$	$	$159,930	$ 9,596
2	$166,955	$	$	$	$159,930	$ 9,596
2	$170,294	$	$	$	$170,294 ¹	$10,218
3	$166,888	$	$	$	$170,294	$10,218
3	$171,895	$	$	$	$170,294	$10,218
3	$173,614	$	$	$	$170,294	$10,218
3	$178,822	$	$	$	$170,294	$10,218
3	$175,246	$	$	$	$170,294	$10,218
3	$151,741	$	$20,000	$10,314	$159,980	$
3	$154,775	$	$	$	$159,980	$
3	$159,419	$	$	$	$159,980	$
3	$161,013	$	$	$	$159,980	$
3	$165,843	$	$	$	$159,980	$
3	$174,135	$	$	$	$159,980	$
3	$181,101	$	$	$	$181,101 ¹	$10,866

⁽¹⁾Automatic Step-Up Applied

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GLOSSARY OF TERMS

Accumulation Unit - An accounting unit of measure used in calculating the Policy Value in the Separate Account before the Annuity Commencement Date.

Adjusted Policy Value - The Policy Value increased or decreased by any Excess Interest Adjustment.

Annuitant - The person on whose life any annuity payments involving life contingencies will be based.

Annuity Payment Option - A method of receiving a stream of annuity payments selected by the Owner.

Annuity Unit - An accounting unit of measure used in the calculation of the amount of the second and each subsequent variable annuity payment.

Assumed Investment Return or AIR - The annual effective rate shown in the contract that is used in the calculation of each variable annuity payment.

Beneficiary(ies) - The person(s) who has the right to the death benefit as set forth in the policy.

Business Day - A day when the New York Stock Exchange is open for regular trading. Business Day may be referred to as Market Day in Your policy.

Cash Value - The Adjusted Policy Value less any applicable surrender charge and rider fees (imposed upon surrender).

Code - The Internal Revenue Code of 1986, as amended.

Enrollment Form - A written application, order form, or any other information received electronically or otherwise upon which the policy is issued and/or is reflected on the data or specifications page.

Excess Interest Adjustment - A positive or negative adjustment to amounts paid out or transferred from the Fixed Account Guaranteed Period Options prior to the end of the guaranteed period. The adjustment reflects changes in the interest rates declared by us since the date any payment was received by, or an amount was transferred to, the Guaranteed Period Option. The Excess Interest Adjustment can either decrease or increase the amount to be received by the Owner upon withdrawals, surrenders or commencement of annuity payments, depending upon whether there has been an increase or decrease in interest rates, respectively. The Excess Interest Adjustment will not decrease the interest credited to Your policy below the guaranteed minimum. The Excess Interest Adjustment does not apply to policies issued in New York by Transamerica Financial Life Insurance Company.

Fixed Account - One or more Guaranteed Period Options under the policy that are part of our general assets and are not in the Separate Account.

Guaranteed Period Options - The various guaranteed interest rate periods of the Fixed Account which we may offer and into which Premium Payments may be paid or amounts transferred when available.

Nonqualified Policy - A policy other than a Qualified Policy.

Owner (You, Your) - The person who may exercise all rights and privileges under the policy.

Policy Date - The date shown on the policy data page attached to the policy and the date on which the policy becomes effective.

Policy Value - On or before the Annuity Commencement Date, the Policy Value is equal to the Owner's:

•	Premium Payments; minus
•	gross withdrawals (withdrawals plus the surrender charge on the portion of the requested withdrawal that is subject to the surrender charge plus or minus any Excess Interest Adjustment plus taxes (on the withdrawal)); plus
•	interest credited in the Fixed Account; plus
•	accumulated gains in the Separate Account; minus
•	accumulated losses in the Separate Account; minus
•	Service Charges, rider fees, premium taxes, transfer fees, and other charges, if any.

Policy Year - A Policy Year begins on the Policy Date and on each anniversary thereafter.

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Premium Payment - An amount paid to us by the Owner or on the Owner's behalf as consideration for the benefits provided by the policy.

Qualified Policy - A policy issued in connection with retirement plans that qualify for special federal income tax treatment under the Code.

Service Charge - An annual charge on each policy anniversary (and a charge at the time of surrender during any Policy Year) for policy maintenance and related administrative expenses.

Subaccount - A subdivision within the Separate Account, the assets of which are invested in a specified underlying fund portfolio.

Surrender Charge - A percentage of each Premium Payment that depends upon the length of time from the date of each Premium Payment. The Surrender Charge is assessed on full or partial surrenders from the policy. A Surrender Charge may also be referred to as a “contingent deferred sales charge” or a “contingent deferred sales load.”

Variable Annuity Payments - Payments made pursuant to an Annuity Payment Option which fluctuate as to dollar amount or payment term in relation to the investment performance of the specified Subaccounts within the Separate Account.

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In order to supplement the description in the prospectus, the following provides additional information about us and the policy, which may be of interest to a prospective purchaser.

THE POLICY—GENERAL PROVISIONS

Owner

The policy shall belong to the Owner upon issuance of the policy after completion of an Enrollment Form and delivery of the initial Premium Payment. While the Annuitant is living, the Owner may: (1) assign the policy; (2) surrender the policy; (3) amend or modify the policy with our consent; (4) receive annuity payments or name a payee to receive the payments; and (5) exercise, receive and enjoy every other right and benefit contained in the policy. The exercise of these rights may be subject to the consent of any assignee or irrevocable Beneficiary; and of Your spouse in a community or marital property state.

Unless we have been notified of a community or marital property interest in the policy, we will rely on our good faith belief that no such interest exists and will assume no responsibility for inquiry.

Note carefully. If the Owner predeceases the Annuitant and no joint Owner, primary Beneficiary, or contingent Beneficiary is alive or in existence on the date of death, the Owner's estate will become the new Owner. If no probate estate is opened because the Owner has precluded the opening of a probate estate by means of a trust or other instrument, that trust may not exercise ownership rights to the policy. It may be necessary to open a probate estate in order to exercise ownership rights to the policy.

The Owner may change the ownership of the policy in a Written Notice. When this change takes effect, all rights of ownership in the policy will pass to the new Owner. A change of ownership may have tax consequences.

When there is a change of Owner, the change will not be effective until it is recorded in our records. Once recorded, it will take effect as of the date the Owner signs the Written Notice, subject to any payment we have made or action we have taken before recording the change. Changing the Owner does not change the designation of the Beneficiary or the Annuitant.

Entire Contract

The entire contract consists of the policy and any application, endorsements and riders. If any portion of the policy or rider attached thereto shall be found to be invalid, unenforceable or illegal, the remainder shall not in any way be affected or impaired thereby, but shall have the same force and effect as if the invalid, unenforceable or illegal portion had not been inserted.

Misstatement of Age or Sex

During the Accumulation Phase. If the age of any person whose life or age a benefit provided under a guaranteed benefit has been misstated, any such benefit will be that which would have been purchased on the basis of the correct age. If that person would not have been eligible for that guaranteed benefit at the correct age, (i) the benefit will be rescinded; and (ii) any charges that were deducted for the benefit will be refunded and applied to the total account value of the policy.

We reserve the right to terminate the contract at any time if we discover a misstatement or fraudulent representation of any information provided in connection with the issuance or ongoing administration of the policy.

After the Annuity Commencement Date. We may require proof of the Annuitant’s or Owner’s age and/or sex before any payments associated with any benefits are made. If the age or sex of the Annuitant and/or Owner has been misstated, we will change the payment associated with any benefits payable to that which the Premium Payments would have purchased for the correct age or sex. The dollar amount of any underpayment made by us shall be paid in full with the next payment due such person, Beneficiary, or payee. The dollar amount of any overpayment made by us due to any misstatement shall be deducted from payments subsequently accruing to such person or Beneficiary. Any underpayment or overpayment will include interest specified in Your policy, from the date of the wrong payment to the date of the adjustment. The age of the Annuitant or Owner may be established at any time by the submission of proof satisfactory to us.

Reallocation of Annuity Units After the Annuity Commencement Date

After the Annuity Commencement Date, You may reallocate the value of a designated number of Annuity Units of a Subaccount then credited to a policy into an equal value of Annuity Units of one or more other Subaccounts or the Fixed Account. The reallocation shall be based on the relative value of the Annuity Units of the account(s) or Subaccount(s) at the end of the Business Day on the next payment date. The minimum amount which may be reallocated is the lesser of (1) $10 of monthly income or (2) the entire monthly income of the Annuity Units in the account or Subaccount from which the transfer is being made. If the monthly income of the

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Annuity Units remaining in an account or Subaccount after a reallocation is less than $10, we reserve the right to include the value of those Annuity Units as part of the transfer. The request must be in writing to our Administrative Office. There is no charge assessed in connection with such reallocation. A reallocation of Annuity Units may be made up to four times in any given Policy Year.

After the Annuity Commencement Date, no transfers may be made from the Fixed Account to the Separate Account.

Annuity Payment Options

During the lifetime of the Annuitant and before the Annuity Commencement Date, the Owner may choose an Annuity Payment Option or change the election, but notice of any election or change of election must be received by us in good order at least thirty (30) days before the Annuity Commencement Date (elections less than 30 days require prior approval). If no election is made before the Annuity Commencement Date, annuity payments will be made under life income with variable payments for 10 years certain using the existing Policy Value of the Separate Account. The default options may be restricted with respect to Qualified Policies.

The person who elects an Annuity Payment Option can also name one or more Beneficiaries to receive any unpaid, guaranteed amount at the death of the Annuitant. Naming these Beneficiaries cancels any prior choice of a Beneficiary.

A payee who did not elect the Annuity Payment Option does not have the right to advance or assign payments, take the payments in one sum, or make any other change. However, the payee may be given the right to do one or more of these things if the person who elects the option tells us in writing and we agree.

Adjusted Age. For the Life Income and Joint and Survivor Annuity Payment Options, the adjusted age is the Annuitant's actual age nearest birthday, on the Annuity Commencement Date, adjusted as described in Your policy. This adjustment assumes an increase in life expectancy, and therefore it results in lower payments than without such an adjustment.

Variable Payment Options. The dollar amount of the first variable annuity payment will be determined in accordance with the annuity payment rates set forth in the applicable table contained in the policy. For annuity payments the tables are based on a 3% effective annual AIR and the “Annuity 2000” (male, female and unisex if required by law) mortality table projected for improvement using projection scale G. The rates were projected dynamically using an assumed Annuity Commencement Date of 2020. the “Annuity 2000” mortality rates are adjusted based on improvements in mortality to more appropriately reflect increased longevity. The dollar amount of additional Variable Annuity Payments will vary based on the investment performance of the Subaccount(s) of the Separate Account selected by the Annuitant or Beneficiary. For certain Qualified Policies the use of unisex mortality tables may be required.

Determination of the First Variable Payment. The amount of the first variable payment depends upon the sex (if consideration of sex is allowed under state and Federal law) and adjusted age of the Annuitant.

Determination of Additional Variable Payments. All Variable Annuity Payments other than the first are calculated using Annuity Units which are credited to the policy. The number of Annuity Units to be credited in respect of a particular Subaccount is determined by dividing that portion of the first variable annuity payment attributable to that Subaccount by the Annuity Unit value of that Subaccount on the Annuity Commencement Date. The number of Annuity Units of each particular Subaccount credited to the policy then remains fixed, assuming no transfers to or from that Subaccount occur. The dollar value of variable Annuity Units in the chosen Subaccount will increase or decrease reflecting the investment experience of the chosen Subaccount. The dollar amount of each variable annuity payment after the first may increase, decrease or remain constant. This amount is equal to the sum of the amounts determined by multiplying the number of Annuity Units of each particular Subaccount credited to the policy by the Annuity Unit value for the particular Subaccount on the date the payment is made.

Death Benefit

Due proof of death of the Annuitant is proof that the Annuitant died prior to the commencement of annuity payments. A certified copy of a death certificate, a certified copy of a decree of a court of competent jurisdiction as to the finding of death, a written statement by the attending physician, or any other proof satisfactory to us will constitute due proof of death. If the Annuitant dies after the Annuity Commencement Date, no death benefit is payable and the amount payable will depend on the annuity income option.

Upon receipt in good order of this proof and an election of a method of settlement, the death benefit generally will be paid within seven days, or as soon thereafter as we have sufficient information about the Beneficiary(ies) to make the payment. The death benefit may be paid as a lump sum, as annuity payments or as otherwise permitted by the Company in accordance with applicable law, unless a settlement agreement is effective at the death of the Owner preventing such election.

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If an Owner is not an Annuitant, and dies prior to the Annuity Commencement Date, the new Owner may surrender the policy at any time for the amount of the Cash Value. If the new Owner is not the deceased Owner's spouse, the Cash Value must be distributed within five years after the date of the deceased Owner's death, or be used to provide payments to a designated Beneficiary within one year of such Owner’s death that will be made for life of the Beneficiary or for a period not extending beyond the life expectancy of the Beneficiary. If the sole new Owner is the deceased Owner's surviving spouse, such spouse may elect to continue the policy as the new Owner instead of receiving the death benefit.

Beneficiary. The Beneficiary designation in the Enrollment Form will remain in effect until changed. The Owner may change the designated Beneficiary by sending us Written Notice. The Beneficiary's consent to such change is not required unless the Beneficiary was irrevocably designated or law requires consent. If an irrevocable Beneficiary dies, the Owner may then designate a new Beneficiary. The change will take effect as of the date the Owner signs the Written Notice, whether or not the Owner is living when we receive the notice. We will not be liable for any payment made before the Written Notice is received. If more than one Beneficiary is designated, and the Owner fails to specify their interests, they will share equally. If upon the death of the Annuitant there is a surviving Owner(s), the surviving Owner(s) automatically takes the place of any Beneficiary designation.

Death of Owner

Federal tax law requires that if any Owner (including any joint Owner who has become a current Owner) dies before the Annuity Commencement Date, then the entire value of the policy must generally be distributed within five years of the date of death of such Owner. Certain rules apply where (1) the spouse of the deceased Owner is the sole Beneficiary, (2) the Owner is not a natural person and the primary Annuitant dies or is changed, or (3) any Owner dies after the Annuity Commencement Date. See the TAX INFORMATION section in the prospectus for more information about these rules. Other rules may apply to Qualified Policies.

Assignment

During the lifetime of the Annuitant You may assign any rights or benefits provided by the policy if Your policy is a Nonqualified Policy. An assignment will not be binding on us until a copy has been filed at our Administrative Office. Your rights and benefits and those of the Beneficiary are subject to the rights of the assignee. We assume no responsibility for the validity or effect of any assignment. Any claim made under an assignment shall be subject to proof of interest and the extent of the assignment. An assignment may have tax consequences.

Unless You so direct by filing Written Notice with us, no Beneficiary may assign any payments under the policy before they are due. To the extent permitted by law, no payments will be subject to the claims of any Beneficiary's creditors.

Ownership under Qualified Policies is restricted to comply with the Code.

Evidence of Survival

We reserve the right to require satisfactory evidence that a person is alive if a payment is based on that person being alive. No payment will be made until we receive such evidence.

Non-Participating

The policy will not share in our surplus earnings; no dividends will be paid.

Amendments

No change in the policy is valid unless made in writing by us and approved by one of our officers. No registered representative has authority to change or waive any provision of the policy.

We reserve the right to amend the policies to meet the requirements of the Code, regulations or published rulings. You can refuse such a change by giving Written Notice, but a refusal may result in adverse tax consequences.

Employee and Agent Purchases

The policy may be acquired by an employee or registered representative of any broker/dealer authorized to sell the policy or their immediate family, or by an officer, director, trustee or bona-fide full-time employee of ours or our affiliated companies or their immediate family. In such a case, we may, at our sole discretion, credit an amount equal to a percentage of each Premium Payment to the policy due to lower acquisition costs we experience on those purchases. We may offer certain employer sponsored savings plans, reduced fees and charges including, but not limited to, the annual Service Charge, the Surrender Charges, the mortality and expense

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risk fee and the administrative charge for certain sales under circumstances which may result in savings of certain costs and expenses. In addition, there may be other circumstances of which we are not presently aware which could result in reduced sales or distribution expenses. Credits to the policy or reductions in these fees and charges will not be unfairly discriminatory against any Owner.

INVESTMENT EXPERIENCE

A “net investment factor” is used to determine the value of Accumulation Units and Annuity Units, and to determine annuity payment rates.

Accumulation Units

Allocations of a Premium Payment directed to a Subaccount are credited in the form of Accumulation Units. Each Subaccount has a distinct Accumulation Unit value. The number of units credited is determined by dividing the Premium Payment or amount transferred to the Subaccount by the Accumulation Unit value of the Subaccount as of the end of the Valuation Period during which the allocation is made. For each Subaccount, the Accumulation Unit value for a given Business Day is based on the net asset value of a share of the corresponding portfolio of the underlying fund portfolios less any applicable charges or fees. The investment performance of the portfolio, expenses, and deductions of certain charges affect the value of an Accumulation Unit.

Upon allocation to the selected Subaccount, Premium Payments are converted into Accumulation Units of the Subaccount. The number of Accumulation Units to be credited is determined by dividing the dollar amount allocated to each Subaccount by the value of an Accumulation Unit for that Subaccount as next determined after the Premium Payment is received at the Administrative Office or, in the case of the initial Premium Payment, when the Enrollment Form is completed, whichever is later. The value of an Accumulation Unit for each Subaccount was arbitrarily established at $10 at the inception of each Subaccount. Thereafter, the value of an Accumulation Unit is determined as of the close of trading on each day the New York Stock Exchange is open for business.

An index (the “net investment factor”) which measures the investment performance of a Subaccount during a Valuation Period, is used to determine the value of an Accumulation Unit for the next subsequent Valuation Period. The net investment factor may be greater or less than or equal to one; therefore, the value of an Accumulation Unit may increase, decrease, or remain the same from one Valuation Period to the next. You bear this investment risk. The net investment performance of a Subaccount and deduction of certain charges affect the Accumulation Unit value.

The net investment factor for any Subaccount for any Valuation Period is determined by dividing (A + B - C) by (D) and subtracting (E) from the result, where the net result of:

A	the net asset value per share of the shares held in the Subaccount determined at the end of the current Valuation Period, plus
B	the per share amount of any dividend or capital gain distribution made with respect to the shares held in the Subaccount if the ex-dividend date occurs during the current Valuation Period, plus or minus
C	a per share credit or charge for any taxes determined by us to have resulted during the Valuation Period from the investment operations of the Subaccount;
D	is the net asset value per share of the shares held in the Subaccount determined as of the end of the immediately preceding Valuation Period; and
E	is an amount representing the Separate Account charge and any optional benefit fees, if applicable.

Illustration of Separate Account Accumulation Unit Value Calculations
Formula and Illustration for Determining the Net Investment Factor

Net Investment Factor =	(A + B - C)	- E
	D

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Where:
A =	The net asset value of an underlying fund portfolio share at of the end of the current Valuation Period.
	Assume A = $11.57
B =	The per share amount of any dividend or capital gains distribution since the end of the immediately preceding Valuation Period.
	Assume B = 0
C =	The per share charge or credit for any taxes reserved for at the end of the current Valuation Period.
	Assume C = 0
D =	The net asset value of an underlying fund portfolio share at of the end of the immediately preceding Valuation Period.
	Assume D = $11.40
E =	The daily deduction for the mortality and expense risk fee and the administrative charge, and any optional benefit fees, if applicable. Assume E total 1.50% on an annual basis; On a daily basis, this equals 0.000041096.

Then, the net investment factor =	(11.57 + 0 – 0)	- 0.000041096 = Z = 1.014871185
	(11.40)

Formula for Determining Accumulation Unit Value

Accumulation Unit Value = A * B
Where:
A =	The Accumulation Unit value for the immediately preceding Valuation Period.
	Assume A = $X
B =	The net investment factor for the current Valuation Period.
	Assume B = Y
Then, the Accumulation Unit value = $X * Y = $Z

Annuity Unit Value and Annuity Payment Rates

The amount of Variable Annuity Payments will vary with Annuity Unit values. Annuity unit values rise if the net investment performance of the Subaccount exceeds the Assumed Investment Return of 3% annually. Conversely, Annuity Unit values fall if the net investment performance of the Subaccount is less than the annual Assumed Investment Return. The value of a variable Annuity Unit in each Subaccount was established at $10 on the date operations began for that Subaccount. The value of a variable Annuity Unit on any subsequent Business Day is equal to A multiplied by B multiplied by C, where:

A	is the variable Annuity Unit value for the Subaccount on the immediately preceding Business Day;
B	is the net investment factor for that Subaccount for the Valuation Period; and
C	is the Assumed Investment Return adjustment factor for the Valuation Period.

The Assumed Investment Return adjustment factor for the Valuation Period is the product of discount factors of .99986634 per day to recognize the 3% effective annual AIR. The Valuation Period is the period from the close of the immediately preceding Business Day to the close of the current Business Day.

The net investment factor for the policy used to calculate the value of a variable Annuity Unit in each Subaccount for the Valuation Period is determined by dividing (i) by (ii) and subtracting (iii) and (iv) from the result, where:

(i)	is the result of:

(1)	the net asset value of a fund share held in that Subaccount determined at the end of the current Valuation Period; plus
(2)	the per share amount of any dividend or capital gain distributions made by the fund for shares held in that Subaccount if the ex-dividend date occurs during the Valuation Period; plus or minus
(3)	a per share charge or credit for any taxes reserved for, which we determine to have resulted from the investment operations of the Subaccount.

(ii)	is the net asset value of a fund share held in that Subaccount determined as of the end of the immediately preceding Valuation Period.
(iii)	is a factor representing the mortality and expense risk fee and administrative charge. This factor is equal, on an annual basis, to to the mortality and expense risk fee and administrative charge shown in Your contract as a percentage of the daily net asset value of shares held in that Subaccount.

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(iv) is a factor representing the Fund Facilitation Fee. This factor is a percentage of the daily net asset value of a fund share held in a Subaccount subject to a Fund Facilitation Fee, up to the maximum percentage of 0.60%. Such factor is equal to 0.00% if you have not assets held in a Subaccount subject to a Fund Facilitation Fee.

The dollar amount of subsequent Variable Annuity Payments will depend upon changes in applicable Annuity Unit values.

The annuity payment rates generally vary according to the annuity option elected and the gender and adjusted age of the Annuitant at the Annuity Commencement Date. The policy contains a table for determining the adjusted age of the Annuitant.

Calculations for Annuity Unit

Value and Variable Annuity Payments

Formula for Determining Annuity Unit Value

Annuity Unit Value = A * B * C
Where:
A =	Annuity Unit value for the immediately preceding Valuation Period.
	Assume A = $X
B =	Net investment factor for the Valuation Period for which the annuity value is being calculated.
	Assume B = Y
C =	A factor to neutralize the annual Assumed Investment Return of 3% built into the Annuity Tables used.
	Assume C = Z
Then, the Annuity Unit value is: $X * Y * Z = $Q

Formula for Determining Amount of

First Monthly Variable Annuity Payment

First monthly variable annuity payment =	A * B
	$1,000

Where:
A =	The Adjusted Policy Value as of the Annuity Commencement Date.
	Assume A = $X
B =	The annuity purchase rate per $1,000 of Adjusted Policy Value based upon the option selected, the sex and adjusted age of the Annuitant according to the tables contained in the policy.
	Assume B = $Y

Then, the first monthly variable annuity payment =	$X * $Y	= $Z
	1,000

Formula for Determining the Number of Annuity Units

Represented by Each Monthly Variable Annuity Payment

Number of Annuity Units =	A
	B

Where:
A =	The dollar amount of the first monthly variable annuity payment.
	Assume A = $X
B =	The Annuity Unit value for the valuation date on which the first monthly payment is due.
	Assume B = $Y

Then, the number of Annuity Units =	$X	= Z
	$Y

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PERFORMANCE

We periodically advertise performance of the various Subaccounts. Performance figures might not reflect charges for options, riders, or endorsements. We may disclose at least three different kinds of non-standard performance. First, we may calculate performance by determining the percentage change in the value of an Accumulation Unit by dividing the increase (decrease) for that unit by the value of the Accumulation Unit at the beginning of the period. This performance number reflects the deduction of the mortality and expense risk fees and administrative charges. It does not reflect the deduction of any applicable premium taxes, Surrender Charges, or fees for any optional riders or endorsements. Any such deduction would reduce the percentage increase or make greater any percentage decrease.

Second, advertisements may also include total return figures, which reflect the deduction of the mortality and expense risk fees and administrative charges. These figures may also include or exclude Surrender Charges. These figures may also reflect any applicable premium enhancement.

Third, for certain investment portfolios, performance may be shown for the period commencing from the inception date of the investment portfolio (i.e., before commencement of Subaccount operations). These figures should not be interpreted to reflect actual historical performance of the Subaccounts.

Not all types of performance data presented reflect all of the fees and charges that may be deducted (such as fees for optional benefits); performance figures would be lower if these charges were included.

HISTORICAL PERFORMANCE DATA

Money Market Yields

We may from time to time disclose the current annualized yield of the money market Subaccount, which invests in the corresponding money market portfolio, for a 7-day period in a manner which does not take into consideration any realized or unrealized gains or losses on shares of the corresponding money market portfolio or on its portfolio securities. This current annualized yield is computed by determining the net change (exclusive of realized gains and losses on the sale of securities and unrealized appreciation and depreciation and income other than investment income) at the end of the 7-day period in the value of a hypothetical account having a balance of 1 unit of the money market Subaccount at the beginning of the 7-day period, dividing such net change in account value by the value of the account at the beginning of the period to determine the base period return, and annualizing this quotient on a 365-day basis. The net change in account value reflects (i) net income from the portfolio attributable to the hypothetical account; and (ii) charges and deductions imposed under a policy that are attributable to the hypothetical account. The charges and deductions include the per unit charges for the hypothetical account for (i) the administrative charges and (ii) the mortality and expense risk fee. Current yield will be calculated according to the following formula.

Current Yield = ((NCS * ES)/UV) * (365/7)
Where:
NCS	=	The net change in the value of the portfolio (exclusive of realized gains and losses on the sale of securities and unrealized appreciation and depreciation and income other than investment income) for the 7-day period attributable to a hypothetical account having a balance of 1 Subaccount unit.
ES	=	Per unit expenses of the Subaccount for the 7-day period.
UV	=	The unit value on the first day of the 7-day period.

Because of the charges and deductions imposed under a policy, the yield for the money market Subaccount will be lower than the yield for the corresponding money market portfolio. The yield calculations do not reflect the effect of any premium taxes. The yield calculations also do not reflect Surrender Charges that may be applicable to a particular policy. Surrender Charges range from 9% to 0% (depending on which share class You select) of the amount of Premium Payments surrendered based on the number of years since the Premium Payment was made. Surrender Charges are based on the number of years since the date of the Premium Payment was made, not the Policy Value issue date.

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We may also disclose the effective yield of the money market Subaccount for the same 7-day period, determined on a compounded basis. The effective yield is calculated by compounding the base period return according to the following formula.

Effective Yield = (1 + ((NCS - ES)/UV))^365/7 - 1
Where:
NCS	=	The net change in the value of the portfolio (exclusive of realized gains and losses on the sale of securities and unrealized appreciation and depreciation and income other than investment income) for the 7-day period attributable to a hypothetical account having a balance of one Subaccount unit.
ES	=	Per unit expenses of the Subaccount for the 7-day period.
UV	=	The unit value on the first day of the 7-day period.

The yield on amounts held in the money market Subaccount normally will fluctuate on a daily basis. Therefore, the disclosed yield for any given past period is not an indication or representation of future yields or rates of return. The money market Subaccount's actual yield is affected by changes in interest rates on money market securities, average portfolio maturity of the corresponding money market portfolio, the types and quality of portfolio securities held by the corresponding money market portfolio and its operating expenses.

Total Returns

We may from time to time also advertise or disclose total returns for one or more of the Subaccounts for various periods of time. One of the periods of time will include the period measured from the date the Subaccount commenced operations. When a Subaccount has been in operation for 1, 5 and 10 years, respectively, the total return for these periods will be provided. Total returns for other periods of time may from time to time also be disclosed. Total returns represent the average annual compounded rates of return that would equate an initial investment of $1,000 to the redemption value of that investment as of the last day of each of the periods. The ending date for each period for which total return quotations are provided will be for the most recent month end practicable, considering the type and media of the communication and will be stated in the communication.

Total returns will be calculated using Subaccount unit values which we calculate on each Business Day based on the performance of the Separate Account's underlying fund portfolio and the deductions for the mortality and expense risk fee and the administrative charges. Total return calculations will reflect the effect of Surrender Charges that may be applicable to a particular period. The total return will then be calculated according to the following formula.

P (1 + T)^N = ERV
Where:
T	=	The average annual total return net of Subaccount recurring charges.
ERV	=	The ending redeemable value of the hypothetical account at the end of the period.
P	=	A hypothetical initial payment of $1,000.
N	=	The number of years in the period.

Other Performance Data

We may from time to time also disclose average annual total returns in a non-standard format in conjunction with the standard format described above.

We may from time to time also disclose cumulative total returns in conjunction with the standard format described above. The cumulative returns will be calculated using the following formula except that the Surrender Charge percentage will be assumed to be 0%

CTR = (ERV / P)-1
Where:
CTR	=	The cumulative total return net of Subaccount recurring charges for the period.
ERV	=	The ending redeemable value of the hypothetical investment at the end of the period.
P	=	A hypothetical initial payment of $1,000.

All non-standard performance data will only be advertised if the standard performance data is also disclosed.

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Adjusted Historical Performance Data

From time to time, sales literature or advertisements may quote average annual total returns for periods prior to the date a particular Subaccount commenced operations. Such performance information for the Subaccounts will be calculated based on the performance of the various portfolios and the assumption that the Subaccounts were in existence for the same periods as those indicated for the portfolios, with the level of policy charges that are currently in effect.

PUBLISHED RATINGS

We may from time to time publish in advertisements, sales literature and reports to Owners, the ratings and other information assigned to us by one or more independent rating organizations such as A.M. Best Company, Standard & Poor's Insurance Ratings Services and Moody's Investors Service. The purpose of the ratings is to reflect our financial strength. The ratings should not be considered as bearing on the investment performance of assets held in the Separate Account or of the safety or riskiness of an investment in the Separate Account. Each year the A.M. Best Company reviews the financial status of thousands of insurers, culminating in the assignment of Best's Ratings. These ratings reflect their current opinion of the relative financial strength and operating performance of an insurance company in comparison to the norms of the life/health insurance industry. In addition, these ratings may be referred to in advertisements or sales literature or in reports to Owners. These ratings are opinions of an operating insurance company's financial capacity to meet the obligations of its insurance policies in accordance with their terms.

STATE REGULATION OF US

We are subject to the laws of jurisdiction governing insurance companies and to regulation by the jurisdiction Department of Insurance. An annual statement in a prescribed form is filed with the Department of Insurance each year covering our operations for the preceding year and our financial condition as of the end of such year. Regulation by the Department of Insurance includes periodic examination to determine our contract liabilities and reserves so that the Department may determine the items are correct. Our books and accounts are subject to review by the Department of Insurance at all times, and a full examination of our operations are conducted periodically by the National Association of Insurance Commissioners. In addition, we are subject to regulation under the insurance laws of other jurisdictions in which it may operate.

ADMINISTRATION

We perform administrative services for the policies. These services include issuance of the policies, maintenance of records concerning the policies, and certain valuation services.

RECORDS AND REPORTS

We will maintain all records and accounts relating to the Separate Account. As presently required by the 1940 Act, as amended, and regulations promulgated thereunder, we will mail to all Owners at their last known address of record, at least annually, reports containing such information as may be required under that Act or by any other applicable law or regulation. Owners will also receive confirmation of each financial transaction and any other reports required by law or regulation. However, for certain routine transactions (for example, regular monthly premiums deducted from Your checking account, or regular annuity payments we send to You) You may only receive quarterly confirmations.

DISTRIBUTION OF THE POLICIES

We have entered into a principal underwriting agreement with our affiliate, Transamerica Capital, Inc. (“TCI”), for the distribution and sale of the policies. We may reimburse TCI for certain expenses it incurs in order to pay for the distribution of the policies (e.g., commissions payable to selling firms selling the Policies, as described below).

TCI's home office is located at 1801 California St. Suite 5200 Denver, Colorado 80202. TCI is an indirect, wholly owned subsidiary of Aegon USA. TCI is registered as a broker-dealer with the Securities and Exchange Commission under the Securities Exchange Act of 1934, and is a member of Financial Industry Regulatory Authority (“FINRA”). TCI is not a member of the Securities Investor Protection Corporation.

We currently offer the policies on a continuous basis. We anticipate continuing to offer the policies, but reserve the right to discontinue the offering. The policies are offered to the public through sales representatives of broker-dealers (“selling firms”) that have entered into selling agreements with us and with TCI. TCI compensates these selling firms for their services. Sales representatives with these selling firms are appointed as our insurance agents.

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As of December 31, 2020, no amount was paid to TCI in connection with this policy sold through the Separate Account because the policy had not commenced operations. We and/or our affiliates provide paid-in capital to TCI and pay for TCI's operating and other expenses, including overhead, legal and accounting fees.

We and/or TCI or another affiliate may pay certain selling firms additional cash amounts for: (1) marketing allowances, which may include marketing services and increased access to their sales representatives; (2) sales promotions relating to the policies; (3) costs associated with sales conferences and educational seminars for their sales representatives; and (4) other sales expenses of the selling firms. We and/or TCI may make bonus payments to certain selling firms based on aggregate sales or persistency standards. These additional payments are not offered to all selling firms, and the terms of any particular agreement governing the payments may vary among selling firms. Differences in compensation paid to a selling firm or its sales representatives for selling one product over another may create conflicts of interests for such firms or its sales representatives.

VOTING RIGHTS

To the extent required by law, we will vote the underlying fund portfolios' shares held by the Separate Account at regular and special shareholder meetings of the underlying fund portfolios in accordance with instructions received from persons having voting interests in the portfolios, although none of the underlying fund portfolios hold regular annual shareholder meetings. If, however, the 1940 Act or any regulation thereunder should be amended or if the present interpretation thereof should change, and as a result we will determine that it is permitted to vote the underlying fund portfolios shares in its own right, it may elect to do so.

Before the Annuity Commencement Date, You hold the voting interest in the selected portfolios. The number of votes that You have the right to instruct will be calculated separately for each Subaccount. The number of votes that You have the right to instruct for a particular Subaccount will be determined by dividing Your Policy Value in the Subaccount by the net asset value per share of the corresponding portfolio in which the Subaccount invests. Fractional shares will be counted.

After the Annuity Commencement Date, You have the voting interest, and the number of votes decreases as annuity payments are made and as the reserves for the policy decrease. The person's number of votes will be determined by dividing the reserve for the policy allocated to the applicable Subaccount by the net asset value per share of the corresponding portfolio. Fractional shares will be counted.

The number of votes that You have the right to instruct will be determined as of the date established by the underlying fund portfolio for determining shareholders eligible to vote at the meeting of the underlying fund portfolio. We will solicit voting instructions by sending You, or other persons entitled to vote, requests for instructions prior to that meeting in accordance with procedures established by the underlying fund portfolio. Portfolio shares as to which no timely instructions are received, and shares held by us in which You, or other persons entitled to vote have no beneficial interest, will be voted in proportion to the voting instructions that are received with respect to all policies participating in the same Subaccount.

Each person having a voting interest in a Subaccount will receive proxy material, reports, and other materials relating to the appropriate portfolio.

OTHER PRODUCTS

We make other variable annuity policies available that may also be funded through the Separate Account. These variable annuity policies may have different features, such as different investment choices or charges.

CUSTODY OF ASSETS

We hold assets of each of the Subaccounts. The assets of each of the Subaccounts are segregated and held separate and apart from the assets of the other Subaccounts and from our general account assets. We maintain records of all purchases and redemptions of shares of the underlying fund portfolios held by each of the Subaccounts. Additional protection for the assets of the Separate Account is afforded by our fidelity bond, presently in the amount of $5,000,000, covering the acts of our officers and employees.

INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

The statutory-basis financial statements and supplementary information of Transamerica Life Insurance Company and Transamerica Financial Life Insurance Company have been so included in reliance on the reports of PricewaterhouseCoopers LLP, an independent registered public accounting firm, given on the authority of said firm as experts in auditing and accounting.

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The financial statements of each of the subaccounts of Separate Account VA B and Separate Account VA BNY included in Form N-VPFS dated April 21, 2021 have been so incorporated in reliance on the reports of PricewaterhouseCoopers LLP, an independent registered public accounting firm, given on the authority of said firm as experts in auditing and accounting.

OTHER INFORMATION

A registration statement has been filed with the SEC, under the Securities Act of 1933 as amended, with respect to the policies discussed in this SAI. Not all of the information set forth in the registration statement and the amendments and exhibits thereto has been included in the prospectus or this SAI. Statements contained in the prospectus and this SAI concerning the content of the policies and other legal instruments are intended to be summaries. For a complete statement of the terms of these documents, please refer to the instruments filed with the SEC.

FINANCIAL STATEMENTS

Separate Account

The values of Your interest in the Separate Account will be affected solely by the investment results of the selected Subaccount(s). The statutory-basis financial statements and schedules of Transamerica Life Insurance Company and Transamerica Financial Life Insurance Company, should be considered only as bearing on our ability to meet our obligations under the policies. They should not be considered as bearing on the investment performance of the assets held in the Separate Account.

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APPENDIX

CONDENSED FINANCIAL INFORMATION

The following tables list the accumulation unit values and the number of Accumulation Units outstanding for the total Separate Account expenses listed therein (including any applicable fund facilitation fees) for each Subaccount available on December 31, 2020.

