Plan and Protect.
The essential theory of all life insurance is to replace lost income so you have a safety net for your loved ones
in the event of death. There are two different types of individual life insurance available: term life insurance
and permanent life insurance. The type, or combination of types that are right for you can vary. When deciding what
type of insurance policy is right for you, it’s important to ask yourself how much you need, how long you need it for,
what you can afford to pay and what standard of living you want to provide for your beneficiaries.
Your insurance needs may change when you experience a significant life event such as marriage, divorce, a new
addition to the family, a move or a job change.
If you have any dependents and are an adult earning income in your household, typically you will
want to have a life insurance policy until your youngest child completes college. Or if you have
any large financial commitments such as credit card debt or a mortgage you can benefit by using
life insurance to ensure that debt is covered.
Main characteristics of term life insurance are:
- Time specific insurance protection
- Typically lower premiums
- No cash value
- Usually renewable
- Sometimes convertible to permanent life insurance
Main characteristics of permanent life insurance are:
- Lifetime insurance protection
- Typically more expensive premiums
- Flexibility of benefits
- Builds cash value
- Loans are permitted against the policy
- Favorable tax treatment of policy earnings
- Level premiums
To learn more about the different types of insurance, read
Buying Life Insurance: What kind and how much
or call one of our financial advisors for a free consultation
at 866-248-9421.
You’ve worked hard to create your retirement strategy and build up wealth for you and you’re loved
ones. It’s important to have a plan in place to help safeguard those assets should your family be
faced with a loss. Life insurance provides an expected and predictable sum of money with immediate
liquidity upon the death of the insured so you don’t have to forfeit your future financial goals and
commitments. Also, depending on the policy, cash values can be accessed while alive should the need
arise and if a cash value is included in your policy.*
Answer the following questions and then call one of our financial advisors to determine the correct premium for your needs.
- What monthly income do you need?
- How many years do you need this monthly income?
- What amount do you want as your initial lump sum (optional)?
- What amount do you want as your backend lump sum (optional)?
- Do the premiums vary from year to year?
- What part of the premiums or benefits is not guaranteed?
- How much do the benefits build up in the policy?
- What is the effect of interest on money paid and received at different times on the policy?
- How quickly does the cash value grow?
- Do the policy benefits and features suit your specific needs?
- How are non-guaranteed values determined?
Resources: Investopedia.com & Transamerica Insurance and Investment Group
The SecurePathSM by Transamerica Advantage
SecurePath by Transamerica offers you access to a wide variety of insurance products that have industry leading
maximum issue ages, competitively priced premiums, and potential lifetime coverage. But most importantly we
provide you with choices and solutions that are specific to you. Our financial advisors can assess whether your
current plans and financial status align with your future plans and make recommendations unique to your situation.
It’s a customized, made- to- order retirement plan. Call one of our financial advisors and find out how life
insurance can play an important role in your financial portfolio. Contact us today.
*Loans and withdrawals will affect the cash value of the policy and could affect the death benefit.
Amounts received on withdrawals and surrenders may be subject to federal income taxes and/or company-imposed surrender penalties.
SecurePath by Transamerica is a service of Transamerica Retirement Management,
a marketing unit of Transamerica Life Insurance Company, Cedar Rapids IA, and Transamerica Financial Life Insurance Company,
Purchase NY. Insurance products are offered through InterSecurities Insurance Agency, Inc., a licensed insurance agency in most
states. All companies named herein are AEGON companies.