What Would Your Family Do Without Your Income?

Transcription

1 What Would Your Family Do Without Your Income? Income Protection Option

2 You Know What Matters That s why you work hard to provide for your family. Late nights. Early mornings. Working over the weekend. Your family depends on your income to create their long-term plans. If something were to unexpectedly happen to you what would your family do? Would they have enough to cover monthly living expenses? Would they be able to stay in their home? Continue their education? Or would they spend sleepless nights worrying about how to replace your paycheck? What if there was a way to ensure that your family would not just survive, but continue to thrive even after you were gone? What if there was a way to ensure that money would be available to help fulfill the plans that you have for their future? There is a way to protect their dreams with the Income Protection Option (IPO) offered by Transamerica Life Insurance Company. It s costeffective, secure, and provides a guaranteed monthly income for your loved ones. The Income Protection Option is a new way of looking at life insurance benefits. This no-cost option is available with Transamerica life insurance policies and helps you to ensure that after your death your loved ones will receive a guaranteed monthly income stream for a period of up to 25 years. Think About Your Monthly Income. Most of us think about our budgets in terms of monthly expenses and income. Because the Income Protection Option can provide benefits as a guaranteed monthly income stream, it closely mirrors the way that money flows into your household. You Can Provide for the Important Events. The IPO also gives you the option to add initial and final lump sum amounts to cover up-front expenditures and provide for larger-expense items, such as your children s college educations or helping out your adult children or grandchildren. Think of what having a guaranteed monthly income would mean for your loved ones. The Income Protection Option can help to ensure that their lives can go on as if you were still there taking care of them. Transamerica combines the security and strength of life insurance with the flexibility and control that you need to plan for your family s future. With Transamerica s Income Protection Option, you can provide for your family by leaving them a guaranteed monthly income for up to 25 years.¹, ²

3 Here s an example of how the Income Protection Option works: Bill and Nancy Smith have two children. This is Bill s plan to ensure that his family will be protected. Beneficiary Optional Initial Payment Guaranteed Monthly Income Stream for 15 years Optional Final Payment Nancy (Wife) Hospital bills, burial expenses, and pay off mortgage - $35, 000 Monthly living expenses $3,500 X James (Son) X Monthly living expenses $750 Graduate School $50,000 Elizabeth (Daughter) Down payment on first home - $50,000 X Pay off loans $50,000 TOTALS $85,000 $4,250/mo. $100,000 How does the Income Protection Option work? In the event of your premature death, the Income Protection Option can act like the replacement for a monthly paycheck. The IPO lets you choose the income payment amounts, to whom and for how long then leaves the administration to Transamerica to handle and make good on the promise. The beneficiaries are free to live their lives and be productive, while Transamerica manages the income stream. And it s available at no additional cost on Transamerica s life insurance products. 4. It gives you peace of mind and frees you from concerns about the effects of a fluctuating economy on the financial future of your loved ones. 5. It helps ensure that the money you leave will last as long as you intended by providing a monthly income instead of just a one-time payment. Enjoy the reliability of Transamerica s life insurance with the flexibility to adapt your plan as life changes. How can the Income Protection Option help me plan for my family s needs? Transamerica s IPO offers important planning benefits: 1. It provides guaranteed income to your loved ones after you are gone. 2. It provides flexibility by allowing you to choose how you want to leave the death benefits: a monthly income stream for up to 25 years, an initial lump sum, a final lump sum, or a combination of all three. 3. It puts you in control of your family s financial future by allowing you to designate monthly income streams to one or more beneficiaries.