		Separate Account Expense 2.00%
Subaccount	Year	Beginning AUV	Ending AUV	# Units (National)	# Units (NY)
AB Balanced Wealth Strategy Portfolio - Class B⁽⁴⁾ Subaccount inception date May 1, 2020	2020	$11.942200	$14.525737	0.000	0.000
AB Growth and Income Portfolio - Class B Subaccount inception date May 1, 2020	2020	$14.396393	$18.108206	0.000	0.000
American Funds - Asset Allocation Fund Class 4⁽⁴⁾ Subaccount inception date May 1, 2020	2020	$9.828382	$11.773403	0.000	0.000
American Funds - The Bond Fund of America^SM - Class 4^(7)(10) Subaccount inception date May 1, 2020	2020	$9.990705	$10.342692	0.000	0.000
American Funds - Growth Fund - Class 4⁽⁶⁾ Subaccount inception date May 1, 2020	2020	$9.741556	$14.940242	4,696.243	0.000
American Funds - Growth-Income Fund - Class 4⁽⁶⁾ Subaccount inception date May 1, 2020	2020	$9.757211	$12.399167	0.000	0.000
American Funds - International Fund - Class 4⁽⁶⁾ Subaccount inception date May 1, 2020	2020	$9.824929	$13.848348	0.000	0.000
American Funds - New World Fund^® - Class 4⁽⁵⁾ Subaccount inception date May 1, 2020	2020	$9.797300	$14.219210	0.000	0.000
DFA VA Global Bond Portfolio - Institutional Class⁽¹⁾ Subaccount inception date May 1, 2020	2020	$10.049091	$9.963406	0.000	0.000
Fidelity ^® VIP Balanced Portfolio - Service Class 2⁽³⁾ Subaccount inception date May 1, 2013	2020	$14.748412	$19.056783	0.000	0.000
Fidelity ^® VIP Consumer Staples - Initial Class⁽²⁾ Subaccount inception date	2020	$9.852975	$12.145634	0.000	0.000
Fidelity ^® VIP Contrafund^® Portfolio - Service Class 2 Subaccount inception date May 1, 2020	2020	$18.236942	$24.252219	2,825.900	0.000
Fidelity ^® VIP Energy Portfolio - Service Class 2⁽³⁾ Subaccount inception date May 1, 2020	2020	$9.417856	$10.831805	0.000	0.000
Fidelity ^® VIP Health Care Portfolio - Service Class 2⁽³⁾ Subaccount inception date May 1, 2020	2020	$9.776392	$11.874324	0.000	0.000
Fidelity ^® VIP Mid Cap Portfolio - Service Class 2 Subaccount inception date May 1, 2020	2020	$12.398732	$18.645795	0.000	0.000
Fidelity ^® VIP Technology Portfolio - Initial Class⁽²⁾ Subaccount inception date May 1, 2020	2020	$9.701116	$15.892017	0.000	0.000
Fidelity ^® VIP Utilities Portfolio - Initial Class⁽²⁾ Subaccount inception date May 1, 2020	2020	$9.727681	$11.438705	0.000	0.000
Fidelity ^® VIP Value Strategies Portfolio - Service Class 2 Subaccount inception date May 1, 2020	2020	$11.025807	$16.303426	0.000	0.000
State Street Total Return V.I.S. Fund - Class 3⁽⁴⁾ Subaccount inception date May 1, 2013	2020	$10.992711	$13.242993	0.000	0.000
TA 60/40 Allocation - Service Class Subaccount inception date May 1, 2020	2020	$10.328350	$12.357542	0.000	0.000
TA Aegon High Yield Bond - Service Class Subaccount inception date May 1, 2020	2020	$10.375883	$12.304268	0.000	0.000
TA Aegon Sustainable Equity Income - Service Class⁽⁸⁾ Subaccount inception date May 1, 2020	2020	$11.767865	$14.524867	0.000	0.000
TA Aegon U.S. Government Securities - Service Class Subaccount inception date May 1, 2020	2020	$10.229074	$10.216281	65,329.006	0.000
TA American Funds Managed Risk - Balanced - Service Class Subaccount inception date May 1, 2020	2020	$10.858619	$12.121187	0.000	0.000

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CONDENSED FINANCIAL INFORMATION — (Continued)

		Separate Account Expense 2.00%
Subaccount	Year	Beginning AUV	Ending AUV	# Units (National)	# Units (NY)
TA BlackRock Global Real Estate Securities - Service Class Subaccount inception date May 1, 2020	2020	$9.038061	$11.093709	0.000	0.000
TA BlackRock Government Money Market - Service Class Subaccount inception date May 1, 2020	2020	$8.940696	$8.822520	0.000	0.000
TA BlackRock iShares Edge 40- Service Class Subaccount inception date May 1, 2020	2020	$11.101042	$12.402037	0.000	0.000
TA BlackRock iShares Edge 50 - Service Class Subaccount inception date May 1, 2020	2020	$11.498137	$13.056720	0.000	0.000
TA BlackRock iShares Edge 75 - Service Class Subaccount inception date March 21, 2016	2020	$11.746673	$14.124862	0.000	0.000
TA BlackRock iShares Edge 100 - Service Class Subaccount inception date May 1, 2020	2020	$12.102324	$15.368521	0.000	0.000
TA BlackRock Tactical Allocation - Service Class Subaccount inception date May 1, 2013	2020	$12.084671	$14.250243	0.000	0.000
TA Goldman Sachs 70/30 - Service Class Subaccount inception date May 1, 2020	2020	$9.999454	$12.521577	0.000	0.000
TA International Growth - Service Class Subaccount inception date May 1, 2020	2020	$10.051676	$14.509721	0.000	0.000
TA Janus Balanced - Service Class Subaccount inception date May 1, 2020	2020	$14.381644	$17.346771	0.000	0.000
TA Janus Mid-Cap Growth - Service Class Subaccount inception date May 1, 2020	2020	$14.274710	$20.255072	1,703.325	0.000
TA JPMorgan Asset Allocation - Conservative - Service Class Subaccount inception date May 1, 2020	2020	$10.951763	$12.853156	0.000	0.000
TA JPMorgan Asset Allocation - Growth - Service Class Subaccount inception date May 1, 2020	2020	$12.420406	$18.414865	0.000	0.000
TA JPMorgan Asset Allocation - Moderate Growth - Service Class Subaccount inception date May 1, 2020	2020	$12.141763	$15.468100	0.000	0.000
TA JPMorgan Asset Allocation - Moderate - Service Class Subaccount inception date May 1, 2020	2020	$11.522376	$13.970447	0.000	0.000
TA JPMorgan Core Bond - Service Class Subaccount inception date May 1, 2020	2020	$10.414128	$10.732252	0.000	0.000
TA JPMorgan Enhanced Index - Service Class Subaccount inception date May 1, 2020	2020	$17.055302	$22.791447	0.000	0.000
TA JPMorgan International Moderate Growth - Service Class Subaccount inception date May 1, 2020	2020	$9.805730	$12.974104	0.000	0.000
TA JPMorgan Mid Cap Value - Service Class Subaccount inception date May 1, 2020	2020	$12.234914	$16.288149	0.000	0.000
TA JPMorgan Tactical Allocation - Service Class Subaccount inception date May 1, 2020	2020	$11.220921	$12.700342	0.000	0.000
TA Legg Mason Dynamic Allocation - Balanced - Service Class Subaccount inception date May 1, 2020	2020	$11.038679	$11.601447	0.000	0.000
TA Legg Mason Dynamic Allocation - Growth - Service Class Subaccount inception date May 1, 2020	2020	$11.407132	$11.898118	0.000	0.000
TA Madison Diversified Income - Service Class Subaccount inception date May 1, 2020	2020	$12.234749	$13.572352	0.000	0.000
TA Managed Risk - Balanced ETF - Service Class Subaccount inception date May 1, 2020	2020	$11.376349	$12.620688	0.000	0.000
TA Managed Risk - Conservative ETF - Service Class Subaccount inception date May 1, 2020	2020	$11.441831	$12.145927	0.000	0.000
TA Managed Risk - Growth ETF - Service Class Subaccount inception date May 1, 2020	2020	$11.876253	$13.647168	0.000	0.000
TA Market Participation Strategy - Service Class Subaccount inception date May 1, 2020	2020	$13.496477	$15.782337	0.000	0.000

Table of Contents

CONDENSED FINANCIAL INFORMATION — (Continued)

		Separate Account Expense 2.00%
Subaccount	Year	Beginning AUV	Ending AUV	# Units (National)	# Units (NY)
TA Morgan Stanley Capital Growth - Service Class Subaccount inception date May 1, 2013	2020	$29.423723	$55.539330	2,423.181	0.000
TA Morgan Stanley Global Allocation - Service Class Subaccount inception date May 1, 2020	2020	$11.285739	$14.21708	0.000	0.000
TA Morgan Stanley Global Allocation Managed Risk - Balanced - Service Class Subaccount inception date May 1, 2020	2020	$9.510571	$10.789601	0.000	0.000
TA MSCI EAFE Index - Service Class⁽⁴⁾ Subaccount inception date May 1, 2020	2020	$8.697203	$11.536718	0.000	0.000
TA Multi-Managed Balanced - Service Class Subaccount inception date May 1, 2020	2020	$14.245663	$17.178561	0.000	0.000
TA PIMCO Tactical - Balanced - Service Class Subaccount inception date May 1, 2020	2020	$12.298477	$13.604124	0.000	0.000
TA PIMCO Tactical - Conservative - Service Class Subaccount inception date May 1, 2020	2020	$12.201863	$13.318775	0.000	0.000
TA PIMCO Tactical - Growth - Service Class Subaccount inception date May 1, 2020	2020	$12.580560	$14.161849	0.000	0.000
TA PIMCO Total Return - Service Class Subaccount inception date May 1, 2020	2020	$10.334074	$10.641753	0.000	0.000
TA PineBridge Inflation Opportunities - Service Class Subaccount inception date May 1, 2020	2020	$9.043138	$9.589534	0.000	0.000
TA QS Investors Active Asset Allocation - Conservative - Service Class Subaccount inception date May 1, 2020	2020	$10.705679	$11.778420	0.000	0.000
TA QS Investors Active Asset Allocation - Moderate Growth - Service Class Subaccount inception date May 1, 2020	2020	$10.234270	$11.322969	0.000	0.000
TA QS Investors Active Asset Allocation - Moderate - Service Class Subaccount inception date May 1, 2020	2020	$10.468504	$11.619499	0.000	0.000
TA Rothschild & Co Large Cap Value - Service Class⁽⁹⁾ Subaccount inception date May 1, 2020	2020	$7.521544	$9.972636	0.000	0.000
TA S&P 500 Index - Service Class⁽⁵⁾ Subaccount inception date May 1, 2020	2020	$11.618473	$15.346985	0.000	0.000
TA Small Mid Cap Value - Service Class Subaccount inception date May 1, 2020	2020	$12.189568	$17.133079	0.000	0.000
TA T. Rowe Price Small Cap - Service Class Subaccount inception date May 1, 2020	2020	$17.124472	$24.805681	0.000	0.000
TA TS&W International Equity - Service Class Subaccount inception date May 1, 2020	2020	$9.243875	$12.439952	0.000	0.000
TA WMC US Growth - Service Class Subaccount inception date May 1, 2020	2020	$21.742093	$30.925767	1,119.125	0.000
Vanguard ^® VIF Balanced Portfolio⁽¹⁾ Subaccount inception date May 1, 2020	2020	$9.173747	$10.880609	0.000	0.000
Vanguard ^® VIF Conservative Allocation Portfolio⁽¹⁾ Subaccount inception date May 1, 2020	2020	$9.620151	$10.982516	0.000	0.000
Vanguard ^® VIF Mid-Cap Index Portfolio⁽¹⁾ Subaccount inception date May 1, 2020	2020	$16.038171	$22.630736	0.000	0.000
Vanguard ^® VIF Moderate Allocation Portfolio⁽¹⁾ Subaccount inception date May 1, 2020	2020	$9.232552	$11.191813	0.000	0.000

		Separate Account Expense 1.80%
Subaccount	Year	Beginning AUV	Ending AUV	# Units (National)	# Units (NY)
AB Balanced Wealth Strategy Portfolio - Class B⁽⁴⁾ Subaccount inception date May 1, 2020	2020	$12.110658	$14.750276	0.000	0.000

Table of Contents

CONDENSED FINANCIAL INFORMATION — (Continued)

		Separate Account Expense 1.80%
Subaccount	Year	Beginning AUV	Ending AUV	# Units (National)	# Units (NY)
AB Growth and Income Portfolio - Class B Subaccount inception date May 1, 2020	2020	$14.599190	$18.387716	0.000	0.000
American Funds - Asset Allocation Fund Class 4⁽⁴⁾ Subaccount inception date May 1, 2020	2020	$9.828437	$11.789162	0.000	0.000
American Funds - The Bond Fund of America^SM - Class 4⁽⁷⁾ Subaccount inception date May 1, 2020	2020	$9.990760	$10.356543	0.000	0.000
American Funds - Growth Fund - Class 4⁽⁶⁾ Subaccount inception date May 1, 2020	2020	$9.741611	$14.960210	0.000	0.000
American Funds - Growth-Income Fund - Class 4⁽⁶⁾ Subaccount inception date May 1, 2020	2020	$9.757266	$12.415761	0.000	0.000
American Funds - International Fund - Class 4⁽⁶⁾ Subaccount inception date May 1, 2020	2020	$9.824984	$13.866863	0.000	0.000
American Funds - New World Fund^® - Class 4⁽⁵⁾ Subaccount inception date May 1, 2020	2020	$9.797354	$14.238200	0.000	0.000
DFA VA Global Bond Portfolio - Institutional Class⁽¹⁾ Subaccount inception date May 1, 2020	2020	$10.049146	$9.976770	0.000	0.000
Fidelity ^® VIP Balanced Portfolio - Service Class 2⁽³⁾ Subaccount inception date May 1, 2013	2020	$14.748495	$19.082251	0.000	0.000
Fidelity ^® VIP Consumer Staples - Initial Class⁽²⁾ Subaccount inception date	2020	$9.853030	$12.161893	0.000	0.000
Fidelity ^® VIP Contrafund^® Portfolio - Service Class 2 Subaccount inception date May 1, 2020	2020	$18.493817	$24.626551	0.000	0.000
Fidelity ^® VIP Energy Portfolio - Service Class 2⁽³⁾ Subaccount inception date May 1, 2020	2020	$9.417910	$10.846277	0.000	0.000
Fidelity ^® VIP Health Care Portfolio - Service Class 2⁽³⁾ Subaccount inception date May 1, 2020	2020	$9.776447	$11.890201	0.000	0.000
Fidelity ^® VIP Mid Cap Portfolio - Service Class 2 Subaccount inception date May 1, 2020	2020	$12.573442	$18.933665	0.000	0.000
Fidelity ^® VIP Technology Portfolio - Initial Class⁽²⁾ Subaccount inception date May 1, 2020	2020	$9.701171	$15.913251	0.000	0.000
Fidelity ^® VIP Utilities Portfolio - Initial Class⁽²⁾ Subaccount inception date May 1, 2020	2020	$9.727736	$11.454016	0.000	0.000
Fidelity ^® VIP Value Strategies Portfolio - Service Class 2 Subaccount inception date May 1, 2020	2020	$11.181162	$16.555110	0.000	0.000
State Street Total Return V.I.S. Fund - Class 3⁽⁴⁾ Subaccount inception date May 1, 2013	2020	$11.147804	$13.447746	0.000	0.000
TA 60/40 Allocation - Service Class Subaccount inception date May 1, 2020	2020	$10.369822	$12.423684	0.000	0.000
TA Aegon High Yield Bond - Service Class Subaccount inception date May 1, 2020	2020	$10.522012	$12.494172	0.000	0.000
TA Aegon Sustainable Equity Income - Service Class⁽⁸⁾ Subaccount inception date May 1, 2020	2020	$11.933683	$14.749132	0.000	0.000
TA Aegon U.S. Government Securities - Service Class Subaccount inception date May 1, 2020	2020	$10.373115	$10.373960	0.000	0.000
TA American Funds Managed Risk - Balanced - Service Class Subaccount inception date May 1, 2020	2020	$10.967747	$12.259310	0.000	0.000
TA BlackRock Global Real Estate Securities - Service Class Subaccount inception date May 1, 2020	2020	$9.165370	$11.264943	0.000	0.000
TA BlackRock Government Money Market - Service Class Subaccount inception date May 1, 2020	2020	$9.066629	$8.958708	0.000	0.000
TA BlackRock iShares Edge 40- Service Class Subaccount inception date May 1, 2020	2020	$11.257407	$12.593478	0.000	0.000
TA BlackRock iShares Edge 50 - Service Class Subaccount inception date May 1, 2020	2020	$11.593182	$13.182182	0.000	0.000

Table of Contents

CONDENSED FINANCIAL INFORMATION — (Continued)

		Separate Account Expense 1.80%
Subaccount	Year	Beginning AUV	Ending AUV	# Units (National)	# Units (NY)
TA BlackRock iShares Edge 75 - Service Class Subaccount inception date March 21, 2016	2020	$11.843775	$14.260579	0.000	0.000
TA BlackRock iShares Edge 100 - Service Class Subaccount inception date May 1, 2020	2020	$12.202365	$15.516181	0.000	0.000
TA BlackRock Tactical Allocation - Service Class Subaccount inception date May 1, 2013	2020	$12.254891	$14.470215	0.000	0.000
TA Goldman Sachs 70/30 - Service Class Subaccount inception date May 1, 2020	2020	$9.999508	$12.538306	0.000	0.000
TA International Growth - Service Class Subaccount inception date May 1, 2020	2020	$10.193273	$14.733682	0.000	0.000
TA Janus Balanced - Service Class Subaccount inception date May 1, 2020	2020	$14.584222	$17.614547	0.000	0.000
TA Janus Mid-Cap Growth - Service Class Subaccount inception date May 1, 2020	2020	$14.475824	$20.567756	0.000	0.000
TA JPMorgan Asset Allocation - Conservative - Service Class Subaccount inception date May 1, 2020	2020	$11.106067	$13.051606	0.000	0.000
TA JPMorgan Asset Allocation - Growth - Service Class Subaccount inception date May 1, 2020	2020	$12.595388	$18.699122	0.000	0.000
TA JPMorgan Asset Allocation - Moderate Growth - Service Class Subaccount inception date May 1, 2020	2020	$12.312785	$15.706861	0.000	0.000
TA JPMorgan Asset Allocation - Moderate - Service Class Subaccount inception date May 1, 2020	2020	$11.684661	$14.186072	0.000	0.000
TA JPMorgan Core Bond - Service Class Subaccount inception date May 1, 2020	2020	$10.560806	$10.897926	0.000	0.000
TA JPMorgan Enhanced Index - Service Class Subaccount inception date May 1, 2020	2020	$17.295539	$23.143237	0.000	0.000
TA JPMorgan International Moderate Growth - Service Class Subaccount inception date May 1, 2020	2020	$9.943838	$13.174339	0.000	0.000
TA JPMorgan Mid Cap Value - Service Class Subaccount inception date May 1, 2020	2020	$12.407286	$16.539576	0.000	0.000
TA JPMorgan Tactical Allocation - Service Class Subaccount inception date May 1, 2020	2020	$11.378979	$12.896401	0.000	0.000
TA Legg Mason Dynamic Allocation - Balanced - Service Class Subaccount inception date May 1, 2020	2020	$11.194201	$11.780579	0.000	0.000
TA Legg Mason Dynamic Allocation - Growth - Service Class Subaccount inception date May 1, 2020	2020	$11.567819	$12.081816	0.000	0.000
TA Madison Diversified Income - Service Class Subaccount inception date May 1, 2020	2020	$12.407075	$13.781863	0.000	0.000
TA Managed Risk - Balanced ETF - Service Class Subaccount inception date May 1, 2020	2020	$11.536615	$12.815534	0.000	0.000
TA Managed Risk - Conservative ETF - Service Class Subaccount inception date May 1, 2020	2020	$11.603007	$12.333432	0.000	0.000
TA Managed Risk - Growth ETF - Service Class Subaccount inception date May 1, 2020	2020	$12.043521	$13.857815	0.000	0.000
TA Market Participation Strategy - Service Class Subaccount inception date May 1, 2020	2020	$13.686570	$16.025929	0.000	0.000
TA Morgan Stanley Capital Growth - Service Class Subaccount inception date May 1, 2013	2020	$29.838055	$56.396294	0.000	0.000
TA Morgan Stanley Global Allocation - Service Class Subaccount inception date May 1, 2020	2020	$11.444741	$14.436573	0.000	0.000
TA Morgan Stanley Global Allocation Managed Risk - Balanced - Service Class Subaccount inception date May 1, 2020	2020	$9.615325	$10.922984	0.000	0.000
TA MSCI EAFE Index - Service Class⁽⁵⁾ Subaccount inception date May 1, 2020	2020	$8.749756	$11.621865	0.000	0.000

Table of Contents

CONDENSED FINANCIAL INFORMATION — (Continued)

		Separate Account Expense 1.80%
Subaccount	Year	Beginning AUV	Ending AUV	# Units (National)	# Units (NY)
TA Multi-Managed Balanced - Service Class Subaccount inception date May 1, 2020	2020	$14.446297	$17.443698	0.000	0.000
TA PIMCO Tactical - Balanced - Service Class Subaccount inception date May 1, 2020	2020	$12.471751	$13.814179	0.000	0.000
TA PIMCO Tactical - Conservative - Service Class Subaccount inception date May 1, 2020	2020	$12.373756	$13.524403	0.000	0.000
TA PIMCO Tactical - Growth - Service Class Subaccount inception date May 1, 2020	2020	$12.757779	$14.380481	0.000	0.000
TA PIMCO Total Return - Service Class Subaccount inception date May 1, 2020	2020	$10.479620	$10.806024	0.000	0.000
TA PineBridge Inflation Opportunities - Service Class Subaccount inception date May 1, 2020	2020	$9.170529	$9.737572	0.000	0.000
TA QS Investors Active Asset Allocation - Conservative - Service Class Subaccount inception date May 1, 2020	2020	$10.856485	$11.960266	0.000	0.000
TA QS Investors Active Asset Allocation - Moderate Growth - Service Class Subaccount inception date May 1, 2020	2020	$10.378433	$11.497771	0.000	0.000
TA QS Investors Active Asset Allocation - Moderate - Service Class Subaccount inception date May 1, 2020	2020	$10.615989	$11.798897	0.000	0.000
TA Rothschild & Co Large Cap Value - Service Class⁽⁹⁾ Subaccount inception date May 1, 2020	2020	$7.551775	$10.026026	0.000	0.000
TA S&P 500 Index - Service Class⁽⁵⁾ Subaccount inception date May 1, 2020	2020	$11.688660	$15.460233	0.000	0.000
TA Small Mid Cap Value - Service Class Subaccount inception date May 1, 2020	2020	$12.361283	$17.397509	0.000	0.000
TA T. Rowe Price Small Cap - Service Class Subaccount inception date May 1, 2020	2020	$17.365726	$25.188592	0.000	0.000
TA TS&W International Equity - Service Class Subaccount inception date May 1, 2020	2020	$9.374133	$12.632016	0.000	0.000
TA WMC US Growth - Service Class Subaccount inception date May 1, 2020	2020	$22.048357	$31.403108	0.000	0.000
Vanguard ^® VIF Balanced Portfolio⁽¹⁾ Subaccount inception date May 1, 2020	2020	$9.173798	$10.895174	0.000	0.000
Vanguard ^® VIF Conservative Allocation Portfolio⁽¹⁾ Subaccount inception date May 1, 2020	2020	$9.620204	$10.997232	0.000	0.000
Vanguard ^® VIF Mid-Cap Index Portfolio⁽¹⁾ Subaccount inception date May 1, 2020	2020	$16.038261	$22.660986	0.000	0.000
Vanguard ^® VIF Moderate Allocation Portfolio⁽¹⁾ Subaccount inception date May 1, 2020	2020	$9.232604	$11.206793	0.000	0.000

		Separate Account Expense 1.65%
Subaccount	Year	Beginning AUV	Ending AUV	# Units (National)	# Units (NY)
AB Balanced Wealth Strategy Portfolio - Class B⁽⁴⁾ Subaccount inception date May 1, 2020	2020	$12.238497	$14.920857	0.000	0.000
AB Growth and Income Portfolio - Class B Subaccount inception date May 1, 2020	2020	$14.753357	$18.600449	0.000	0.000
American Funds - Asset Allocation Fund Class 4⁽⁴⁾ Subaccount inception date May 1, 2020	2020	$9.828477	$11.800974	0.000	0.000
American Funds - The Bond Fund of America^SM - Class 4⁽⁷⁾ Subaccount inception date May 1, 2020	2020	$9.990801	$10.366951	16,560.489	0.000
American Funds - Growth Fund - Class 4⁽⁶⁾ Subaccount inception date May 1, 2020	2020	$9.741652	$14.975194	5,753.850	0.000
American Funds - Growth-Income Fund - Class 4⁽⁶⁾ Subaccount inception date May 1, 2020	2020	$9.757307	$12.428213	0.000	0.000

Table of Contents

CONDENSED FINANCIAL INFORMATION — (Continued)

		Separate Account Expense 1.65%
Subaccount	Year	Beginning AUV	Ending AUV	# Units (National)	# Units (NY)
American Funds - International Fund - Class 4⁽⁶⁾ Subaccount inception date May 1, 2020	2020	$9.825025	$13.880759	0.000	0.000
American Funds - New World Fund^® - Class 4⁽⁵⁾ Subaccount inception date May 1, 2020	2020	$9.797395	$14.252475	2,096.708	0.000
DFA VA Global Bond Portfolio - Institutional Class⁽¹⁾ Subaccount inception date May 1, 2020	2020	$10.049187	$9.86778	0.000	0.000
Fidelity ^® VIP Balanced Portfolio - Service Class 2⁽³⁾ Subaccount inception date May 1, 2013	2020	$14.852130	$19.235530	0.000	0.000
Fidelity ^® VIP Consumer Staples - Initial Class⁽²⁾ Subaccount inception date	2020	$9.853071	$12.174100	0.000	0.000
Fidelity ^® VIP Contrafund^® Portfolio - Service Class 2 Subaccount inception date May 1, 2020	2020	$18.689073	$24.911410	3,416.726	0.000
Fidelity ^® VIP Energy Portfolio - Service Class 2⁽³⁾ Subaccount inception date May 1, 2020	2020	$9.417951	$10.857151	0.000	0.000
Fidelity ^® VIP Health Care Portfolio - Service Class 2⁽³⁾ Subaccount inception date May 1, 2020	2020	$9.776488	$11.902134	964.574	0.000
Fidelity ^® VIP Mid Cap Portfolio - Service Class 2 Subaccount inception date May 1, 2020	2020	$12.706239	$19.152710	1,569.302	0.000
Fidelity ^® VIP Technology Portfolio - Initial Class⁽²⁾ Subaccount inception date May 1, 2020	2020	$9.701212	$15.929190	2,635.419	0.000
Fidelity ^® VIP Utilities Portfolio - Initial Class⁽²⁾ Subaccount inception date May 1, 2020	2020	$9.727777	$11.465509	0.000	0.000
Fidelity ^® VIP Value Strategies Portfolio - Service Class 2 Subaccount inception date May 1, 2020	2020	$11.299273	$16.746665	0.000	0.000
State Street Total Return V.I.S. Fund - Class 3⁽⁴⁾ Subaccount inception date May 1, 2013	2020	$11.265483	$13.603261	0.000	0.000
TA 60/40 Allocation - Service Class Subaccount inception date May 1, 2020	2020	$10.401057	$12.473559	0.000	0.000
TA Aegon High Yield Bond - Service Class Subaccount inception date May 1, 2020	2020	$10.633150	$12.638760	0.000	0.000
TA Aegon Sustainable Equity Income - Service Class⁽⁸⁾ Subaccount inception date May 1, 2020	2020	$12.059738	$14.919815	0.000	0.000
TA Aegon U.S. Government Securities - Service Class Subaccount inception date May 1, 2020	2020	$10.482692	$10.494038	V	0.000
TA American Funds Managed Risk - Balanced - Service Class Subaccount inception date May 1, 2020	2020	$11.050406	$12.364050	0.000	0.000
TA BlackRock Global Real Estate Securities - Service Class Subaccount inception date May 1, 2020	2020	$9.262160	$11.395274	512.405	0.000
TA BlackRock Government Money Market - Service Class Subaccount inception date May 1, 2020	2020	$9.162374	$9.062377	0.000	0.000
TA BlackRock iShares Edge 40- Service Class Subaccount inception date May 1, 2020	2020	$11.376305	$12.739212	0.000	0.000
TA BlackRock iShares Edge 50 - Service Class Subaccount inception date May 1, 2020	2020	$11.665047	$13.277158	0.000	0.000
TA BlackRock iShares Edge 75 - Service Class Subaccount inception date March 21, 2016	2020	$11.917205	$14.363325	0.000	0.000
TA BlackRock iShares Edge 100 - Service Class Subaccount inception date May 1, 2020	2020	$12.278043	$15.627991	0.000	0.000
TA BlackRock Tactical Allocation - Service Class Subaccount inception date May 1, 2013	2020	$12.384288	$14.637624	0.000	0.000
TA Goldman Sachs 70/30 - Service Class Subaccount inception date May 1, 2020	2020	$9.999549	$12.550880	0.000	0.000
TA International Growth - Service Class Subaccount inception date May 1, 2020	2020	$10.300948	$14.904165	0.000	0.000

Table of Contents

CONDENSED FINANCIAL INFORMATION — (Continued)

		Separate Account Expense 1.65%
Subaccount	Year	Beginning AUV	Ending AUV	# Units (National)	# Units (NY)
TA Janus Balanced - Service Class Subaccount inception date May 1, 2020	2020	$14.738203	$17.818300	0.000	0.000
TA Janus Mid-Cap Growth - Service Class Subaccount inception date May 1, 2020	2020	$14.628710	$20.805718	2,710.653	0.000
TA JPMorgan Asset Allocation - Conservative - Service Class Subaccount inception date May 1, 2020	2020	$11.223307	$13.202574	0.000	0.000
TA JPMorgan Asset Allocation - Growth - Service Class Subaccount inception date May 1, 2020	2020	$12.728420	$18.915467	0.000	0.000
TA JPMorgan Asset Allocation - Moderate Growth - Service Class Subaccount inception date May 1, 2020	2020	$12.442799	$15.888559	0.000	0.000
TA JPMorgan Asset Allocation - Moderate - Service Class Subaccount inception date May 1, 2020	2020	$11.808056	$14.350214	0.000	0.000
TA JPMorgan Core Bond - Service Class Subaccount inception date May 1, 2020	2020	$10.672342	$11.024033	12,962.402	0.000
TA JPMorgan Enhanced Index - Service Class Subaccount inception date May 1, 2020	2020	$17.478156	$23.410930	0.000	0.000
TA JPMorgan International Moderate Growth - Service Class Subaccount inception date May 1, 2020	2020	$10.048882	$13.326802	0.000	0.000
TA JPMorgan Mid Cap Value - Service Class Subaccount inception date May 1, 2020	2020	$12.538329	$16.730940	0.000	0.000
TA JPMorgan Tactical Allocation - Service Class Subaccount inception date May 1, 2020	2020	$11.499115	$13.045583	0.000	0.000
TA Legg Mason Dynamic Allocation - Balanced - Service Class Subaccount inception date May 1, 2020	2020	$11.312397	$11.916876	0.000	0.000
TA Legg Mason Dynamic Allocation - Growth - Service Class Subaccount inception date May 1, 2020	2020	$11.690004	$12.221654	0.000	0.000
TA Madison Diversified Income - Service Class Subaccount inception date May 1, 2020	2020	$12.487046	$13.884568	0.000	0.000
TA Managed Risk - Balanced ETF - Service Class Subaccount inception date May 1, 2020	2020	$11.658416	$12.963785	0.000	0.000
TA Managed Risk - Conservative ETF - Service Class Subaccount inception date May 1, 2020	2020	$11.725522	$12.476132	0.000	0.000
TA Managed Risk - Growth ETF - Service Class Subaccount inception date May 1, 2020	2020	$12.170739	$14.018194	0.000	0.000
TA Market Participation Strategy - Service Class Subaccount inception date May 1, 2020	2020	$13.831087	$16.211340	0.000	0.000
TA Morgan Stanley Capital Growth - Service Class Subaccount inception date May 1, 2013	2020	$30.153006	$57.048430	2,078.634	0.000
TA Morgan Stanley Global Allocation - Service Class Subaccount inception date May 1, 2020	2020	$11.565572	$14.603572	0.000	0.000
TA Morgan Stanley Global Allocation Managed Risk - Balanced - Service Class Subaccount inception date May 1, 2020	2020	$9.694724	$11.024184	0.000	0.000
TA MSCI EAFE Index - Service Class⁽⁵⁾ Subaccount inception date May 1, 2020	2020	$8.789344	$11.686104	0.000	0.000
TA Multi-Managed Balanced - Service Class Subaccount inception date May 1, 2020	2020	$14.598878	$17.645555	0.000	0.000
TA PIMCO Tactical - Balanced - Service Class Subaccount inception date May 1, 2020	2020	$12.603433	$13.973999	0.000	0.000
TA PIMCO Tactical - Conservative - Service Class Subaccount inception date May 1, 2020	2020	$12.504392	$13.680848	0.000	0.000
TA PIMCO Tactical - Growth - Service Class Subaccount inception date May 1, 2020	2020	$12.892497	$14.546848	0.000	0.000
TA PIMCO Total Return - Service Class Subaccount inception date May 1, 2020	2020	$10.590312	$10.931086	0.000	0.000

Table of Contents

CONDENSED FINANCIAL INFORMATION — (Continued)

		Separate Account Expense 1.65%
Subaccount	Year	Beginning AUV	Ending AUV	# Units (National)	# Units (NY)
TA PineBridge Inflation Opportunities - Service Class Subaccount inception date May 1, 2020	2020	$9.267378	$9.850254	0.000	0.000
TA QS Investors Active Asset Allocation - Conservative - Service Class Subaccount inception date May 1, 2020	2020	$10.971128	$12.098644	0.000	0.000
TA QS Investors Active Asset Allocation - Moderate Growth - Service Class Subaccount inception date May 1, 2020	2020	$10.488055	$11.630828	0.000	0.000
TA QS Investors Active Asset Allocation - Moderate - Service Class Subaccount inception date May 1, 2020	2020	$10.728119	$11.935445	0.000	0.000
TA Rothschild & Co Large Cap Value - Service Class⁽⁹⁾ Subaccount inception date May 1, 2020	2020	$7.574540	$10.066287	0.000	0.000
TA S&P 500 Index - Service Class⁽⁵⁾ Subaccount inception date May 1, 2020	2020	$11.741505	$15.545631	0.000	0.000
TA Small Mid Cap Value - Service Class Subaccount inception date May 1, 2020	2020	$12.491895	$17.598883	0.000	0.000
TA T. Rowe Price Small Cap - Service Class Subaccount inception date May 1, 2020	2020	$17.549119	$25.479994	460.594	0.000
TA TS&W International Equity - Service Class Subaccount inception date May 1, 2020	2020	$9.473143	$12.778166	0.000	0.000
TA WMC US Growth - Service Class Subaccount inception date May 1, 2020	2020	$22.281138	$31.766322	1,776.018	0.000
Vanguard ^® VIF Balanced Portfolio⁽¹⁾ Subaccount inception date May 1, 2020	2020	$9.173836	$10.906082	0.000	0.000
Vanguard ^® VIF Conservative Allocation Portfolio⁽¹⁾ Subaccount inception date May 1, 2020	2020	$9.620244	$11.008251	0.000	0.000
Vanguard ^® VIF Mid-Cap Index Portfolio⁽¹⁾ Subaccount inception date May 1, 2020	2020	$16.038329	$22.683661	508.029	0.000
Vanguard ^® VIF Moderate Allocation Portfolio⁽¹⁾ Subaccount inception date May 1, 2020	2020	$9.232642	$11.218020	0.000	0.000

		Separate Account Expense 1.50%
Subaccount	Year	Beginning AUV	Ending AUV	# Units (National)	# Units (NY)
AB Balanced Wealth Strategy Portfolio - Class B⁽⁴⁾ Subaccount inception date May 1, 2020	2020	$12.367569	$15.093269	4,791.380	0.000
AB Growth and Income Portfolio - Class B Subaccount inception date May 1, 2020	2020	$14.909126	$18.815607	0.000	0.000
American Funds - Asset Allocation Fund Class 4⁽⁴⁾ Subaccount inception date May 1, 2020	2020	$9.828518	$11.812819	0.000	0.000
American Funds - The Bond Fund of America^SM - Class 4⁽⁷⁾ Subaccount inception date May 1, 2020	2020	$9.990842	$10.377361	0.000	0.000
American Funds - Growth Fund - Class 4⁽⁶⁾ Subaccount inception date May 1, 2020	2020	$9.741693	$14.990182	13,307.884	1,674.540
American Funds - Growth-Income Fund - Class 4⁽⁶⁾ Subaccount inception date May 1, 2020	2020	$9.757348	$12.440654	21,448.908	0.000
American Funds - International Fund - Class 4⁽⁶⁾ Subaccount inception date May 1, 2020	2020	$9.825066	$13.894641	860.642	0.000
American Funds - New World Fund^® - Class 4⁽⁵⁾ Subaccount inception date May 1, 2020	2020	$9.797436	$14.266756	420.946	0.000
DFA VA Global Bond Portfolio - Institutional Class⁽¹⁾ Subaccount inception date May 1, 2020	2020	$10.049228	$9.996814	0.000	0.000
Fidelity ^® VIP Balanced Portfolio - Service Class 2⁽³⁾ Subaccount inception date May 1, 2013	2020	$14.956274	$19.389759	3,716.757	0.000
Fidelity ^® VIP Consumer Staples - Initial Class⁽²⁾ Subaccount inception date	2020	$9.853112	$12.186320	0.000	0.000

Table of Contents

CONDENSED FINANCIAL INFORMATION — (Continued)

