Life Insurance in Bethlehem, PA
When folks in Bethlehem have questions about their life insurance needs, they consult with the experts at HealthMarkets Randy Roberts Insurance Agency. Randy Roberts asks the right questions so you get the right kind of insurance protection for you and your family. Your age, marital status, and your children are some the most important factors in determining what kind and how much coverage you should have.
The truth is that life insurance is asset protection for your family in Bethlehem and loved ones. Life insurance guards against a catastrophic financial crisis compounding a terrible loss. Any reliable estate plan should include some provision for life insurance to prevent a sudden depletion of accumulated wealth. Life insurance policies are not just about funeral expenses. Small business owners and business partners should consider insurance products that will not only preserve the business but smooth the transition of ownership to heirs or partners in the event of your death.
How Much Life Insurance Do We Need in Bethlehem?
A common "yardstick" for calculating how much life insurance you should carry is that it should provide for between two and five years of replacement income. This gives a family time to adjust their lives and the resources to move forward without extreme changes or desperate choices. By asking the right questions Randy Roberts can determine if this is the right rule for you to follow. It depends on many factors. Do you have a working spouse with income similar to yours? Do you have school-age or college age children and how many? Are you carrying a mortgage, car payments and other debts? Each client's circumstance needs to be matched to the right type and amount of insurance coverage. That is why Bethlehem residents talk to the expert advice HealthMarkets Randy Roberts Insurance Agency.
Randy Roberts knows the right questions and more to help you find the best affordable life insurance policy. Randy Roberts Insurance Agency serves life insurance throughout Allentown, Bethlehem, Easton and surrounding towns in Lehigh Valley area.
Life Insurance Basics
There are basically two kinds of life insurance: Term life insurance and Whole life insurance. Whole life also has a few subcategories: 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. The "term" of the policy can be from one to thirty years. Usually, term policies have no additional benefits or provisions.
The two types 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 begins to decrease every successive year the policy is in force. The vast majority of policies 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, 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 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
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
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 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 ff 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.
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 to talk with the insurance professionals at HealthMarkets Randy Roberts Insurance Agency to find the ideal fit for you and your family.
Call and speak with Randy Roberts today about a Life Insurance plan that is Affordable and Right for You.