How to Buy Life Insurance
Purchasing life insurance is an important step in planning a secure financial future for you and your loved ones. Many important variables should be considered before purchasing a policy. To make sure your needs are met, consult with an authorized representative who can guide you through these important steps:
- Determine your need for life insurance
- Considering the amount of life insurance you require
- Finding a life insurance policy to meet your objectives
Determining Your Need for Life Insurance
Examining your personal financial situation and determining the need for life insurance for you and your loved ones is a good first step. Whether planning for your retirement, funding a child's education, protecting your family from financial burden caused by unforeseen events, or preparing your estate plan to ensure your family is protected for the future, life insurance can help provide financial security when you need it the most.
Considering the Amount and Type of Life Insurance You Require
Since everyone's needs and objectives are different, it's difficult to establish rules to determine the amount and type of insurance you require. During this step it becomes especially important to consult with an authorized representative to guide you through a Life Insurance Needs Calculator. A Transamerica authorized representative will work with you to gather your personal financial data and help you estimate your insurance needs.
Finding Life Insurance to Help Meet Your Goals
Once you've established the need and amount of life insurance appropriate for you, it's time to choose a policy that fits your personal financial situation. Generally, there are two types of products to consider: term insurance and permanent insurance.
Term Life Insurance
Life insurance that is designed to pay only a death benefit and provide protection for a specified period of time is called term insurance. For those needing temporary coverage until children are financially independent or until a debt or mortgage is paid off, this type of insurance often makes good sense. A term policy can provide coverage for 10, 20, or even 30 years. Learn more.
Universal Life Insurance
Universal life insurance offers permanent, life-long protection. These types of policies accumulate cash values that can be withdrawn and used for a variety of purposes such as retirement planning, estate planning, or educational funding. If you're ready to commit to the security of permanent life insurance protection, universal life may be the right choice for you.1 Learn more.
1 Fluctuations in interest rates and/or policy charges may require the payment of additional premiums to keep the policy in force.
Transamerica Life (Bermuda) Ltd., Transamerica Life Insurance Company and their authorized 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.