		Separate Account Expense 1.50%
Subaccount	Year	Beginning AUV	Ending AUV	# Units (National)	# Units (NY)
Fidelity ^® VIP Contrafund^® Portfolio - Service Class 2 Subaccount inception date May 1, 2020	2020	$18.886469	$25.199668	10,935.836	995.231
Fidelity ^® VIP Energy Portfolio - Service Class 2⁽³⁾ Subaccount inception date May 1, 2020	2020	$9.417992	$10.868036	0.000	0.000
Fidelity ^® VIP Health Care Portfolio - Service Class 2⁽³⁾ Subaccount inception date May 1, 2020	2020	$9.776529	$11.914078	0.000	0.000
Fidelity ^® VIP Mid Cap Portfolio - Service Class 2 Subaccount inception date May 1, 2020	2020	$12.840452	$19.374332	2,633.336	0.000
Fidelity ^® VIP Technology Portfolio - Initial Class⁽²⁾ Subaccount inception date May 1, 2020	2020	$9.701253	$15.945146	0.000	0.000
Fidelity ^® VIP Utilities Portfolio - Initial Class⁽²⁾ Subaccount inception date May 1, 2020	2020	$9.727818	$11.477017	530.998	0.000
Fidelity ^® VIP Value Strategies Portfolio - Service Class 2 Subaccount inception date May 1, 2020	2020	$11.418639	$16.940462	640.309	0.000
State Street Total Return V.I.S. Fund - Class 3⁽⁴⁾ Subaccount inception date May 1, 2013	2020	$11.384260	$13.760429	0.000	0.000
TA 60/40 Allocation - Service Class Subaccount inception date May 1, 2020	2020	$10.432387	$12.523629	0.000	0.000
TA Aegon High Yield Bond - Service Class Subaccount inception date May 1, 2020	2020	$10.745437	$12.784989	16,368.296	0.000
TA Aegon Sustainable Equity Income - Service Class⁽⁸⁾ Subaccount inception date May 1, 2020	2020	$12.187110	$15.092443	0.000	0.000
TA Aegon U.S. Government Securities - Service Class Subaccount inception date May 1, 2020	2020	$10.593373	$10.615453	981.915	0.000
TA American Funds Managed Risk - Balanced - Service Class Subaccount inception date May 1, 2020	2020	$11.133694	$12.469702	0.000	0.000
TA BlackRock Global Real Estate Securities - Service Class Subaccount inception date May 1, 2020	2020	$9.360028	$11.527191	0.000	0.000
TA BlackRock Government Money Market - Service Class Subaccount inception date May 1, 2020	2020	$9.259125	$9.167237	523.593	0.000
TA BlackRock iShares Edge 40- Service Class Subaccount inception date May 1, 2020	2020	$11.496424	$12.886592	2,266.318	0.000
TA BlackRock iShares Edge 50 - Service Class Subaccount inception date May 1, 2020	2020	$11.737375	$13.372830	8,824.725	0.000
TA BlackRock iShares Edge 75 - Service Class Subaccount inception date March 21, 2016	2020	$11.991122	$14.466855	998.037	0.000
TA BlackRock iShares Edge 100 - Service Class Subaccount inception date May 1, 2020	2020	$12.354190	$15.740622	0.000	0.000
TA BlackRock Tactical Allocation - Service Class Subaccount inception date May 1, 2013	2020	$12.515058	$14.806972	0.000	0.000
TA Goldman Sachs 70/30 - Service Class Subaccount inception date May 1, 2020	2020	$9.999590	$12.563466	0.000	0.000
TA International Growth - Service Class Subaccount inception date May 1, 2020	2020	$10.409745	$15.076602	0.000	0.000
TA Janus Balanced - Service Class Subaccount inception date May 1, 2020	2020	$14.893861	$18.024495	2,594.293	0.000
TA Janus Mid-Cap Growth - Service Class Subaccount inception date May 1, 2020	2020	$14.783207	$21.046442	5,777.440	0.000
TA JPMorgan Asset Allocation - Conservative - Service Class Subaccount inception date May 1, 2020	2020	$11.341868	$13.355381	3,695.979	0.000
TA JPMorgan Asset Allocation - Growth - Service Class Subaccount inception date May 1, 2020	2020	$12.862865	$19.134332	0.000	0.000
TA JPMorgan Asset Allocation - Moderate Growth - Service Class Subaccount inception date May 1, 2020	2020	$12.574203	$16.072392	0.000	0.000

Table of Contents

CONDENSED FINANCIAL INFORMATION — (Continued)

		Separate Account Expense 1.50%
Subaccount	Year	Beginning AUV	Ending AUV	# Units (National)	# Units (NY)
TA JPMorgan Asset Allocation - Moderate - Service Class Subaccount inception date May 1, 2020	2020	$11.932757	$14.516271	18,864.563	0.000
TA JPMorgan Core Bond - Service Class Subaccount inception date May 1, 2020	2020	$10.785029	$11.151579	400.995	0.000
TA JPMorgan Enhanced Index - Service Class Subaccount inception date May 1, 2020	2020	$17.662749	$23.681811	0.000	0.000
TA JPMorgan International Moderate Growth - Service Class Subaccount inception date May 1, 2020	2020	$10.155033	$13.481032	0.000	0.000
TA JPMorgan Mid Cap Value - Service Class Subaccount inception date May 1, 2020	2020	$12.670750	$16.924510	0.000	0.000
TA JPMorgan Tactical Allocation - Service Class Subaccount inception date May 1, 2020	2020	$11.620559	$13.196540	3,054.520	0.000
TA Legg Mason Dynamic Allocation - Balanced - Service Class Subaccount inception date May 1, 2020	2020	$11.431878	$12.054789	1,485.568	0.000
TA Legg Mason Dynamic Allocation - Growth - Service Class Subaccount inception date May 1, 2020	2020	$11.813414	$12.363031	0.000	0.000
TA Madison Diversified Income - Service Class Subaccount inception date May 1, 2020	2020	$12.618873	$14.045183	1,355.719	0.000
TA Managed Risk - Balanced ETF - Service Class Subaccount inception date May 1, 2020	2020	$11.781553	$13.113812	3,150.505	0.000
TA Managed Risk - Conservative ETF - Service Class Subaccount inception date May 1, 2020	2020	$11.849347	$12.620497	2,755.963	0.000
TA Managed Risk - Growth ETF - Service Class Subaccount inception date May 1, 2020	2020	$12.299250	$14.180369	0.000	0.000
TA Market Participation Strategy - Service Class Subaccount inception date May 1, 2020	2020	$13.977104	$16.398853	0.000	0.000
TA Morgan Stanley Capital Growth - Service Class Subaccount inception date May 1, 2013	2020	$30.471394	$57.708343	20,162.080	0.000
TA Morgan Stanley Global Allocation - Service Class Subaccount inception date May 1, 2020	2020	$11.687735	$14.772565	0.000	0.000
TA Morgan Stanley Global Allocation Managed Risk - Balanced - Service Class Subaccount inception date May 1, 2020	2020	$9.774791	$11.126358	0.000	0.000
TA MSCI EAFE Index - Service Class⁽⁵⁾ Subaccount inception date May 1, 2020	2020	$8.829150	$11.750738	1,218.322	0.000
TA Multi-Managed Balanced - Service Class Subaccount inception date May 1, 2020	2020	$14.753024	$17.849694	0.000	0.000
TA PIMCO Tactical - Balanced - Service Class Subaccount inception date May 1, 2020	2020	$12.736512	$14.135658	0.000	0.000
TA PIMCO Tactical - Conservative - Service Class Subaccount inception date May 1, 2020	2020	$12.636397	$13.839106	0.000	0.000
TA PIMCO Tactical - Growth - Service Class Subaccount inception date May 1, 2020	2020	$13.028629	$14.715149	0.000	0.000
TA PIMCO Total Return - Service Class Subaccount inception date May 1, 2020	2020	$10.702115	$11.057545	15,916.883	0.000
TA PineBridge Inflation Opportunities - Service Class Subaccount inception date May 1, 2020	2020	$9.365228	$9.964220	0.000	0.000
TA QS Investors Active Asset Allocation - Conservative - Service Class Subaccount inception date May 1, 2020	2020	$11.087011	$12.238670	4,741.205	0.000
TA QS Investors Active Asset Allocation - Moderate Growth - Service Class Subaccount inception date May 1, 2020	2020	$10.598825	$11.765419	0.000	0.000
TA QS Investors Active Asset Allocation - Moderate - Service Class Subaccount inception date May 1, 2020	2020	$10.841382	$12.073520	7,476.226	0.000

Table of Contents

CONDENSED FINANCIAL INFORMATION — (Continued)

		Separate Account Expense 1.50%
Subaccount	Year	Beginning AUV	Ending AUV	# Units (National)	# Units (NY)
TA Rothschild & Co Large Cap Value - Service Class⁽⁹⁾ Subaccount inception date May 1, 2020	2020	$7.597383	$10.106719	0.000	0.000
TA S&P 500 Index - Service Class⁽⁵⁾ Subaccount inception date May 1, 2020	2020	$11.794684	$15.631641	6,343.658	0.000
TA Small Mid Cap Value - Service Class Subaccount inception date May 1, 2020	2020	$12.623838	$17.802496	0.000	0.000
TA T. Rowe Price Small Cap - Service Class Subaccount inception date May 1, 2020	2020	$17.734466	$25.774794	5,876.539	968.241
TA TS&W International Equity - Service Class Subaccount inception date May 1, 2020	2020	$9.573220	$12.926051	0.000	1,921.869
TA WMC US Growth - Service Class Subaccount inception date May 1, 2020	2020	$22.516396	$32.133774	4,906.705	0.000
Vanguard ^® VIF Balanced Portfolio⁽¹⁾ Subaccount inception date May 1, 2020	2020	$9.173874	$10.917034	0.000	0.000
Vanguard ^® VIF Conservative Allocation Portfolio⁽¹⁾ Subaccount inception date May 1, 2020	2020	$9.620284	$11.019308	4,291.222	0.000
Vanguard ^® VIF Mid-Cap Index Portfolio⁽¹⁾ Subaccount inception date May 1, 2020	2020	$16.038397	$22.706394	0.000	0.000
Vanguard ^® VIF Moderate Allocation Portfolio⁽¹⁾ Subaccount inception date May 1, 2020	2020	$9.232680	$11.229278	0.000	0.000

		Separate Account Expense 1.30%
Subaccount	Year	Beginning AUV	Ending AUV	# Units (National)	# Units (NY)
AB Balanced Wealth Strategy Portfolio - Class B⁽⁴⁾ Subaccount inception date May 1, 2020	2020	$12.542021	$15.326564	0.000	0.000
AB Growth and Income Portfolio - Class B Subaccount inception date May 1, 2020	2020	$15.119410	$19.106374	158.397	0.000
American Funds - Asset Allocation Fund Class 4⁽⁴⁾ Subaccount inception date May 1, 2020	2020	$9.828573	$11.828625	4,234.586	0.000
American Funds - The Bond Fund of America^SM - Class 4⁽⁷⁾ Subaccount inception date May 1, 2020	2020	$9.990896	$10.391269	7,994.906	0.000
American Funds - Growth Fund - Class 4⁽⁶⁾ Subaccount inception date May 1, 2020	2020	$9.741748	$15.010212	46,034.804	4,764.629
American Funds - Growth-Income Fund - Class 4⁽⁶⁾ Subaccount inception date May 1, 2020	2020	$9.757403	$12.457312	27,407.268	2,504.725
American Funds - International Fund - Class 4⁽⁶⁾ Subaccount inception date May 1, 2020	2020	$9.825121	$13.913227	11,364.661	0.000
American Funds - New World Fund^® - Class 4⁽⁵⁾ Subaccount inception date May 1, 2020	2020	$9.797491	$14.285814	9,536.412	0.000
DFA VA Global Bond Portfolio - Institutional Class⁽¹⁾ Subaccount inception date May 1, 2020	2020	$10.049283	$10.010213	0.000	0.000
Fidelity ^® VIP Balanced Portfolio - Service Class 2⁽³⁾ Subaccount inception date May 1, 2013	2020	$15.220362	$19.758382	28,789.993	2,618.642
Fidelity ^® VIP Consumer Staples - Initial Class⁽²⁾ Subaccount inception date	2020	$9.853167	$12.202611	572.065	0.000
Fidelity ^® VIP Contrafund^® Portfolio - Service Class 2 Subaccount inception date May 1, 2020	2020	$19.152806	$25.589040	28,056.534	1,214.231
Fidelity ^® VIP Energy Portfolio - Service Class 2⁽³⁾ Subaccount inception date May 1, 2020	2020	$9.418047	$10.882566	3,550.382	0.000
Fidelity ^® VIP Health Care Portfolio - Service Class 2⁽³⁾ Subaccount inception date May 1, 2020	2020	$9.776584	$11.930015	10,098.845	0.000
Fidelity ^® VIP Mid Cap Portfolio - Service Class 2 Subaccount inception date May 1, 2020	2020	$13.021575	$19.673720	56,150.513	1,585.925

Table of Contents

CONDENSED FINANCIAL INFORMATION — (Continued)

		Separate Account Expense 1.30%
Subaccount	Year	Beginning AUV	Ending AUV	# Units (National)	# Units (NY)
Fidelity ^® VIP Technology Portfolio - Initial Class⁽²⁾ Subaccount inception date May 1, 2020	2020	$9.701308	$15.966420	21,391.996	0.000
Fidelity ^® VIP Utilities Portfolio - Initial Class⁽²⁾ Subaccount inception date May 1, 2020	2020	$9.727872	$11.492355	539.624	0.000
Fidelity ^® VIP Value Strategies Portfolio - Service Class 2 Subaccount inception date May 1, 2020	2020	$11.579703	$17.202255	5,223.710	0.000
State Street Total Return V.I.S. Fund - Class 3⁽⁴⁾ Subaccount inception date May 1, 2013	2020	$11.544860	$13.973142	0.000	0.000
TA 60/40 Allocation - Service Class Subaccount inception date May 1, 2020	2020	$10.474315	$12.590705	0.000	0.000
TA Aegon High Yield Bond - Service Class Subaccount inception date May 1, 2020	2020	$10.896946	$12.982527	0.000	0.000
TA Aegon Sustainable Equity Income - Service Class⁽⁸⁾ Subaccount inception date May 1, 2020	2020	$12.359018	$15.325700	4,941.434	0.000
TA Aegon U.S. Government Securities - Service Class Subaccount inception date May 1, 2020	2020	$10.742725	$10.779466	4,648.521	0.000
TA American Funds Managed Risk - Balanced - Service Class Subaccount inception date May 1, 2020	2020	$11.245699	$12.611930	0.000	0.000
TA BlackRock Global Real Estate Securities - Service Class Subaccount inception date May 1, 2020	2020	$9.492047	$11.705326	4,317.983	0.000
TA BlackRock Government Money Market - Service Class Subaccount inception date May 1, 2020	2020	$9.389699	$9.308912	44,843.726	0.000
TA BlackRock iShares Edge 40- Service Class Subaccount inception date May 1, 2020	2020	$11.658535	$13.085724	822.997	0.000
TA BlackRock iShares Edge 50 - Service Class Subaccount inception date May 1, 2020	2020	$11.834486	$13.501429	6,065.730	0.000
TA BlackRock iShares Edge 75 - Service Class Subaccount inception date March 21, 2016	2020	$12.090324	$14.605957	777.560	5,191.054
TA BlackRock iShares Edge 100 - Service Class Subaccount inception date May 1, 2020	2020	$12.456413	$15.891984	0.000	0.000
TA BlackRock Tactical Allocation - Service Class Subaccount inception date May 1, 2013	2020	$12.691546	$15.035778	6,066.160	10,326.990
TA Goldman Sachs 70/30 - Service Class Subaccount inception date May 1, 2020	2020	$9.999645	$12.580260	0.000	0.000
TA International Growth - Service Class Subaccount inception date May 1, 2020	2020	$10.556593	$15.309612	2,769.646	0.000
TA Janus Balanced - Service Class Subaccount inception date May 1, 2020	2020	$15.103893	$18.303008	8,035.984	0.000
TA Janus Mid-Cap Growth - Service Class Subaccount inception date May 1, 2020	2020	$14.991756	$21.371716	15,709.708	0.000
TA JPMorgan Asset Allocation - Conservative - Service Class Subaccount inception date May 1, 2020	2020	$11.501785	$13.561724	906.182	0.000
TA JPMorgan Asset Allocation - Growth - Service Class Subaccount inception date May 1, 2020	2020	$13.044262	$19.429965	0.000	10,373.088
TA JPMorgan Asset Allocation - Moderate Growth - Service Class Subaccount inception date May 1, 2020	2020	$12.751531	$16.320753	26,078.212	0.000
TA JPMorgan Asset Allocation - Moderate - Service Class Subaccount inception date May 1, 2020	2020	$12.101003	$14.740532	83,040.303	59,379.059
TA JPMorgan Core Bond - Service Class Subaccount inception date May 1, 2020	2020	$10.937091	$11.323895	1,646.663	7,826.807
TA JPMorgan Enhanced Index - Service Class Subaccount inception date May 1, 2020	2020	$17.911815	$24.047695	4,067.231	0.000
TA JPMorgan International Moderate Growth - Service Class Subaccount inception date May 1, 2020	2020	$10.298227	$13.689314	0.000	0.000

Table of Contents

CONDENSED FINANCIAL INFORMATION — (Continued)

		Separate Account Expense 1.30%
Subaccount	Year	Beginning AUV	Ending AUV	# Units (National)	# Units (NY)
TA JPMorgan Mid Cap Value - Service Class Subaccount inception date May 1, 2020	2020	$12.849455	$17.186033	2,835.152	0.000
TA JPMorgan Tactical Allocation - Service Class Subaccount inception date May 1, 2020	2020	$11.784452	$13.400496	23,877.399	0.000
TA Legg Mason Dynamic Allocation - Balanced - Service Class Subaccount inception date May 1, 2020	2020	$11.593091	$12.241077	1,639.018	0.000
TA Legg Mason Dynamic Allocation - Growth - Service Class Subaccount inception date May 1, 2020	2020	$11.979998	$12.554083	0.000	0.000
TA Madison Diversified Income - Service Class Subaccount inception date May 1, 2020	2020	$12.796844	$14.262248	2,876.687	0.000
TA Managed Risk - Balanced ETF - Service Class Subaccount inception date May 1, 2020	2020	$11.947687	$13.316447	19,285.453	0.000
TA Managed Risk - Conservative ETF - Service Class Subaccount inception date May 1, 2020	2020	$12.016414	$12.815498	825.671	0.000
TA Managed Risk - Growth ETF - Service Class Subaccount inception date May 1, 2020	2020	$12.472704	$14.399512	2,184.314	690.063
TA Market Participation Strategy - Service Class Subaccount inception date May 1, 2020	2020	$14.174176	$16.652217	0.000	0.000
TA Morgan Stanley Capital Growth - Service Class Subaccount inception date May 1, 2013	2020	$30.900828	$58.599436	41,478.357	0.000
TA Morgan Stanley Global Allocation - Service Class Subaccount inception date May 1, 2020	2020	$11.852567	$15.000846	1,162.210	0.000
TA Morgan Stanley Global Allocation Managed Risk - Balanced - Service Class Subaccount inception date May 1, 2020	2020	$9.882550	$11.263998	0.000	0.000
TA MSCI EAFE Index - Service Class⁽⁵⁾ Subaccount inception date May 1, 2020	2020	$8.882510	$11.837486	16,646.210	0.000
TA Multi-Managed Balanced - Service Class Subaccount inception date May 1, 2020	2020	$14.961063	$18.125495	27.896	0.000
TA PIMCO Tactical - Balanced - Service Class Subaccount inception date May 1, 2020	2020	$12.916118	$14.354103	0.000	0.000
TA PIMCO Tactical - Conservative - Service Class Subaccount inception date May 1, 2020	2020	$12.814629	$14.052999	0.000	0.000
TA PIMCO Tactical - Growth - Service Class Subaccount inception date May 1, 2020	2020	$13.212350	$14.942528	0.000	0.000
TA PIMCO Total Return - Service Class Subaccount inception date May 1, 2020	2020	$10.853018	$11.228441	9,380.413	858.259
TA PineBridge Inflation Opportunities - Service Class Subaccount inception date May 1, 2020	2020	$9.497283	$10.118185	3,114.780	0.000
TA QS Investors Active Asset Allocation - Conservative - Service Class Subaccount inception date May 1, 2020	2020	$11.243358	$12.427786	0.000	0.000
TA QS Investors Active Asset Allocation - Moderate Growth - Service Class Subaccount inception date May 1, 2020	2020	$10.994277	$11.947258	0.000	0.000
TA QS Investors Active Asset Allocation - Moderate - Service Class Subaccount inception date May 1, 2020	2020	$10.748313	$12.260102	2,866.554	0.000
TA Rothschild & Co Large Cap Value - Service Class⁽⁹⁾ Subaccount inception date May 1, 2020	2020	$7.627947	$10.160874	4,961.404	0.000
TA S&P 500 Index - Service Class⁽⁵⁾ Subaccount inception date May 1, 2020	2020	$11.865908	$15.746955	17,889.291	0.000
TA Small Mid Cap Value - Service Class Subaccount inception date May 1, 2020	2020	$12.801884	$18.077583	9,817.062	1,726.492
TA T. Rowe Price Small Cap - Service Class Subaccount inception date May 1, 2020	2020	$17.984565	$26.173031	19,357.411	0.000

Table of Contents

CONDENSED FINANCIAL INFORMATION — (Continued)

		Separate Account Expense 1.30%
Subaccount	Year	Beginning AUV	Ending AUV	# Units (National)	# Units (NY)
TA TS&W International Equity - Service Class Subaccount inception date May 1, 2020	2020	$9.708255	$13.125814	0.000	0.000
TA WMC US Growth - Service Class Subaccount inception date May 1, 2020	2020	$22.833835	$32.630129	6,337.337	1,090.200
Vanguard ^® VIF Balanced Portfolio⁽¹⁾ Subaccount inception date May 1, 2020	2020	$9.173925	$10.931645	21,055.214	0.000
Vanguard ^® VIF Conservative Allocation Portfolio⁽¹⁾ Subaccount inception date May 1, 2020	2020	$9.620337	$11.034061	2,956.087	0.000
Vanguard ^® VIF Mid-Cap Index Portfolio⁽¹⁾ Subaccount inception date May 1, 2020	2020	$16.038488	$22.736751	2,035.946	0.000
Vanguard ^® VIF Moderate Allocation Portfolio⁽¹⁾ Subaccount inception date May 1, 2020	2020	$9.232732	$11.244299	2,804.106	0.000

		Separate Account Expense 1.15%
Subaccount	Year	Beginning AUV	Ending AUV	# Units (National)	# Units (NY)
AB Balanced Wealth Strategy Portfolio - Class B⁽⁴⁾ Subaccount inception date May 1, 2020	2020	$12.674418	$15.503815	0.000	0.000
AB Growth and Income Portfolio - Class B Subaccount inception date May 1, 2020	2020	$15.279046	$19.327391	0.000	0.000
American Funds - Asset Allocation Fund Class 4⁽⁴⁾ Subaccount inception date May 1, 2020	2020	$9.828614	$11.840480	34,927.699	0.000
American Funds - The Bond Fund of America^SM - Class 4^(7)(10) Subaccount inception date May 1, 2020	2020	$9.990937	$10.401697	20,274.637	0.000
American Funds - Growth Fund - Class 4⁽⁶⁾ Subaccount inception date May 1, 2020	2020	$9.741789	$15.025253	133,389.799	0.000
American Funds - Growth-Income Fund - Class 4⁽⁶⁾ Subaccount inception date May 1, 2020	2020	$9.757444	$12.469805	69,059.394	0.000
American Funds - International Fund - Class 4⁽⁶⁾ Subaccount inception date May 1, 2020	2020	$9.825162	$13.927172	76,423.959	0.000
American Funds - New World Fund^® - Class 4⁽⁵⁾ Subaccount inception date May 1, 2020	2020	$9.797532	$14.300138	13,599.774	0.000
DFA VA Global Bond Portfolio - Institutional Class⁽¹⁾ Subaccount inception date May 1, 2020	2020	$10.049325	$10.020278	0.000	0.000
Fidelity ^® VIP Balanced Portfolio - Service Class 2⁽³⁾ Subaccount inception date May 1, 2013	2020	$15.434988	$20.057018	2,241.470	0.000
Fidelity ^® VIP Consumer Staples - Initial Class⁽²⁾ Subaccount inception date	2020	$9.853208	$12.214857	0.000	0.000
Fidelity ^® VIP Contrafund^® Portfolio - Service Class 2 Subaccount inception date May 1, 2020	2020	$19.355012	$25.885023	15,486.599	0.000
Fidelity ^® VIP Energy Portfolio - Service Class 2⁽³⁾ Subaccount inception date May 1, 2020	2020	$9.418088	$10.893476	69.119	0.000
Fidelity ^® VIP Health Care Portfolio - Service Class 2⁽³⁾ Subaccount inception date May 1, 2020	2020	$9.776625	$11.941982	8,420.645	0.000
Fidelity ^® VIP Mid Cap Portfolio - Service Class 2 Subaccount inception date May 1, 2020	2020	$13.159113	$19.901360	3,142.306	0.000
Fidelity ^® VIP Technology Portfolio - Initial Class⁽²⁾ Subaccount inception date May 1, 2020	2020	$9.701349	$15.982403	15,810.237	0.000
Fidelity ^® VIP Utilities Portfolio - Initial Class⁽²⁾ Subaccount inception date May 1, 2020	2020	$9.727913	$11.503894	1,046.332	0.000
Fidelity ^® VIP Value Strategies Portfolio - Service Class 2 Subaccount inception date May 1, 2020	2020	$11.702029	$17.401320	0.000	0.000
State Street Total Return V.I.S. Fund - Class 3⁽⁴⁾ Subaccount inception date May 1, 2013	2020	$11.666729	$14.134727	0.000	0.000

Table of Contents

CONDENSED FINANCIAL INFORMATION — (Continued)

		Separate Account Expense 1.15%
Subaccount	Year	Beginning AUV	Ending AUV	# Units (National)	# Units (NY)
TA 60/40 Allocation - Service Class Subaccount inception date May 1, 2020	2020	$10.505870	$12.641248	0.000	0.000
TA Aegon High Yield Bond - Service Class Subaccount inception date May 1, 2020	2020	$11.012028	$13.132746	2,589.542	606.005
TA Aegon Sustainable Equity Income - Service Class⁽⁸⁾ Subaccount inception date May 1, 2020	2020	$12.489545	$15.503032	0.000	0.000
TA Aegon U.S. Government Securities - Service Class Subaccount inception date May 1, 2020	2020	$10.856178	$10.904217	21,504.529	726.039
TA American Funds Managed Risk - Balanced - Service Class Subaccount inception date May 1, 2020	2020	$11.330441	$12.719673	0.000	0.000
TA BlackRock Global Real Estate Securities - Service Class Subaccount inception date May 1, 2020	2020	$9.592287	$11.840749	0.000	0.000
TA BlackRock Government Money Market - Service Class Subaccount inception date May 1, 2020	2020	$9.488872	$9.416652	58,520.414	0.000
TA BlackRock iShares Edge 40- Service Class Subaccount inception date May 1, 2020	2020	$11.781651	$13.237123	0.000	0.000
TA BlackRock iShares Edge 50 - Service Class Subaccount inception date May 1, 2020	2020	$11.907879	$13.598745	15,241.310	0.000
TA BlackRock iShares Edge 75 - Service Class Subaccount inception date March 21, 2016	2020	$12.165295	$14.711212	0.000	0.000
TA BlackRock iShares Edge 100 - Service Class Subaccount inception date May 1, 2020	2020	$12.533664	$16.006508	0.000	0.000
TA BlackRock Tactical Allocation - Service Class Subaccount inception date May 1, 2013	2020	$12.825537	$15.209706	0.000	0.000
TA Goldman Sachs 70/30 - Service Class Subaccount inception date May 1, 2020	2020	$9.999686	$12.592874	1,612.866	0.000
TA International Growth - Service Class Subaccount inception date May 1, 2020	2020	$10.668079	$15.486717	0.000	0.000
TA Janus Balanced - Service Class Subaccount inception date May 1, 2020	2020	$15.263354	$18.514726	1,691.266	0.000
TA Janus Mid-Cap Growth - Service Class Subaccount inception date May 1, 2020	2020	$15.150058	$21.618941	18,171.493	0.000
TA JPMorgan Asset Allocation - Conservative - Service Class Subaccount inception date May 1, 2020	2020	$11.623225	$13.718617	0.000	0.000
TA JPMorgan Asset Allocation - Growth - Service Class Subaccount inception date May 1, 2020	2020	$13.182037	$19.654773	0.000	0.000
TA JPMorgan Asset Allocation - Moderate Growth - Service Class Subaccount inception date May 1, 2020	2020	$12.886186	$16.509577	0.000	0.000
TA JPMorgan Asset Allocation - Moderate - Service Class Subaccount inception date May 1, 2020	2020	$12.228812	$14.911111	57,703.385	0.000
TA JPMorgan Core Bond - Service Class Subaccount inception date May 1, 2020	2020	$11.052566	$11.454904	1,923.852	2,105.606
TA JPMorgan Enhanced Index - Service Class Subaccount inception date May 1, 2020	2020	$18.100973	$24.325915	1,152.129	0.000
TA JPMorgan International Moderate Growth - Service Class Subaccount inception date May 1, 2020	2020	$10.406985	$13.847691	529.718	0.000
TA JPMorgan Mid Cap Value - Service Class Subaccount inception date May 1, 2020	2020	$12.985182	$17.384894	21,418.564	144.600
TA JPMorgan Tactical Allocation - Service Class Subaccount inception date May 1, 2020	2020	$11.908848	$13.555479	7,952.919	0.000
TA Legg Mason Dynamic Allocation - Balanced - Service Class Subaccount inception date May 1, 2020	2020	$11.715505	$12.382714	4,214.715	0.000
TA Legg Mason Dynamic Allocation - Growth - Service Class Subaccount inception date May 1, 2020	2020	$12.106527	$12.699365	2,507.999	0.000

Table of Contents

CONDENSED FINANCIAL INFORMATION — (Continued)

		Separate Account Expense 1.15%
Subaccount	Year	Beginning AUV	Ending AUV	# Units (National)	# Units (NY)
TA Madison Diversified Income - Service Class Subaccount inception date May 1, 2020	2020	$12.931927	$14.427216	24,283.964	0.000
TA Managed Risk - Balanced ETF - Service Class Subaccount inception date May 1, 2020	2020	$12.073859	$13.470531	4,894.921	0.000
TA Managed Risk - Conservative ETF - Service Class Subaccount inception date May 1, 2020	2020	$12.143313	$12.963795	0.000	0.000
TA Managed Risk - Growth ETF - Service Class Subaccount inception date May 1, 2020	2020	$12.604399	$14.566091	0.000	0.000
TA Market Participation Strategy - Service Class Subaccount inception date May 1, 2020	2020	$14.323861	$16.844905	0.000	0.000
TA Morgan Stanley Capital Growth - Service Class Subaccount inception date May 1, 2013	2020	$31.227068	$59.277189	21,228.995	8,001.928
TA Morgan Stanley Global Allocation - Service Class Subaccount inception date May 1, 2020	2020	$11.977738	$15.174404	2,067.774	0.000
TA Morgan Stanley Global Allocation Managed Risk - Balanced - Service Class Subaccount inception date May 1, 2020	2020	$9.964170	$11.368391	0.000	0.000
TA MSCI EAFE Index - Service Class⁽⁵⁾ Subaccount inception date May 1, 2020	2020	$8.922723	$11.902935	0.000	0.000
TA Multi-Managed Balanced - Service Class Subaccount inception date May 1, 2020	2020	$15.119022	$18.335173	0.000	1,795.240
TA PIMCO Tactical - Balanced - Service Class Subaccount inception date May 1, 2020	2020	$13.052494	$14.520164	0.000	0.000
TA PIMCO Tactical - Conservative - Service Class Subaccount inception date May 1, 2020	2020	$12.949930	$14.215580	0.000	0.000
TA PIMCO Tactical - Growth - Service Class Subaccount inception date May 1, 2020	2020	$13.351881	$15.115437	0.000	0.000
TA PIMCO Total Return - Service Class Subaccount inception date May 1, 2020	2020	$10.967607	$11.358320	7,819.379	697.028
TA PineBridge Inflation Opportunities - Service Class Subaccount inception date May 1, 2020	2020	$9.597606	$10.235304	0.000	775.013
TA QS Investors Active Asset Allocation - Conservative - Service Class Subaccount inception date May 1, 2020	2020	$11.362072	$12.571573	0.000	0.000
TA QS Investors Active Asset Allocation - Moderate Growth - Service Class Subaccount inception date May 1, 2020	2020	$10.861835	$12.085516	1,111.725	0.000
TA QS Investors Active Asset Allocation - Moderate - Service Class Subaccount inception date May 1, 2020	2020	$11.110384	$12.401979	1,111.725	0.000
TA Rothschild & Co Large Cap Value - Service Class⁽⁹⁾ Subaccount inception date May 1, 2020	2020	$7.650955	$10.201696	0.000	0.000
TA S&P 500 Index - Service Class⁽⁵⁾ Subaccount inception date May 1, 2020	2020	$11.919641	$15.834043	32,847.320	1,046.879
TA Small Mid Cap Value - Service Class Subaccount inception date May 1, 2020	2020	$12.937088	$18.286720	5,615.825	0.000
TA T. Rowe Price Small Cap - Service Class Subaccount inception date May 1, 2020	2020	$18.174476	$26.475801	21,553.605	93.106
TA TS&W International Equity - Service Class Subaccount inception date May 1, 2020	2020	$9.810791	$13.277683	0.000	190.681
TA WMC US Growth - Service Class Subaccount inception date May 1, 2020	2020	$23.074952	$33.007615	20,047.002	75.570
Vanguard ^® VIF Balanced Portfolio⁽¹⁾ Subaccount inception date May 1, 2020	2020	$9.173963	$10.942622	0.000	0.000
Vanguard ^® VIF Conservative Allocation Portfolio⁽¹⁾ Subaccount inception date May 1, 2020	2020	$9.620377	$11.045134	0.000	0.000

Table of Contents

CONDENSED FINANCIAL INFORMATION — (Continued)

		Separate Account Expense 1.15%
Subaccount	Year	Beginning AUV	Ending AUV	# Units (National)	# Units (NY)
Vanguard ^® VIF Mid-Cap Index Portfolio⁽¹⁾ Subaccount inception date May 1, 2020	2020	$16.038555	$22.759540	43.927	0.000
Vanguard ^® VIF Moderate Allocation Portfolio⁽¹⁾ Subaccount inception date May 1, 2020	2020	$9.232770	$11.255582	0.000	0.000

⁽¹⁾	The beginning and ending AUV for this fund also reflects a 0.60% Fund Facilitation Fee which is in addition to the Separate Account Expense percentage listed above.
⁽²⁾	The beginning and ending AUV for this fund also reflects a 0.50% Fund Facilitation Fee which is in addition to the Separate Account Expense percentage listed above.
⁽³⁾	The beginning and ending AUV for this fund also reflects a 0.30% Fund Facilitation Fee which is in addition to the Separate Account Expense percentage listed above.
⁽⁴⁾	The beginning and ending AUV for this fund also reflects a 0.20% Fund Facilitation Fee which is in addition to the Separate Account Expense percentage listed above.
⁽⁵⁾	The beginning and ending AUV for this fund also reflects a 0.15% Fund Facilitation Fee which is in addition to the Separate Account Expense percentage listed above.
⁽⁶⁾	The beginning and ending AUV for this fund also reflects a 0.13% Fund Facilitation Fee which is in addition to the Separate Account Expense percentage listed above.
⁽⁷⁾	The beginning and ending AUV for this fund also reflects a 0.11% Fund Facilitation Fee which is in addition to the Separate Account Expense percentage listed above.
⁽⁸⁾	Effective December 1, 2020, Transamerica Barrow Hanley Dividend Focused VP was renamed Transamerica Aegon Sustainable Equity Income VP.
⁽⁹⁾	Effective December 1, 2020, Transamerica Levin Large Cap Value VP was renamed Transamerica Rothschild & Co Large Cap Value VP.
⁽¹⁰⁾	Effective on or about May 1, 2021 the American Funds - Bond Fund will be renamed American Funds - The Bond of Fund America^SM.

Table of Contents

APPENDIX

Prior Withdrawal/Growth Percentages and rider fees

The table below identifies the prior percentages for the Retirement Income Choice^® 1.7 rider.

Rider fee Percentages

Date	Rider Benefit	Single Life Option	Joint Life Option
Prior to September 1, 2020	Base Benefit Designated Allocation Group A	1.50%	1.60%
	Base Benefit Designated Allocation Group B	1.50%	1.60%
	Base Benefit Designated Allocation Group C	1.50%	1.60%
	Death Benefit	0.40%	0.35%
	Income Enhancement	0.30%	0.50%

Date	Rider Benefit	Single Life Option	Joint Life Option
After September 1, 2020	Base Benefit Designated Allocation Group A	1.85%	1.95%
	Base Benefit Designated Allocation Group B	1.40%	1.60%
	Base Benefit Designated Allocation Group C	0.95%	1.05%
	Death Benefit	0.40%	0.35%
	Income Enhancement	0.30%	0.50%

new york Rider fee Percentages

Date	Rider Benefit	Single Life Option	Joint Life Option
Prior to September 1, 2020	Base Benefit Designated Allocation Group A	1.50%	1.60%
	Base Benefit Designated Allocation Group B	1.50%	1.60%
	Base Benefit Designated Allocation Group C	1.50%	1.60%
	Death Benefit	0.40%	0.35%

Date	Rider Benefit	Single Life Option	Joint Life Option
After September 1, 2020	Base Benefit Designated Allocation Group A	1.85%	1.95%
	Base Benefit Designated Allocation Group B	1.40%	1.60%
	Base Benefit Designated Allocation Group C	0.95%	1.05%
	Death Benefit	0.40%	0.35%

Growth Percentages

Date		Percentage
Prior to September 1, 2020		5.50%*
After September 1, 2020		5.00%

valuation frequency

Date		Frequency
Prior to September 1, 2020		Monthly
After September 1, 2020		Annually

Table of Contents

APPENDIX

Prior Allocation/Withdrawal Percentages and Rider fees

The table below identifies the prior percentages for the Transamerica Income Edge^SM 1.2 rider.

