In the competitive and ever changing life insurance industry, many insurance companies, to stay competitive, replace old products with new ones or change existing products to stay ahead of the competition, but as the Flexible Dollar Builder (FDB) by Trans World Assurance reaches the 50-year milestone, it has remained virtually unchanged.
In the beginning, the product was designed to provide military members with life insurance and an accumulation fund to build cash for retirement. Back then, there was no Servicemembers' Group Life Insurance (SGLI) and many military members had no insurance and little retirement. Today, the policy still serves the military and continues to gain new audiences. The Flexible Dollar Builder is now used as a retirement and employee benefit plan for teachers, municipalities, civilian government employees and individuals looking to gain protection and accumulate cash.
The program appeals to a wide audience because of its easy to understand structure and variety of beneficial features. The flexibility of the program as well as its interest paying track record also make it very attractive. Because the program includes permanent life protection and also access to accumulation funds, it can be used for a number of life changing events. For this reason, families are using the cash accumulation feature of the Flexible Dollar Builder for things such as a college fund, retirement plan, supplement to employee benefits, emergency fund, home purchase and military discharge relocation.**
The Flexible Dollar Builder Life Insurance plan includes, a tax-deferred, interest-bearing Accumulation Fund. The interest rate on the fund has averaged 10.2 percent over the last 32 years.* It is currently guaranteed by Trans World Assurance to be at least 4 percent. The current rate of 5 percent will remain the same for the rest of the year. In conjunction with their life insurance premium, policyholders can contribute additional funds each year to the Accumulation Fund. The money in the fund grows tax-deferred and policyholders can withdraw accumulation fund values at anytime.**
"We are proud to offer innovative products like the Flexible Dollar Builder that have stood the test of time," stated Trans World Assurance president Charles B. Royals.
"We are also proud that Trans World Assurance remains strong and stable even in these uncertain economic times. Our conservative approach of investing in sound assets, such as U.S. treasury bonds, has kept us strong and financially stable."
Even in the most challenging economy the United States has seen in recent history, Trans World Assurance remains strong and stable. The company's A.M. Best financial strength rating has been B++ (Good) or higher for the last 45 years. A.M. Best Company is a credit rating organization that serves the financial and health care service industries. It is an independent third party and neither endorses nor is affiliated with any of the companies it rates.
*Past performance is not an indicator of future results.
**There may be a 5% charge on amounts withdrawn in the first 10 years.