Life Insurance in Bangor
At HealthMarkets Randy Roberts Insurance Agency hard for our Bangor clients to find them the life insurance they need at a price they can afford. Our agents shop around with the major providers for our clients in Allentown, Bethlehem, Easton and surrounding towns in Lehigh Valley area. When you have questions, we give you answers.
With all the different policies and options it can get a bit overwhelming. We show you clear side by side comparisons. We take your personal situation in Bangor into account before recommending an insurance policy: debts, marital status, age, children, mortgage, and car payments.
How Do I Decide on Life Insurance in Bangor?
Ben Franklin said that in life only death and taxes are certain. In Pennsylvania, taxes don't stop at death. Final expenses, taxes, and legal fees take a share of estates before anything passes to the heirs. However, Life Insurance is tax free. So, Life Insurance is an important element in estate planning.
Companies offer different kinds of Life Insurance in Bangor and throughout Lehigh Valley (see below) depending on your individual circumstances. It's always best to talk with our professionals in person.
The most common is called Term Insurance because it is purchased for a certain length of time and accrues no value. Whole Life and Universal Life actually accumulate investment value over time. There is no one-size-fits-all life insurance policy. Our clients in Bangor value and depend on the advice of our life insurance consultants. We provide our services for free. There is no cost.
Life Insurance Matters
National surveys claim that 8 out of 10 of Americans think they should have life insurance but almost half don't. Are you going to leave your family in Bangor with a nest egg or just a nest filled with IOUs?
When someone dies, the expensive process of settling the estate begins. There's a constant flow of legal documents filings, bills, and decisions. Careful planning can lessen the financial shock. Life insurance should be part of the plan.
On top of the loss, families have to face funeral costs. Today funerals cost between $7,000 and $10,000, even in Bangor. Cremation can run $1,500-$4,000.
Additional Bangor settlement expenses can run thousands of dollars in legal and administrative fees. This money comes from the estate. Any debts or disputes result in additional 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.
If you have a will, the probate costs in Bangor and throughout the rest of the state should be minimal. Otherwise, probate can be 10 to 20 times more expensive. So, it's a no-brainer to plan ahead.
Also, Pennsylvania levies 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 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.
Because Life Insurance is not taxable in Bangor or elsewhere in Pennsylvania it is a useful tool for heirs to restore assets consumed by fees, taxes, and expenses. Also, Life Insurance is paid directly to the beneficiaries.
Some Life Insurance Fundamentals
This guide is only intended to help familiarize you with some basic concepts in Life Insurance. For more detailed information and guidance consult the local Bangor professionals 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 in Bangor
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 sold are level term life insurance.
Bangor 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, 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 Bangor 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 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 Insurance
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.
Bangor 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.
Variable-Universal Life Insurance
If you purchase this type of policy in Bangor, you get the features of variable and universal life policies. 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 Bangor 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.