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Home : Planning Your Finances : Planning for Life Events : Raising a Family
Getting Married | Buying a Home | Raising a Family
| Saving for Education
Raising a Family
Raising a child is one of the great joys – and challenges – of life. And since it is impossible to predict the future,
it is incumbent upon you to make certain that your family is properly protected.
Key Issues
As a parent, you'll have new financial responsibilities. Begin by reviewing and estimating future expenses. You may need
to consider the costs of buying a new house or funding an education.
Now is also the time to re-evaluate your insurance coverage. A life insurance policy can be an important part of a family’s
safety net. Whether you buy a permanent or term policy, life insurance is one of the best guarantees you can have to help
protect your family’s future.
Make sure you have enough coverage. There are several strategies for estimating the amount of protection needed, including:
- Income: your insurance need is estimated to be six to eight times that of your gross annual income.
- Income plus expenses: your insurance need is based on five times your annual gross income plus your outstanding debts,
such as mortgages, credit cards and loans.
- Estate preservation and liquidity: you calculate the insurance needed to cover estate taxes, fees and expenses at the
time of your passing, and provide additional tax-free income to your beneficiaries.
Also, give careful thought when naming your beneficiaries. Most insurance companies allow a primary, secondary and final
beneficiary and it is advisable to name all three.
Be sure to also review your investment, retirement, and estate plans periodically.
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Products to Consider
Term Life Insurance
If you have young children, this is the time when life insurance is most important. It is appropriate to consider coverage
for both parents during these years. This is when many families purchase term life insurance to provide protection until
the children are grown. Learn more…
Universal Life Insurance
If you need the security of permanent life insurance protection, universal life may be the right choice for you. Unlike term
coverage, universal life can build tax-deferred1 cash value over time that may be used to fund important expenses
later in life.2 Learn more…
Variable Universal Life Insurance
Variable universal life policies carry more risk than traditional universal life policies, but they also have greater cash value
accumulation potential. A portion of the premium is allocated among a range of available investment sub-accounts, as elected by
the policyowner. Investment professionals manage the funds, and the policyowner has the ability to make a number of transfers
among the sub-accounts and a fixed account each policy year to accommodate changes in investment strategies.
Learn more…
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Fixed Annuities
If security and reliability are important to you, a fixed annuity may be a good way to meet your retirement needs. A fixed annuity
can provide tax-deferred3 earnings, protection of principal, a steady, guaranteed income in your later years, and income
for the surviving spouse and beneficiaries. Learn more…
Get Answers to your Questions
A Transamerica representative can assist
you with re-evaluating your financial plan and selecting the products that best meet your needs.
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1Under current federal income tax laws, earnings are generally tax-deferred until withdrawn or distributed.
2Fluctuations in performance and/or policy charges may require the payment of additional premiums to keep the policy in force.
3Tax deferral is only available to individuals. It is not available for annuities owned by entities such as corporations and most types of trusts.
Transamerica and its representatives do not give tax or legal advice. The material provided is for informational purposes only and should not be
construed as tax or legal advice. Clients and other interested parties must rely solely upon their own tax and/or legal advisor regarding their particular situation.
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