Transamerica B-Share Variable Annuity review

Yes, for the right buyer. This is a good annuity for someone who wants broad investment access inside a tax-deferred wrapper, can live with market risk, and values the flexibility of a large subaccount menu. It is less appealing for someone who wants principal protection, wants low costs above all else, or expects to need access to more than the free amount before year seven.

The main reason to buy the Transamerica B-Share is market participation with tax deferral. Someone buys this when they want their money working inside mutual fund-like subaccounts over time without paying annual taxes on gains along the way. The secondary reason is optional protection — enhanced death benefit riders and optional lifetime income riders give buyers tools to manage downside or create future income, though those features add cost.

I think this annuity is best for someone in the accumulation phase who wants access to a wide range of investment choices inside a variable annuity, has a genuine long-term horizon, and is comfortable accepting real market risk in exchange for market upside. It is especially worth considering for someone who wants the option to layer on a lifetime income or enhanced death benefit guarantee later, even if they do not elect one at issue.

It is less attractive for someone who wants guaranteed growth, wants to minimize fees, or expects to dip into the account before the surrender period ends.

You are not buying principal protection. This is a variable annuity — account value goes up and down with the underlying subaccounts you choose. What the insurance wrapper gives you is tax deferral, a death benefit floor, access to optional income guarantees, and the ability to move between 74+ subaccounts without a taxable event. The annuity structure provides the framework; the subaccounts drive the actual investment results.

The B-Share gives you access to 74 variable subaccounts from managers including Vanguard, Fidelity, BlackRock, American Funds, J.P. Morgan, Goldman Sachs, and several specialty managers. The net subaccount expense range runs from a low of 0.13% (Vanguard index funds) to a high of 1.59% (TA Goldman Sachs 70/30), so fund selection matters meaningfully to total cost.

You can hold a fixed account earning 0.25% (not competitive as a primary allocation) and dollar-cost-averaging options at 0.25%–2.00%, with the higher DCA rate available on the 13-to-24-month DCA track.

Transfers among subaccounts are free up to 12 per year, which gives buyers flexibility to rebalance or shift strategy without triggering fees.

The most meaningful secondary feature is the optional death benefit upgrade. Three death benefit options exist at issue:

**Policy Value** (no upgrade, M&E of 1.15%) is the base, appropriate for buyers who do not want to pay for a death benefit floor they may not use.

**Return of Premium** (M&E of 1.30%) guarantees beneficiaries receive at least premiums paid less withdrawals, regardless of market performance. The additional 0.15% annual cost is modest for genuine downside protection on the death benefit.

**Annual Step-Up** (M&E of 1.50%, issue ages 0–75) ratchets the death benefit to the highest anniversary value up to age 81, then holds there. The 0.35% premium over the base is more meaningful, and this option only makes sense for buyers who specifically want a growing death benefit floor and are issued young enough to qualify.

This is a per-premium B-share, which means the 7-year surrender clock runs from the date each premium payment is made — not from the contract date. That matters for buyers who add subsequent premiums: each new contribution starts its own 7-year timer (8%, 8%, 7%, 6%, 5%, 4%, 3%, then 0%).

Free withdrawals are available immediately at up to 10% of total premiums paid per year, which is a meaningful provision and more accessible than annuities that start the free amount only after year one.

A market value adjustment (MVA) applies to surrenders within the charge period. Nursing home confinement (30 consecutive days) and terminal illness (less than one year to live) waivers allow full or partial surrender without charge, though not in all states. An unemployment waiver is also available in most states (not California, Florida, or New York).

The Liquidity Rider is a separate option not available at all firms. It shortens the effective surrender schedule to 5 years (8%, 8%, 7%, 6%, 0%) at a cost of 0.50% annually for the first four policy years.

The base M&E&A is **1.15%** annually with the standard Policy Value death benefit. This covers the insurance guarantee and administrative expenses. It rises to **1.30%** with Return of Premium and **1.50%** with Annual Step-Up.

On top of M&E&A, the annual service charge is the lesser of $35 or 2% of account value, waived if net premiums paid or account value reaches $100,000. A fund facilitation fee of up to 0.60% applies to certain subaccounts.

Then there are subaccount expenses, which range from 0.13% (Vanguard index) to 1.59% depending on what you choose. On a low-cost subaccount lineup, total annual expenses can be held below 1.50%. On an actively managed lineup with income or death benefit riders, total costs can approach or exceed 3% annually.

The three optional GLWB riders add further cost: Principal Optimizer II runs 1.35% annually; Income Edge 1.2 runs 1.45% single or 1.55% joint. Maximum charges can reach 2.50% for living benefit riders, which is a meaningful ceiling to understand.

The Transamerica B-Share is issued by Transamerica Life Insurance Company, a Cedar Rapids, Iowa-based carrier that is part of Aegon. Based on the available product materials, Transamerica Life holds an A.M. Best rating of A and a Standard and Poor's rating of A+. Transamerica is a large, established variable annuity carrier with broad national distribution through full-service broker-dealers, independent broker-dealers, and banks.