Why You Need Life Insurance in Bath, PA
Because Life Insurance is not taxable in Bath, 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.
When someone dies, the expensive process of settling that person's local Bath, PA estate begins. There's a deluge of legal documents, filings, bills, and decisions. Careful planning is essential to avoid unnecessary financial strain. Life insurance should be part of the plan.
For expert advice on choosing the right Life Insurance policy, residents of Bath turn to HealthMarkets Randy Roberts Insurance Agency. We find them the life insurance they need at a price they can afford. Our agents shop around with the leading insurance companies for our clients in Allentown, Bethlehem, Easton and surrounding towns in Lehigh Valley area. If you have questions, we have answers.
The various types of policies and options can become overwhelming. We provide you with clear, side by side comparisons to help you choose. Your individual situation guides our recommendations for an insurance policy: debts, marital status, age, children, mortgage, and car payments.
How Do I Choose Life Insurance in Bath?
Ben Franklin said that the only certainties in life are death and taxes. Bath and Pennsylvania at large keeps taxing even after death. Final expenses, taxes, and legal fees are paid by the estate before the heirs get any inheritance. But, Life Insurance is not taxable and is paid directly to the beneficiaries, not the estate.
Individual needs and circumstances determine which type of Life Insurance (see below) is best for you in Bath. There are lots to choose from, so it is recommended that you speak with our professionals in person.
The most common type of life insurance is called Term Insurance. It is in force for a certain period of time and has no value at the end of the term. Whole Life and Universal Life both accrue value over time. They combine the life insurance function with an investment function. There is no one-size-fits-all life insurance policy. Our clients in Bath trust the advice of our life insurance pros. Our service is always free. There is no cost.
Life Insurance Matters in Bath
Although 4 out of 5 of Americans surveyed believe they should carry life insurance nearly half of them do not. Do you want to leave a nest egg full of IOUs to your family in Bath?
Oscar Wilde said, "Alas, I am dying beyond my means." One can easily see why. Today funerals cost between $7,000 and $10,000, even in Bath. Cremation can run $1,500-$4,000.
Expenses to settle a Bath estate can run thousands of dollars, depending on the size and complexity of the assets. Debts and disputes translate in to more accounting 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.
To avoid excessive probate costs in Bath a will is essential. Otherwise, probate can be 10 to 20 times more expensive. So, it's a no-brainer to plan ahead.
Then Pennsylvania collects 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 often the only way to prevent your heirs from being forced to sell property to pay the taxes.
If the decedent gave any gifts in the final 7 years of life they 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.
Some Bath 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 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 for Bath Residents
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.
Whole Life Insurance for Bath Residents
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 Bath 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 near Bath PA
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.
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, 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 Bath residents to consult with the insurance professionals at HealthMarkets Randy Roberts Insurance Agency to find the ideal fit for you and your family in Bath.
Call Bill Zeky at 610-554-7332 today for a Free Consultation.