One of the most important parts of an estate plan concerns having life insurance. If you would like to learn more about the benefits and how you can best plan for your loved ones’ futures, continue reading and give our experienced Pennsylvania estate planning attorneys a call today. We are on your side no matter what you are facing.
What are the advantages of life insurance in Pennsylvania?
When a person has life insurance, they essentially have a contract with themselves and their insurance company. If the individual with life insurance passes away, the insurance company will provide that individual’s beneficiaries with either regular life insurance payments or a lump-sum payment. Life insurance payments come in trade for an individual making premium payments over the course of his or her life.
What are the different types of life insurance benefits?
There are several different kinds of life insurance, even though the most common kinds of life insurance policies include the following:
- Term life insurance: This type of insurance is usually perfect for individuals who have lost an amount of income during their years in the workforce. This kind of insurance covers the cost of any lost income, though when you pass on, your loved ones will obtain a one lump-sum death benefit, instead of regular payments.
- Universal life insurance: Universal life insurance is designed to supply the insured individual with lifetime coverage. This type of insurance is flexible (it provides the policyholder with the right to raise or lower premium payments or coverage amounts at different moments in life), however, universal life insurance usually involves higher premium payments than term life insurance.
- Whole life insurance: Whole life insurance is a type of permanent life insurance, and in most cases, whole life insurance concerns fixed payments and higher premiums. If someone with whole life insurance passes away, many of the time, the cash value of the payments made will serve as a savings component and will accumulate, tax-deferred, for their beneficiaries.
When do beneficiaries receive benefits?
In most circumstances, as long as all paperwork is filed on promptly and accurately, claims should be processed within 14 days. Because of this, there are times when life insurance claims can take up to 60 days to process. If you have any additional questions about life insurance and & estate planning, reach out to our firm on a call today.
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