Life Insurance in Hermitage, PA
Everybody should have some life insurance coverage because we all have to leave the planet and it is not legal in this country to dig a hole and bury someone. The law restricts how every Americans’ remains are to be respected. This cost money, money that might not be readily available. Even the most cautious conservative money-minded person cannot out run the tax man. Money in accounts is frozen when a person passes until probate releases the right to an executor.
Life insurance provides a tax free check within 7 to 10 days to the named beneficiary with no question asked. Did you know that 8 families of the 20 children slain at Sandy Hook Elementary could not afford to bury their loved ones. Imagine this horrific incident occurs and then you have to go ask friends and relatives to help you financially.
The burden of a funeral without proper funding is what every individual is leaving behind when they are not responsible and do not purchase some life insurance. It is a very selfish act to leave your final expense as your lasting memory. Do you want your children or grandchildren to remember you as the person that made their lives difficult because of your unpaid bills.
You might think, “I am too old and have some health issues that prohibit me from buying life insurance.” Build equity in a policy on a younger family member. Purchase a Universal Life policy on your son or daughter who is young and healthy to build up enough cash value to pay your final expenses.
Give that new grandchild a gift that will last their entire life. Buy a life insurance policy that can be used to help with college expenses, pay for a wedding dress, add to the down payment during the purchase of home, or buy that 25th anniversary trip to Hawaii.
Life insurance comes in many flavors: Simple, Value, Whole, Universal life and annuities.
Simple and Value Life are term insurance policy. They are active for a set period of time that is decided upon when purchasing the life policy. Terms run in decades of 10, 20, or 30 years. Term insurance builds no cash value and ends when the time period is over. The benefit of term policies – they are the least expensive and usually purchased to cover large outstanding debt such as a new mortgage. The benefit of a Value Term policy – it is convertible to a Universal Life policy.
Whole Life means exactly what its title expresses – it is insurance for your whole entire life with set premium for a fixed amount of insurance. Whole Life has bonus features – it builds cash value and permits borrowing against the policy. Its downsides – Whole Life is not as flexible as Universal Life and it is more expensive than Simple Term.
Universal Life permits flexible payments, flexible face amounts, partial surrenders and loans. In Universal Life some of the money paid goes to pay for the life insurance policy and some remains to accumulate interest. The remaining money in a Universal Policy is invested to earn income for the policy holder. Universal life has a minimum guaranteed return of 3 percent. Monthly payments may be missed within a Universal Life as the remaining cash helps pay for the insurance; however if too many payments are skipped or if the policy holder does not pay enough into the policy to cover the cost of the life insurance the policy can go bankrupt.