Rider fee Percentages

Date		Percentage
Prior to September 1, 2020		1.45%

Date		Single Life		Joint Life
After September 1, 2020		1.45%		1.55%

single life Withdrawal Percentages

	Age at time of first withdrawal	Rider Years 1-3 Withdrawal Percentage - Single Life Option	Rider Years 4-6 Withdrawal Percentage - Single Life Option	Rider Years 7+ Withdrawal Percentage - Single Life Option
Prior to September 1, 2020	0-58	0.00%	0.00%	0.00%
	59-64	4.00%	4.75%	5.50%
	65-79	5.00%	5.75%	6.50%
	≥80	5.50%	6.25%	7.00%

	Age at time of first withdrawal	Rider Years 1-5 Withdrawal Percentage - Single Life Option	Rider Years 6-10 Withdrawal Percentage - Single Life Option	Rider Years 11+ Withdrawal Percentage - Single Life Option
After September 1, 2020	0-58	0.00%	0.00%	0.00%
	59-64	3.75%	4.25%	4.75%
	65-80	5.00%	5.50%	6.00%
	≥81	5.50%	6.00%	6.50%

joint life Withdrawal Percentages

	Age at time of first withdrawal	Rider Years 1-3 Withdrawal Percentage - Joint Life Option	Rider Years 4-6 Withdrawal Percentage - Joint Life Option	Rider Years 7+ Withdrawal Percentage - Joint Life Option
Prior to September 1, 2020	0-58	0.00%	0.00%	0.00%
	59-64	3.50%	4.25%	5.00%
	65-79	4.50%	5.25%	6.00%
	≥80	5.00%	5.75%	6.50%

	Age at time of first withdrawal	Rider Years 1-5 Withdrawal Percentage - Single Life Option	Rider Years 6-10 Withdrawal Percentage - Single Life Option	Rider Years 11+ Withdrawal Percentage - Single Life Option
After September 1, 2020	0-58	0.00%	0.00%	0.00%
	59-64	3.25%	3.75%	4.25%
	65-80	4.50%	5.00%	5.50%
	≥81	5.00%	5.50%	6.00%

We have audited the accompanying statutory-basis financial statements of Transamerica Life Insurance Company (the “Company”), which comprise the balance sheets as of December 31, 2020 and 2019, and the related statements of operations, of changes in capital and surplus, and of cash flow for each of the three years in the period ended December 31, 2020, including the related notes and schedules of supplementary insurance information and reinsurance for each of the three years in the period ended December 31, 2020 and summary of investments - other than investments in related parties as of December 31, 2020 listed in the accompanying index (collectively referred to as the “financial statements”).

Management is responsible for the preparation and fair presentation of the financial statements in accordance with the accounting practices prescribed or permitted by the Iowa Insurance Division. Management is also responsible for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Our responsibility is to express an opinion on the financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on our judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the Company’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Basis for Adverse Opinion on U.S. Generally Accepted Accounting Principles

As described in Note 2 to the financial statements, the financial statements are prepared by the Company on the basis of the accounting practices prescribed or permitted by the Iowa Insurance Division, which is a basis of accounting other than accounting principles generally accepted in the United States of America.

The effects on the financial statements of the variances between the statutory basis of accounting described in Note 2 and accounting principles generally accepted in the United States of America, although not reasonably determinable, are presumed to be material.

In our opinion, because of the significance of the matter discussed in the “Basis for Adverse Opinion on U.S. Generally Accepted Accounting Principles” paragraph, the financial statements referred to above do not present fairly, in accordance with accounting principles generally accepted in the United States of America, the financial position of the Company as of December 31, 2020 and 2019 or the results of its operations or its cash flows for each of the three years in the period ended December 31, 2020.

In our opinion, the financial statements referred to above present fairly, in all material respects, the admitted assets, liabilities and surplus of the Company as of December 31, 2020 and 2019 and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2020, in accordance with the accounting practices prescribed or permitted by the Iowa Insurance Division described in Note 2.

As discussed in Note 1 to the financial statements, the financial statements give retroactive effect to the mergers of Transamerica Premier Life Insurance Company and MLIC Re I, Inc. into the Company on October 1, 2020, and the merger of Pine Falls Re, Inc. into the Company on December 31, 2020, in transactions accounted for as statutory mergers. Our opinion is not modified with respect to these matters.

Transamerica Life Insurance Company (the Company) is a stock life insurance company owned by Commonwealth General Corporation (CGC). CGC is an indirect, wholly-owned subsidiary of Aegon N.V., a holding company organized under the laws of The Netherlands.

On October 1, 2020, the Company completed mergers with Transamerica Premier Life Insurance Company (TPLIC), an Iowa-domiciled affiliate and MLIC Re I, Inc. (MLIC Re), a Vermont-domiciled subsidiary. On December 31, 2020, the Company completed a merger with Pine Falls Re, Inc. (PFRe), a Vermont-domiciled subsidiary. Also, on July 1, 2019, the Company completed a merger with Transamerica Advisors Life Insurance Company (TALIC), an Arkansas-domiciled affiliate.

The mergers were accounted for in accordance with the Statement of Statutory Accounting Principles (SSAP) No. 68, Business Combinations and Goodwill, as statutory mergers. As such, financial statements for periods prior to the mergers were combined and the recorded assets, liabilities and surplus of TPLIC, MLIC Re, PFRe and TALIC on a US statutory basis were carried forward to the merged company. The common capital stock of TPLIC, MLIC Re, PFRe and TALIC was deemed cancelled by operation of law under the Plans of Merger. Each share of the Company’s capital stock issued and outstanding immediately before the mergers continues to represent one share of the capital stock. The business the Company previously assumed from TPLIC and TALIC and the business previously ceded from the Company to TPLIC, MLIC Re and PFRe is no longer reflected as assumed and ceded risks in the restated merged financials.

Summarized financial information for the Company (which includes TALIC), TPLIC, MLIC Re and PFRe presented separately for periods prior to the merger is as follows.

The Company sells individual life insurance, including index universal life, whole life, term life, and final expense life. It also sells a range of variable and fixed annuities. In addition, the Company offers supplemental health insurance, long-term care insurance, life insurance, group annuity contracts and stable value solutions. The Company is licensed in 49 states and the District of Columbia, Guam, Puerto Rico and US Virgin Islands. Sales of the Company’s products are primarily through a network of independent agents and broker-dealers, affiliated agencies, and financial institutions.

The accompanying financial statements have been prepared in conformity with accounting practices prescribed or permitted by the Iowa Insurance Division (IID), which practices differ from accounting principles generally accepted in the United States of America (GAAP).

The IID recognizes only statutory accounting practices prescribed or permitted by the State of Iowa for determining and reporting the financial condition and results of operations of an insurance company, and for determining its solvency under the Iowa Insurance Law. The National Association of Insurance Commissioners’ (NAIC) Accounting Practices and Procedures Manual (NAIC SAP) has been adopted as a component of prescribed practices by the State of Iowa. Prescribed statutory accounting practices include state laws and regulations. Permitted statutory accounting practices encompass accounting practices that are not prescribed.

The following is a summary of the accounting practices permitted and prescribed by the IID and reflected in the Company’s financial statements which differs from NAIC SAP:

The State of Iowa has adopted a prescribed accounting practice that differs from that found in the NAIC SAP related to the reported value of the assets supporting the Company’s guaranteed separate accounts. As prescribed by Iowa Administrative Code 508A.1.4, the Commissioner found that the Company is entitled to value the assets of the guaranteed separate account at amortized cost, whereas the assets would be required to be reported at fair value under SSAP No. 56, Separate Accounts, of the NAIC SAP. There is no impact to the Company’s income or surplus as a result of utilizing this prescribed practice.

A reconciliation of the Company’s net income (loss) and capital and surplus between NAIC SAP and practices prescribed and permitted by the State of Iowa is shown below:

The IID issued a no objection letter in the current year for the Company to present historical permitted practices that differ from that found in the NAIC SAP related to the admission of letters of credit as admitted assets and as an element of capital surplus. Prior to merging with the Company, MLIC Re and PFRe, with the explicit permission of the Deputy Commissioner of the Captive Insurance Division of the Vermont Department of Financial Regulation, included as admitted assets the value of letters of credit serving as collateral for reinsurance credit taken by affiliates in connection with reinsurance agreements. These historical permitted practices were included on a merged entity basis for periods prior to the effective date of the mergers. The letters of credit were for the benefit of the Company and TPLIC. The permitted practice terminated upon the merger of MLIC Re and PFRe into the Company and had no impact at December 31, 2020.

The Company elected early adoption of SSAP No. 108, Derivatives Hedging Variable Annuities Guarantees (SSAP 108) effective July 1, 2019. The early adoption allowed for transition from and release of a similar permitted practice in place with the IID since October 1, 2016 (the Permitted Practice). The Company received approval from the IID on September 4, 2019.

The preparation of financial statements of insurance companies requires management to make estimates and assumptions that affect amounts reported in the financial statements and accompanying notes. Such estimates and assumptions could change in the future as more information becomes known, which could impact the amounts reported and disclosed herein.

The effects of the following variances from GAAP on the accompanying statutory-basis financial statements have not been determined by the Company, but are presumed to be material. Significant accounting policies and variances from GAAP are as follows:

Investments in bonds, except those to which the Securities Valuation Office (SVO) of the NAIC has ascribed a NAIC designation of 6, are reported at amortized cost using the interest method. Bonds containing call provisions, except make-whole call provisions, are amortized to the call or maturity value/date which produces the lowest asset value, often referred to as yield-to-worst method. Bonds ascribed a NAIC designation of 6 are reported at the lower of amortized cost or fair value with unrealized gains and losses reported in changes in capital and surplus. Prepayment penalty or acceleration fees received in the event a bond is liquidated prior to its scheduled termination date are reported as investment income.

Hybrid securities, as defined by the NAIC, are securities designed with characteristics of both debt and equity and provide protection to the issuer’s senior note holders. These securities meet the definition of a bond, in accordance with SSAP No. 26R, Bonds, and therefore, are reported at amortized cost or fair value based upon their NAIC rating.

For GAAP, such fixed maturity investments would be designated at purchase as held-to-maturity, trading or available-for-sale. Held-to-maturity fixed investments would be reported at amortized cost, and the remaining fixed maturity investments would be reported at fair value with unrealized holding gains and losses reported in earnings for those designated as trading and as a separate component of other comprehensive income (OCI) for those designated as available-for-sale.

Single class and multi-class mortgage-backed/asset-backed securities are valued at amortized cost using the interest method, including anticipated prepayments, except for those with an initial NAIC designation of 6, which are valued at the lower of amortized cost or fair value. These securities are adjusted for the effects of changes in prepayment assumptions on the related accretion of discount or amortization of premium using either the retrospective or prospective methods. Prepayment assumptions are obtained from dealer surveys or internal estimates and are based on the current interest rate and economic environment. For statutory reporting, the

retrospective adjustment method is used to value all such securities, except principal-only and interest-only securities, which are valued using the prospective method.

For GAAP, all securities purchased or retained that represent beneficial interests in securitized assets, other than high credit quality securities, are adjusted using the prospective method when there is a change in estimated future cash flows. If high credit quality securities are adjusted, the retrospective method is used.

The Company closely monitors below investment grade holdings and investment grade issuers where the Company has concerns to determine if an other-than-temporary impairment (OTTI) has occurred. The Company also regularly monitors industry sectors. The Company considers relevant facts and circumstances in evaluating whether the impairment is other-than-temporary including: (1) the probability of the Company collecting all amounts due according to the contractual terms of the security in effect at the date of acquisition; (2) the Company’s decision to sell a security prior to its maturity at an amount below its carrying amount; and (3) the Company’s ability to hold a structured security for a period of time to allow for recovery of the value to its carrying amount. Additionally, financial condition, near term prospects of the issuer and nationally recognized credit rating changes are monitored. Non-structured securities in unrealized loss positions that are considered other-than-temporary are written down to fair value. The Company will record a charge to the statements of operations for the amount of the impairment.

For structured securities, cash flow trends and underlying levels of collateral are monitored. An OTTI is considered to have occurred if the fair value of the structured security is less than its amortized cost basis and the entity intends to sell the security or the entity does not have the intent and ability to hold the security for a period of time sufficient to recover the amortized cost basis. An OTTI is also considered to have occurred if the discounted estimated future cash flows are less than the amortized cost basis of the security and the security is in an unrealized loss position. Structured securities considered other-than-temporarily impaired are written down to discounted estimated cash flows if the impairment is the result of cash flow analysis. If the Company has an intent to sell or lack of ability to hold a structured security, it is written down to fair value. The Company will record a charge to the statements of operations for the amount of the impairments.

For GAAP, if it is determined that a decline in fair value is other-than-temporary and the entity intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis less any current period credit loss, the OTTI is recognized in earnings equal to the entire difference between the amortized cost basis and its fair value at the impairment date. If the entity does not intend to sell the security or the entity will likely not be required to sell the security before recovery, the OTTI should be separated into a) the amount representing the credit loss, which is recognized in earnings, and b) the amount related to all other factors, which is recognized in OCI, net of applicable taxes.

Investments in both affiliated and unaffiliated preferred stocks in good standing (those with NAIC designations RP1 to RP3 and P1 to P3), are reported at cost or amortized cost, depending on the characteristics of the securities. Investments in both affiliated and unaffiliated preferred stocks not in good standing (those with NAIC designations RP4 to RP6 and P4 to P6), are

reported at the lower of cost, amortized cost, or fair value, depending on the characteristics of the securities. The related net unrealized capital gains and losses for all NAIC designations are reported in changes in capital and surplus.

Common stocks of affiliated noninsurance subsidiaries are reported based on underlying audited GAAP equity. The net change in the subsidiaries’ equity is included in net unrealized capital gains or losses and are reported in changes in capital and surplus.

Common stocks of unaffiliated companies, which include shares of mutual funds, are reported at fair value and the related net unrealized capital gains or losses are reported in changes in capital and surplus.

The Company owns stock issued by the Federal Home Loan Bank (FHLB), which is only redeemable at par, and its fair value is presumed to be par, unless other-than-temporarily impaired.

If the Company determines that a decline in the fair value of a common stock or a preferred stock is other-than-temporary, the Company writes it down to fair value as the new cost basis and the amount of the write down is accounted for as a realized loss in the statements of operations. The Company considers the following factors in determining whether a decline in value is other-than-temporary: (a) the financial condition and prospects of the issuer; (b) whether or not the Company has made a decision to sell the investment; and (c) the length of time and extent to which the value has been below cost.

Mortgage loans are reported at unpaid principal balances, less an allowance for impairment. A mortgage loan is considered to be impaired when it is probable that the Company will be unable to collect all principal and interest amounts due according to the contractual terms of the mortgage agreement. When management determines the impairment is other-than-temporary, the mortgage loan is written down to realizable value and a realized loss is recognized. Prepayment penalty or acceleration fees received in the event a loan is liquidated prior to its scheduled termination date are reported as investment income.

Valuation allowances are established for mortgage loans, if necessary, based on the difference between the net value of the collateral, determined as the fair value of the collateral less estimated costs to obtain and sell, and the recorded investment in the mortgage loan. Under GAAP, such allowances are based on the present value of expected future cash flows discounted at the loan’s effective interest rate or, if foreclosure is probable, on the estimated fair value of the collateral.

The initial valuation allowance and subsequent changes in the allowance for mortgage loans are charged or credited directly to unassigned surplus as part of the change in asset valuation reserve (AVR), rather than being included as a component of earnings as would be required under GAAP.

Land is reported at cost. Real estate occupied by the Company is reported at depreciated cost net of encumbrances. Real estate held for the production of income is reported at depreciated cost net of related obligations. Real estate the Company classifies as held for sale is measured at lower of carrying amount or fair value less cost to sell. Depreciation is calculated on a straight-line basis

over the estimated useful lives of the properties. The Company recognizes an impairment loss if the Company determines that the carrying amount of the real estate is not recoverable and exceeds its fair value. The Company deems that the carrying amount of the asset is not recoverable if the carrying amount exceeds the sum of undiscounted cash flows expected to result from the use and disposition. The impairment loss is measured as the amount by which the asset’s carrying value exceeds its fair value.

Investments in real estate are reported net of related obligations rather than on a gross basis as for GAAP. Real estate owned and occupied by the Company is included in investments rather than reported as an operating asset as under GAAP, and investment income and operating expenses for statutory reporting include rent for the Company’s occupancy of those properties. Changes between depreciated cost and admitted amounts are credited or charged directly to unassigned surplus rather than to income as would be required under GAAP.

The Company has interests in joint ventures and limited partnerships. The Company carries these investments based on its interest in the underlying GAAP equity of the investee.

For a decline in the fair value of an investment in a joint venture or limited partnership which is determined to be other-than-temporary, the Company writes it down to fair value as the new cost basis and the amount of the write down is accounted for as a realized loss in the statements of operations. The Company considers an impairment to have occurred if it is probable that the Company will be unable to recover the carrying amount of the investment or if there is evidence indicating inability of the investee to sustain earnings which would justify the carrying amount of the investment.

Investments in Low Income Housing Tax Credit (LIHTC) properties are valued at amortized cost. Tax credits are recognized in operations in the tax reporting year in which the tax credit is utilized by the Company. The carrying value is amortized over the life of the investment. Amortization is calculated as a ratio of the current year tax credits and tax benefits compared to the total expected tax credits and tax benefits over the life of the investment.

Cash equivalents are short-term highly liquid investments with original maturities of three months or less (principally stated at amortized cost) or money market mutual funds which are reported at fair value.

Short-term investments include investments with remaining maturities of one year or less at the time of acquisition and are principally stated at amortized cost.

Realized capital gains and losses are determined using the specific identification method and are recorded net of related federal income taxes. Changes in admitted asset carrying amounts of bonds, mortgage loans, common and preferred stocks are credited or charged directly to unassigned surplus.

Interest income is recognized on an accrual basis. The Company does not accrue income on bonds in default, mortgage loans on real estate in default and/or foreclosure or which are

delinquent more than twelve months, or real estate where rent is in arrears for more than three months. Income is also not accrued when collection is uncertain. Due and accrued amounts determined to be uncollectible are written off through the statements of operations.

Under a formula prescribed by the NAIC, the Company defers the portion of realized capital gains and losses on sales of fixed income investments, primarily bonds and mortgage loans, attributable to changes in the general level of interest rates and amortizes those deferrals into net investment income over the remaining period to maturity of the bond or mortgage loan based on groupings of individual securities sold in five year bands. The net deferral is reported as the interest maintenance reserve (IMR) in the accompanying balance sheets. Realized capital gains and losses are reported in income net of federal income tax and transfers to the IMR. Under GAAP, realized capital gains and losses are reported in the statements of operations on a pre-tax basis in the period that the assets giving rise to the gains or losses are sold.

The AVR provides a valuation allowance for invested assets. The AVR is determined by an NAIC prescribed formula with changes reflected directly in unassigned surplus; AVR is not recognized for GAAP.

In 2019, the NAIC revised the AVR Factors (basic contribution, reserve objective and maximum reserve) to be consistent with the risk-based capital (RBC) after-tax factors, which were amended in 2018 as a result of federal tax reform. The AVR factor changes are effective for year-end 2019. As of December 31, 2019, the factor changes decreased capital and surplus by $183. The changes were recorded to the Change in Asset Valuation Reserve line of the Statements of Changes in Capital and Surplus.

Overview: The Company may use various derivative instruments (options, caps, floors, swaps, forwards, and futures) to manage risks related to its ongoing business operations. On the transaction date of the derivative instrument, the Company designates the derivative as either (A) hedging (fair value, foreign currency fair value, cash flow, foreign currency cash flow, forecasted transactions, or net investment in a foreign operation), (B) replication, (C) income generation, or (D) held for other investment/risk management activities, which do not qualify for hedge accounting under SSAP No. 86 - Derivatives.

Derivative instruments are subject to market risk, which is the possibility that future changes in market prices may make the instruments less valuable. The Company uses derivatives as hedges, consequently, when the value of the hedged asset or liability changes, the value of the hedging derivative is expected to move in the opposite direction. Market risk is a consideration when changes in the value of the derivative and the hedged item do not completely offset (correlation or basis risk) which is mitigated by active measuring and monitoring.

The Company is exposed to credit-related losses in the event of non-performance by counterparties to derivative instruments, but it does not expect any counterparties to fail to meet their obligations given their high credit rating of ‘BBB’ or better. The credit exposure of interest rate swaps and currency swaps is represented by the fair value of contracts, aggregated at a counterparty level, with a positive fair value at the reporting date. The Company has entered into collateral agreements with certain counterparties wherein the counterparty is required to post assets on the Company’s behalf. The posted amount is equal to the difference between the net positive fair value of the contracts and an agreed upon threshold that is based on the credit rating of the counterparty. Inversely, if the net fair value of all contracts with this counterparty is negative, then the Company is required to post assets instead.

Interest rate swaps are used in the overall asset/liability management process to modify the interest rate characteristics of the underlying asset or liability. These interest rate swaps generally provide for the exchange of the difference between fixed and floating rate amounts based on an underlying notional amount. Typically, no cash is exchanged at the outset of the swap contract and a single net payment is exchanged each due date. Swaps that meet hedge accounting rules are carried in a manner consistent with the hedged item, generally at amortized cost, on the financial statements. If the swap is terminated prior to maturity, proceeds equal to the fair value of the contract are exchanged. These gains and losses may be included in IMR or AVR if the underlying

instrument receives that treatment. Swaps not meeting hedge accounting rules are carried at fair value with fair value adjustments recorded in unassigned surplus.

Cross currency swaps are utilized to mitigate risks when the Company holds foreign denominated assets or liabilities; therefore, converting the asset or liability to a U.S. dollar denominated security. These cross currency swap agreements involve the exchange of two principal amounts in two different currencies at the prevailing currency rate at contract inception. During the life of the swap, the counterparties exchange fixed or floating rate interest payments in the swapped currencies. At maturity, the principal amounts are again swapped at a pre-determined rate of exchange. Each asset or liability is hedged individually where the terms of the swap must meet the terms of the hedged instrument. For swaps qualifying for hedge accounting, the premium or discount is amortized into income over the life of the contract and the foreign currency translation adjustment is recorded as unrealized gain/loss in capital and surplus. Swaps not meeting hedge accounting rules are carried at fair value with fair value adjustments recorded in capital and surplus. If a swap is terminated prior to maturity, proceeds are exchanged equal to the fair value of the contract. These gains and losses may be included in IMR or AVR if the hedged instrument receives that treatment.

Total return swaps are used in the asset/liability management process to mitigate the market risk on minimum guarantee insurance contracts linked to an index. These total return swaps generally provide for the exchange of the difference between fixed leg (tied to the Standard & Poor’s (S&P) or other global market financial index) and floating leg (tied to the London Interbank Offered Rate (LIBOR)) amounts based on an underlying notional amount (also tied to the underlying index). Typically, no cash is exchanged at the outset of the swap contract and a single net payment is exchanged each due date. Swaps that meet hedge accounting rules are carried in a manner consistent with the hedged item, generally at amortized cost, in the financial statements. If the swap is terminated prior to maturity, proceeds are exchanged equal to the fair value of the contract. These gains and losses may be included in IMR or AVR if the underlying instrument receives that treatment. Swaps not meeting hedge accounting rules are carried at fair value with fair value adjustments recorded in capital and surplus.

Variance swaps are used in the asset/liability management process to mitigate the gamma risk created when the Company has issued minimum guarantee insurance contracts linked to an index. These variance swaps are similar to volatility options where the underlying index provides for the market value movements. Variance swaps do not accrue interest. Typically, no cash is exchanged at the outset of initiating the variance swap, and a single receipt or payment occurs at the maturity or termination of the contract. Variance swaps that meet hedge accounting rules are carried in a manner consistent with the hedged item, generally at amortized cost, on the financial statements. If terminated prior to maturity, proceeds are exchanged equal to the fair value of the contract. These gains and losses may be included in IMR or AVR if the underlying instrument receives that treatment. Swaps not meeting hedge accounting rules are carried at fair value with fair value adjustments recorded in capital and surplus.

Bond forwards are used to hedge the interest rate risk that future liability claims increase as rates decrease, leading to higher guarantee values. Bond return swaps are also used to hedge interest rate risk of the underlying liability by exchanging performance and interest of a treasury asset for a funding level plus spread.

Futures contracts are used to hedge the liability risk when the Company issues products providing the customer a return based on various global market indices. Futures are marked to market on a daily basis whereby a cash payment is made or received by the Company. These payments are recognized as realized gains or losses in the financial statements.

The Company issues products providing the customer a return based on the various global equity market indices. The Company uses options to hedge the liability option risk associated with these products. Options are marked to fair value in the balance sheets and fair value adjustments are recorded as capital and surplus in the financial statements. These gains and losses may be included in IMR or AVR if the underlying instrument receives that treatment.

Caps are used in the asset/liability management process to mitigate the interest rate risk created due to a rapidly rising interest rate environment. The caps are similar to options where the underlying interest rate index provides for the market value movements. The caps do not accrue interest until the interest rate environment exceeds the caps strike rate. Cash is exchanged at the onset, and a single receipt or payment occurs at the maturity or termination of the contract. Caps that meet hedge accounting rules are carried in a manner consistent with the hedged item, generally at amortized cost, on the financial statements. If terminated prior to maturity, proceeds are exchanged equal to the fair value of the contract. These gains and losses may be included in IMR or AVR if the underlying instrument receives that treatment. Caps that do not meet hedge accounting rules are carried at fair value with fair value adjustments recorded in unassigned surplus.

The Company uses zero cost collars to hedge the interest rate risk associated with rising short term interest rates, whereby the exposure would otherwise adversely impact the Company’s capital generation. The collar position(s) help range bound the floating rate by combining a cap and floor position.

The Company may sell products with expected benefit payments extending beyond investment assets currently available in the market. Because assets will have to be purchased in the future to fund future liability cash flows, the Company is exposed to the risk of future investments made at lower yields than what is assumed at the time of pricing. Forward-starting interest rate swaps are utilized to lock-in the current forward rate. The accrual of income begins at the forward date, rather than at the inception date. These forward-starting swaps meet hedge accounting rules and are carried at cost in the financial statements. Gains and losses realized upon termination of the forward-starting swap are deferred and used to adjust the basis of the asset purchased in the hedged forecasted period. The basis adjustment is then amortized into income as a yield adjustment to the asset over its life.

The Company issues fixed liabilities that have a guaranteed minimum crediting rate. The Company uses receiver swaptions, whereby the swaption is designed to generate cash flows to offset lower yields on assets during a low interest rate environment. The Company pays a single premium at the beginning of the contract and is amortized throughout the life of the swaption. These swaptions are marked to fair value in the balance sheets and the fair value adjustment is recorded in unassigned surplus. These gains and losses may be included in IMR or AVR if the underlying instrument receives that treatment.

The Company replicates investment grade corporate bonds or sovereign debt by combining a highly rated security as a cash component with a written credit default swap which, in effect, converts the high quality asset into an investment grade corporate asset or a sovereign debt. The benefits of using the swap market to replicate credit include possible enhanced relative values as well as ease of executing larger transactions in a shortened time frame. Generally, a premium is received by the Company on a periodic basis and recognized in investment income. In the event the representative issuer defaults on its debt obligation referenced in the contract, a payment equal to the notional amount of the contract will be made by the Company and recognized as a capital loss.

The Company loans securities to third parties under agent-managed securities lending programs accounted for as secured borrowings. Cash collateral received which may be sold or repledged by the Company is reflected as a one-line entry on the balance sheets (securities lending reinvested collateral assets) and a corresponding liability is established to record the obligation to return the cash collateral. Non-cash collateral received which may not be sold or repledged is not recorded on the Company’s balance sheets. Under GAAP, the reinvested collateral is included within invested assets (i.e. it is not one-line reported).

For dollar repurchase agreements accounted for as secured borrowings, the Company receives cash collateral in an amount at least equal to the fair value of the securities transferred by the Company in the transaction as of the transaction date. The securities transferred are not removed from the balance sheets, and the cash received as collateral is invested as needed or used for general corporate purposes of the Company. A liability is established to record the obligation to return the cash collateral and included in borrowed money on the balance sheets.

Financial assets and liabilities are offset in the balance sheets when the Company has a legally enforceable right to offset and has the intention to settle the asset and liability on a net basis.

Other assets consist primarily of cash surrender value of company owned life insurance, reinsurance receivable, general insurance accounts receivable and current federal income tax recoverable.

Other liabilities consist primarily of amounts withheld by the Company, accrued expenses, reinsurance payable, payable for securities, and municipal repurchase agreements. Municipal repurchase agreements are investment contracts issued to municipalities that pay either a fixed or floating rate of interest on the guaranteed deposit balance. The floating interest rate is based on a market index. The related liabilities are equal to the policyholder deposit and accumulated

interest. These municipal repurchase agreements require a minimum of 95% of the fair value of the securities transferred to be maintained as collateral.

The majority of separate accounts held by the Company, primarily for individual policyholders as well as for group pension plans, do not have any minimum guarantees, and the investment risks associated with fair value changes are borne by the policyholder. The assets in the accounts, carried at estimated fair value, consist of underlying mutual fund shares, common stocks, long-term bonds and short-term investments.

Certain other separate accounts held by the Company provide a minimum guaranteed return of 3% of the average investment balance to policyholders. The assets consist of long-term bonds and short-term investments which are carried at amortized cost.

Certain other non-indexed guaranteed separate accounts represent funds invested by the Company for the benefit of the contract holders who are guaranteed certain returns as specified in the contracts. Separate account asset performance different than the guaranteed requirements is either transferred to or received from the general account and reported in the statements of operations. Non-indexed guaranteed separate account assets and liabilities are carried at fair value. These guarantees are included in the general account due to the nature of the guaranteed return.

Assets held in trust for purchases of variable life, variable universal life, variable annuity, and modified guaranteed annuity contracts and the Company’s corresponding obligation to the contract owners are shown separately in the balance sheets. The assets in the separate accounts are valued at fair value.

Income and gains and losses with respect to the assets in the separate accounts accrue to the benefit of the contract owners and, accordingly, the operations of the separate accounts are not included in the accompanying financial statements. The investment risks associated with fair value changes of the separate accounts are borne entirely by the policyholders except in cases where minimum guarantees exist.

Income and gains and losses with respect to the assets in the separate accounts supporting modified guaranteed annuity contracts are included in the statements of operations as a component of net transfers from separate accounts.

Surplus funds transferred from the general account to the separate accounts, commonly referred to as seed money, and earnings accumulated on seed money are reported as surplus in the separate accounts until transferred or repatriated to the general account. The transfer of such funds between the separate account and the general account is reported as surplus contributed or withdrawn during the year.

Life, annuity and accident and health benefit reserves are calculated by actuarial methods and are determined based on published tables using statutorily specified interest rates and valuation

methods that will provide, in the aggregate, reserves that are greater than or equal to the minimum or guaranteed cash value, or the amount required by law. For direct business issued after October 1964, the Company waives deduction of deferred fractional premiums upon death of the insured and returns any portion of the final premium for periods beyond the month of death. For policies assumed during 1992 from former affiliates, Monumental General Insurance Company and Monumental Life Insurance Group, Inc., and for all business from company mergers occurring in 1998, the Company waives deduction of deferred fractional premium upon death of the insured and returns any portion of the final premium paid beyond the month of death. For fixed premium life insurance business resulting from company mergers occurring in 2004 and 2007, the Company waives deduction of deferred fractional premiums upon death of the insured and refunds portions of premiums unearned after the date of death. Where appropriate, the Company holds a non-deduction and/or refund reserve. The reserve for these benefits is computed using aggregate methods. The reserves are equal to the greater of the cash surrender value and the legally computed reserve.

For GAAP, policy reserves are calculated based on estimated expected experience or actual account balances.

Surrender values are not promised in excess of the legally computed reserves. For annual premium variable life insurance there is an extra premium charged to the policyholder before the premium is transferred to the Separate Accounts. An additional reserve for this policy is held in the General Account that is a multiple of the reserve that would otherwise be held. For interest sensitive whole life, the reserves held in the General Account are equal to the cash surrender value.

In accordance with SSAP No. 51R, Life Contracts, and No. 54R, Individual and Group Accident and Health Contracts, the Company reports the amount of insurance, if any, for which the gross premiums are less than the net premiums according to the valuation standards and any related premium deficiency reserve established. Anticipated investment income is included as a factor in the health contract premium deficiency calculation.

Claim reserves represent the estimated accrued liability for claims reported to the Company and claims incurred but not yet reported through the balance sheets date. These reserves are estimated using either individual case-basis valuations or statistical analysis techniques. These estimates are subject to the effects of trends in claim severity and frequency. The estimates are continually reviewed and adjusted as necessary as experience develops or new information becomes available.

Deposit-type contracts do not incorporate risk from the death or disability of policyholders. These types of contracts may include guaranteed investment contracts (GICs), funding agreements and other annuity contracts. Deposits and withdrawals on these contracts are recorded as a direct increase or decrease, respectively, to the liability balance and are not reported as premiums,

benefits or changes in reserves in the statements of operations. Interest on these policies is reflected in other benefits.

Revenues for life and annuity policies with mortality or morbidity risk (including annuities with purchase rate guarantees) consist of the entire premium received. Benefits incurred represent surrenders and death benefits paid and the change in policy reserves. Under GAAP, for universal life policies, premiums received in excess of policy charges would not be recognized as premium revenue and benefits would represent interest credited to the account values and the excess of benefits paid over the policy account value. Under GAAP, for all annuity policies without significant mortality risk, premiums received and benefits paid would be recorded directly to the reserve liability using deposit accounting.

Policyholder dividends are recognized when declared rather than over the term of the related policies as would be required under GAAP.

Coinsurance premiums, commissions, expense reimbursements and reserves related to reinsured business are accounted for on bases consistent with those used in accounting for the original policies and the terms of the reinsurance contracts. Gains associated with reinsurance of in force blocks of business are included in unassigned surplus and amortized into income as earnings emerge on the reinsured block of business. Premiums ceded and recoverable losses have been reported as a reduction of premium income and benefits, respectively. Policy liabilities and accruals are reported in the accompanying financial statements net of reinsurance ceded.

Any reinsurance amounts deemed to be uncollectible have been written off through a charge to operations. In addition, a liability for reinsurance balances would be established for unsecured policy reserves ceded to reinsurers not authorized to assume such business. Changes to the liability are credited or charged directly to unassigned surplus. Under GAAP, an allowance for amounts deemed uncollectible would be established through a charge to earnings.

Losses associated with an indemnity reinsurance transaction are reported within income when incurred rather than being deferred and amortized over the remaining life of the underlying reinsured contracts as would be required under GAAP.

Policy and contract liabilities ceded to reinsurers have been reported as reductions of the related reserves rather than as assets as would be required under GAAP.

Commissions allowed by reinsurers on business ceded are reported as income when incurred rather than being deferred and amortized with deferred policy acquisition costs as required under GAAP.

Under GAAP, for certain reinsurance agreements whereby assets are retained by the ceding insurer (such as funds withheld or modified coinsurance) and a return is paid based on the performance of underlying investments, the assets and liabilities for these reinsurance arrangements must be adjusted to reflect the fair value of the invested assets. The NAIC SAP does not contain a similar requirement.

The Company computes deferred income taxes in accordance with SSAP No. 101, Income Taxes. Unlike GAAP, SSAP No. 101 does not consider state income taxes in the measurement of deferred taxes. SSAP No. 101 also requires additional testing to measure gross deferred tax assets. The additional testing limits gross deferred tax asset admission to 1) the amount of federal income taxes paid in prior years recoverable through hypothetical loss carrybacks of existing temporary differences expected to reverse during a timeframe corresponding with the Internal Revenue Service tax loss carryback provisions, not to exceed three years, plus 2) the amount of remaining gross deferred tax assets expected to be realized within three years limited to an amount that is no greater than 15% of current period’s adjusted statutory capital and surplus, plus 3) the amount of remaining gross deferred tax assets that can be offset against existing gross deferred tax liabilities after considering character (i.e. ordinary versus capital) and reversal patterns. The Company’s reported deferred tax asset or liability is the sum of gross deferred tax assets admitted through this three-part test plus the sum of all deferred tax liabilities.

The costs of acquiring and renewing business are expensed when incurred. Under GAAP, incremental costs directly related to the successful acquisition of insurance and investment contracts are deferred. For traditional life insurance and certain long-duration accident and health insurance, to the extent recoverable from future policy revenues, acquisition costs are deferred and amortized over the premium-paying period of the related policies using assumptions consistent with those used in computing policy benefit reserves. For universal life insurance and investment products, to the extent recoverable from future gross profits, deferred policy acquisition costs are amortized generally in proportion to the present value of expected gross profits from surrender charges and investment, mortality and expense margins.

Under GAAP, value of business acquired (VOBA) is an intangible asset resulting from a business combination that represents the excess of book value over the estimated fair value of acquired insurance, annuity, and investment-type contracts in-force at the acquisition date. The estimated fair value of the acquired liabilities is based on projections, by each block of business, of future contracts and contract changes, premiums, mortality and morbidity, separate account performance, surrenders, operation expenses, investment returns, nonperformance risk adjustment and other factors. VOBA is not recognized under the NAIC SAP.

Investments in subsidiaries, controlled and affiliated companies (SCA) are stated in accordance with the Purposes and Procedures Manual of the NAIC SVO, as well as SSAP No. 97 – Investments in Subsidiary, Controlled and Affiliated Entities.

The accounts and operations of the Company’s subsidiaries are not consolidated with the accounts and operations of the Company as would be required under GAAP. Dividends or distributions received from an investee are recognized in investment income when declared to the extent that they are not in excess of the undistributed accumulated earnings attributable to an investee. Changes in investments in SCA’s are recorded as a change to the carrying value of the investment with a corresponding amount recorded directly to unrealized gain/loss (capital and surplus).

Surplus notes are reported as surplus rather than as liabilities as would be required under GAAP.