4 Where to begin? - Start by asking yourself 3 simple questions Monthly Income 1 In the event of your premature death, how much money would your spouse or loved ones need each month to continue to run the household and for how long? Calculate your family s typical monthly living expenses. Start with replacing your monthly paycheck. Is this enough to cover food, medical expenses, child care, education expenses, mortgage payments, and debt payments? Now determine the number of years you will need to cover the above living expenses. The income may need to last until your children finish their education or until your spouse retires, gets a job, or dies. Optional Initial Lump Sum 2 If you died today, how much money would your spouse or loved ones need immediately to pay for the funeral, any doctor bills, and other immediate expenses? These immediate cash needs typically include final expenses and unmet medical expenses. Optional Final Lump Sum 3 After the monthly income stream has ended, would your spouse or loved ones need an additional lump sum of money for things like college expenses or a wedding for your daughter? For future income needs, consider other major expenses you may want to cover like your children s college tuition or other one-time events such as a child s wedding, home improvements, debt payment, etc.

5 How much will your loved ones need? The Income Protection Option gives you the ability to ensure that your family maintains their accustomed lifestyle, as well as fund major events in their future. Our simplified worksheet makes it easy to get started! Name M/F DOB Name of Spouse M/F DOB 1 In the event of your premature death, how much money would your spouse or loved ones need each month to continue to run the household and for how long? (Minimum $100/month) 2 3 ex. Nancy (spouse) $3,500 Total Monthly Income Needed For how many years will they need this income? (Choose from 5-25 years) $ If you died today, how much money would your spouse or loved ones need immediately to pay for the funeral, any doctor bills, and other immediate expenses? ex. Hospital Bills $35,000 Total Initial Lump Sum Needed $ After the monthly income stream has ended, would your spouse or loved ones need an additional lump sum of money for things like college expenses, retirement or a wedding for your daughter? ex. College fund for Billy (grandchild) $50,000 Total Final Lump Sum Needed $ Monthly Income Optional Initial Lump Sum Optional Final Lump Sum

6 Protecting your family is the most important job you have. We ll help you get started today! Take control of your family s financial future today with Transamerica s life insurance products and the powerful Income Protection Option. It s easy to get started just complete the attached worksheet. Your financial representative will be happy to assist if you have questions. Please note that because this is life insurance, medical information and exams will be necessary to complete the underwriting process on your policy. Financial strength and longevity matter. Life insurance companies are not created equal. It s important to choose an insurance company that will be there when your family needs it the most. Transamerica has a long history of careful financial management and stability. We have earned our reputation over many years by consistently providing reliable life insurance benefits to families just like yours. We look forward to serving you and helping you secure a strong financial future for your family. For more information, contact a Transamerica representative today. ¹All guarantees are based on the claims-paying ability of the insurance company. ²A portion of each monthly payment and a portion of the final lump sum payable under the policy s Income Protection Option are reportable as interest income. The policy illustration provides the tax-reportable percentage for each monthly income payment and the final lump sum based on a 3% guaranteed minimum interest rate and the illustrated face amount. Upon the insured s death, the actual taxable portion of each monthly payment will be calculated and communicated to the beneficiary(ies) based on the actual payout amounts. The taxable portion of the final lump sum payment will be determined when the payment is made. This material was not intended or written to be used, and cannot be used, to avoid penalties imposed under the Internal Revenue Code. This material was written to support the promotion or marketing of the products, services, and/or concepts addressed in this material. Anyone to whom this material is promoted, marketed, or recommended should consult with and rely solely on their own independent advisors regarding their particular situation and the concepts presented here. Transamerica Life Insurance Company ( Transamerica ), and its representatives do not give tax or legal advice. This material is provided for informational purposes only and should not be construed as tax or legal advice. Clients and other interested parties must be urged to consult with and rely solely upon their own independent advisors regarding their particular situation and the concepts presented here. Discussions of the various planning strategies and issues are based on our understanding of the applicable federal tax laws in effect at the time of presentation. However, tax laws are subject to interpretation and change, and there is no guarantee that the relevant tax authorities will accept Transamerica s interpretations. Additionally, this material does not consider the impact of applicable state laws upon clients and prospects. Although care is taken in preparing this material and presenting it accurately, Transamerica disclaims any express or implied warranty as to the accuracy of any material contained herein and any liability with respect to it. This information is current as of September Life insurance products are issued by Transamerica Life Insurance Company, Cedar Rapids, IA All products may not be available in all jurisdictions. OL