Life Insurance in Pennsylvania
Most people confess that they find it difficult to find an insurance plan that is not only suitable for them but also does not break the bank. Moreover, these insurance policies, such as life insurance, differ regarding what they cover. Going about finding a reliable life insurance policy, as explained by Keystone State Insurance based in West Chester, PA, is a three step process.
Deciding how much insurance to procure
This step is usually the easiest as the research material that a customer requires is in their possession. It is important to take into account any existing policies, the amount the customer might receive as social security, any available pension plans, and finally any assets owned by the client. The client then calculates how much their family requires to stay financially stable after their death. It is imperative that the client takes into account all existing bills and loans while conducting this first step.
Deciding on a life insurance premium
The client must take a look at all available insurance plans regarding what they cover and the monthly rate required for each of them. It is imperative that the customer exhibits objectivity while choosing the best plan.
Deciding what type of life insurance to take
In Pennsylvania, the law outlines two types of life insurance policies. They include term life insurance and permanent life insurance.
Term Life Insurance plan
This type of premium only covers the customer for death benefits. As such, it is mostly preferred by customers because of its conservative nature. However, there is a catch to buying this type of insurance. Customers purchase this plan in increasing periods such as ten years or twenty years. Therefore, it is advisable to buy the insurance policy for as long a term as the client can afford. A customer may also choose to convert term life insurance policy into permanent insurance.
Permanent Life Insurance Plan
There are three categories of permanent life insurance. They include whole life insurance, universal life insurance, and variable life insurance plans. The whole life insurance policy is the most expensive as it lasts an entire life time. It covers the client for both death benefits and the amount accumulated throughout the customer's life. It also comes with an option of claiming the accumulated money should the customer withdraw the plan. The universal life insurance plan is similar to the permanent life insurance except that the cash claim earns interest on the market rates of interest. This plan can also be borrowed against. The variable life insurance plan is a bit different. Both the death benefits and the claimable amount vary according to the performance of the initial investment.
Contact our agents at Keystone State Insurance in West Chester, PA to get guidance on choosing which life insurance plan may be best for you. Our Pennsylvania agents are here to answer any of your questions and provide advise as to the best way to secure your loved ones futures.