Certain assets designated as “nonadmitted”, primarily net deferred tax assets and other assets not specifically identified as an admitted asset within the NAIC SAP, are excluded from the accompanying balance sheets and are charged directly to unassigned surplus. Under GAAP, such assets are included in the balance sheets to the extent that they are not impaired.

Cash, cash equivalents and short-term investments in the statements of cash flow represent cash balances and investments with initial maturities of one year or less and money market mutual funds. Under GAAP, the corresponding caption of cash and cash equivalents includes cash balances and investments with initial maturities of three months or less.

The Company’s policy is to disclose as recent accounting pronouncements the adopted accounting guidance with a current year effective date that has been classified by the NAIC as a substantive change, as well as items classified as nonsubstantive changes that have had a material impact on the financial position or results of operations of the Company.

Effective June 30, 2020, the NAIC adopted revisions to SSAP No. 105, Working Capital Finance Investments, and the corresponding Issue Paper No. 163, Working Capital Finance Investments. The revisions provided substantive updates to the Working Capital Finance Investments (WCFI) Program requirements in SSAP No. 105. The adoption of this guidance did not impact the financial position or results of operations of the Company as the Company does not invest in WCFI.

Effective January 1, 2020, the NAIC adopted revisions to SSAP No. 22, Leases, and the corresponding Issue Paper No. 161, Leases, to incorporate various concepts from U.S. GAAP guidance in Accounting Standards Update (ASU) 2016-02, Leases, into statutory accounting. The revised guidance retains the operating lease concept for statutory accounting, clarifies the application of statutory accounting guidance for leases in certain areas (e.g., sale-leaseback transactions), and identifies the types of assets allowed for lease and sale-leaseback treatment. The adoption of this guidance did not impact the financial position or results of operations of the Company.

As of December 31, 2019, the Company received IID approval on an approach for adoption of the NAIC 2020 VM-21 and related Risk Based Capital C3P2 changes documented in the VM- 21 2020 NAIC Valuation Manual: Requirements for Principle-Based Reserves for Variable Annuities. The Company elected to early adopt the VM-21 requirements for variable annuities effective December 31, 2019. The approved transition approach did not result in an adjustment to the Company’s historical statutory reporting or existing balances at the time of transition. The Company reported the increase to the VM-21 reserve of $1,218 as of December 31, 2019. As of the date of transition, the Company was fully compliant with the provisions of VM-21 and remains compliant as of December 31, 2020.

During 2020, management identified and corrected an error in the Company’s prior year statutory Actuarial Guideline (AG) 38 8C cash flow testing reserves. The error resulted in an understatement of aggregate reserves for life contracts of $116 net of tax at December 31, 2019 which was reflected in Other changes - net in the Statement of Changes in Capital and Surplus.

Certain amounts in prior year financial statement balances and footnote disclosures have been reclassified to conform to the current year presentation.

The fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

The fair values of financial instruments are determined by management after taking into consideration several sources of data. When available, the Company uses quoted market prices in active markets to determine the fair value of its investments. The Company’s valuation policy utilizes a pricing hierarchy which dictates that publicly available prices are initially sought from indices and third-party pricing services. In the event that pricing is not available from these sources, those securities are submitted to brokers to obtain quotes. Lastly, securities are priced using internal cash flow modeling techniques. These valuation methodologies commonly use reported trades, bids, offers, issuer spreads, benchmark yields, estimated prepayment speeds, and/or estimated cash flows.

To understand the valuation methodologies used by third-party pricing services, the Company reviews and monitors their applicable methodology documents. Any changes to their methodologies are noted and reviewed for reasonableness. In addition, the Company performs in-depth reviews of prices received from third-party pricing services on a sample basis. The objective for such reviews is to demonstrate the Company can corroborate detailed information such as assumptions, inputs and methodologies used in pricing individual securities against documented pricing methodologies. Only third-party pricing services and brokers with a substantial presence in the market and with appropriate experience and expertise are used.

Each month, the Company performs an analysis of the information obtained from indices, third-party services, and brokers to ensure the information is reasonable and produces a reasonable estimate of fair value. The Company considers both qualitative and quantitative factors as part of this analysis, including but not limited to, recent transactional activity for similar securities, review of pricing statistics and trends, and consideration of recent relevant market events. Other controls and procedures over pricing received from indices, third-party pricing services, or brokers include validation checks such as exception reports which highlight significant price changes, stale prices or un-priced securities.

The Company’s financial assets and liabilities carried at fair value are classified, for disclosure purposes, based on a hierarchy defined by SSAP No. 100R, Fair Value. The hierarchy gives the highest ranking to fair values determined using unadjusted quoted prices in active markets for identical assets and liabilities (Level 1), and the lowest ranking to fair values determined using methodologies and models with unobservable inputs (Level 3). An asset’s or a liability’s classification is based on the lowest level input that is significant to its measurement. For example, a Level 3 fair value measurement may include inputs that are both observable (Levels 1 and 2) and unobservable (Level 3). The levels of the fair value hierarchy are as follows:

The following methods and assumptions were used by the Company in estimating its fair value disclosures for financial instruments:

Cash Equivalents and Short-Term Investments: The carrying amounts reported in the accompanying balance sheets for these financial instruments is either reported at fair value or amortized cost (which approximates fair value). Cash is not included in the below tables.

Short-Term Notes Receivable from Affiliates: The carrying amounts reported in the accompanying balance sheets for these financial instruments approximate their fair value.

Bonds and Stocks: The NAIC allows insurance companies to report the fair value determined by the SVO or to determine the fair value by using a permitted valuation method. The fair values of bonds and stocks are reported or determined using the following pricing sources: indices, third-party pricing services, brokers, external fund managers and internal models.

Fair values for fixed maturity securities (including redeemable preferred stock) actively traded are determined from third-party pricing services, which are determined as discussed above in the description of Level 1 and Level 2 values within the fair value hierarchy. For fixed maturity securities (including redeemable preferred stock) not actively traded, fair values are estimated using values obtained from third-party pricing services, or are based on non-binding broker quotes or internal models. In the case of private placements, fair values are estimated by discounting the expected future cash flows using current market rates applicable to the coupon rate, credit and maturity of the investments.

Mortgage Loans on Real Estate: The fair values for mortgage loans on real estate are estimated utilizing discounted cash flow analyses, using interest rates reflective of current market conditions and the risk characteristics of the loans.

Real Estate: Real estate held for sale is typically valued utilizing independent external appraisers in conjunction with reviews by qualified internal appraisers. Valuations are primarily based on active market prices, adjusted for any difference in the nature, location or condition of the specific property. If such information is not available, other valuation methods are applied, considering the value that the property’s net earning power will support, the value indicated by recent sales of comparable properties and the current cost of reproducing or replacing the property.

Other Invested Assets: The fair values for other invested assets, which include investments in surplus notes issued by other insurance companies and fixed or variable rate investments with underlying characteristics of bonds were determined primarily by using indices, third-party pricing services and internal models.

Derivative Financial Instruments: The fair value of futures and forwards are based upon the latest quoted market price and spot rates at the balance sheets date. The estimated fair values of equity and interest rate options (calls, puts, caps) are based upon the latest quoted market price at the balance sheets date. The estimated fair values of swaps, including equity, interest rate and currency swaps, are based on pricing models or formulas using current assumptions. The estimated fair values of credit default swaps are based upon active market data, including interest rate quotes, credit spreads, and recovery rates, which are then used to calculate probabilities of default for the fair value calculation. The Company accounts for derivatives that receive and pass hedge accounting in the same manner as the underlying hedged instrument. If that instrument is held at amortized cost, then the derivative is also held at amortized cost.

Policy Loans: The book value of policy loans is considered to approximate the fair value of the loan, which is stated at unpaid principal balance.

Securities Lending Reinvested Collateral: The cash collateral from securities lending is reinvested in various short-term and long-term debt instruments. The fair values of these investments are determined using the methods described above under Cash Equivalents and Short-Term Investments and Bonds and Stocks.

Separate Account Assets and Annuity Liabilities: The fair value of separate account assets are based on quoted market prices when available. When not available, they are primarily valued either using third-party pricing services or are valued in the same manner as the general account assets as further described in this note. However, some separate account assets are valued using non-binding broker quotes, which cannot be corroborated by other market observable data, or internal modeling which utilizes input that are not market observable. The fair value of separate account annuity liabilities is based on the account value for separate accounts business without guarantees. For separate accounts with guarantees, fair value is based on discounted cash flows.

Investment Contract Liabilities: Fair value for the Company’s liabilities under investment contracts, which include deferred annuities and GICs, are estimated using discounted cash flow calculations. For those liabilities that are short in duration, carrying amount approximates fair value. For investment contracts with no defined maturity, fair value is estimated to be the present surrender value.

Deposit–Type Contracts: The carrying amounts of deposit–type contracts reported in the accompanying balance sheets approximate their fair values. These are included in the Investment Contract Liabilities.

Fair values for the Company’s insurance contracts other than investment–type contracts (including separate account universal life liabilities) are not required to be disclosed. However, the fair values of liabilities under all insurance contracts are taken into consideration in the Company’s overall management of interest rate risk, such that the Company’s exposure to changing interest rates is minimized through the matching of investment maturities with amounts due under insurance contracts.

The Company accounts for its investments in affiliated common stock in accordance with SSAP No. 97, as such, they are not included in the following disclosures.

The following tables set forth a comparison of the estimated fair values and carrying amounts of the Company’s financial instruments, including those not measured at fair value in the balance sheets, as of December 31, 2020 and 2019, respectively:

The following tables provide information about the Company’s financial assets and liabilities measured at fair value as of December 31, 2020 and 2019:

Bonds classified as Level 2 are valued using inputs from third party pricing services or broker quotes. Bonds classified as Level 3 are primarily those valued using non–binding broker quotes, which cannot be corroborated by other market observable data, or internal modeling which utilize significant inputs that are not market observable.

Preferred stock classified as Level 2 are valued using inputs from third party pricing services or broker quotes. Preferred stock classified as Level 3 are internally valued using significant unobservable inputs.

Common stock classified as Level 3 are comprised primarily of shares in the FHLB of Des Moines, which are valued at par as a proxy for fair value as a result of restrictions that allow redemptions only by FHLB.

Derivatives classified as Level 2 represent over-the-counter (OTC) contracts valued using pricing models based on the net present value of estimated future cash flows, directly observed prices from exchange-traded derivatives, other OTC trades, or external pricing services.

Separate account assets and liabilities are valued and classified in the same way as general account assets and liabilities (described above).

The following tables summarize the changes in assets classified as Level 3 for 2020 and 2019:

(a) Recorded as a component of Net Realized Capital Gains (Losses) on Investments in the Statements of Operations

(b) Recorded as a component of Change in Net Unrealized Capital Gains (Losses) in the Statements of Changes in Capital and Surplus

(a) Recorded as a component of Net Realized Capital Gains (Losses) on Investments in the Statements of Operations

(b) Recorded as a component of Change in Net Unrealized Capital Gains (Losses) in the Statements of Changes in Capital and Surplus

Transfers between fair value hierarchy levels are recognized at the beginning of the reporting period.

As indicated in Note 2, real estate held for sale is measured at the lower of carrying amount or fair value less cost to sell. As of December 31, 2020, the Company held no properties as held-for-sale, where fair value was less than its carrying value. As of December 31, 2020, the Company held four properties as held-for sale, where carrying amount of $10 was equal to fair value.

Fair value was determined by utilizing an external appraisal following the sales comparison approach. The fair value measurements are classified as Level 3 as the comparable sales and adjustments for the specific attributes of these properties are not market observable inputs.

The carrying amounts and estimated fair value of investments in bonds and stocks are as follows:

The carrying amount and estimated fair value of bonds at December 31, 2020, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because certain borrowers have the right to call or prepay obligations with or without call or prepayment penalties.

The estimated fair value of bonds, preferred stocks and common stocks with gross unrealized losses at December 31, 2020 and 2019 is as follows:

During 2020, 2019, and 2018, respectively, there were $0, $7 and $99, of loan-backed or structured securities with a recognized OTTI due to intent to sell or lack of intent and ability to hold for a period of time to recover the amortized cost basis.

For loan-backed and structured securities with a recognized OTTI due to the Company’s cash flow analysis, in which the security is written down to estimated future cash flows discounted at the security’s effective yield, in 2020, 2019 and 2018 the Company recognized OTTI of $4, $6 and $10, respectively.

The following loan-backed and structured securities were held at December 31, 2020, for which an OTTI was recognized during the current reporting period:

The unrealized losses of loan-backed and structured securities where fair value is less than cost or amortized cost for which an OTTI has not been recognized in earnings as of December 31, 2020 and 2019 is as follows:

At December 31, 2020 and 2019, respectively, for bonds and preferred stocks that have been in a continuous loss position for greater than or equal to twelve months, the Company held 116 and 306 securities with a carrying amount of $441 and $1,154, and an unrealized loss of $50 and $102. Of this portfolio, 50.1% and 66.1% were investment grade with associated unrealized losses of $17 and $30, respectively.

At December 31, 2020 and 2019, respectively, for bonds and preferred stocks that have been in a continuous loss position for less than twelve months, the Company held 359 and 469 securities with a carrying amount of $2,026 and $2,085 and an unrealized loss of $85 and $44. Of this portfolio, 79.6% and 93.4% were investment grade with associated unrealized losses of $49 and $34, respectively.

At December 31, 2020 and 2019, there were no common stocks that have been in a continuous loss position for greater than or equal to twelve months.

At December 31, 2020 and 2019, respectively, for common stocks that have been in a continuous loss position for less than twelve months, the Company held 5 and 12 securities with a cost of $0 and $1 and no unrealized losses.

The following table provides the number of 5GI securities, aggregate book adjusted carrying value and aggregate fair value by investment type:

The tables below present the Company’s gross and net receivable for securities and borrowed money financial statement line items that were subject to offsetting:

During 2020 and 2019, the Company sold, redeemed or otherwise disposed of 108 and 250 securities as a result of a callable feature which generated investment income of $25 and $19 as a result of a prepayment penalty and/or acceleration fee.

Proceeds from sales and other disposals of bonds and preferred stock and related gross realized capital gains and losses are reflected in the following table. The amounts exclude maturities and include transfers associated with reinsurance agreements.

The Company had gross realized losses, which relate to losses recognized on other-than-temporary declines in the fair value of bonds and preferred stocks, for the years ended December 31, 2020, 2019 and 2018 of $161, $39 and $36, respectively.

At December 31, 2020 and 2019, the Company had no investments in restructured securities.

The credit quality of mortgage loans by type of property for the years ended December 31, 2020 and 2019 were as follows:

The credit quality for commercial and farm mortgage loans was determined based on an internal credit rating model which assigns a letter rating to each mortgage loan in the portfolio as an indicator of the credit quality of the mortgage loan. The internal credit rating model was designed based on rating agency methodology, then modified for credit risk associated with the Company’s mortgage lending process, taking into account such factors as projected future cash flows, net operating income, and collateral value. The model produces a credit rating score and an associated letter rating which is intended to align with S&P ratings as closely as possible. Information supporting the credit risk rating process is updated at least annually.

During 2020, the Company issued mortgage loans with a maximum interest rate of 6.50% and a minimum interest rate of 2.92% for commercial loans. The maximum percentage of any one mortgage loan to the value of the underlying real estate originated or acquired during the year ending December 31, 2020 at the time of origination was 79%. During 2019, the Company issued mortgage loans with a maximum interest rate of 5.57% and a minimum interest rate of 3.50% for commercial loans. The maximum percentage of any one mortgage loan to the value of the underlying real estate originated or acquired during the year ending December 31, 2019 at the time of origination was 82%.

During 2020 and 2019, the Company did not reduce the interest rate on any outstanding mortgage loans.

The age analysis of mortgage loans and identification in which the Company is a participant or co-lender in a mortgage loan agreement is as follows for December 31, 2020 and 2019.

At December 31, 2020 and 2019, respectively, multiple mortgage loans with a carrying value of $106 and $106 were non-income producing for the previous 180 days. There was no accrued interest related to these mortgage loans at December 31, 2020 and 2019. The Company has a mortgage or deed of trust on the property thereby creating a lien which gives it the right to take possession of the property (among other things) if the borrower fails to perform according to the terms of the loan documents. The Company requires all mortgaged properties to carry fire insurance equal to the value of the underlying property. At December 31, 2020 and 2019, there were no taxes, assessments and other amounts advanced and not included in the mortgage loan total.

At December 31, 2020 and 2019, the Company held no impaired loans with or without a related allowance for credit losses. There were no impaired mortgage loans held without an allowance for credit losses as of December 31, 2020 and 2019, respectively, that were subject to participant or co-lender mortgage loan agreement for which the Company is restricted from unilaterally foreclosing on the mortgage loans. The average recorded investment in impaired loans during 2020 and 2019 was $3 and $0, respectively.

The following table provides a reconciliation of the beginning and ending balances for the allowance for credit losses on mortgage loans:

As of December 31, 2020 and 2019, the Company had no mortgage loans derecognized as a result of foreclosure.

The Company accrues interest income on impaired loans to the extent deemed collectible (delinquent less than 91 days) and the loan continues to perform under its original or restructured contractual terms. Interest income on nonperforming loans generally is recognized on a cash basis. For the years ended December 31, 2020, 2019 and 2018, respectively, the Company recognized $0, $0 and $1 of interest income on impaired loans. Interest income of $0, $0 and $1, respectively, was recognized on a cash basis for the years ended December 31, 2020, 2019 and 2018.

At December 31, 2020 and 2019, the Company held a mortgage loan loss reserve in the AVR of $116 and $105, respectively.

The Company’s mortgage loan portfolio is diversified by geographic region and specific collateral property type as follows:

At December 31, 2020, 2019 and 2018, the Company had mortgage loans with a total net admitted asset value of $14, $21 and $23, respectively, which had been restructured in accordance with SSAP No. 36, Troubled Debt Restructuring. There were no realized losses during the years ended December 31, 2020, 2019 and 2018 related to such restructurings. At

December 31, 2020 and 2019, there were no commitments to lend additional funds to debtors owing receivables.

The fair value of property is determined based on an appraisal from a third-party appraiser, along with information obtained from discussions with internal asset managers and a listing broker regarding recent comparable sales data and other relevant property information. Impairment losses of $1, $5 and $26 were taken on real estate in 2020, 2019 and 2018, respectively, to write the book value down to the current fair value, and included in net realized capital gains (losses), within the Statements of Operations, for the year ended December 31, 2020.

As of December 31, 2020, there were eight properties classified as held for sale. As of December 31, 2019, there were five properties classified as held for sale. The Company is working with an external commercial real estate advisor firm to actively market the properties and negotiate with potential buyers. During 2020, one property classified as held for sale was disposed. During 2019, four properties classified as held for sale were disposed of resulting in a net realized gain of $26. These gains and losses were included in net realized capital gains (losses) within the Statements of Operations.

On October 28, 2020, the Company sold the Transamerica Pyramid Property located in San Francisco, CA, resulting in a realized gain of $255. As part of the sale transaction, the Company issued mortgage loans supporting the property at commercial rates in the amount of $427. The Company also disposed of other properties during 2020 and 2019 resulting in net realized gains of $3 and $9, respectively. These gains and losses were included in net realized capital gains (losses) within the Statements of Operations.

The carrying value of the Company’s real estate assets at December 31, 2020 and 2019 was as follows:

Accumulated depreciation on real estate at December 31, 2020 and 2019, was $24 and $106, respectively.

The Company recorded impairments of $19, $5, and $3 throughout years 2020, 2019 and 2018, respectively. These impairments were primarily related to private equity funds. The impairments were taken because the decline in fair value of the funds were deemed to be other than temporary and a recovery in value from the remaining underlying investments in the funds were not anticipated. These write-downs are included in net realized capital gains (losses) within the Statements of Operations.

At December 31, 2020, the Company had ownership interests in sixty-four LIHTC investments with a carrying value of $141. The remaining years of unexpired tax credits ranged from one to thirteen, and the properties were not subject to regulatory review. The length of time remaining for holding periods ranged from one to seventeen years. The amount of contingent equity commitments expected to be paid during the years 2021 to 2029 is $30. Tax credits recognized in 2020 were $119, and other tax benefits recognized in 2020 were $9. There were no impairment losses, write-downs or reclassifications during the year related to any of these credits.

At December 31, 2019, the Company had ownership interests in sixty-seven LIHTC investments with a carrying value of $103. The remaining years of unexpired tax credits ranged from one to twelve, and the properties were not subject to regulatory review. The length of time remaining for holding periods ranged from one to seventeen years. The amount of contingent equity commitments expected to be paid during the years 2020 to 2029 is $93. Tax credits recognized during 2019 was $94 and other benefits recognized in 2019 were $4. There were no impairment losses, write-downs or reclassifications during the year related to any of these credits.

The following tables provide the carrying value of transferable state tax credits gross of any related tax liabilities and total unused transferable tax credits by state and in total as of December 31, 2020 and 2019:

*The unused amount reflects credits that the Company deems will be realizable in the period 2020-2030.

The Company estimated the utilization of the remaining state transferable tax credits by projecting a future tax liability based on projected premium, tax rates and tax credits, and comparing the projected future tax liability to the availability of remaining state transferable tax credits. The Company had no impairment losses related to state transferable tax credits.

Amounts disclosed in this Derivatives section do not include derivatives utilized in the hedging of variable annuity guarantees in accordance with SSAP 108. Please see the subsequent section “Derivatives Hedging Variable Annuity Guarantees” for results associated with those derivatives.

The Company has entered into collateral agreements with certain counterparties wherein the counterparty is required to post assets (cash or securities) on the Company’s behalf in an amount equal to the difference between the net positive fair value of the contracts and an agreed upon threshold based on the credit rating of the counterparty. If the net fair value of all contracts with this counterparty is negative, then the Company is required to post similar assets (cash or securities). Fair value of derivative contracts, aggregated at a counterparty level at December 31, 2020 and 2019 was as follows:

At December 31, 2020, 2019 and 2018, the Company has recorded unrealized gains (losses) of ($334), ($266) and $861, respectively, for the component of derivative instruments utilized for hedging purposes that did not qualify for hedge accounting. The Company did not recognize any unrealized gains or losses during 2020, 2019 and 2018 that represented the component of derivative instruments gain or loss that was excluded from the assessment of hedge effectiveness.

The maximum term over which the Company is hedging its exposure to the variability of future cash flows is approximately 23 years for forecasted hedge transactions. At December 31, 2020 and 2019, none of the Company’s cash flow hedges have been discontinued as it was probable that the original forecasted transactions would occur by the end of the originally specified time period documented at inception of the hedging relationship. As of December 31, 2020 and 2019, the Company has accumulated deferred gains in the amount of $1 and $4, respectively, related to the termination of swaps that were hedging forecasted transactions. It is expected that these gains will be used as basis adjustments on future asset purchases expected to transpire throughout 2021.

Summary of realized gains (losses) by derivative type for the years ended December 31, 2020, 2019 and 2018:

The average estimated fair value of derivatives held for other than hedging purposes is presented in the following table for the years ended December 31, 2020 and 2019:

The estimated fair value of derivatives held for other than hedging purposes is presented in the following table for the years ended December 31, 2020 and 2019:

The net realized gains (losses) on the derivatives held for other than hedging purposes is presented in the following table for the years ended December 31, 2020, 2019 and 2018:

As stated in Note 2, the Company replicates investment grade corporate bonds, sovereign debt, or commercial mortgage backed securities by writing credit default swaps. As a writer of credit swaps, the Company actively monitors the underlying asset, being careful to note any events (default or similar credit event) that would require the Company to perform on the credit swap. If such events would take place, a payment equal to the notional amount of the contract, less any potential recoveries as determined by the underlying agreement, will be made by the Company to the counterparty to the swap.

The following tables present the estimated fair value, maximum amount of future payments and weighted average years to maturity of written credit default swaps at December 31, 2020 and 2019:

The Company may enter into credit default swaps to purchase credit protection on certain of the referenced credit obligations in the table above. At December 31, 2020, there were not any potential future recoveries available to offset the $4,597 from the table above. At December 31, 2019, there were not any potential future recoveries available to offset the $4,662 from the table above.

At December 31, 2020 and 2019, the Company’s outstanding derivative instruments, shown in notional or contract amounts and fair value, are summarized as follows:

*Futures are presented in contract format. Swaps and options are presented in notional format.

The hedged obligation consists of guaranteed benefits on variable annuity contracts and resembles a long dated put option where claim payment is made whenever account value is less than a guaranteed amount, adjusted for applicable fees. Changes in interest rates impact the present value of future product cash flows (discount rate) as well as the value of investments comprising the account value to be assessed against the guarantee. Under this VM-21 compliant clearly defined hedging strategy (CDHS), interest rate risk may be hedged by a duration matched portfolio of interest sensitive derivatives such as treasury bond forwards, treasury futures, interest rate swaps, interest rate swaptions or treasury future options. Retroactive to January 1, 2020, the Company re-designated the portfolio of contracts giving rise to the hedged item. The re-designation will more acutely reflect alignment between hedge performance and reserve valuations pertaining to the hedged item on a forward-looking basis. Also retroactive to January 1, 2020, the Company elected to immediately amortize the full $195 SSAP No. 108 asset balance associated with the former designated portfolio through net realized capital gains (losses) within the Statements of Operations. Total return on the designated portfolio of derivatives remains highly effective in covering the interest rate risk of the hedged obligation. Hedge effectiveness is measured in accordance with the requirements outlined under SSAP 108 and entails assessment of the total return on the designated portfolio of derivatives against changes in the fair value of the hedged obligation due to interest rate movements on a cumulative basis.

Scheduled amortization for SSAP 108 derivatives as of December 31, 2020 is as follows:

The following table is a reconciliation of the total deferred balance (net of tax) of SSAP 108 derivatives:

The following tables provide information regarding SSAP 108 hedging instruments:

The following tables show the pledged or restricted assets as of December 31, 2020 and 2019, respectively:

The amounts reported as other restricted assets in the table above represent assets held in trust related to reinsurance.

The following tables show the pledged or restricted assets in other categories as of December 31, 2020 and 2019, respectively:

The following tables show the collateral received and reflected as assets within the financial statements as of December 31, 2020 and 2019:

Net realized capital gains (losses) on investments, including OTTI, are summarized below:

The changes in net unrealized capital gains and losses on investments, including the changes in net unrealized foreign capital gains and losses were as follows:

Deferred and uncollected life premium and annuity considerations, net of reinsurance, at December 31, 2020 and 2019 were as follows:

Policy reserves, deposit-type contracts and policy claims at December 31, 2020 and 2019 were as follows:

The aggregate policy reserves for life insurance policies are based upon the 1941, 1958, 1980, 2001 and 2017 Commissioner’s Standard Ordinary Mortality Tables, the 1912, 1941 and 1961 Standard Industrial Mortality Tables, the 1960 Commissioner’s Standard Group Mortality Table, the American Men, Actuaries and American Experience Mortality Tables. The reserves are calculated using interest rates ranging from 2.00 to 6.50 percent and are computed principally on the Net Level Premium Valuation and the Commissioner’s Reserve Valuation Method. Reserves for universal life policies are based on account balances adjusted for the Commissioner’s Reserve Valuation Method or Actuarial Guideline XXXVIII. Effective July 1, 2017, term insurance issued follows Valuation Manual section 20 (VM-20) reserve requirements.

Tabular interest, tabular less actual reserves released and tabular cost have been determined by formula.

The Company waives deduction of deferred fractional premiums upon death of the insured and returns any portion of the final premium for periods beyond the date of death. Additional premiums are charged or additional mortality charges are assessed for policies issued on substandard lives according to underwriting classification. Generally, mean reserves are determined by computing the regular mean reserve for the plan at the true age and holding, in addition, one-half (1/2) of the extra premium charge for the year. Effective July 1, 2017, for substandard term insurance policies, per VM-20 requirements, the substandard rating is applied to the reserve mortality. For certain flexible premium and fixed premium universal life insurance products, reserves are calculated utilizing the Commissioner’s Reserve Valuation Method for universal life policies and recognizing any substandard ratings.

As of December 31, 2020 and 2019, the Company had insurance in force aggregating $52,537 and $65,518, respectively, in which the gross premiums are less than the net premiums required by the valuation standards established by the IID. The Company established policy reserves of $1,586 and $1,936 to cover these deficiencies as of December 31, 2020 and 2019, respectively.

Participating life insurance policies were issued by the Company in prior years which entitle policyholders to a share in the earnings of the participating policies, provided that a dividend distribution, which is determined annually based on mortality and persistency experience of the participating policies, is authorized by the Company. Participating insurance constituted less than 0.05% of ordinary life insurance in force at December 31, 2020 and 2019.

Deferred annuity reserves are calculated according to the Commissioner’s Annuity Reserve Valuation Method including excess interest reserves to cover situations where the future interest guarantees plus the decrease in surrender charges are in excess of the maximum valuation rates of interest.

Reserves for immediate annuities and supplementary contracts with and without life contingencies are equal to the present value of future payments assuming interest rates ranging from 1.00 to 11.75 percent and mortality rates, where appropriate, from a variety of tables.

Annuity reserves also include GICs and funding agreements classified as life-type contracts as defined in SSAP No. 50, Classifications of Insurance or Managed Care Contracts. These liabilities have annuitization options at guaranteed rates and consist of floating interest rate and fixed interest rate contracts. The contract reserves are carried at the greater of the account balance or the value as determined for an annuity with cash settlement option, on a change in fund basis, according to the Commissioner’s Annuity Reserve Valuation Method.

For variable annuities with guaranteed living benefits and variable annuities with minimum guaranteed death benefits the Company complies with VM-21. VM-21 specifies statutory reserve requirements for variable annuity contracts with benefit guarantees (VACARVM) and without benefit guarantees and related products. The VM-21 reserve calculation covers all variable annuity products. Examples of covered guaranteed benefits include guaranteed minimum accumulation benefits, return of premium death benefits, guaranteed minimum income benefits, guaranteed minimum withdrawal benefits and guaranteed payout annuity floors. The aggregate reserve for contracts falling within the scope of VM-21 is equal to the stochastic reserves plus the additional standard projection amount.

Both the stochastic reserves and the standard projection are determined as the conditional tail expectation (CTE)-70 of the scenario reserves. To determine the CTE-70 values, the Company used 1,000 of the pre-packaged scenarios developed by the American Academy of Actuaries (AAA) and Society of Actuaries. The stochastic reserves uses prudent estimate assumptions based on Company experience, while the standard projection uses the assumptions prescribed in VM-21 for determining the additional standard projection amount.

Accident and health policy reserves are equal to the greater of the gross unearned premiums or any required mid-terminal reserves plus net unearned premiums and the present value of amounts not yet due on both reported and unreported claims.

At December 31, 2020 and 2019, the Company had no premium deficiency reserve related to accident and health policies.

The Company’s primary method utilized to estimate premium adjustments for contracts subject to redetermination is to review experience periodically and to adjust premiums for differences between the experience anticipated at the time of redetermination and that underlying the original premiums. The Company has not limited its degree of discretion contractually; however, in some states it has agreed not to raise premiums in order to recoup past losses. The Company forgoes premium changes on existing policies at its option if the administrative cost and other business issues associated with the change outweigh the direct financial impact of the change. Also, the Company has extra-contractually guaranteed the current premium scale for certain policies.

For indeterminate premium products, a full schedule of current and anticipated premium rates is developed at the point of issue. Premium rate adjustments are considered when anticipated future experience foretells deviations from the original profit standards. The source of deviation (mortality, persistency, expense, etc.) is an important consideration in the re-rating decision as well as the potential effect of a rate change on the future experience of the existing block of business.

The Company does not write any accident and health business that is subject to the Affordable Care Act risk sharing provisions.

Liabilities for losses and loss/claim adjustment expenses for accident and health contracts are estimated using statistical claim development models to develop best estimates of liabilities for medical expense business and using tabular reserves employing mortality/morbidity tables and discount rates meeting minimum regulatory requirements for other business. Unpaid claims include amounts for losses and related adjustment expenses and are estimates of the ultimate net costs of all losses, reported and unreported. These estimates are subject to the impact of future changes in claim severity, frequency and other factors.

Activity in the liability for unpaid claims and related processing costs net of reinsurance is summarized as follows:

The change in the Company’s unpaid claims reserve was ($97) and ($16) for the years ended December 31, 2020 and 2019, respectively, for health claims that were incurred prior to those balance sheets dates. The change in 2020 was due to significantly better than expected experience primarily due to reduced medical claims and accidental deaths. The change in 2019 was in normal range.

Activity in the liability for unpaid claims adjustment expense is summarized as follows:

The Company decreased the claim adjustment expense provision for insured events of prior years during 2020.

Tabular interest on funds not involving life contingencies has been determined primarily by formula.

The Company issues certain funding agreements with well-defined class-based annuity purchase rates defining either specific or maximum purchase rate guarantees. However, these funding agreements are not issued to or for the benefit of an identifiable individual or group of individuals. These contracts are classified as deposit-type contracts in accordance with SSAP No. 50.

Included in the liability for deposit-type contracts at December 31, 2020 and 2019 are approximately $12 and $11, respectively, of funding agreements issued to special purpose entities in conjunction with non-recourse medium-term note programs. Under these programs, the proceeds from each note series issuance are used to purchase a funding agreement from the Company which secures that particular series of notes. In general, the payment terms of the note series match the payment terms of the funding agreement that secures that series. Claims for the principal and interest for these funding agreements are afforded equal priority as other policyholders.

A portion of the Company’s policy reserves and other policyholders’ funds (including separate account liabilities) relates to liabilities established on a variety of the Company’s annuity, deposit fund and life products. There may be certain restrictions placed upon the amount of funds that can be withdrawn without penalty. The amount of reserves on annuity and deposit fund products, by withdrawal characteristics, is summarized as follows:

The amount of reserves on life products, by withdrawal characteristics, is summarized as follows:


	Separate Account - Nonguaranteed

	Account Value		Cash Value		Reserve

Subject to discretionary withdrawal, surrender values, or policy loans:
Variable universal life	$	7,408	$	7,375	$	8,705

Total (gross)		7,408		7,375		8,705

Total (net)	$	7,408	$	7,375	$	8,705


Reconcililation to the Annual Statement:	Amount

Life & Accident & Health Annual Statement:
Exhibit 5, Life insurance section, total (net)	$	21,934
Exhibit 5, Accidental death benefits section total (net)		24
Exhibit 5, Disability - active lives section, total (net)		40
Exhibit 5, Disability - disabled lives section, total (net)		154
Exhibit 5, Miscellaneous reserves section, total (net)		1,498

Subtotal		23,650
Separate Accounts Annual Statement:
Exhibit 3, Life insurance section, total		9,358

Subtotal		9,358

Combined total	$	33,008

Certain separate and variable accounts held by the Company relate to individual variable life insurance policies. The benefits provided on the policies are determined by the performance and/or fair value of the investments held in the separate account. The net investment experience of the separate account is credited directly to the policyholder and can be positive or negative. The assets of these separate accounts are carried at fair value. The life insurance policies typically provide a guaranteed minimum death benefit.

Certain separate accounts held by the Company represent funds which are administered for pension plans. The assets consist primarily of fixed maturities and equity securities and are carried at fair value. The Company provides a minimum guaranteed return to policyholders of certain separate accounts. Certain other separate accounts do not have any minimum guarantees and the investment risks associated with fair value changes are borne entirely by the policyholder.

Information regarding the separate accounts of the Company as of and for the years ended December 31, 2020, 2019 and 2018 is as follows:

A reconciliation of the amounts transferred to and from the Company’s separate accounts is presented below:

The legal insulation of separate account assets prevents such assets from being generally available to satisfy claims resulting from the general account. At December 31, 2020 and 2019, the Company’s separate account statement included legally insulated assets of $121,803 and $112,206, respectively. The assets legally insulated from general account claims at December 31, 2020 and 2019 are attributed to the following products:

At December 31, 2020 and 2019, the Company held separate account assets not legally insulated from the general account in the amount of $17 and $22, respectively, related to variable annuity products.

Some separate account liabilities are guaranteed by the general account. In accordance with the guarantees provided, if the investment proceeds are insufficient to cover the rate of return guaranteed for the product, the policyholder proceeds will be remitted by the general account. To compensate the general account for the risk taken, the separate account paid risk charges of $565, $552, $550, $538, and $517, to the general account in 2020, 2019, 2018, 2017, and 2016, respectively. During the years ended December 31, 2020, 2019, 2018, 2017, and 2016 the general account of the Company had paid $75, $75, $69, $70, and $119 respectively, toward separate account guarantees.

At December 31, 2020 and 2019, the Company reported guaranteed separate account assets at amortized cost in the amount of $678 and $653, respectively, based upon the prescribed practice granted by the State of Iowa as described in Note 2. These assets had a fair value of $786 and $719 at December 31, 2020 and 2019, respectively, which would have resulted in an unrealized gain of $107 and $66, respectively, had these assets been reported at fair value.

The Company does not participate in securities lending transactions within the separate account.

Certain premiums and benefits are assumed from and ceded to other insurance companies under various reinsurance agreements. The Company reinsures portions of the risk on certain insurance policies which exceed its established limits, thereby providing a greater diversification of risk and minimizing exposure on larger risks. The Company remains contingently liable with respect to any insurance ceded, and this would become an actual liability in the event that the assuming insurance company became unable to meet its obligation under the reinsurance treaty.

The Company received reinsurance recoveries in the amount of $4,316, $4,468 and $4,266, during 2020, 2019 and 2018, respectively. At December 31, 2020 and 2019, estimated amounts recoverable from reinsurers that have been deducted from policy and contract claim reserves totaled $939 and $1,176. The aggregate reserves for policies and contracts were reduced for reserve credits for reinsurance ceded at December 31, 2020 and 2019 of $36,764 and $46,752, respectively, of which $13,916 and $15,156 were ceded to affiliates.

During 2020, 2019 and 2018, amortization of deferred gains associated with previously transacted reinsurance agreements was released into income in the amount of $274 ($179 after tax), $213 ($139 after tax) and $490 ($319 after tax), respectively.

