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It Goes without saying, we all know reasons we need Life Insurance.
- For final expenses such as burial & estate tax costs
- To help pay a mortgage
- Pay other loans such as cars, or credit cards
- Help with expenses of raising a family left behind
- Perhaps much needed income for your spouse
- College tuition for your children or grand children
- The list goes on and on
Without enough coverage the future of your family can mean:
foreclosure on your home * repossession of vehicles * broken home for your children your spouse working two jobs * giving up a child’s education * etc.
Some facts to consider when you’re thinking about Life Insurance.
In Pennsylvania the average burial expenses are between 7 and 10 thousand dollars. Pennsylvania has been ranked the fifth most expensive state in which to attend college, the yearly average being over $12,000 for public college and over $30,000 for private.Child day care averages well over $9,000 a year in central Pennsylvania.Life Insurance benefits are paid to beneficiaries TAX FREE
Today Life Insurance is more affordable than ever with some new types you may not be aware of. Some of the most common of these are:
Term Life
Term life insurance is typically the most affordable inexpensive type of life insurance a person can own. It’s a level amount of insurance, meaning the amount of payoff will not go down. And it has a premium that will not go up. This type of policy is designed to cover you for a specific length of time or “TERM”
Return of Premium Term Life Return of Premium Term Life is designed to return all your premiums to you at the end of your term if you should survive through the entire length of your term policy. This type of policy is growing in popularity since it’s nearly much like a money back guarantee.
Whole Life
Whole life insurance provides you with coverage for the rest of your life. Whole life insurance has a level death benefit at a premium that remains the same for the rest of your life. Whole life insurance also builds up a cash value inside the policy. Much like a built in savings account. This cash value can then be borrowed against, withdrawn or designed to pay for your premiums at a future time in your life.
Universal Life
Universal life is an incredibly flexible option of life insurance. It is very similar to whole life because it provides permanent life coverage for the rest of your life and builds cash value based on guaranteed interest rates. However what makes it different is that it allows you the flexibility to adjust your own premiums up or down, and you have the option to raise and lower your benefit amount.
Single Premium Whole Life Single Premium Whole Life is a type of life insurance in which a single lump sum is paid into the policy and no other payments are ever needed again. This lump sum purchases a death benefit that is guaranteed the rest of your life. Many factors determine the amount of benefit but it is common to double, Triple or quadruple the amount you have invested.
These are a great guaranteed investment for people who traditionally have just saved and put aside money for their final expenses. They can use that saved money to purchase one of these policies guaranteed to multiply their benefit. The larger the amount of money you initially contribute to your policy, the greater your death benefit will be as well.
Some Single Premium Life policies will give you tax-free access to the death benefit to pay for long-term care (Nursing Home) expenses while you’re still living. Therefore helping protect your assets.
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