Discussing life insurance can sometimes be an emotional and stressful subject. However, it is a necessity if you wish to ensure that your family and loved ones will be financially secure should you pass away. It is typically always a wise choice to seek life insurance in Pennsylvania at a younger age, as the policy premiums will be substantially lower than they would be if you purchased a policy at an older age. However, that does not mean there are no affordable life insurance policies for older individuals and even senior citizens.
There are a wide range of different policy types to choose from, and understanding what they are and how they benefit your loved ones will enable you to make an informed decision and choose the best one for your family, no matter what age you might be.
Types of life insurance policies
Whole Life Insurance
This type of life insurance policy is a combination of an investment and a payout. The insurance broker invests a portion of your premiums in a various policies, such as bonds, money market funds, and stocks. The investment helps your cash value of the policy increase over the years. This type of life insurance might suit you if you’d like to see your overall cash value grow, and can’t initially afford to purchase life insurance for a high cash value at the onset. It also offers the option of borrowing versus the cash value or taking it out early should you have the need.
Universal Life and Variable Life Insurance
Somewhat similar to the whole life insurance, these types of policies are investment-type policies, but are not guaranteed to provide you with a cash value of any specific rate, or even any return on your investment.
Term Life Insurance
Whereas some life insurance policies require you to continue to pay your premiums each month until you are deceased, term life insurance offers you the option of renewing your coverage each year. This might be a suitable policy for someone who wants to ensure that their family is provided for while children are young, but if they are grown and capable of providing for themselves, then you might no longer require such a policy. The premiums are relatively low compared to other insurance policies, but choosing not to renew the policy does not allow you to recoup any of your money paid over the years. This is one of the most popular choices for life insurance in Pennsylvania.
Guaranteed Life Insurance
This type of policy is well suited for senior citizens, because it cannot be denied based on age, or even if you are already suffering from illness. However, the premiums are expensive, and there may be a limit on the benefits provided to loved ones depending upon when you pass away.
Mortgage insurance is a good option if you simply want to ensure that your home is paid off when you pass away, so that your family doesn’t have to worry about. The payout is made to the lender, so there is no beneficiary.
To learn more about life insurance in Pennsylvania and the various options available to you, contact the courteous and professional staff at Body-Borneman Insurance. Serving Pennsylvania residents for over 50 years, this reputable insurance company can help you choose the best policy for your needs and your budget.