On January 29, 2020, Senior Health Insurance Company of Pennsylvania (SHIP) was placed in rehabilitation by order of the Commonwealth Court of Pennsylvania. The Company worked with the Receiver on a proposal to recapture the business throughout 2020 and a proposal was approved on December 29, 2020. The agreement resulted in the Company recapturing all business previously ceded to SHIP and receiving $310 of assets held in trust while legal proceedings were underway. The assets in excess of the ultimate settlement of the liabilities will be returned to the receiver. The Company will also assume responsibility for administration of the business. No gain or loss was recognized as part of the recapture.

On June 30, 2020, the Company, Transamerica Pacific Re, Inc. (TPRe), and Transamerica Pacific Insurance Company (TPIC) entered into a novation agreement whereby the Company consented to TPIC’s assignment and transfer of its rights and obligations under the universal life coinsurance agreements to TPRe. The novation resulted in no gain or loss. Also on June 30, 2020, the Company recaptured certain universal life policy risks not associated with the secondary guarantee from TPRe for consideration of $2,124 equal to the statutory reserves recaptured resulting in no gain loss and amended and restated the universal life coinsurance agreements to cede only certain universal life secondary guarantee risks to TPRe.

Effective October 1, 2020, the Company recaptured several blocks of life insurance business from an affiliate, Ironwood Re Corp. The Company released funds withheld of $313 and recaptured policyholder reserves of $385 and claims reserves of $4. The transaction resulted in a pre-tax loss of $76 which has been included in the Statements of Operations. In addition, the Company released into income a previously deferred unamortized gain resulting from the original cessions

of this business to Ironwood in the amount of $125 with a corresponding charge to unassigned surplus.

Also effective October 1, 2020, an amendment was made to the military life reinsurance agreement with Ironwood Re Corp. to increase the cession percentage to 100%. As a result of this amendment, the Company ceded additional policyholder reserves of $201 and due premiums of $7 and provided net consideration of $76 which was retained as funds withheld by the Company. The transaction resulted in a pre-tax gain of $118 which was charged directly to unassigned surplus. Recognition of the surplus increase as income shall be reflected on a net of tax basis as earnings emerge from the business reinsured.

Effective October 1, 2020, the Company recaptured term insurance business from Ironwood Re Corp. The Company received consideration of $206 in the form of released funds withheld and a cash payment, recaptured $445 of policy holder and claim reserves and $2 of due premiums. The transaction resulted in a pre-tax loss of $237 which has been included in the Statements of Operations. In addition, the Company released into income a previously deferred unamortized gain resulting from the original cessions of this business to Ironwood in the amount of $106 with a corresponding charge to unassigned surplus.

Effective December 31, 2020, the Company ceded certain term insurance business to an unaffiliated entity. The Company paid cash consideration of $201, ceded $439 of reserves and $2 of due and deferred premium. The transaction resulted in a pre-tax gain of $236 which has been recorded directly to unassigned surplus. Recognition of the surplus increase as income shall be reflected on a net of tax basis as earnings emerge from the business reinsured.

Effective January 1, 2019, the Company recaptured term insurance business of a reinsurance treaty with an affiliate, LIICA Re II, Inc. The universal life with secondary guarantees remained reinsured under the treaty. The Company received cash of $15, recaptured $68 in policyholder reserves, and net due, deferred and advance premiums of $2. The transaction resulted in a pre-tax loss of $51, which has been included in the Statements of Operations. In addition, the Company released into income a previously deferred unamortized gain resulting from the original cession of this business to LIICA Re II in the amount of $14 with a corresponding charge to unassigned surplus.

Effective July 1, 2019, the Company recaptured indexed universal life and variable universal life insurance business from an affiliate, WFG Reinsurance Limited. The Company paid cash of $39, recaptured $2 in policyholder reserves, and policy loans of $1. The transaction resulted in a pre-tax loss of $40 which was partially offset by a commission expense allowance of $6 as unamortized amounts previously deferred to unassigned surplus related to the original inforce reinsurance transactions were released.

In January 2018, Scottish Re Group announced a sale and restructuring plan and commenced Chapter 11 (reorganization) procedures for some of its subsidiaries. In December 2018, the Delaware Department of Insurance began oversight procedures of Scottish Re (U.S.), Inc. (SRUS), with whom the Company is a counterparty for some of its reinsurance activities. SRUS was ordered into receivership for the purposes of rehabilitation on March 6, 2019. On May 16, 2019, the IID suspended the certificate of authority for SRUS but later clarified that reserve credit

could be taken on reinsurance agreements entered into prior to the revocation date if a recovery analysis could be illustrated. Now, with the continued delays of the reorganization legal proceedings and with no reliable financial information being provided by the receiver or SRUS, the Company has determined it is unable to support a favorable recovery analysis. Therefore, the Company did not take statutory reserve credit and established a loss contingency allowance for doubtful recoveries of billed and unbilled claims in its December 31, 2020 financial statements. The impact was a $182 charge reported in the Statements of Operations.

Effective June 29, 2018, the Company and Wilton Re U. S. Holdings, Inc. (Wilton Re) entered into an agreement as to the “Final Net Settlement Statements and Other Matters” (NSS) associated with the reinsurance agreement between the two companies that was effective April 1, 2017. This agreement related to the reinsurance of the payout annuity and BOLI/COLI business to Wilton Re. As a result of the mutual concessions between the parties, Wilton Re will pay the Company $66. In addition, the Company released a reinsurance receivable in the amount of $12 related to the initial proposed final NSS that was used for closing. The net pretax impact to capital and surplus of these adjustments was $55.

Effective June 29, 2018, the Company and Wilton Re agreed to Amendment No. 1 to the Reinsurance Agreement dated June 28, 2017. This amendment converted risks that were ceded on a modified coinsurance basis to a coinsurance basis by reducing the amount of reinsurance ceded in the NSS and reducing the modco reserves ceded. At the close of the original transaction, the Company offset the reserve ceded related to a modified separate account contract. Within the amendment to the Master Transaction Agreement, the Company agrees to pay Wilton Re an amount in cash equal to $95, which will be offset in full against an equivalent balance of other amounts due and payable to the Company, such that no cash or other assets shall be required to be transferred by the Parties.

Effective July 1, 2018, the Company entered into a reinsurance agreement to cede an in force block of term insurance business to SCOR Global Life Americas. The Company paid consideration of $260, ceded $675 in policyholder reserves, $28 in claim reserves, $8 in due premium (net of commissions), and $13 in interest maintenance reserves liability. The transaction resulted in a pre-tax gain of $448 which will be identified separately on the insurer’s statutory financial statement as a surplus item. Recognition of the surplus increase as income shall be reflected on a net of tax basis as earnings emerge from the business reinsured.

Effective October 1, 2018, the Company recaptured credit insurance business from an affiliate, Ironwood Re Corp. The Company released $2 in funds withheld liability and recaptured $2 of policyholder reserves. The transaction resulted in a pre-tax loss of $1 which has been included in the Statements of Operations. In addition, the Company released into income a previously deferred unamortized gain resulting from the original cession of this business to Ironwood in the amount of $1 ($1 after-tax) with a corresponding charge to unassigned surplus.

Effective October 1, 2018, the Company recaptured insurance business from an affiliate, Harbor View Re Corp. The Company paid cash of $1, released a funds withheld liability of $10 and assumed $10 of policyholder reserves and net due premiums and commissions of $1. The transaction resulted in a pre-tax loss of $1 which has been included in the Statements of Operations.

Effective July 1, 2018, the Company recaptured term insurance business from an affiliate, Stonebridge Reinsurance Company. The Company received cash of $137, recaptured $680 in policyholder reserves, $29 in claim reserves, net due premiums and commissions of $12 and $11 in interest maintenance reserve liability. The transaction resulted in a pre-tax loss of $571 which was included in the Statements of Operations. In addition, as a result of this transaction, amounts previously deferred to surplus under SSAP No. 61R, were released resulting in an increase to earnings, net of tax, of $184.

The net deferred income tax asset at December 31, 2020 and 2019 and the change from the prior year are comprised of the following components:

As a result of the 2017 Tax Cuts and Jobs Act (TCJA), the Company’s tax reserve deductible temporary difference decreased by ($396). This change results in an offsetting $396 deductible taxable temporary difference that will be amortized into taxable income evenly over the eight years subsequent to 2017. The remaining amortizable balance is included within the Policyholder Reserves line items above.

At December 31, 2020, the Company released its valuation allowance against ordinary deferred tax assets of $14 related to Foreign Tax Credits. During the 2020 tax year, the Company fully utilized its foreign tax credit carryover resulting in no remaining carryover.

As discussed in Note 2, for the years ended December 31, 2020 and 2019, the Company admits deferred income tax assets pursuant to SSAP No. 101. The amount of admitted adjusted gross deferred income tax assets under each component of SSAP No. 101 is as follows:

The impact of tax planning strategies at December 31, 2020 and 2019 was as follows:

The Company’s tax planning strategies do not include the use of reinsurance-related tax planning strategies.

The Company’s current income tax incurred and change in deferred income tax differs from the amount obtained by applying the federal statutory rate to income before tax as follows:

The Company’s federal income tax return is consolidated with other included affiliated companies. Please see the listing of companies in Appendix A. The method of allocation between the companies is subject to a written tax allocation agreement. Under the terms of the tax allocation agreement, allocations are based on separate income tax return calculations. The Company is entitled to recoup federal income taxes paid in the event the future losses and credits reduce the greater of the Company’s separately computed income tax liability or the consolidated group’s income tax liability in the year generated. The Company is also entitled to recoup federal income taxes paid in the event the losses and credits reduce the greater of the Company’s separately computed income tax liability or the consolidated group’s income tax liability in any carryback or carryforward year when so applied. Intercompany income tax balances are settled within thirty days of payment to or filing with the Internal Revenue Service. A tax return has not been filed for 2020.

The amounts, origination dates and expiration dates of operating loss and tax credit carryforwards available for tax purposes:

The following is income tax expense for current year and preceding years that is available for recoupment in the event of future losses:

The total amount of the unrecognized tax benefits that if recognized, would affect the effective income tax rate:

The Company classifies interest and penalties related to income taxes as income tax expense. The amount of interest and penalties accrued on the balance sheets as income taxes includes the following:

The Company has no federal income tax returns currently under examination. The Internal Revenue Service completed its examination for years 2009 through 2013 resulting in tax return adjustments for which an appeals conference was requested. Federal income tax returns filed in 2017 through 2019 remain open, subject to potential future examination. The Company believes that there are adequate defenses against or sufficient provisions established related to any open or contested tax positions.

The Company has authorized 1,000,000 common stock shares at $10 per share par value of which 676,190 shares were issued and outstanding at December 31, 2020.

The Company has 42,500 Series A preferred shares authorized, of which 0 shares were issued and outstanding at December 31, 2020. The Company repurchased its Series A preferred shares for $58,000 on December 26, 2006 and previously reported 42,500 shares of Series A preferred stock outstanding at $10 par, carried as treasury stock. It was determined that these shares were cancelled by operation of law as they were not stipulated by the Board of Directors to be treasury shares at the time they were repurchased. The cancellation and removal of the preferred stock had no impact to capital and surplus of the Company. The Company also has 250,000 Series B preferred non-voting shares authorized at $10 per share par value, of which 0 shares were issued and outstanding at December 31, 2020.

The Company is subject to limitations, imposed by the State of Iowa, on the payment of dividends to its stockholders. Generally, dividends during any twelve-month period may not be paid, without prior regulatory approval, in excess of the greater of (a) 10 percent of the Company’s statutory surplus as of the preceding December 31, or (b) the Company’s statutory gain from operations before net realized capital gains (losses) on investments for the preceding year. Subject to the availability of unassigned surplus at the time of such dividend, the maximum payment which may be made in 2021, without the prior approval of insurance regulatory authorities, is $1,178.

On December 7, 2020, the Company paid an ordinary common stock dividend of $500 to CGC.

On May 13, 2020, TPLIC paid a dividend to its parent company, CGC, in the amount of $700. CGC then contributed this amount to the Company. The dividend and contribution included $77 in cash and $623 in securities. This transaction occurred prior to the merger of TPLIC and the Company. This transaction had no overall impact to capital and surplus of the merged Company.

On December 20, 2019, the Company paid extraordinary common stock dividends of $725 to CGC.

On February 1, 2019, the Company paid an ordinary common stock dividend of $8 to CGC.

Life and health insurance companies are subject to certain RBC requirements as specified by the NAIC. Under those requirements, the amount of capital and surplus maintained by a life or health insurance company is to be determined based on various risk factors. At December 31, 2020, the Company meets the minimum RBC requirements.

The Company’s surplus notes were held by CGC and Transamerica Corporation (TA Corp). These notes were due 20 years from the date of issuance at an interest rate of 6% and were subordinate and junior in right of payment to all obligations and liabilities of the Company. In the event of liquidation of the Company, full payment of the surplus notes was to be made before the holders of common stock become entitled to any distribution of the remaining assets of the Company.

On June 22, 2020, the Company repaid in full its $60 surplus note with CGC. On December 20, 2019, the Company repaid in full its $57 surplus note with TA Corp and made a partial repayment of $43 on its surplus note with CGC. On June 21, 2019, the Company repaid $150 on its surplus note with TA Corp. The Company received approval from IID for each of these transactions as well as prior to making quarterly interest payments.

The Company participates in an agent-managed securities lending program in which the Company primarily loans out US Treasuries and other bonds. The Company receives collateral equal to 102% of the fair value of the loaned government or other domestic securities as of the transaction date. If the fair value of the collateral is at any time less than 102% of the fair value of the loaned securities, the counterparty is mandated to deliver additional collateral, the fair value of which, together with the collateral already held in connection with the lending transaction, is at least equal to 102% of the fair value of the loaned government or other domestic securities. In the event the Company loans a foreign security and the denomination of the currency of the collateral is other than the denomination of the currency of the loaned foreign security, the Company receives and maintains collateral equal to 105% of the fair value of the loaned security.

At December 31, 2020 and 2019, respectively, securities with a fair value of $2,000 and $1,837 were on loan under securities lending agreements. At December 31, 2020 and 2019, the collateral

the Company received from securities lending activities was in the form of cash and on open terms. This cash collateral is reinvested and is not available for general corporate purposes. The reinvested cash collateral has a fair value of $2,115 and $2,004 at December 31, 2020 and 2019, respectively.

The contractual maturities of the securities lending collateral positions are as follows:

The Company receives primarily cash collateral in an amount in excess of the fair value of the securities lent. The Company reinvests the cash collateral into higher yielding securities than the securities which the Company has lent to other entities under the arrangement.

The maturity dates of the reinvested securities lending collateral are as follows:

For securities lending, the Company’s source of cash used to return the cash collateral is dependent upon the liquidity of the current market conditions. Under current conditions, the Company has securities with a par value of $2,116 (fair value of $2,115) that are currently tradable securities that could be sold and used to pay for the $2,115 in collateral calls that could come due under a worst-case scenario.

The Company’s employees participate in a contributory defined contribution plan sponsored by TA Corp which is qualified under Section 401(k) of the Internal Revenue Code (IRC). Generally, employees of the Company who customarily work at least 20 hours per week and meet the other eligibility requirements are participants of the plan. Participants may elect to contribute up to 100% of eligible earnings, subject to government or other plan restrictions for certain key

employees. The Company will match an amount up to three percent of the participant’s eligible earnings. Participants may direct all of their contributions and plan balances to be invested in a variety of investment options. The plan is subject to the reporting and disclosure requirements of the Employee Retirement Income Security Act of 1974, as amended (ERISA). Benefits expense of $14, $14 and $15 was allocated to the Company for the years ended December 31, 2020, 2019 and 2018 respectively.

The Company’s employees participate in a qualified defined benefit pension plan sponsored by TA Corp. Generally, employees of the Company who customarily work at least 20 hours per week and complete six months of continuous service and meet the other eligibility requirements are participants of the plan. The Company has no legal obligation for the plan. The benefits are based on years of service and the employee’s eligible compensation. The plan provides benefits based on a traditional final average formula or a cash balance formula. The plan is subject to the reporting and disclosure requirements of ERISA.

TA Corp sponsors supplemental retirement plans to provide the Company’s senior management with benefits in excess of normal pension benefits. The Company has no legal obligation for the plan. The plans are noncontributory and benefits are based on years of service and the employee’s eligible compensation. The plan provides benefits based on a traditional final average formula or cash balance formula. The plans are unfunded and nonqualified under the IRC.

The Company recognizes pension expense equal to its allocation from TA Corp. The pension expense related to both the qualified defined pension plan and the supplemental retirement plans is allocated among the participating companies based on International Accounting Standards 19 (IAS 19), Accounting for Employee Benefits, and based upon actuarial participant benefit calculations, which is within the guidelines of SSAP No. 102, Pensions. Pension expenses were $27, $28 and $27 for the years ended December 31, 2020, 2019 and 2018, respectively.

In addition to pension benefits, TA Corp sponsors unfunded plans that provide health care and life insurance benefits to retired Company employees meeting certain eligibility requirements. The Company has no legal obligation for the plan. Portions of the medical and dental plans are contributory. The expenses of the postretirement plans are allocated among the participating companies based on IAS 19 and based upon actuarial participant benefit calculations which is within the guidelines of SSAP No. 92, Postretirement Benefits Other Than Pensions. The Company’s allocation of postretirement expenses was $5, $6 and $6 for the years ended December 31, 2020, 2019 and 2018, respectively.

TA Corp has established deferred compensation plans for certain key employees of the Company. The Company’s allocation of expense for these plans for each of the years ended December 31, 2020, 2019 and 2018 was insignificant.

The Company shares certain officers, employees and general expenses with affiliated companies.

The Company is party to a shared services and cost sharing agreement among and between the Transamerica companies, under which various affiliated companies may perform specified administrative functions in connection with the operation of the Company, in consideration of reimbursement of actual costs of services rendered. Effective August 1, 2020, the Company, and an affiliate, TFLIC, entered into a Shared Services and Cost Sharing Agreement for both parties to provide accounting, administrative, and other advisory services in accordance with the agreement. The agreement, filed and approved by the IID, replaces prior agreements between the entities. The amount received by the Company as a result of being a party to these agreements was $703, $486 and $385 during 2020, 2019 and 2018, respectively. The amount paid as a result of being a party to these agreements was $698, $352 and $360 during 2020, 2019 and 2018, respectively. Fees charged between affiliates approximate their cost.

The Company is party to a Management and Administrative and Advisory agreement with AEGON USA Realty Advisors (AURA), LLC whereby AURA serves as the administrator and advisor for the Company’s mortgage loan operations. The Company paid $20, $5, and $6 for these services during 2020, 2019 and 2018, respectively.

The Company is party to an Investment Management Agreement with AEGON USA Investment Management (AUIM), LLC whereby AUIM acts as a discretionary investment manager for the Company. The Company paid $89, $97, and $99 for these services during 2020, 2019 and 2018, respectively.

The Company has an administration service agreement with TAM to provide administrative services to the Transamerica Series Trust. The Company received $149, $151 and $160 for these services during 2020, 2019 and 2018, respectively.

Transamerica Capital, Inc. provides wholesaling distribution services for the Company under a distribution agreement. The Company incurred expenses under this agreement of $43, $51 and $41 for the years ended December 31, 2020, 2019 and 2018, respectively.

Receivables from and payables to affiliates bear interest at the thirty-day commercial paper rate. During 2020, 2019 and 2018, the Company received (paid) net interest of $0, ($2) and ($1) from (to) affiliates, respectively. At December 31, 2020 and 2019, respectively, the Company reported net receivables (payables) from (to) affiliates of $191 and ($1). Terms of settlement require that these amounts are settled within 60 days.

At December 31, 2020, the Company had short-term intercompany notes receivable of $149 as follows. In accordance with SSAP No. 25, Affiliates and Other Related Parties, these notes are reported as short-term investments.

At December 31, 2019, the Company had short-term intercompany notes receivable of $343.

On June 23, 2020, the Company provided $5 to TPRe in consideration for 5,000 shares of its stock becoming the sole shareholder of TPRe. The Company provided an additional capital contribution of $70 to TPRe on June 26, 2020.

The Company utilizes the look-through approach in valuing its investment in the following entities.

these entities which are required to be recorded as liabilities, commitments, contingencies, guarantees or obligations under applicable accounting guidance, are reflected in the Company’s determination of the carrying value of the investment in these entities.

The following tables shows the disclosures for all SCA investments, except 8bi entities, and balance sheet value (admitted and nonadmitted) as of December 31, 2020 and 2019:

The following table shows the NAIC responses for the SCA filings (except 8bi entities):

The Company reports an investment in the following insurance SCAs for which the reported statutory equity reflects a departure from NAIC SAP. Each of the insurance SCAs listed in the table below reflects an admitted asset, equal to the value of the excess of loss reinsurance asset provided by an unaffiliated company, whereas this would not be an admitted asset recognized by SSAP No. 4, Assets and Non Admitted Assets.

The Company has two Limited Purpose Subsidiaries (LPS) with prescribed practices whereby under Iowa Administrative Code 191-99.11(3), the LPS are entitled to admit the following assets that would not be admissible under the NAIC SAP:

The monetary effect on net income and surplus as a result of using an accounting practice that differed from NAIC SAP, the amount of the investment in the insurance SCA per reported statutory equity, and amount of the investment if the insurance SCA has completed statutory financial statements in accordance with the NAIC SAP. The SCAs are valued in the Company’s financial statements at zero in accordance with SSAP No. 97.

Had the above SCA entities not been permitted to recognize the excess of loss reinsurance assets or the credit linked note as admitted assets in the financial statements, the risk-based capital would have been below the mandatory control level which would have triggered a regulatory event.

Information regarding the Company’s affiliated reinsurance transactions is available in Note 8. Reinsurance.

Information regarding the Company’s affiliated guarantees is available in Note 15. Commitments and Contingencies.

The Company utilizes managing general agents (MGA) and third-party administrators (TPA) in its operation. Information regarding these entities for the years ended December 31, 2020, 2019 and 2018, respectively, is:

The premiums written in 2020, which represents less than 5% of surplus, declined due to the underlying business being closed to new sales in December 2019.

At December 31, 2020 and 2019, the Company has mortgage loan commitments of $289 and $383, respectively.

The Company has contingent commitments of $893 and $1,190 as of December 31, 2020 and 2019, respectively, to provide additional funding for various joint ventures, partnerships, and limited liability companies, which includes LIHTC commitments of $30 and $93, respectively.

The Company leases office buildings and equipment under various non-cancelable operating lease agreements. Rental expense for the years 2020 and 2019 was $20 and $19, respectively.

Private placement commitments outstanding as of December 31, 2020 and 2019 were $115 and $155, respectively.

During 2019, the Company entered into an agreement with Aegon USA Realty Advisors, LLC to commit to purchase certain tax credit investments up to a maximum of $100,000. Under the terms of the agreement, the Company provides certain commitments to purchase tax credit investments that are part of tax credit funds in the event certain conditions are met. The Company did not acquire any tax credit investments during 2020 under this agreement. As of December 31, 2020, the commit to purchase amount is $23.

The Company sold $0 and $101 of “to-be-announced” (TBA) securities as of December 31, 2020 and 2019, respectively. The December 31, 2019 receivable related to these TBAs was reclassed accordingly.

The Company may pledge cash as collateral for derivative transactions. When cash is pledged as collateral, it is derecognized and a receivable is recorded to reflect the eventual return of that cash by the counterparty. The amount of cash collateral pledged by the Company as of December 31, 2020 and 2019, respectively, was $295 and $81.

At December 31, 2020 and 2019, securities in the amount of $61 and $47, respectively, were posted to the Company as collateral from derivative counterparties. The securities were not included on the Company’s balance sheets as the Company does not have the ability to sell or repledge the collateral.

The Company has provided back-stop guarantees for the performance of non-insurance affiliates or subsidiaries that are involved in the guaranteed sale of investments in low-income housing tax credit partnerships. The nature of the obligation is to provide third party investors with a minimum guaranteed annual and cumulative return on their contributed capital which is based on tax credits and tax losses generated from the low income housing tax credit partnerships. Guarantee payments arise if low income housing tax credit partnerships experience unexpected significant decreases in tax credits and tax losses or there are compliance issues with the partnerships. A significant portion of the remaining term of the guarantees is between 13-18 years. In the event the Company is required to make a payment under this guarantee, the payment would be reflected in the Company’s financial statements as a decrease in net investment income. No payments are required as of December 31, 2020. The current assessment of risk of making payments under these guarantees is remote.

As of January 20, 2020, the Company has been discharged of its guarantee to the Monetary Authority of Singapore (MAS) to provide adequate funds to make up for any liquidity shortfall in its wholly-owned foreign life insurance subsidiary, TLB (Singapore Branch), and ensure that TLB was able to continue to meet, pay and settle all present and future obligations. The Company was not required to provide funds prior to the discharge of the guarantee on January 20, 2020 because TLB maintained adequate liquidity to settle its obligations.

The Company has guaranteed to the Hong Kong Insurance Authority that it will provide the financial support to TLB for maintaining TLB’s solvency at all times so as to enable TLB to promptly meet its obligations and liabilities. If at any time the value of TLB’s assets do not exceed its liabilities by the prevailing acceptable level of solvency, the Company will increase the paid up share capital of TLB or provide financial assistance to TLB to maintain the acceptable level of solvency. An acceptable level of solvency is net assets at one hundred and fifty percent of the required margin of solvency as stipulated under the Insurance Companies (Margin of Solvency) Regulation. As of December 31, 2020, there is no payment or performance risk because TLB is able to meet its obligations and has assets in excess of its liabilities by the prevailing level of solvency as of this date.

The Company has guaranteed that TLB will (1) maintain tangible net worth of at least equal to the greater of 165% of Standard & Poor’s Risk-Based Capital and the minimum required by regulatory authorities in all jurisdictions in which TLB operates, (2) have, at all times, sufficient cash to pay all contractual obligations in a timely manner and (3) have a maximum operating leverage ratio of 20 times. The Company can terminate this agreement upon thirty days written

notice, but not until TLB attains a rating from Standard & Poor’s the same as without the support from this agreement, or the entire book of TLB business is transferred provided that it is transferred to an entity with a rating from S&P that is the same as or better than the Company’s then current rating or AA, whichever is lower. As of December 31, 2020, there is no payment or performance risk because TLB has adequate tangible net worth, sufficient cash to meet its obligations and an operating leverage ratio not in excess of 20 times as of this date.

The Company is not able to estimate the financial statement impact or the maximum potential amount of future payments it could be required to make under these two guarantees as they are considered to be unlimited under the provisions of SSAP No. 5R.

The Company has provided a guarantee to TLB’s (Singapore Branch) policyholders. If TLB fails to pay a valid claim solely by reason of it becoming insolvent as defined by Bermuda law, then the Company shall pay directly to the policy owner or named beneficiary the amount of the valid claim. At December 31, 2020 and 2019, TLB holds related statutory-basis policy and claim reserves of $2,315 and $2,335, respectively, which would be the maximum potential amount of future payments the Company could be required to make under this guarantee. In the event the Company is required to make a payment under this guarantee, the payment would be reflected in the Company’s financial statements as an increase to incurred claims. As of December 31, 2020, there is no payment or performance risk because TLB is not insolvent as of this date.

The Company has provided a guarantee to TLB’s (Hong Kong Branch) policyholders. If TLB fails to pay a valid claim solely by reason of it becoming insolvent as defined by Bermuda law, then the Company shall pay directly to the policy owner or named beneficiary the amount of the valid claim. At December 31, 2020 and 2019, TLB policies covered by this guarantee would have resulted in US statutory policy and claim reserves of $3,533 and $3,585, respectively, which would represent a fair measure of the maximum potential amount of future payments the Company under this guarantee based on the US statutory reserve requirements. TLB is a subsidiary of the Company and TLB has invested assets supporting these policies which mitigates this risk. In the event the Company is required to make a payment under this guarantee, the payment would be reflected in the Company’s financial statements as an increase to incurred claims. As of December 31, 2020, there is no payment or performance risk because TLB is not insolvent as of this date.

The Company did not recognize a liability for any of the TLB guarantees due to the adoption of SSAP No. 5R, as a liability is not required for guarantees to or on behalf of a wholly-owned subsidiary. Management monitors TLB’s financial condition, and there are no indications that TLB will become insolvent. As such, management feels the risk of payment under these guarantees on behalf of TLB is remote.

The Company is a party to a fee agreement with TLB whereby the Company continues to provide the guarantees with respect to TLB described in the paragraphs above. The Company received $1 and $1 under this agreement in 2020 and 2019, respectively.

The Company has provided guarantees for the obligations of noninsurance affiliates who have accepted assignments of structured settlement payment obligations from other insurers and purchase structured settlement insurance policies from subsidiaries of the Company that match

those obligations. The guarantees made by the Company are specific to each structured settlement contract and vary in date and duration of the obligation. These are numerous and are backed by the reserves established by the Company to represent the present value of the future payments for those contracts. The direct statutory reserve established at December 31, 2020 and 2019 for the total payout block is $5,124 and $5,279, respectively. As this reserve is already recorded on the balance sheets of the Company, there was no additional liability recorded due to the adoption of SSAP No. 5R.

The following table provides an aggregate compilation of guarantee obligations as of December 31, 2020 and 2019:

The Company is a member of the FHLB of Des Moines. Through its membership, the Company has conducted business activity (borrowings) with the FHLB. It is part of the Company’s strategy to utilize these funds for asset and liability management and spread lending purposes. The Company has determined the actual/estimated long-term maximum borrowing capacity as $5,793. The Company calculated this amount in accordance with the terms and conditions of agreement with FHLB of Des Moines.

At December 31, 2020 and 2019, the Company purchased/owned the following FHLB stock as part of the agreement:

At December 31, 2020 and 2019, Membership Stock (Class A and B) Eligible for Redemption and the anticipated timeframe for redemption was as follows:

At December 31, 2020 and 2019, the amount of collateral pledged and the maximum amount pledged to the FHLB was as follows:

As of December 31, 2020, the weighted average interest rate on FHLB advances was 0.443% with a weighted average term of 2.3 years. As of December 31, 2019, the weighted average interest rate on FHLB advances was 2.146% with a weighted average term of 1.3 years.

At December 31, 2020, the borrowings from the FHLB were not subject to prepayment penalties.

The Company has issued synthetic GIC contracts to benefit plan sponsors totaling $56,004 and $52,230 as of December 31, 2020 and 2019, respectively. A synthetic GIC is an off-balance sheet fee-based product sold primarily to tax qualified plans, where the plan sponsor retains ownership and control of the related plan assets and the Company provides book value benefit responsiveness to qualified participant withdrawals, in the event withdrawals requested exceeds plan cash flows. In certain contracts, the Company agrees to make advances to meet benefit withdrawal needs and earns a market interest rate on these advances. A periodically adjusted contract-crediting rate is a means by which investment and benefit responsiveness experience is passed through to participants. In return for the book value benefit responsiveness guarantee, the Company receives a premium that varies based on such elements as benefit responsiveness exposure and contract size. The Company underwrites the plans for the possibility of having to make benefit payments and also must agree to the investment guidelines ensuring the appropriate credit quality and cash flow. Funding requirements to date have been minimal and management does not anticipate any future material funding requirements to have a material impact on the reported financial results. In compliance with statutory guidelines, no reserves were recorded at December 31, 2020.

The Company is party to legal proceedings involving a variety of issues incidental to its business, including class action lawsuits. Lawsuits may be brought in any federal or state court in the United States or in an arbitral forum. In addition, there continues to be significant federal and state regulatory activity relating to financial services companies. The Company’s legal proceedings are subject to many variables, and given their complexity and scope, outcomes cannot be predicted with certainty. Although legal proceedings sometimes includes substantial demands for compensatory and punitive damages, and injunctive relief, damages arising from such demands are typically not to be material to the Company’s financial position.

The Company has been named in class actions, as well as individual litigation, relating to increases in monthly deduction rates (MDR) on universal life products. The Company has settled two such class actions, one in January 2019 and one in April 2020. In connection with the first lawsuit, the Company continues to defend against a number of lawsuits initiated by opt out class members. The Company holds provisions totaling approximately $170 for these lawsuits as of December 31, 2020.

The Company is subject to insurance guaranty laws in the states in which it writes business. These laws provide for assessments against insurance companies for the benefit of policyholders and claimants in the event of insolvency of other insurance companies. Assessments are charged to operations when received by the Company, except where right of offset against other taxes paid is allowed by law. Amounts available for future offsets are recorded as an asset on the Company’s balance sheets. The future obligation for known insolvencies has been accrued based on the most recent information available from the National Organization of Life and Health Insurance Guaranty Associations. Potential future obligations for unknown insolvencies are not determinable by the Company and are not required to be accrued for financial reporting purposes. The Company has established a reserve of $9 and $10 and an offsetting premium tax benefit $7 and $8 at December 31, 2020 and 2019, respectively, for its estimated share of future guaranty fund assessments related to several major insurer insolvencies. The guaranty fund (benefit) expense was $3, $3 and $1, for the years ended December 31, 2020, 2019 and 2018, respectively.

16. Sales, Transfer, and Servicing of Financial Assets and Extinguishments of Liabilities

The Company is party to municipal repurchase agreements which were established via bilateral trades and accounted for as secured borrowings. For municipal repurchase agreements, the Company rigorously manages asset/liability risks via an integrated risk management framework. The Company’s liquidity position is monitored constantly, and factors heavily in the management of the asset portfolio. Projections comparing liquidity needs to available resources in both adverse and routine scenarios are refreshed monthly. The results of these projections on time horizons ranging from 16 months to 24 months are the basis for the near-term liquidity planning. This liquidity model excludes new business (non applicable for the spread business), renewals and other sources of cash and assumes all liabilities are paid off on the earliest dates required. Interest rate risk is carefully managed, in part through rigorously defined and monitored derivatives programs.

The following tables provide information on the securities sold under the municipal repurchase agreements for four quarters of 2020 and 2019:

The following table provides information on the cash collateral received and liability to return collateral under the municipal repurchase agreements for four quarters of 2020 and 2019:

⁽¹⁾ The remaining collateral held was greater than 90 days from contractual maturity.

The Company enters into dollar repurchase agreements in which securities are delivered to the counterparty once adequate collateral has been received. At December 31, 2020 and 2019, the Company had dollar repurchase agreements outstanding in the amount of $969 and $706, respectively, which is included in borrowed money on the balance sheets. Those amounts include accrued interest of $2 and $2, at December 31, 2020 and 2019, respectively. At December 31, 2020, securities with a book value of $958 and a fair value of $972 were subject to dollar repurchase agreements. These securities have maturity dates that range from April 1, 2035 to January 1, 2051. At December 31, 2019, securities with a book value of $805 and a fair value of $807 were subject to dollar repurchase agreements. The Company does not have the legal right to recall or substitute the underlying assets prior to the transaction’s scheduled termination. Upon scheduled termination, the counterparty is obligated to return substantially similar assets.

The contractual maturities of the dollar repurchase agreement positions are as follows:

In the course of the Company’s asset management, securities are sold and reacquired within 30 days of the sale date to enhance the Company’s yield on its investment portfolio. The details by NAIC designation 3 or below of securities sold during 2020 and reacquired within 30 days of the sale date are:

The following is a reconciliation of amounts previously reported to the Iowa Department of Financial Regulation in the 2020 Annual Statement, to those reported in the accompanying statutory-basis financial statements:

The reconciling differences to the Annual Statement for current and prior year is primarily driven by elimination of affiliated activity for the merged entities in 2020. For additional detail on the impacts of the merger, please refer to Note 1. In addition, prior year reconciling differences also relate to adjustments for actuarial modeling and misclassifications within the Statements of Operations related to accounting for retirement plans.

The financial statements are adjusted to reflect events that occurred between the balance sheets date and the date when the financial statements are available to be issued, provided they give evidence of conditions that existed at the balance sheets date (Type I). Events that are indicative of conditions that arose after the balance sheets date are disclosed, but do not result in an adjustment of the financial statements themselves (Type II). The Company has not identified any Type I or Type II subsequent events for the year ended December 31, 2020 through April 14, 2021.

*Allocations of net investment income and other operating expenses are based on a number of assumptions and estimates, and the results would change if different methods were applied.

We have audited the accompanying statutory basis financial statements of Transamerica Financial Life Insurance Company (the “Company”), which comprise the balance sheets as of December 31, 2020 and 2019, and the related statements of operations, of changes in capital and surplus, and of cash flow for each of the three years in the period ended December 31, 2020, including the related notes and schedules of supplementary insurance information and reinsurance for each of the three years in the period ended December 31, 2020 and summary of investments - other than investments in related parties as of December 31, 2020 listed in the accompanying index (collectively referred to as the “financial statements”).

Management is responsible for the preparation and fair presentation of the financial statements in accordance with the accounting practices prescribed or permitted by the New York Department of Financial Services. Management is also responsible for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Basis for Adverse Opinion on U.S. Generally Accepted Accounting Principles

As described in Note 2 to the financial statements, the financial statements are prepared by the Company on the basis of the accounting practices prescribed or permitted by the New York Department of Financial

Services, which is a basis of accounting other than accounting principles generally accepted in the United States of America.

As discussed in Note 3 to the financial statements, in 2020 the Company changed its valuation basis for variable annuities to comply with newly prescribed Insurance Regulation 213 issued by the New York Department of Financial Services. Our opinion is not modified with respect to this matter.

Transamerica Financial Life Insurance Company (the Company) is a stock life insurance company owned by Transamerica Corporation (TA Corp). TA Corp is an indirect, wholly-owned subsidiary of Aegon N.V., a holding company organized under the laws of The Netherlands.

The Company sells fixed annuity, variable life and annuity products, group life coverages, life insurance, index universal life, and guaranteed investment contracts. The Company is licensed in 50 states and the District of Columbia. Sales of the Company’s products are primarily through brokers.

The accompanying financial statements have been prepared in conformity with accounting practices prescribed or permitted by the New York Department of Financial Services (NYDFS), which differ from accounting principles generally accepted in the United States of America (GAAP).

The NYDFS recognizes only statutory accounting practices prescribed or permitted by the State of New York for determining and reporting the financial condition and results of operations of an insurance company, and for determining its solvency under the New York Insurance Law.

