Many people consider purchasing life insurance at some point throughout their life. When considering this, it is important to look into its benefits and drawbacks. Life insurance can seem complex. However, it does not have to be. An experienced attorney can guide you through the process of understanding the concept of life insurance and which type is right for you.
What is Life Insurance?
Life insurance is a contract between a person and an insurance company. The insurance company typically provides a lump-sum payment to a beneficiary in the event of that person’s death. This is in exchange for premium payments throughout their lifetime. This lump-sum payment is usually known as a death benefit.
Types of Life Insurance
There are several different types of life insurance option available for people to consider. It is important to choose the one that is right for you. The types of life insurance in Pennsylvania can include the following:
- Term Life: This covers an individual for a set period of one or more years. It pays a death benefit only if the individual dies within that term. Every time the policy is renewed, the premiums increase.
- Whole Life: This protects an individual for as long as they live. It is important to know the premiums can be much higher than they would be for term insurance. However, they would be smaller than the premiums for renewing term insurance over time.
- Universal Life: The premiums an individual pays are put into a policy account that earns interest. Charges for the insurance are deducted from the account as long as there is enough money in the account to pay these charges.
- Variable Life: Under this policy, the death benefits and cash values depend on the performance of the investments underlying the policy.
- Combinations: It is possible to combine different types of insurance. For example, a person can buy whole life insurance and add term insurance as needed.
How Long Does it Take for the Insurance to be Distributed?
A life insurance claim is generally processed in 60 days or less. If all of the necessary documents are put together and in order, the claim can be processed in 10 to 14 days. With the assistance of an experienced attorney, an individual can make sure they have everything they need to purchase the life insurance policy that is right for them.
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Friedman Schuman is an experienced and dedicated legal resource for clients throughout Pennsylvania. We proudly serve clients facing a wide range of legal matters. If you require the services of an effective attorney, please contact Friedman Schuman today to schedule a consultation.