Choosing Life Insurance in Breinigsville
The cost of living in Breinigsville is going up. But so is the cost of dying. This is why life insurance is such an important part of estate planning. The average cost of a traditional funeral now runs from $7,000 to $10,000 not including a burial plot. Legal expenses for settling an estate can easily run to 5 digits between attorney fees, probate costs, and executor or administrator fees. Also, Pennsylvania assesses an inheritance tax of up to 15% on assets passed to heirs. Often, beneficiaries of an estate are forced to sell property and assets just to pay the taxes.
Life insurance is a sound way to guard against financial stresses that result from the loss of a loved one. Life insurance helps with more than just funeral costs. It can fill the void of lost income. Also, small business owners need to consider insurance policies for their partners to help them make a smooth transition to either continue or sell the business.
We Have the Answers About Life Insurance
If you have questions about life insurance in Breinigsville, ask the insurance professionals at HealthMarkets Randy Roberts Insurance Agency. Randy Roberts has the answers and knows the best options for finding affordable life insurance with the right kind and amount of coverage you and your family need. The Randy Roberts Insurance Agency bases its recommendations on our years of experience in the insurance industry. We consider a number of factors like your age, marital status, the ages of your children, and much more. Our agents listen to you and ask the right questions. We are always ready to answer your questions.
How Much Life Insurance is Enough?
The reason there are so many types of life insurance is that everyone is different and has different needs. A traditional rule of thumb is that you should purchase life insurance that would be equivalent to 2-5 years of lost income. This buys the family members some time to adjust and the resources to absorb the sudden financial shock. We consider many factors in helping you choose the best life insurance policy for you: Does your spouse work? Is his/her income sufficient to pay the bills without yours? Do you have school age children living at home? Do you have outstanding debt obligations like a mortgage, car payments or student loans? There is no single one-size-fits-all-solution. Expert advice from HealthMarkets Randy Roberts Insurance Agency helps you figure out exactly what you and your family need.
Randy Roberts listens to you because answering your questions will help you to better understand how life insurance will work for you. Also, we want to be certain to match you to the right life insurance policy. Randy Roberts Insurance Agency provides insurance to clients in Allentown, Bethlehem, Easton and surrounding towns in Lehigh Valley area.
Life Insurance Basics
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 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 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 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.
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 consult with the insurance professionals at HealthMarkets Randy Roberts Insurance Agency to find the ideal fit for you and your family.