The State of New York has adopted a prescribed accounting practice that differs from that found in the National Association of Insurance Commissioners (NAIC) Accounting Practices and Procedures Manual (NAIC SAP) related to the reported value of the assets supporting the Company’s guaranteed separate accounts. As prescribed by Section 1414 of the New York Insurance Law, the Commissioner found that the Company is entitled to value the assets of the guaranteed separate account at amortized cost, whereas the assets would be required to be reported at fair value under Statement of Statutory Accounting Principle (SSAP) No. 56, Separate Accounts, of the NAIC SAP. There is no impact to the Company’s income or surplus as a result of utilizing this prescribed practice.

The Company closely monitors below investment grade holdings and investment grade issuers where the Company has concerns to determine if an other-than-temporary impairment (OTTI) has occurred. The Company also regularly monitors industry sectors. The Company considers relevant facts and circumstances in evaluating whether the impairment is other-than-temporary including: (1) the probability of the Company collecting all amounts due according to the contractual terms of the security in effect at the date of acquisition; (2) the Company’s decision to sell a security prior to its maturity at an amount below its carrying amount; and (3) the Company’s ability to hold a structured security for a period of time to allow for recovery of the value to its carrying amount. Additionally, financial condition, near term prospects of the issuer and nationally recognized credit rating changes are monitored. Non-structured securities in unrealized loss positions that are considered other-than-temporary are written down to fair value. The Company will record a charge to the Statements of Operations for the amount of the impairment.

For structured securities, cash flow trends and underlying levels of collateral are monitored. An OTTI is considered to have occurred if the fair value of the structured security is less than its amortized cost basis and the entity intends to sell the security or the entity does not have the intent and ability to hold the security for a period of time sufficient to recover the amortized cost basis. An OTTI is also considered to have occurred if the discounted estimated future cash flows are less than the amortized cost basis of the security and the security is in an unrealized loss position. Structured securities considered other-than-temporarily impaired are written down to discounted estimated cash flows if the impairment is the result of cash flow analysis. If the Company has an intent to sell or lack of ability to hold a structured security, it is written down to fair value. The Company will record a charge to the Statements of Operations for the amount of the impairments.

Investments in unaffiliated preferred stocks in good standing (those with NAIC designations RP1 to RP3 and P1 to P3), are reported at cost or amortized cost, depending on the characteristics of the securities. Investments in preferred stocks not in good standing (those with NAIC designations RP4 to RP6 and P4 to P6), are reported at the lower of cost, amortized cost, or fair value, depending on the characteristics of the securities. The related net unrealized capital gains and losses for all NAIC designations are reported in changes in capital and surplus.

The Company owns stock issued by the Federal Home Loan Bank (FHLB), which is only redeemable at par, and its fair value is presumed to be par, unless other-than-temporarily impaired.

If the Company determines that a decline in the fair value of a common stock or a preferred stock is other-than-temporary, the Company writes it down to fair value as the new cost basis and the amount of the write down is accounted for as a realized loss in the Statements of Operations. The Company considers the following factors in determining whether a decline in value is other-than-temporary: (a) the financial condition and prospects of the issuer; (b) whether or not the Company has made a decision to sell the investment; and (c) the length of time and extent to which the value has been below cost.

The Company has interests in joint ventures and limited partnerships. The Company carries these investments based on its interest in the underlying GAAP equity of the investee.

For a decline in the fair value of an investment in a joint venture or limited partnership which is determined to be other-than-temporary, the Company writes it down to fair value as the new cost basis and the amount of the write down is accounted for as a realized loss in the Statements of Operations. The Company considers an impairment to have occurred if it is probable that the Company will be unable to recover the carrying amount of the investment or if there is evidence indicating inability of the investee to sustain earnings which would justify the carrying amount of the investment.

Short-term investments include investments with remaining maturities of one year or less at the time of acquisition and are principally stated at amortized cost.

Interest income is recognized on an accrual basis. The Company does not accrue income on bonds in default, mortgage loans on real estate in default and/or foreclosure or which are delinquent more than twelve months, or real estate where rent is in arrears for more than three months. Income is also not accrued when collection is uncertain. Due and accrued amounts determined to be uncollectible are written off through the Statements of Operations.

Under a formula prescribed by the NAIC, the Company defers the portion of realized capital gains and losses on sales of fixed income investments, primarily bonds and mortgage loans, attributable to changes in the general level of interest rates and amortizes those deferrals into net investment income over the remaining period to maturity of the bond or mortgage loan based on groupings of individual securities sold in five year bands. The net deferral is reported as the interest maintenance reserve (IMR) in the accompanying Balance Sheets. Realized capital gains and losses are reported in income net of federal income tax and transfers to the IMR. Under GAAP, realized capital gains and losses are reported in the Statements of Operations on a pre-tax basis in the period that the assets giving rise to the gains or losses are sold.

The AVR provides a valuation allowance for invested assets. The AVR is determined by an NAIC prescribed formula with changes reflected directly in unassigned surplus. AVR is not recognized for GAAP.

In 2019, the NAIC revised the AVR Factors (basic contribution, reserve objective and maximum reserve) to be consistent with the RBC (Risk Based Capital) after-tax factors, which were amended in 2018 as a result of federal tax reform. The AVR factor changes are effective for year-end 2019. As of December 31, 2019, the factor changes decreased capital and surplus by $14. The changes were recorded to the change in asset valuation reserve line of the statement of changes in capital and surplus.

Overview: The Company uses various derivative instruments (swaps and futures) to manage risks related to its ongoing business operations. On the transaction date of the derivative instrument, the Company designates the derivative as either (A) hedging (fair value, foreign currency fair value, cash flow, foreign currency cash flow, forecasted transactions, or net investment in a foreign operation), (B) replication, (C) income generation, or (D) held for other investment/risk management activities, which do not qualify for hedge accounting under SSAP No. 86, Derivatives.

Interest rate swaps are the primary derivative financial instruments used in the overall asset/liability management process to modify the interest rate characteristics of the underlying asset or liability. These interest rate swaps generally provide for the exchange of the difference between fixed and floating rate amounts based on an underlying notional amount. Typically, no cash is exchanged at the outset of the swap contract and a single net payment is exchanged each due date. Swaps that meet hedge accounting rules are carried in a manner consistent with the hedged item, generally at amortized cost, in the financial statements. If the swap is terminated prior to maturity, proceeds are exchanged equal to the fair value of the contract. These gains and losses may be included in IMR or AVR if the underlying instrument receives that treatment. Swaps not meeting hedge accounting rules are carried at fair value with fair value adjustments recorded in unassigned surplus.

The Company loans securities to third parties under agent-managed securities lending programs, accounted for as secured borrowings. Cash collateral received which may be sold or repledged by the Company is reflected as a one-line entry on the Balance Sheet (securities lending reinvested collateral assets) and a corresponding liability is established to record the obligation to return the cash collateral. Non-cash collateral received which may not be sold or repledged is not recorded on the Company’s Balance Sheets. Under GAAP, the reinvested collateral is included within invested assets (i.e. it is not one-line reported).

For dollar repurchase agreements accounted for as secured borrowings, the Company receives cash collateral in an amount at least equal to the fair value of the securities transferred by the Company in the transaction as of the transaction date. The securities transferred are not removed from the Balance Sheets, and the cash received as collateral is invested as needed or used for general corporate purposes of the Company. A liability is established to record the obligation to return the cash collateral and included in borrowed money on the Balance Sheets.

Other assets consist primarily of reinsurance receivables, accounts receivable and general insurance receivables. Other “admitted assets” are valued principally at cost, as required or permitted by New York Insurance Laws.

Other liabilities consist primarily of remittances, payable for securities, unearned investment income, and accrued expenses.

The majority of separate accounts held by the Company represent funds which are administered for pension plans. The assets in the managed separate accounts consist of common stock, long-term bonds, real estate and short-term investments. The non-managed separate accounts are invested by the Company in a corresponding portfolio of Diversified Investors Portfolios. The portfolios are registered under the Investment Company Act of 1940, as amended, as open-ended, diversified, management investment companies.

Except for some guaranteed separate accounts, which are carried at amortized cost, the assets are carried at fair value, and the investment risks associated with fair value changes are borne entirely by the policyholder. Some of the guaranteed separate accounts provide a guarantee of principal and some include an interest guarantee of 4% or less, so long as the contract is in effect. Separate account asset performance less than guaranteed requirements is transferred from the general account and reported in the Statements of Operations.

Assets held in trust for purchases of separate account contracts and the Company’s corresponding obligation to the contract owners are shown separately in the Balance Sheets. Income and gains and losses with respect to these assets accrue to the benefit of the contract owners and, accordingly, the operations of the separate accounts are not included in the accompanying financial statements.

The investment risks associated with fair value changes of the separate account are borne entirely by the contract owners except in cases where minimum guarantees exist. Income and gains and losses with respect to the assets in the separate accounts supporting modified guaranteed annuity contracts are included in the Company’s Statements of Operations as a component of net transfers from separate accounts.

Separate account assets and liabilities reported in the accompanying financial statements consist of two types: non-indexed guaranteed and nonguaranteed. Non-indexed guaranteed separate accounts represent funds invested by the Company for the benefit of contract holders who are guaranteed certain returns as specified in the contracts. Separate account asset performance different than the guaranteed requirements is either transferred to or received from the general account and reported in the Statements of Operations. Non-indexed guaranteed separate account assets and liabilities are carried at amortized cost.

The non-guaranteed separate account assets and liabilities represent group annuity funds segregated by the Company for the benefit of contract owners. The assets and liabilities of the nonguaranteed separate accounts are carried at fair value.

Life, annuity and accident and health benefit reserves are calculated by actuarial methods and are determined based on published tables using statutorily specified interest rates and valuation methods that will provide, in the aggregate, reserves that are greater than or equal to the minimum or guaranteed cash value, or the amount required by law.

For GAAP, policy reserves are calculated based on estimated expected experience or actual account balances.

Claim reserves represent the estimated accrued liability for claims reported to the Company and claims incurred but not yet reported through the Balance Sheet date. These reserves are estimated using either individual case-basis valuations or statistical analysis techniques. These estimates are subject to the effects of trends in claim severity and frequency. The estimates are continually reviewed and adjusted as necessary as experience develops or new information becomes available.

Policyholder dividends are recognized when declared rather than over the term of the related policies as would be required under GAAP.

Policy and contract liabilities ceded to reinsurers have been reported as reductions of the related reserves rather than as assets as would be required under GAAP.

Commissions allowed by reinsurers on business ceded are reported as income when incurred rather than being deferred and amortized with deferred policy acquisition costs as required under GAAP.

The Company computes deferred income taxes in accordance with SSAP No. 101, Income Taxes. Unlike GAAP, SSAP 101 does not consider state income taxes in the measurement of deferred taxes. SSAP 101 also requires additional testing to measure gross deferred tax assets. The additional testing limits gross deferred tax asset admission to 1) the amount of federal income taxes paid in prior years recoverable through hypothetical loss carrybacks of existing temporary differences expected to reverse during a timeframe corresponding with the Internal Revenue Service tax loss carryback provisions, not to exceed three years, plus 2) the amount of remaining gross deferred tax assets expected to be realized within three years limited to an amount that is no greater than 15% of current period’s adjusted statutory capital and surplus, plus 3) the amount of remaining gross deferred tax assets that can be offset against existing gross deferred tax liabilities after considering character (i.e. ordinary versus capital) and reversal patterns. The Company’s reported deferred tax asset or liability is the sum of gross deferred tax assets admitted through this three part test plus the sum of all deferred tax liabilities.

Under GAAP, value of business acquired (VOBA) is an intangible asset resulting from a business combination that represents the excess of book value over the estimated fair value of acquired insurance, annuity, and investment-type contracts in-force at the acquisition date. The estimated fair value of the acquired liabilities is based on projections, by each block of business, of future contracts and contract charges, premiums, mortality and morbidity, separate account performance, surrenders, operation expenses, investment returns, nonperformance risk adjustment and other factors. VOBA is not recognized under the NAIC SAP.

Investments in subsidiaries, controlled and affiliated companies (SCA) are stated in accordance with the Purposes and Procedures Manual of the NAIC SVO, as well as SSAP No. 97, Investments in Subsidiary, Controlled and Affiliated Entities.

Certain assets designated as “nonadmitted”, primarily net deferred tax assets and other assets not specifically identified as an admitted asset within the NAIC SAP, are excluded from the accompanying Balance Sheets and are charged directly to unassigned surplus. Under GAAP, such assets are included in the Balance Sheets to the extent that they are not impaired.

Cash, cash equivalents and short-term investments in the Statements of Cash Flow represent cash balances and investments with initial maturities of one year or less and money market mutual funds. Under GAAP, the corresponding caption of cash and cash equivalents includes cash balances and investments with initial maturities of three months or less.

Effective June 30, 2020, the NAIC adopted revisions to SSAP No. 105, Working Capital Finance Investments, and the corresponding Issue Paper No. 163, Working Capital Finance Investments. The revisions provided substantive updates to the Working Capital Finance Investments (WCFI) Program requirements in SSAP No. 105. The adoption of this guidance did not impact the financial position or results of operations of the Company as the Company does not invest in WCFI.

application of statutory accounting guidance for leases in certain areas (e.g., sale-leaseback transactions), and identifies the types of assets allowed for lease and sale-leaseback treatment. The adoption of this guidance did not impact the financial position or results of operations of the Company.

As of December 31, 2020, the Company has adopted the new rules released by the New York State Department of Financial Services (NYDFS) determining the minimum required reserves for Variable Annuities (VA) under “Insurance Regulation 213” (Reg 213). This new rule replaces New York Regulation 151 that was the basis for reporting through September 30, 2020. The approved transition approach will not result in adjustment to the Company’s historical statutory reporting or existing balances at the time of transition. The Company has reported the decrease to the reserve of $129 as a Change in Valuation Basis recognized as a change in surplus. The full amount of the change is reported in the 2020 financial statements. As of the date of transition, the Company is fully compliant with the provisions of Reg 213.

As of December 31, 2020, there were no material correction of errors for the Company.

Certain amounts in prior year footnote disclosures have been reclassified to conform to the current year presentation.

objective for such reviews is to demonstrate the Company can corroborate detailed information such as assumptions, inputs and methodologies used in pricing individual securities against documented pricing methodologies. Only third-party pricing services and brokers with a substantial presence in the market and with appropriate experience and expertise are used.

The following methods and assumptions were used by the Company in estimating its fair value disclosures for financial instruments:

Cash Equivalents and Short-Term Investments: The carrying amounts reported in the accompanying Balance Sheets for these financial instruments is either reported at fair value or amortized cost (which approximates fair value). Cash is not included in the below tables.

Short-Term Notes Receivable from Affiliates: The carrying amounts reported in the accompanying Balance Sheets for these financial instruments approximate their fair value.

Derivative Financial Instruments: The fair value of futures and forwards are based upon the latest quoted market price and spot rates at the Balance Sheet date. The estimated fair values of equity and interest rate options (calls, puts, caps) are based upon the latest quoted market price at the Balance Sheet date. The estimated fair values of swaps, including interest rate and currency swaps are based on pricing models or formulas using current assumptions. The estimated fair value of credit default swaps are based upon active market data, including interest rate quotes, credit spreads, and recovery rates, which are then used to calculate probabilities of default for the fair value calculation. The Company accounts for derivatives that receive and pass hedge accounting in the same manner as the underlying hedged instrument. If that instrument is held at amortized cost, then the derivative is also held at amortized cost.

Policy Loans: The book value of policy loans is considered to approximate the fair value of the loan, which is stated at unpaid principal balance.

Securities Lending Reinvested Collateral: The cash collateral from securities lending is reinvested in various short-term and long-term debt instruments. The fair values of these investments are determined using the methods described above under Cash Equivalents and Short-Term Investments and Bonds and Stocks.

Deposit-Type Contracts: The carrying amounts of deposit-type contracts reported in the accompanying Balance Sheets approximate their fair values. These are included in investment contract liabilities.

Fair values for the Company’s insurance contracts other than investment-type contracts (including separate account universal life liabilities) are not required to be disclosed. However, the fair values of liabilities under all insurance contracts are taken into consideration in the Company’s overall management of interest rate risk, such that the Company’s exposure to changing interest rates is minimized through the matching of investment maturities with amounts due under insurance contracts.

The Company accounts for its investments in affiliated common stock in accordance with SSAP No. 97, as such, they are not included in the following disclosures.

The following tables set forth a comparison of the estimated fair values and carrying amounts of the Company’s financial instruments, including those not measured at fair value in the Balance Sheets, as of December 31, 2020 and 2019, respectively:

The following tables provide information about the Company’s financial assets and liabilities measured at fair value as of December 31, 2020 and 2019:

Bonds classified as Level 2 are valued using inputs from third-party pricing services or broker quotes. Bonds classified as Level 3 are primarily those valued using non-binding broker quotes, which cannot be corroborated by other market observable data, or internal modeling which utilize significant inputs that are not market observable.

Common stocks classified as Level 3 contain shares in the FHLB of New York, which are valued at par as a proxy for fair value as a result of restrictions that allow redemptions only by FHLB. In addition, the Company also holds a position that is internally modelled.

Securities lending reinvested collateral is valued and classified in the same way as the underlying collateral, which is primarily composed of cash equivalents and short-term investments.

Separate account assets and liabilities are valued and classified in the same way as general account assets and liabilities (described above).

The following tables summarize the changes in assets classified as Level 3 for 2020 and 2019:

(a) Recorded as a component of net realized capital gains (losses) on investments in the Statements of Operations

(b) Recorded as a component of change in net unrealized capital gains (losses) in the Statements of Changes in Capital and Surplus

The carrying amounts and estimated fair value of investments in bonds and stocks are as follows:

The estimated fair value of bonds, preferred stocks and common stocks with gross unrealized losses at December 31, 2020 and 2019 is as follows:

During 2020 there were no loan-backed or structured securities with a recognized OTTI due to intent to sell or lack of intent and ability to hold. There were $3 loan-backed or structured securities with a recognized OTTI due to intent to sell or lack of intent and ability to hold during the year ended December 31, 2019.

The Company did not have loan-backed and structured securities with a recognized OTTI due to the Company’s cash flow analysis, in which the security is written down to estimated future cash flows discounted at the security’s effective yield, in 2020, 2019 and 2018.

The Company did not have loan-backed and structured securities as of December 31, 2020, for which an OTTI had been recognized during the current reporting period.

At December 31, 2020 and 2019, respectively, for bonds and preferred stocks that have been in a continuous loss position for greater than or equal to twelve months, the Company held 18 and 55 securities with a carrying amount of $76 and $244 and an unrealized loss of $7 and $25. Of this portfolio, 67.7% and 61.2% were investment grade with associated unrealized losses of $5 and $9, respectively.

At December 31, 2020 and 2019, respectively, for bonds and preferred stocks that have been in a continuous loss position for less than twelve months, the Company held 86 and 64 securities with a carrying amount of $345 and $249 and an unrealized loss of $12 and $6. Of this portfolio, 79.4% and 87.7% were investment grade with associated unrealized losses of $7 and $4, respectively.

At December 31, 2020 and 2019, the Company did not hold any common stocks that have been in a continuous loss position for greater than or equal to twelve months.

At December 31, 2020 the Company held no common stocks that have been in a continuous loss position for less than twelve months. At December 31, 2019 for common stocks that have been in a continuous loss position for less than twelve months, the Company held 1 security with an insignificant carrying amount and unrealized loss.

The following table provides the number of 5GI securities, aggregate book adjusted carrying value and aggregate fair value by investment type:

During 2020 and 2019, the Company sold, redeemed or otherwise disposed of 49 and 71 securities as a result of a callable feature which generated investment income of $6 and $4 as a result of a prepayment penalty and/or acceleration fee.

At December 31, 2020 and 2019, the Company had no recorded investment in restructured securities. There were no capital gains (losses) taken as a direct result of restructures in 2020, 2019 and 2018.

The credit quality of mortgage loans by type of property for the years ended December 31, 2020 and 2019 was as follows:

During 2020 the Company issued mortgage loans with a maximum interest rate of 5.93% and a minimum interest rate of 3.50% for commercial loans. The maximum percentage of any one mortgage loan to the value of the underlying real estate originated or acquired during the year ending December 31, 2020 at the time of origination or acquisitions was 65%. During 2019 the Company issued mortgage loans with a maximum interest rate of 5.35%, and a minimum interest rate of 3.50% for commercial loans. The maximum percentage of any one mortgage loan to the value of the underlying real estate originated during the year ending December 31, 2019 at the time of origination was 70%.

During 2020 and 2019, the Company did not reduce the interest rate on any outstanding mortgage loan. During 2020 and 2019, the Company issued no farm mortgage loans.

The age analysis of mortgage loans and identification in which the Company is a participant or co-lender in a mortgage loan agreement is as follows for December 31, 2020 and 2019.

There were no impaired mortgage loans held without an allowance for credit losses as of December 31, 2020 and 2019, respectively, that were subject to participant or co-lender mortgage loan agreement for which the Company is restricted from unilaterally foreclosing on the mortgage loans.

No mortgage loan foreclosures occurred during 2020, 2019 and 2018. At December 31, 2020 and 2019, the Company held a mortgage loan loss reserve in the AVR of $16 and $17, respectively.

The Company’s mortgage loan portfolio is diversified by geographic region and specific collateral property type as follows:

During 2020 and 2019, no properties were disposed of and there were no impairment losses recorded.

An impairment loss of $2 was taken on a property during the third quarter of 2018 to write the book value down to the current fair value. This impairment loss was included in net realized capital gains (losses) within the Statements of Operations. The Company subsequently disposed of the property during the fourth quarter of 2018, resulting in a realized loss of $1.

During 2020, 2019 and 2018, the Company recognized no impairment write downs for its investments in joint ventures and limited partnerships.

At December 31, 2020, the Company had ownership interest in nine LIHTC investments with a carrying value of $161. The remaining years of unexpired tax credits ranged from four to twelve and the properties were not subject to regulatory review. The length of time remaining for the holding periods ranged from one to fourteen years. The amount of contingent equity commitments expected to be paid during the years 2021 to 2022 is $3. Tax credits recognized in 2020 were $22, and other tax benefits recognized in 2020 were $4. There were no impairment losses, write-downs or reclassifications during the year related to any of these credits.

At December 31, 2019, the Company had ownership interest in nine LIHTC investments with a carrying value of $85. The remaining years of unexpired tax credits ranged from five to ten and the properties were not subject to regulatory review. The length of time remaining for the holding periods ranged from one to fifteen years. The amount of contingent equity commitments expected to be paid during the years 2020 to 2022 is $104. Tax credits recognized in 2019 were $25, and other tax benefits recognized in 2019 were $5. There were no impairment losses, write-downs or reclassifications during the year related to any of these credits.

For the years ended December 31, 2020, 2019 and 2018, the Company recorded unrealized gains (losses) of $30, $23 and $49, respectively, for the component of derivative instruments utilized for hedging purposes that did not qualify for hedge accounting. This has been recorded directly to unassigned surplus as an unrealized gain (loss).

The Company did not recognize any unrealized gains or losses during 2020, 2019 or 2018 that represented the component of derivative instruments gain or loss that was excluded from the assessment of hedge effectiveness.

Summary of realized gains (losses) by derivative type for the years ended December 31, 2020, 2019 and 2018:

The average estimated fair value of derivatives held for other than hedging purposes is presented in the following table for the years ended December 31, 2020 and 2019:

⁽¹⁾ Asset and liability classification is based on the positive (asset) or negative (liability) book/adjusted carrying value of each derivative.

The estimated fair value of derivatives held for other than hedging purposes is presented in the following table for the years ended December 31, 2020 and 2019:

⁽¹⁾Asset and liability classification is based on the positive (asset) or negative (liability) book/adjusted carrying value of each derivative.

The net realized gains (losses) on the derivatives held for other than hedging purposes is presented in the following table for the years ended December 31, 2020, 2019 and 2018:

As stated in Note 2, the Company replicates investment grade corporate bonds and sovereign debt by writing credit default swaps. As a writer of credit swaps, the Company actively monitors the underlying asset, being careful to note any events (default or similar credit event) that would require the Company to perform on the credit swap. If such events would take place, a payment equal to the notional amount of the contract, less any potential recoveries as determined by the underlying agreement, will be made by the Company to the counterparty to the swap.

The following tables present the estimated fair value, maximum amount of future payments and weighted average years to maturity of written credit default swaps at December 31, 2020 and 2019:

The Company may enter into credit default swaps to purchase credit protection on certain of the referenced credit obligations in the table above. At December 31, 2020, the maximum amounts of potential future recoveries available to offset the $471 from the table above was $0. At December 31, 2019, the maximum amounts of potential future recoveries available to offset the $510 from the table above was $0.

At December 31, 2020 and 2019, the Company’s outstanding derivative instruments, shown in notional or contract amounts and fair value, are summarized as follows:

*Futures are presented in contract format. Swaps and options are presented in notional format.

The following tables show the pledged or restricted assets as of December 31, 2020 and 2019, respectively:

The following table shows the pledged or restricted assets in other categories as of December 31, 2020 and 2019, respectively:

The following tables show the collateral received and reflected as assets within the financial statements as of December 31, 2020 and 2019:

The changes in net unrealized capital gains and losses on investments, including the changes in net unrealized foreign capital gains and losses were as follows:

Deferred and uncollected life premium and annuity considerations, net of reinsurance, at December 31, 2020 and 2019 were as follows:

Policy reserves, deposit-type contracts and policy claims at December 31, 2020 and 2019 were as follows:

The aggregate policy reserves for life insurance policies are based upon the 1941, 1958, 1980, 2001 and 2017 Commissioner’s Standard Ordinary Mortality Tables. The reserves are calculated using interest rates ranging from 2.00 to 7.25 percent and are computed principally on the Net Level Premium Valuation and the Commissioner’s Reserve Valuation Method. Reserves for universal life policies are based on account balances adjusted for the Commissioner’s Reserve Valuation Method.

Tabular interest, tabular less actual reserves released and tabular cost have been determined by formula.

The Company waives deduction of deferred fractional premiums upon death of the insured and returns any portion of the final premium for periods beyond the date of death.

Additional premiums are charged or additional mortality charges are assessed for policies issued on substandard lives according to underwriting classification. Generally, mean reserves are determined by computing the regular mean reserve for the plan at the true age and holding, in addition, one-half (1/2) of the extra premium charge for the year. For certain flexible premium and fixed premium universal life insurance products, reserves are calculated utilizing the Commissioner’s Reserve Valuation Method for universal life policies and recognizing any substandard ratings.

As of December 31, 2020 and 2019, the Company had insurance in force aggregating $6,638 and $7,462, respectively, in which the gross premiums are less than the net premiums required by the valuation standards established by the NYDFS. The Company established policy reserves of $984 and $1,050 to cover these deficiencies as of December 31, 2020 and 2019, respectively.

Reserves for immediate annuities and supplementary contracts with and without life contingencies are equal to the present value of future payments assuming interest rates ranging from 1.25 to 11.25 percent and mortality rates, where appropriate, from a variety of tables.

Annuity reserves also include GICs and funding agreements classified as life-type contracts as defined in SSAP No. 50, Classifications of Insurance or Managed Care Contracts. These liabilities have annuitization options at guaranteed rates and consist of floating interest rate and fixed interest rate contracts. The contract reserves are carried at the greater of the account balance or the value as determined for an annuity with a cash settlement option, on a change in fund basis, according to the Commissioner’s Annuity Reserve Valuation Method.

For variable annuities with guaranteed living benefits and/or minimum guaranteed death benefits, the Company complies with Reg 213. Reg 213 specifies statutory reserve requirements for variable annuity contracts (VACARVM) with benefit guarantees and without benefit guarantees and related products. Examples of covered guaranteed benefits include return of premium death benefits, guaranteed minimum accumulation benefits, guaranteed minimum income benefits, guaranteed minimum withdrawal benefits and guaranteed payout annuity floors. The Reg 213 reserve calculations include standard scenario calculations from the prior Actuarial Guideline 43 (AG 43) as well as reserve requirements based on the NAIC Valuation Manual Section 21 (VM-21) Principles Based Reserving for Variable Annuities. The reserve for contracts falling within the scope of Reg 213 is split into pre and post January 1, 2020 contract issues and is calculated at a contract level with no aggregation. For pre 2020 business, the reserve is the greater of the VM-21 reserve or the modified AG 43 standard scenario reserve. For post 2020 business, the reserve is the greater of the VM-21 reserve and the New York Objective Floor; the New York Objective Floor is the maximum of two distinct modified AG 43 standard scenario reserves, the cash surrender value and the option value floor.

The VM-21 reserve is equal to the Conditional Tail Expectation (CTE) amount plus an additional standard projection amount if the Company’s non-economic assumptions differ enough from industry assumptions. To determine the CTE amount, the Company uses 1,000 of the pre-packaged scenarios developed by the American Academy of Actuaries (AAA) and the Society of Actuaries and prudent estimate assumptions based on Company experience. The Standard Projection Amount is determined using the same CTE calculations but replaces the Company’s own assumptions with prescribed assumptions and methods specified in VM-21.

At December 31, 2020 and 2019, the Company had no premium deficiency reserve related to accident and health policies.

Activity in the liability for unpaid claims and related processing costs net of reinsurance is summarized as follows:

The Company’s unpaid claims reserve was $2 and ($8) for the years ended December 31, 2020 and 2019, respectively, for health claims that were incurred prior to those Balance Sheet dates. The change in 2020 and 2019 resulted primarily from variances in the estimated frequency of claims and claim severity.

Activity in the liability for unpaid claims adjustment expense is summarized as follows:

The Company decreased the claim adjustment expense provision by an immaterial amount for insured events of prior years during 2020.

Tabular interest on funds not involving life contingencies has been determined primarily by formula.

A portion of the Company’s policy reserves and other policyholders’ funds (including separate account liabilities) relates to liabilities established on a variety of the Company’s annuity, deposit fund and life products. There may be certain restrictions placed upon the amount of funds that can be withdrawn without penalty. The amount of reserves on these products, by withdrawal characteristics, is summarized as follows:

The amount of reserves on life products by withdrawal characteristics is summarized as follows:

Separate account assets held by the Company represent contracts where the benefit is determined by the performance of the investments held in the separate account. Information regarding the separate accounts of the Company as of and for the years ended December 31, 2020, 2019 and 2018 is as follows:

A reconciliation of the amounts transferred to and from the Company’s separate accounts is presented below:

The legal insulation of separate account assets prevents such assets from being generally available to satisfy claims resulting from the general account. The separate account assets legally insulated from general account claims at December 31, 2020 and 2019 are attributed to the following products:

At December 31, 2020 and 2019, the Company held separate account assets not legally insulated from the general account in the amount of $22 and $24, respectively, related to variable annuity products.

Some separate account liabilities are guaranteed by the general account. In accordance with the guarantees provided, if the investment proceeds are insufficient to cover the rate of return guaranteed for the product, the policyholder proceeds will be remitted by the general account. To compensate the general account for the risk taken, the separate account paid risk charges of $52, $51, $51, $48, and $47 to the general account in 2020, 2019, 2018, 2017, and 2016, respectively. During the years ended December 31, 2020, 2019, 2018, 2017, and 2016 the general account of the Company had paid $1, $1, $1, $1, and $2 respectively, toward separate account guarantees.

At December 31, 2020 and 2019, the Company reported guaranteed separate account assets at amortized cost in the amount of $527 and $1,620, respectively, based upon the prescribed practice granted by the State of New York as described in Note 2. These assets had a fair value of $542 and $1,634 at December 31, 2020 and 2019, respectively, which would have resulted in an unrealized gain/(loss) of $15 and $14, respectively, had these assets been reported at fair value.

The Company does not participate in securities lending transactions within the separate account.

The Company received reinsurance recoveries in the amounts of $341, $418 and $390 during 2020, 2019 and 2018, respectively. At December 31, 2020 and 2019, estimated amounts recoverable from reinsurers that have been deducted from policy and contract claim reserves totaled $134 and $185, respectively. The aggregate reserves for policies and contracts were reduced for reserve credits for reinsurance ceded at December 31, 2020 and 2019 of $2,995 and $3,089, respectively, of which $1,688 and $1,768 were ceded to affiliates.

Effective June 29, 2018, the Company and Wilton Re U. S. Holdings, Inc. (Wilton Re) entered into an agreement as to the “Final Net Settlement Statements and Other Matters” (NSS) associated with the reinsurance agreement between the two companies that was effective April 1, 2017. This agreement related to the reinsurance of the payout annuity and Bank Owned Life Insurance/ Corporate Owned Life Insurance business (BOLI/COLI) to Wilton Re. As a result of the mutual concessions between the parties, the Company paid Wilton Re $1. The net pretax impact to capital and surplus of these adjustments was $1.

During 2019 and 2018, amortization of deferred gains associated with previously transacted reinsurance agreements was released into income in the amount of $347 ($225 after tax) and $31 ($20 after tax), respectively. Deferred gains have been fully amortized as of December 31, 2019.

The net deferred income tax asset at December 31, 2020 and 2019 and the change from the prior year are comprised of the following components:

As a result of the 2017 Tax Cuts and Jobs Act TCJA, the Company’s tax reserve deductible temporary difference increased by $18. This change results in an offsetting ($18) taxable temporary difference that will be amortized into taxable income evenly over the eight years subsequent to 2017. The remaining amortizable balance is included within the Policyholder Reserves line items above.

As discussed in Note 2, for the years ended December 31, 2020 and 2019 the Company admits deferred income tax assets pursuant to SSAP No. 101. The amount of admitted adjusted gross deferred income tax assets under each component of SSAP No. 101 is as follows:

The impact of tax planning strategies at December 31, 2020 and 2019 was as follows:

The Company’s tax planning strategies do not include the use of reinsurance-related tax planning strategies.

The Company’s current income tax incurred and change in deferred income tax differs from the amount obtained by applying the federal statutory rate to income before tax as follows:

The Company’s federal income tax return is consolidated with other includible affiliated companies. Please see the listing of companies in Appendix A.

The method of allocation between the companies is subject to a written tax allocation agreement. Under the terms of the tax allocation agreement, allocations are based on separate income tax return calculations. The Company is entitled to recoup federal income taxes paid in the event the future losses and credits reduce the greater of the Company’s separately computed income tax liability or the consolidated group’s income tax liability in the year generated. The Company is also entitled to recoup federal income taxes paid in the event the losses and credits reduce the greater of the Company’s separately computed income tax liability or the consolidated group’s income tax liability in any carryback or carryforward year when so applied. Intercompany income tax balances are settled within thirty days of payment to or filing with the Internal Revenue Service. A tax return has not been filed for 2020.

The total amount of the unrecognized tax benefits that if recognized, would affect the effective income tax rate:

The Company classifies interest and penalties related to income taxes as income tax expense. The Company’s interest expense/(benefit) related to income taxes:

The Company has 24,000 common shares authorized, 15,067 shares issued and outstanding. Par value is $125.

On June 30, 2020, the Company paid $96 to Transamerica Life Insurance Company (TLIC) as consideration for the Company’s repurchase of its remaining 1,254 common stock shares held by TLIC.

On December 31, 2018, the Company had 17,142 common shares issued and outstanding. On December 20, 2019 the Company repurchased 821 shares of ordinary common stock at par plus additional contributed capital for a total of $100 paid to its shareholder, TLIC. These shares were subsequently cancelled.

Prior to the redemption in 2018, the Company had 45,981 shares of 6% non-voting, cumulative preferred stock outstanding with a par value of $10. On December 13, 2018, the Company redeemed all 45,981 shares of preferred stock at par plus additional contributed capital for a total of $56, paid to its shareholders; TA Corp received $50 and TLIC received $7.

The Company is subject to limitations, imposed by the State of New York, on the payment of dividends to its stockholders. Generally, dividends during any twelve-month period may not be paid, without prior regulatory approval, in excess of the greater of (a) 10 percent of the Company’s statutory surplus as of the preceding December 31 (b) the Company’s statutory gain from operations before net realized capital gains (losses) on investments for the preceding year, not to exceed earned surplus as of the preceding December 31. Subject to the availability of unassigned surplus at the time of such dividend, the maximum payment which may be made in 2021, without prior approval of insurance regulatory authorities, is $107,571.

On December 21, 2020, the Company paid an ordinary common stock dividend of $75 to Transamerica Corp. On June 21, 2019, the Company paid its shareholders TLIC and TA Corp, ordinary common stock dividends of $9 and $66, respectively.

On December 13, 2018 the Company paid TLIC and TA Corp, preferred stock dividends of $0 and $3, respectively. On June 29, 2018 the Company paid ordinary common stock dividends of $12 to TLIC and $88 to TA Corp.

The Company held special surplus funds in the amount of $13 and $13, as of December 31, 2020 and 2019, respectively, for annuitant mortality fluctuations as required under New York Regulation 47, Separate Account and Separate Account Annuities.

At December 31, 2020 and 2019, respectively, securities with a fair value of $382 and $299 were on loan under securities lending agreements. At December 31, 2020 and 2019, the collateral the Company received from securities lending was in the form of cash and on open terms. This cash collateral is reinvested and is not available for general corporate purposes. The reinvested cash collateral has a fair value of $398 and $311 at December 31, 2020 and 2019, respectively.

The contractual maturities of the securities lending collateral positions are as follows:

The maturity dates of the reinvested securities lending collateral are as follows:

Collateral for securities lending transactions that extend beyond one year from the report date are as follows:

For securities lending, the Company’s source of cash used to return the cash collateral is dependent upon the liquidity of the current market conditions. Under current conditions, the Company has securities with a par value of $398 (fair value of $398) that are currently tradable securities that could be sold and used to pay for the $398 in collateral calls that could come due under a worst-case scenario.

