Finding Life Insurance in Ackermanville
Surveys reveal that although over 80% of Americans think people ought to carry life insurance, nearly half don't have it. That little nest egg for your Ackermanville family may just be filled with IOUs?
Ben Franklin stated there are only two things you can be sure of in life: death and taxes. In Pennsylvania, even death is a taxable event. Funeral costs, taxes, and legal fees pose a potentially huge burden on Ackermanville estates and leave little for the beneficiaries. Life insurance helps to keep the estate whole. Additionally, Life Insurance is not taxed. Life Insurance is important for estate planning.
HealthMarkets Randy Roberts Insurance Agency works hard for Ackermanville residents to help them get the life insurance they need at the right price. Our experts shop leading insurance carriers to fully serve clients in Allentown, Bethlehem, Easton and surrounding towns in Lehigh Valley area. When you have questions, we have answers.
How Much Life Insurance Is Enough?
The answer to this question depends upon many factors including your age and circumstances. If you live in Ackermanville it's a good idea to talk with us directly. Life insurance policies (see below) are available in a range of shapes and sizes to suit your life style and goals. Term insurance is the most common but it does not build value. Whole Life and Universal Life Insurance increase in value over time. The owner can actually borrow from his or her life insurance. Our services are completely free.
The number confusing policies and options can be daunting. Our clients in Ackermanville trust the advice of our life insurance agents. We give you side by side comparisons. We consider the whole financial picture before recommending an insurance policy: debts, marital status, age, children, mortgage, and car payments.
Why Life Insurance Matters
Settling an estate can be very costly: legal documents to file, bills to pay, and decisions galore. Advance planning helps to lower some expenses. Life insurance helps cover those that remain.
Besides the loss, families face expenses beyond funeral costs. Today funerals cost between $7,000 and $10,000, even in Ackermanville. Cremation can run $1,500-$4,000.
Estates in Ackermanville and throughout PA are often hit with thousands of dollars in legal, filing, and administrative fees. These costs quickly diminish the estate value. Outstanding debts or disputes can incur most costs with extra financial and legal fees. Lawyers may charge by the hour, a flat fee, or a percentage of the value of the estate assets. Be aware and know what you are paying for.
Having a valid will help to avoid excessive probate costs. Without one, probate can be 10 to 20 times more expensive. So, it's a no-brainer to plan ahead.
The State of Pennsylvania assesses an inheritance tax of 4.5% to 15%. The tax rate for Pennsylvania Inheritance Tax is 4.5% for direct descendants (lineal heirs), 12% for siblings, and 15% for other heirs (except charities and tax exempt entities). Life Insurance is on way to prevent your heirs from being forced to sell property to pay the taxes.
Gifts given in the last 7 years of life can be considered as part of the estate and taxed: 40% for gifts given in the last 3 years of life. Gifts made between 3 and 7 years before death are taxed on a sliding scale. After 7 years, gifts are not taxed.
Life Insurance is the one thing that is not taxable in Ackermanville and throughout Pennsylvania. Life insurance pays directly to the beneficiaries to protect them from fees, taxes, and expenses.
Some Life Insurance Tips
This guide is only intended to help familiarize you with some basic concepts in Life Insurance. For more detailed information and guidance consult the Ackermanville Life Insurance experts at Randy Roberts Insurance Agency.
There are basically two types of life insurance: Term and Whole Life. Whole Life includes several subcategories, including traditional whole life, universal life, variable life and variable universal life.
Term Life Insurance
Term Life Insurance pays only if death occurs during the term of the policy, which can be from one to 30 years. Most term policies have no additional benefits or provisions.
The two kinds of Term Life Insurance are level term and decreasing term. Level term means that during the term of the policy the benefit remains the same. With a Decreasing Term the death benefit is lower every successive year the policy is in force. The overwhelming majority of policies in Ackermanville and elsewhere sold are level term life insurance.
Whole Life Insurance
Whole life insurance pays a death benefit no matter how long you live. The three main kinds of whole life insurance are traditional whole life, universal life, and variable universal life. Each of these can include some variations in benefits.
For traditional Whole Life Insurance, the death benefit and the premium are designed to remain unchanged throughout the life of the policy. The cost of insuring people rises as they age so, to avoid pricing older people out of the market by raising premiums to correspond with risk, premiums are higher in the early years when claims are lower. The excess premium is invested in order to help supplement the cost of insurance as you grow older.
When and if this excess premium reaches a certain amount the Ackermanville policyholder begins to accrue a cash value which can be accessed if he or she decides to cancel the plan. Taking the cash cancels the death benefit. You can't keep both.
Whole or Ordinary Life Insurance
This type of permanent life insurance policy offers a death benefit along with a savings account. You are pay a specified amount in premiums periodically for a stated death benefit. The company pays you dividends to grow the savings portion.
Universal or Adjustable Life
In this policy, you can choose to increase the death benefit if you pass a medical exam. This policy also includes a savings portion which can be used to pay part or all of the policy premiums if it has accumulated sufficient value. If you opt to pay for regular premiums from the savings account, you need to make sure that account has enough to cover those payments. If it runs out of money, and you don't pay it out of pocket, you policy will lapse.
Variable Life Insurance
Variable life offers a savings account that you can invest in stocks, bonds and money market mutual funds. This type of policy presents more potential for growth but also more risk if your investments do not perform well. Cash value and death benefits could go down; although some policies guarantee that your death benefit will not fall below a minimum level for Ackermanville residents.
Variable-Universal Life Insurance
If you purchase this type of policy, you get the features of variable and universal life insurance policies in Ackermanville. You have the investment risks and rewards characteristic of variable life insurance, coupled with the ability to adjust your premiums and death benefit that is characteristic of universal life insurance.
As you can see, there are lots of choices and variations which is why it is important for Ackermanville residents to consult with the insurance professionals at HealthMarkets Randy Roberts Insurance Agency to find the ideal fit for you and your family. Call Bill Zeky at 610-965-7310 today for a Free Consultation.