Choosing Life Insurance in Coopersburg
The cost of living in Coopersburg is going up. The alternative isn't getting any cheaper either. This is one very good reason you should include good life insurance as a crucial element of your estate planning. Life insurance can play an vital role in mitigating the financial effects of your death on your family. The average traditional funeral today can cost from $7,000 to $10,000. But the expenses don't stop there. Legal and administrative expenses for settling an estate can easily run into the thousands or tens of thousands of dollars depending on the size and complexity of the estate. Attorney fees, probate costs, and executor or administrator fees quickly add up. Furthermore, the State of Pennsylvania levies an inheritance tax of 4.5% to 15% on its residents. It is not uncommon for designated beneficiaries to have to liquidate property and assets simply to pay the taxes.
Life insurance is valuable strategy to soften financial blows that follow the loss of a loved one. Life insurance is not just for funeral costs. It can replace lost income or help cover debts or other expenses. Small business owners are wise to acquire "key man" insurance policies for their partners to cover lost business and productivity.
We Have the Answers to Your Life Insurance Questions
There are lots of companies offering life insurance and a full range of options in Coopersburg. Bring your questions about life insurance to the insurance professionals at HealthMarkets Randy Roberts Insurance Agency. Randy Roberts has the answers you are looking for. It's our job to find you affordable life insurance with the right kind and amount of coverage for you and your family. The Randy Roberts Insurance Agency has years of experience in the insurance industry. We base our recommendations on an array of factors like your age, marital status, the ages of your children, and much more. Our agents listen to you and are always ready to answer your questions.
How Much Life Insurance is Enough in Coopersburg?
Different types and life insurance are available to suit every need. Everyone is different. A commonly mentioned rule of thumb is that you should have life insurance equal to 2-5 years of lost income. The family members need support while they readjust and absorb the sudden financial shock. Randy Roberts Insurance Agency considers all the right factors in showing you the best life insurance choices for you: Does your spouse work? Is his/her income adequate to keep up with the bills without yours? Do you have young children living with you? Do you have debts like a mortgage, car payments or student loans? There is no perfect one-size-fits-all insurance policy. Our experts at HealthMarkets Randy Roberts Insurance Agency figure out what you and your family need.
Randy Roberts listens to you because answering in your questions we understand how to meet your needs. Also, you gain a better grasp on what insurance policies can offer you. We want to be certain to match you to the right life insurance coverage. Randy Roberts Insurance Agency offers 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.