The Company’s employees participate in a contributory defined contribution plan sponsored by TA Corp which is qualified under Section 401(k) of the Internal Revenue Code. Generally, employees of the Company who customarily work at least 20 hours per week and meet the other eligibility requirements are participants of the plan. Participants may elect to contribute up to 100% of eligible earnings, subject to government or other plan restrictions for certain key employees. The Company will match an amount up to three percent of the participant’s eligible earnings. Participants may direct all of their contributions and plan balances to be invested in a variety of investment options. The plan is subject to the reporting and disclosure requirements of the Employee Retirement Income Security Act of 1974, as amended (ERISA). Benefits expense allocated to the Company for the years ended December 31, 2020, 2019 and 2018 was insignificant.

The Company recognizes pension expense equal to its allocation from TA Corp. The pension expense related to both the qualified defined pension plan and the supplemental retirement plans is allocated among the participating companies based on International Accounting Standards 19 (IAS 19), Accounting for Employee Benefits, and based upon actuarial participant benefit calculations, which is within the guidelines of SSAP No. 102, Pensions. Pension expenses were $2, $2 and $1 for the years ended December 31, 2020, 2019 and 2018, respectively.

In addition to pension benefits, TA Corp sponsors unfunded plans that provide health care and life insurance benefits to retired Company employees meeting certain eligibility requirements. The Company has no legal obligation for the plan. Portions of the medical and dental plans are contributory. The expenses of the postretirement plans are allocated among the participating companies based on IAS 19 and based upon actuarial participant benefit calculations which is within the guidelines of SSAP No. 92, Postretirement Benefits Other Than Pensions. The Company’s allocation of postretirement expenses for the years ended December 31, 2020, 2019 and 2018 was insignificant.

The Company shares certain officers, employees and general expenses with affiliated companies.

In accordance with an agreement between TA Corp and the Company, TA Corp will ensure the maintenance of certain minimum tangible net worth, operating leverage and liquidity levels of the Company, as defined in the agreement, through the contribution of additional capital by TA Corp as needed.

Effective August 1, 2020, the Company, and an affiliate, TLIC, amended and finalized a Shared Services and Cost Sharing Agreement for both parties to provide accounting, administrative, and other advisory services in accordance with the agreement. The agreement, filed and approved by the NYDFS, replaces prior agreements between the entities. The amount received by the Company as a result of being a party to this agreement was $47, $41, and $45 during 2020, 2019 and 2018 , respectively. The amount paid as a result of being a party to this agreement was $50, $52, and $82 during 2020, 2019 and 2018, respectively. Fees charged between affiliates approximate their cost.

The Company is party to a Management and Administrative and Advisory agreement with AEGON USA Realty Advisors (AURA), LLC whereby AURA serves as the administrator and advisor for the Company’s mortgage loan operations. The company paid $6, $5, and $4 for these services during 2020, 2019 and 2018, respectively.

The Company is party to an Investment Management Agreement with AEGON USA Investment Management (AUIM), LLC whereby AUIM acts as a discretionary investment manager for the Company. The company paid $10, $10, and $11 for these services during 2020, 2019 and 2018, respectively.

The Company has an administration service agreement with Transamerica Asset Management, Inc. to provide administrative services to the Transamerica Series Trust. The Company received $9, $9 and $10 for these services during 2020, 2019 and 2018, respectively.

Transamerica Capital, Inc. provides wholesaling distribution services for the Company under a distribution agreement. The Company incurred expenses under this agreement of $3, $4 and $4 for the years ended December 31, 2020, 2019 and 2018, respectively.

Payables to and receivables from affiliates and intercompany borrowings bear interest at the thirty-day commercial paper rate. During 2020, 2019 and 2018, the Company paid (received) an insignificant amount of net interest to (from) affiliates.

At December 31, 2020 and 2019, the Company reported a net amount of $37 and $3 receivable from affiliates, respectively. Terms of settlement require that these amounts are settled within 90 days.

In accordance with SSAP No. 25, Affiliates and Other Related Parties, the Company reports short-term intercompany notes receivable as short-term investments. At December 31, 2020 and 2019, the Company had no short-term intercompany notes receivable.

The Company utilizes the look-through approach in valuing its investment in the following entities.

These entity’s financial statements are not audited and the Company has limited the value of its investment in these entities to the value contained in the audited financial statements of the underlying LP/LLC investments, including adjustments required by SSAP No. 97 entities and/or non-SCA SSAP No. 48, Joint Ventures, Partnerships and Limited Liability Companies, entities owned by these entities. All liabilities, commitments, contingencies, guarantees or obligations of these entities which are required to be recorded as liabilities, commitments, contingencies, guarantees or obligations under applicable accounting guidance, are reflected in the Company’s determination of the carrying value of the investment in these entities.

The following tables show the disclosures for all SCA investments, except 8bi entities, Balance Sheet value (admitted and nonadmitted) and the NAIC Responses for the SCA filings (except 8bi entities) as of December 31, 2020 and 2019:


SCA Entity	Percentage of SCA Ownership		Gross Amount		Admitted Amount		Nonadmitted Amount

SSAP No. 97 8a Entities
None		– %	$	–	$	–	$	–

Total SSAP No. 97 8a Entities		XXX	$	–	$	–	$	–

SSAP No. 97 8b(ii) Entities
None		– %	$	–	$	–	$	–

Total SSAP No. 97 8b(ii) Entities		XXX	$	–	$	–	$	–

SSAP No. 97 8b(iii) Entities
REAL ESTATE ALTERN PORT 3A INC		9 %	$	1	$	1	$	–

Total SSAP No. 97 8b(iii) Entities		XXX	$	1	$	1	$	–

SSAP No. 97 8b(iv) Entities
None		– %	$	–	$	–	$	–

Total SSAP No. 97 8b(iv) Entities		XXX	$	–	$	–	$	–

Total SSAP No. 97 8b Entities (except 8bi entities)		XXX	$	1	$	1	$	–

Aggregate Total		XXX	$	1	$	1	$	–


SCA Entity	Percentage of SCA Ownership		Gross Amount		Admitted Amount		Nonadmitted Amount

SSAP No. 97 8a Entities
None		– %	$	–	$	–	$	–

Total SSAP No. 97 8a Entities		XXX	$	–	$	–	$	–

SSAP No. 97 8b(ii) Entities
None		– %	$	–	$	–	$	–

Total SSAP No. 97 8b(ii) Entities		XXX	$	–	$	–	$	–

SSAP No. 97 8b(iii) Entities
REAL ESTATE ALTERN PORT 3A INC		9 %	$	2	$	2	$	–

Total SSAP No. 97 8b(iii) Entities		XXX	$	2	$	2	$	–

SSAP No. 97 8b(iv) Entities
None		– %	$	–	$	–	$	–

Total SSAP No. 97 8b(iv) Entities		XXX	$	–	$	–	$	–

Total SSAP No. 97 8b Entities (except 8bi entities)		XXX	$	2	$	2	$	–

Aggregate Total		XXX	$	2	$	2	$	–

The following table shows the NAIC responses for the SCA filings (except 8bi entities):


SCA Entity	Type of NAIC Filing*		Date of Filing to the NAIC			NAIC Valuation Amount		NAIC Response Received Y/N		NAIC Disallowed Entities Valuation Method, Submission Required Y/N		Code**
SSAP No. 97 8a Entities
None					$		–		—		—		—

Total SSAP No. 97 8a Entities		—		—	$		–		—		—		—

SSAP No. 97 8b(ii) Entities
None					$		–		—		—		—

Total SSAP No. 97 8b(ii) Entities		—		—	$		–		—		—		—

SSAP No. 97 8b(iii) Entities
REAL ESTATE ALTERN PORT 3A INC		S2		12/18/2020	$		2		Y		N		I

Total SSAP No. 97 8b(iii) Entities		—		—	$		2		—		—		—

SSAP No. 97 8b(iv) Entities
None					$		–		—		—		—

Total SSAP No. 97 8b(iv) Entities		—		—	$		–		—		—		—

Total SSAP No. 97 8b Entities (except 8bi entities)		—		—	$		2		—		—		—

Aggregate Total		—		—	$		2		—		—		—


SCA Entity	Type of NAIC Filing*		Date of Filing to the NAIC			NAIC Valuation Amount		NAIC Response Received Y/N		NAIC Disallowed Entities Valuation Method, Submission Required Y/N		Code**
SSAP No. 97 8a Entities
None					$		–		—		—		—

Total SSAP No. 97 8a Entities		—		—	$		–		—		—		—

SSAP No. 97 8b(ii) Entities
None					$		–		—		—		—

Total SSAP No. 97 8b(ii) Entities		—		—	$		–		—		—		—

SSAP No. 97 8b(iii) Entities
REAL ESTATE ALTERN PORT 3A INC		S2		10/31/2019	$		4		Y		N		I

Total SSAP No. 97 8b(iii) Entities		—		—	$		4		—		—		—

SSAP No. 97 8b(iv) Entities
None					$		–		—		—		—

Total SSAP No. 97 8b(iv) Entities		—		—	$		–		—		—		—

Total SSAP No. 97 8b Entities (except 8bi entities)		—		—	$		4		—		—		—

Aggregate Total		—		—	$		4		—		—		—

Information regarding the Company’s affiliated reinsurance transactions is available in Note 8. Reinsurance.

The Company utilizes managing general agents and third-party administrators in its operations. Information regarding these entities is as follows:

The premiums written in 2020, which represents less than 5% of surplus, declined due to the underlying business being closed to new sales in December 2019.

At December 31, 2020 and 2019, the Company has mortgage loan commitments of $10 and $69, respectively.

The Company has contingent commitments of $37 and $143, at December 31, 2020 and 2019, respectively, to provide additional funding for joint ventures, partnerships and limited liability companies, which includes LIHTC commitments of $3 and $104, respectively.

Private placement commitments outstanding as of December 31, 2020 and 2019 were $2 and $15, respectively.

Cash collateral received from derivative counterparties as well as the obligation to return the collateral is recorded on the Company’s Balance Sheet. The amount of cash collateral received as of December 31, 2020 and 2019, respectively, was $43 and $60.

At December 31, 2020 and 2019, securities in the amount of $7 and $0, respectively, were posted to the Company as collateral from derivative counterparties. The securities were not included on the Company’s Balance Sheet as the Company does not have the ability to sell or repledge the collateral.

The Company is a member of the FHLB of New York. Through its membership, the Company establishes the option to access funds through secured borrowing arrangements with the FHLB. The Company is not in an active borrowing position; therefore, collateral pledged and borrowings are not applicable for this Company.

At December 31, 2020 and 2019, the Company purchased/owned the following FHLB stock as part of the agreement:

The Company is party to legal proceedings involving a variety of issues incidental to its business. Lawsuits may be brought in nearly any federal or state court in the United States or in an arbitral forum. In addition, there continues to be significant federal and state regulatory activity relating to financial services companies. The Company’s legal proceedings are subject to many variables, and given their complexity and scope, outcomes cannot be predicted with certainty. Although legal proceedings sometimes include substantial demands for compensatory and punitive damages, and injunctive relief, damages arising from such demands are typically not material to the Company’s financial position.

The Company is subject to insurance guaranty laws in the states in which it writes business. These laws provide for assessments against insurance companies for the benefit of policyholders and claimants in the event of insolvency of other insurance companies. Assessments are charged to operations when received by the Company, except where right of offset against other taxes paid is allowed by law. Amounts available for future offsets are recorded as an asset on the Company’s Balance Sheet. The future obligation for known insolvencies has been accrued based on the most recent information available from the National Organization of Life and Health Insurance Guaranty Associations. Potential future obligations for unknown insolvencies are not determinable by the Company and are not required to be accrued for financial reporting purposes. The Company has established a reserve and an offsetting premium tax benefit at December 31, 2020 and 2019 for its estimated share of future guaranty fund assessments related to several major insurer insolvencies. These amounts were not material to the Company’s financial position. The guaranty fund (benefit) expense was $5 for the year ended December 31, 2019 and insignificant for the years ended December 31, 2018 and 2020.

16. Sales, Transfer and Servicing of Financial Assets and Extinguishments of Liabilities

The Company enters into dollar repurchase agreements in which residential mortgage backed securities are delivered to the counterparty once adequate collateral has been received. As of December 31, 2020 and 2019, the Company had dollar repurchase agreements outstanding in the amount $146 and $66, which is included in borrowed money on the Balance Sheets. Those amounts included an insignificant amount of accrued interest at both December 31, 2020 and 2019. At December 31, 2020, securities with a book value of $146 and a fair value of $147 were subject to dollar repurchase agreements. These securities have maturity dates that range from May 1, 2050 to November 1, 2050. At December 31, 2019, securities with a book value of $66 and a fair value of $66 were subject to dollar repurchase agreements. The Company does not have the legal right to recall or substitute the underlying assets prior to the transaction’s scheduled termination. Upon scheduled termination, the counterparty is obligated to return substantially similar assets.

The contractual maturities of the dollar repurchase agreement positions are as follows:

In the course of the Company’s asset management, securities are sold and reacquired within 30 days of the sale date to enhance the Company’s yield on its investment portfolio. During 2020 and 2019 there were no securities sold and reacquired within 30 days of the sale date.

The financial statements are adjusted to reflect events that occurred between the Balance Sheet date and the date when the financial statements are available to be issued, provided they give evidence of conditions that existed at the Balance Sheet date (Type I). The Company has not identified any Type I subsequent events for the year ended December 31, 2020 through April 14, 2021.

Events that are indicative of conditions that arose after the Balance Sheet date are disclosed, but do not result in an adjustment of the financial statements themselves (Type II). The Company has identified a Type II subsequent event for the year ended December 31, 2020. On March 31, 2021, the Company paid a common stock dividend of $100 to TA Corp.

Type of Investment

Cost (1)

Fair

Value

Amount at
Which Shown

in the

Balance Sheet (2)

Fixed maturities

Bonds:

United States government and government agencies and authorities

499

734

514

States, municipalities and political subdivisions

168

175

168

Foreign governments

103

117

103

Hybrid securities

106

108

106

All other corporate bonds

5,026

5,675

5,022

Preferred stocks

Total fixed maturities

5,909

6,816

5,920

Equity securities

Common stocks:

Industrial, miscellaneous and all other

Total equity securities

Mortgage loans on real estate

1,548

Policy loans

131

Other long-term investments

128

Receivable for derivative cash collateral posted to counterparty

Securities lending

398

Cash, cash equivalents and short-term investments

598

Total investments

8,739

8,752

*Allocations of net investment income and other operating expenses are based on a number of assumptions and estimates, and the results would change if different methods were applied

Item 26. Persons Controlled by or under Common Control with the Depositor or Registrant.

As of December 31, 2020, the following pages shows all corporations directly or indirectly controlled or under common control, with the Depositor, showing the state or other sovereign power under the laws of which each is organized and the percentage ownership of voting securities giving rise to the control relationship.

The Iowa Code (Sections 490.850 et. seq.) provides for permissive indemnification in certain situations, mandatory indemnification in other situations, and prohibits indemnification in certain situations. The Code also specifies producers for determining when indemnification payments can be made.

Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the Depositor pursuant to the foregoing provisions, or otherwise, the Depositor has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the Depositor of expenses incurred or paid by a director, officer or controlling person in connection with the securities being registered), the Depositor will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue.

The records required to be maintained by Section 31(a) of the Investment Company Act of 1940 and Rules 31a-1 to 31a-3 promulgated thereunder, are maintained by Manager Regulatory Filing Unit, Transamerica Life Insurance Company at 4333 Edgewood Road, N.E., Cedar Rapids, Iowa 52499-0001.

Transamerica Life Insurance Company represents that it is relying on a no-action letter dated November 28, 1988, to the American Council of Life Insurance (Ref. No. IP-6-88), regarding Sections 22(e), 27(c)(1), and 27(d) of the Investment Company Act of 1940, in connection with redeemability restrictions on Section 403(b) Policies, and that paragraphs numbered (1) through (4) of that letter will be complied with.

The Registrant intends to offer policies to participants in the Texas Option Retirement Program. In connection with that offering, the Registrant is relying on Rule 6c-7 under the Investment Company Act of 1940 and is complying with, or shall comply with, paragraphs (a) – (d) of that Rule.


Transamerica B-Share Variable Annuity		Transamerica Axiom^SM III Variable Annuity
Transamerica I-Share II Variable Annuity		Transamerica Principium^SM IV Variable Annuity


Waiting Period		Single and Joint Life
10 Years		1.35%
7 Years		1.35%


Waiting Period	Initial Protection Level Percentage	Minimum Protection Level Percentage
10 Years	100%	80%
7 Years	90%	80%


10 and 7 Year Waiting Periods	Premium Allocation Requirement		Rebalance Allocation Requirement
10 and 7 Year Waiting Periods	Minimum	Maximum	Minimum	Maximum
Stable Account*	30%	30%	N/A	N/A
Select Investment Options	0%	70%	0%	100%
Flexible Investment Options	0%	70%	0%	100%


Age	10 and 7 Year Waiting Periods
Age	Single**	Joint**
0-58	0.00%	0.00%
59-64	3.75%	3.25%
65-80	5.00%	4.50%
81+	5.50%	5.00%


Transamerica Life Insurance Company
Product Name	SEC File Number	Product Name	SEC File Number
Transamerica B-Share Variable Annuity	333-233836	Transamerica Axiom^SM III Variable Annuity	333-233837
Transamerica I-Share II Variable Annuity	333-233839	Transamerica Principium^SM IV Variable Annuity	333-233838


Age at time of first withdrawal	Withdrawal Percentage - Single Life Option^*	Withdrawal Percentage - Joint Life Option^*
0-58	0.00%	0.00%
59-64	3.75%	3.25%
65-80	5.00%	4.50%
³ 81	5.50%	5.00%


Transamerica B-Share Variable Annuity		Transamerica Axiom^SM III Variable Annuity
Transamerica I-Share II Variable Annuity		Transamerica Principium^SM IV Variable Annuity


Rider Benefit	Single Life Option	Joint Life Option
Base Benefit Designated Allocation Group A	1.85%	1.95%
Base Benefit Designated Allocation Group B	1.40%	1.50%
Base Benefit Designated Allocation Group C	0.95%	1.05%
Death Benefit	0.40%	0.35%
Income Enhancement	0.30%	0.50%


	Premium		Rebalance
	Minimum	Maximum	Minimum	Maximum
Stable Account*	30%	30%	N/A	N/A
Select Investment Options	0%	70%	0%	100%
Flexible Investment Options	0%	70%	0%	100%


Age at time of first withdrawal	Rider Years 1-5 Withdrawal Percentage Single Life Option^**	Rider Years 6-10 Withdrawal Percentage Single Life Option^**	Rider Years 11+ Withdrawal Percentage Single Life Option^**
0-58	0.00%	0.00%	0.00%
59-64	3.75%	4.25%	4.75%
65-80	5.00%	5.50%	6.00%
³ 81	5.50%	6.00%	6.50%

APPENDIX
Hypothetical Adjusted withdrawals - Transamerica Principal Optimizer^SM and Transamerica Income Edge^SM1.2 Riders	123
APPENDIX
Hypothetical Example of the Withdrawal Base Calculation - Retirement Income Max^® 1.2 rider	125
APPENDIX
Hypothetical Example of the Withdrawal Base Calculation - Retirement Income Choice^® 1.7 Rider	127
APPENDIX
Hypothetical Example of the Withdrawal Base Calculation - Transamerica Principal Optimizer^SM and Transamerica Income Edge^SM 1.2 riders	129

American Funds Static Allocation:		Allocation %
American Funds - Asset Allocation Fund Class 4		37.5%
American Funds - The Bond Fund of America^SM - Class 4		50.0%
American Funds - Growth Fund - Class 4		7.5%
American Funds - International Fund - Class 4		5.0%

Transamerica Static Allocation – Active:		Allocation %
TA Aegon High Yield Bond - Service Class		5.0%
TA International Growth - Service Class		3.0%
TA JPMorgan Core Bond - Service Class		65.0%
TA Rothschild & Co Large Cap Value - Service Class		16.0%
TA T. Rowe Price Small Cap - Service Class		3.0%
TA WMC US Growth - Service Class		8.0%

Transamerica Static Allocation – Passive:		Allocation %
TA JPMorgan Core Bond - Service Class		65.0%
TA MSCI EAFE Index - Service Class		4.0%
TA S&P 500 Index - Service Class		31.0%


Single		Joint
1.50%		1.60%


Single		Joint
1.45%		1.55%

⁽¹⁾	Automatic Step Up Applied
⁽²⁾	Growth Applied
⁽³⁾	Growth Basis Reset/Growth Component Stacking Applied
*	Growth Percentage = 5%

	10 and 7 Year Waiting Periods
	Age	Single	Joint
Prior to August 31, 2020	0-58	0.00%	0.00%
	59-64	4.00%	3.50%
	65-79	5.00%	4.50%
	80+	6.00%	5.50%

Date	Age at time of first withdrawal	Singe Life Percentage	Joint Life Percentage
Prior to September 1, 2020	0-58 59-64 65-79 ≥80	0.00% 4.00% 5.00% 5.50%	0.00% 3.50% 4.50% 5.00%
After September 1, 2020	0-58 59-64 65-80 ≥81	0.00% 3.75% 5.00% 5.50%	0.00% 3.25% 4.50% 5.00%


Report of Independent Auditors			1

Audited Financial Statements

Balance Sheets – Statutory Basis			3
Statements of Operations – Statutory Basis			4
Statements of Changes in Capital and Surplus – Statutory Basis			5
Statements of Cash Flow – Statutory Basis			7


1. Organization and Nature of Business			9
2. Basis of Presentation and Summary of Significant Accounting Policies			10
3. Accounting Changes and Correction of Error			25
4. Fair Values of Financial Instruments			27
5. Investments			35
6. Premium and Annuity Considerations Deferred and Uncollected			56
7. Policy and Contract Attributes			57
8. Reinsurance			70
9. Income Taxes			74
10. Capital and Surplus			81
11. Securities Lending			82
12. Retirement and Compensation Plans			83
13. Related Party Transactions			85
14. Managing General Agents			92
15. Commitments and Contingencies			92
16. Sales, Transfer, and Servicing of Financial Assets and Extinguishments of Liabilities			98
17. Reconciliation to Statutory Statement			101
18. Subsequent Events			102

Appendix A –Listing of Affiliated Companies			103

Statutory-Basis Financial Statement Schedules

Summary of Investments – Other Than Investments in Related Parties			106
Supplementary Insurance Information			107
Reinsurance			108


	December 31

	2020			2019
Admitted assets
Cash, cash equivalents and short-term investments	$	1,832		$	2,442
Bonds		50,444			43,976
Preferred stocks		105			117
Common stocks		3,556			3,376
Mortgage loans on real estate		9,015			7,834
Real estate		56			239
Policy loans		2,037			2,062
Securities lending reinvested collateral assets		2,115			2,004
Derivatives		2,973			1,743
Other invested assets		3,222			3,170
Total cash and invested assets		75,355			66,963

Accrued investment income		697			637
Premiums deferred and uncollected		240			438
Net deferred income tax asset		812			742
Variable annuity reserve hedge offset deferral		–			195
Letter of credit		–			1,870
Other assets		1,344			1,022
Separate account assets		121,820			112,229
Total admitted assets	$	200,268		$	184,096


Liabilities and capital and surplus
Aggregate reserves for policies and contracts	$	50,966		$	45,865
Policy and contract claim reserves		1,257			943
Liability for deposit-type contracts		946			948
Other policyholders’ funds		32			32
Transfers from separate accounts due or accrued		(823	)		(925	)
Funds held under reinsurance treaties		3,889			3,994
Asset valuation reserve		1,198			1,267
Interest maintenance reserve		1,389			1,356
Derivatives		3,493			1,933
Payable for collateral under securities loaned and other transactions		2,755			2,691
Borrowed money		3,486			2,709
Variable annuity reserve hedge offset deferral		145			–
Other liabilities		1,605			1,703
Separate account liabilities		121,820			112,229
Total liabilities		192,158			174,745
Total capital and surplus		8,110			9,351
Total liabilities and capital and surplus	$	200,268		$	184,096


	Year Ended December 31
	2020			2019			2018
Revenues
Premiums and other considerations	$	16,723		$	15,708		$	14,597
Net investment income		3,361			2,765			2,744
Commissions and expense allowances on reinsurance ceded		661			470			785
Reserve adjustment on reinsurance ceded		(273	)		(128	)		(155	)
Consideration received on reinsurance recapture and novations		2,958			15			183
Fee revenue and other income		2,096			2,150			2,338
Total revenue		25,526			20,980			20,492

Benefits and expenses
Death benefits		2,863			2,358			2,380
Annuity benefits		1,528			1,492			1,442
Accident and health benefits		1,120			1,112			1,124
Surrender benefits		15,352			16,301			15,853
Other benefits		234			230			224
Net increase (decrease) in reserves		4,985			(1,329	)		991
Commissions		1,435			1,481			1,600
Net transfers to (from) separate accounts		(4,850	)		(5,130	)		(4,407	)
IMR adjustment due to reinsurance		–			–			(13	)
General insurance expenses and other		1,780			1,254			1,615
Total benefits and expenses		24,447			17,769			20,809
Gain (loss) from operations before dividends and federal income taxes		1,079			3,211			(317	)
Dividends to policyholders		10			10			7
Gain (loss) from operations before federal income taxes		1,069			3,201			(324	)
Federal income tax (benefit) expense		(109	)		(39	)		(36	)
Net gain (loss) from operations		1,178			3,240			(288	)
Net realized capital gains (losses), after tax and amounts transferred to interest maintenance reserve		113			469			(786	)
Net income (loss)	$	1,291		$	3,709		$	(1,074	)


Balance at January 1, 2018	Common Stock		Preferred Stock			Treasury Stock			Surplus Notes			Paid-in Surplus			Special Surplus Funds			Unassigned Surplus			Total Capital and Surplus
As originally presented	$	7	$	1		$	(58	)	$	150		$	3,473		$	90		$	3,689			7,352
Merger of TPLIC, MLIC Re and PFRe		–		–			–			160			1,246			4			896			2,306
Balance at January 1, 2018		7		1			(58	)		310			4,719			94			4,585			9,658
Net income (loss)		–		–			–			–			–			–			(1,074	)		(1,074	)
Change in net unrealized capital gains/losses, net of taxes		–		–			–			–			–			145			1,182			1,327
Change in net deferred income tax asset		–		–			–			–			–			–			168			168
Change in nonadmitted assets		–		–			–			–			–			–			63			63
Change in reserve on account of change in valuation basis		–		–			–			–			–			–			(7	)		(7	)
Change in asset valuation reserve		–		–			–			–			–			–			(12	)		(12	)
Change in surplus as a result of reinsurance		–		–			–			–			–			–			33			33
Change in letter of credit		–		–			–			–			–			–			(82	)		(82	)
Dividends to stockholders		–		–			–			–			–			–			(624	)		(624	)
Return of capital		–		–			–			–			(559	)		–			–			(559	)
Other changes - net		–		(1	)		–			–			3			(7	)		(1	)		(6	)
Balance at December 31, 2018	$	7	$	–		$	(58	)	$	310		$	4,163		$	232		$	4,231		$	8,885
Net income (loss)		–		–			–			–			–			–			3,709			3,709
Change in net unrealized capital gains/losses, net of taxes		–		–			–			–			–			(37	)		(239	)		(276	)
Change in net deferred income tax asset		–		–			–			–			–			–			(160	)		(160	)
Change in nonadmitted assets		–		–			–			–			–			–			124			124
Change in reserve on account of change in valuation basis		–		–			–			–			–			–			(1,218	)		(1,218	)
Change in asset valuation reserve		–		–			–			–			–			–			(252	)		(252	)
Change in surplus as a result of reinsurance		–		–			–			–			–			–			(143	)		(143	)
Change in surplus notes		–		–			–			(250	)		–			–			–			(250	)
Change in treasury stock		–		–			58			–			–			–			–			58
Change in letter of credit		–		–			–			–			–			–			(160	)		(160	)
Dividends to stockholders		–		–			–			–			–			–			(733	)		(733	)
Return of capital		–		–			–			–			(308	)		–			–			(308	)
Other changes - net		–		–			–			–			2			2			71			75
Balance at December 31, 2019	$	7	$	–		$	–		$	60		$	3,857		$	197		$	5,230		$	9,351


	Year Ended December 31, 2019
	Company			TPLIC		MLIC Re		PFRe			Eliminations			Merged Totals

Total assets	$	130,223		$	52,517	$	1,120	$	1,507		$	(1,271	)	$	184,096
Total liabilities		123,695			50,216		779		1,326			(1,271	)		174,745
Capital and surplus		6,528			2,301		341		181			–			9,351
Total revenue		16,142			4,634		211		29			(36	)		20,980
Total benefits and expenses		13,157			4,251		150		61			150			17,769
Net income (loss)		3,294			572		61		(32	)		(186	)		3,709

	Year Ended December 31, 2018
	Company			TPLIC		MLIC Re		PFRe			Eliminations			Merged Totals

Total revenue	$	15,437		$	4,873	$	230	$	29		$	(77	)	$	20,492
Total benefits and expenses		16,204			4,233		183		71			118			20,809
Net income (loss)		(1,424	)		536		47		(38	)		(195	)		(1,074	)


	December 31, 2019
	Aggregate Fair Value			Admitted Value		(Level 1)		(Level 2)			(Level 3)		Net Asset Value (NAV)		Not Practicable (Carrying Value)
Admitted assets
Cash equivalents and short–term investments, other than affiliates	$	1,949		$	1,949	$	1,504	$	445		$	–	$	–	$	–
Short–term notes receivable from affiliates		343			343		–		343			–		–		–
Bonds		49,377			43,976		7,355		41,373			649		–		–
Preferred stocks, other than affiliates		114			117		–		111			3		–		–
Common stocks, other than affiliates		140			140		12		–			128		–		–
Mortgage loans on real estate		8,259			7,834		–		–			8,259		–		–
Other invested assets		461			398		–		441			20		–		–
Derivative assets:
Options		312			312		–		312			–		–		–
Interest rate swaps		1,375			1,372		–		1,375			–		–		–
Currency swaps		22			12		–		22			–		–		–
Credit default swaps		79			45		–		79			–		–		–
Equity futures		3			3		3		–			–		–		–
Derivative assets total		1,791			1,744		3		1,788			–		–		–
Policy loans		2,062			2,062		–		2,062			–		–		–
Securities lending reinvested collateral		1,588			1,588		–		1,588			–		–		–
Separate account assets		110,612			110,546		104,750		5,857			5		–		–

Liabilities
Investment contract liabilities		18,960			13,396		–		264			18,696		–		–
Derivative liabilities:
Options		152			152		–		152			–		–		–
Interest rate swaps		1,204			1,501		–		1,204			–		–		–
Currency swaps		19			19		–		19			–		–		–
Credit default swaps		(7	)		15		–		(7	)		–		–		–
Equity swaps		216			216		–		216			–		–		–
Interest rate futures		23			23		23		–			–		–		–
Equity futures		7			7		7		–			–		–		–
Derivative liabilities total		1,614			1,933		30		1,584			–		–		–
Dollar repurchase agreements		704			704		–		704			–		–		–
Payable for securities lending		2,004			2,004		–		2,004			–		–		–
Payable for derivative cash collateral		687			687		–		687			–		–		–
Separate account liabilities		101,194			101,195		3		101,144			47		–		–


	2020
	Level 1		Level 2		Level 3		Net Asset Value (NAV)		Total
Assets:
Bonds
Industrial and miscellaneous	$	–	$	41	$	7	$	–	$	48

Total bonds		–		41		7		–		48

Preferred stock
Industrial and miscellaneous		–		6		–		–		6

Total preferred stock		–		6		–		–		6

Common stock
Mutual funds		6		–		–		–		6
Industrial and miscellaneous		14		–		160		–		174

Total common stock		20		–		160		–		180

Cash equivalents and short–term
Money market mutual funds		1,029		–		–		–		1,029

Total cash equivalents and short–term		1,029		–		–		–		1,029

Derivative assets		18		2,894		–		–		2,912
Separate account assets		112,606		6,393		–		–		118,999

Total assets	$	113,673	$	9,334	$	167	$	–	$	123,174

Liabilities:
Derivative liabilities	$	5	$	3,184	$	–	$	–		3,189
Separate account liabilities		1		–		–		–		1

Total liabilities	$	6	$	3,184	$	–	$	–	$	3,190


	2019
	Level 1		Level 2		Level 3		Net Asset Value (NAV)		Total
Assets:
Bonds
Industrial and miscellaneous	$	–	$	16	$	7	$	–	$	23

Total bonds		–		16		7		–		23

Preferred stock
Industrial and miscellaneous		–		–		3		–		3

Total preferred stock		–		–		3		–		3

Common stock
Mutual funds		5		–		–		–		5
Industrial and miscellaneous		7		–		128		–		135

Total common stock		12		–		128		–		140

Cash equivalents and short–term
Money market mutual funds		1,504		–		–		–		1,504

Total cash equivalents and short–term		1,504		–		–		–		1,504

Derivative assets		3		1,680		–		–		1,683
Separate account assets		104,614		5,273		4		–		109,891

Total assets	$	106,133	$	6,969	$	142	$	–	$	113,244

Liabilities:
Derivative liabilities	$	30	$	1,650	$	–	$	–	$	1,680
Separate account liabilities		3		–		–		–		3

Total liabilities	$	33	$	1,650	$	–	$	–	$	1,683


	Beginning Balance at January 1, 2020		Transfers in (Level 3)		Transfers out (Level 3)		Total Gains (Losses) Included in Net income (a)			Total Gains (Losses) Included in Surplus (b)

Bonds
Other	$	7	$	2	$	–	$	–		$	(2)
Preferred stock		3		–		–		(17	)		13
Common stock		128		–		2		(1	)		16
Separate account assets		4		–		4		–			–

Total	$	142	$	2	$	6	$	(18	)	$	27



	Purchases		Issuances		Sales		Settlements			Ending Balance at December 31, 2020

Bonds
Other	$	–	$	–	$	–	$	–		$	7
Preferred stock		2		–		–		1			–
Common stock		21		8		10		–			160
Separate account assets		1		-		-		1			-

Total	$	24	$	8	$	10	$	2		$	167


	Book Adjusted Carrying Value		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value

December 31, 2020

Bonds:
United States Government and agencies	$	7,279	$	2,349	$	7	$	9,621
State, municipal and other government		2,214		310		8		2,516
Hybrid securities		360		83		6		437
Industrial and miscellaneous		33,784		6,355		48		40,091
Mortgage and other asset-backed securities		6,807		679		59		7,427

Total unaffiliated bonds		50,444		9,776		128		60,092
Unaffiliated preferred stocks		105		11		7		109

	$	50,549	$	9,787	$	135	$	60,201


	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value

Unaffiliated common stocks	$	136	$	44	$	–	$	180


	Book Adjusted Carrying Value		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value

December 31, 2019

Bonds:
United States Government and agencies	$	5,882	$	1,023	$	1	$	6,904
State, municipal and other government		1,877		161		25		2,013
Hybrid securities		412		60		4		468
Industrial and miscellaneous		29,448		3,737		86		33,099
Mortgage and other asset-backed securities		6,357		558		22		6,893

Total unaffiliated bonds		43,976		5,539		138		49,377
Unaffiliated preferred stocks		117		5		8		114

	$	44,093	$	5,544	$	146	$	49,491


	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value

Unaffiliated common stocks	$	117	$	23	$	–	$	140


	2020
December 31:	Carrying Value		Fair Value

Due in one year or less	$	1,157	$	1,176
Due after one year through five years		7,139		7,988
Due after five years through ten years		8,893		10,601
Due after ten years		26,448		32,900

		43,637		52,665
Mortgage and other asset-backed securities		6,807		7,427

	$	50,444	$	60,092


	2020
	Equal to or Greater than 12 Months				Less than 12 Months
	Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses
United States Government and agencies	$	–	$	–	$	248	$	7
State, municipal and other government		39		6		89		2
Hybrid securities		20		5		10		1
Industrial and miscellaneous		160		15		836		33
Mortgage and other asset-backed securities		150		18		742		41

Total bonds		369		44		1,925		84

Preferred stocks-unaffiliated		22		6		16		1

	$	391	$	50	$	1,941	$	85


	2019
	Equal to or Greater than 12 Months				Less than 12 Months
	Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses

United States Government and agencies	$	1	$	–	$	22	$	1
State, municipal and other government		55		12		329		13
Hybrid securities		45		4		3		–
Industrial and miscellaneous		615		62		798		24
Mortgage and other asset-backed securities		286		16		884		6

Total bonds		1,002		94		2,036		44

Preferred stocks-unaffiliated		49		8		5		–
Common stocks-unaffiliated		–		–		1		–

	$	1,051	$	102	$	2,042	$	44


CUSIP	Amortized Cost Before Current Period OTTI		Present Value of Projected Cash Flows		Recognized OTTI		Amortized Cost After OTTI		Fair Value at Time of OTTI		Date of Financial Statement Where Reported
36828QQK5	$	1	$	–	$	1	$	–	$	–		3/31/2020
52108MDM2		4		3		1		4		4		3/31/2020
52108MDM2		3		1		2		1		3		9/30/2020

					$	4


	2020				2019
	Losses 12 Months or More		Losses Less Than 12 Months		Losses 12 Months or More		Losses Less Than 12 Months

Year ended December 31:
The aggregate amount of unrealized losses	$	18	$	61	$	15	$	19
The aggregate related fair value of securities with unrealized losses		150		765		286		901


	Number of 5GI Securities		Book / Adjusted Carrying Value		Fair Value
December 31, 2020
Bond, amortized cost		2	$	13	$	13
Loan-backed and structured securities, amortized cost		4		10		6

Total		6	$	23	$	19


December 31, 2019
Bond, amortized cost		3	$	24	$	24
Loan-backed and structured securities, amortized cost		4		10		10
Preferred stock, amortized cost		1		3		3

Total		8	$	37	$	37


December 31, 2020	Gross Amount Recognized		Amount Offset		Net Amount Presented on Financial Statements

Assets:
Receivables for securities	$	3	$	–	$	3

Liabilities:
Borrowed money	$	967	$	–	$	967

December 31, 2019	Gross Amount Recognized		Amount Offset		Net Amount Presented on Financial Statements

Assets:
Receivables for securities	$	120	$	101	$	19

Liabilities:
Borrowed money	$	550	$	101	$	449