Life Insurance in the Lehigh Valley
If you are wondering "how much life insurance do I need?", call the experts at HealthMarkets Randy Roberts Insurance Agency. The better question is "how much insurance does my family need?" Depending on your age, your marital status, the number of children and their ages, the answer will vary widely.
Let's face it, life insurance isn't for you, it's for your family and loved ones. Life insurance shelters them from financial loss on top of the emotional loss. It is a fundamental and essential component of competent estate planning. A life insurance policy should provide for more than just final expenses. If you own a business either as a sole proprietor or a partner there are even more insurance products to protect your heirs or partners from losses in the event of your death.
One basic guideline is that insurance should be able to replace your income for 2-5 years to give your family some time and resources to adjust their lifestyle. Is your spouse working? Are your children in school or college? Do you have a mortgage that depends on your income? But each person's circumstance is unique so there is no one-size-fits-all-solution. That is where the expert advice HealthMarkets Randy Roberts Insurance Agency comes in.
Randy Roberts will ask the above questions and more to help match your needs to the right life insurance policy. Randy Roberts Insurance Agency serves the insurance needs of residents of Allentown, Bethlehem, East and surrounding towns in the Lehigh Valley region.
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 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.