Life Insurance for the Greater Philadelphia, PA area
Life Insurance: you can’t afford not to have it.
Why do we insure material possessions like our house and car, yet we do not insure the source of our income that allows us to purchase these items … our life?
While most people know that life insurance can provide their loved ones with a death benefit if the unexpected should occur, most people underestimate the need and overestimate the cost.
Did you know that even if you are unhealthy, you can buy life insurance?
Did you know that even if you had cancer, you may still be eligible for life insurance?
With all life insurance policies, the death benefit is paid tax free. If structured properly, you and your family will recover the cost of life insurance, risk free.
- People with children
- Married couples
- Singles that support siblings or relatives
- Business owners
- Job changers
- YOUNG PEOPLE: The cost of waiting until your thirties will FAR outweigh the cost of buying “something you don’t need” in your twenties
This all depends on how much you can afford to pay.
The need should be determined before the budget. The reality is, most people will need well over $1M in coverage, yet can only afford $100,000 in coverage. This is because they wait too long to buy it.
Permanent insurance can be an asset. The most cost-effective policies are those that are permanent. This is because the policy is owned for life. However, the price of the policy can change, dependent on what type of permanent policy you own.
The cheapest to the most expensive in order:
- Universal Life
- Whole Life
- Dividend Yielding Whole Life
Term Insurance provides affordable pricing yet no return on investment. It offers only temporary coverage for a certain amount of years. When the “term” expires, you may have the option to renew. When you renew, your “attained age” is the age at the end of the initial term expiration. This is one of the pitfalls of Term Life insurance. After the first few terms, the policy becomes unreasonably unaffordable. This is why many believe that every life insurance program should include some form of permanent insurance. This allows you to lock in the rate while you are healthy.
Universal Life Insurance provides the option of guaranteed lifetime protection of a whole life policy with some risk that the policy could assume “term” status if it underperforms. It is a blend between Term and Whole Life. It is important to understand that with certain types of Universal Life insurance, the annual policy premium could change after certain policy years. It is important to read your policy thoroughly in the event that the realized policy rate of return turns out to be less than the policy expected rate of return.
Whole Life Insurance is the simplest form of life insurance that provides guaranteed lifetime protection at a guaranteed lifetime premium. No strings attached. Whole Life also guarantees access to cash value once accumulated; you are able to borrow money from the policy with no qualifications. This is known as a policy loan. IF the policy loan is not repaid at time of death, the loan amount plus interest will be subtracted from the death benefit. The policy cash value grows, tax deferred. This means you do not pay tax on the policy gains. The death benefits are tax free also. One nice component that can be added to Whole Life Insurance is the option to pay the insurance premiums early, rather than carrying the burden into retirement. If your budget allows you to do so, you should most certainly pay up the policy in advance, instead of paying to age 100 or 120.
Dividend Paying Whole Life is by far the best form of life insurance. This is because with this policy, you have the opportunity to earn policy dividends. You can only purchase this kind of insurance from participating life insurance companies. Each year, you will have the opportunity to earn dividends you can use to build more cash value, add death benefit coverage, pay premiums, or spend as you would like. With this policy, you are essentially buying an asset that builds value over time, as long as you continue to pay the insurance premiums.
The simplest answer is: right now.
Parents have the ability to buy life insurance for their children when they are young at an almost unnoticeable premium discount. By doing this, parents can create something of great future value at a bargain premium.
If your parents did not buy insurance for you, buy it now. We mean right now. The cost of waiting to buy life insurance is far greater than the cost of purchasing without a need today.
If you are stuck in your 60s with no life insurance, you are not out of options, but you will pay a hefty price, due to higher mortality rates for those in their 60s compared to those in their 20s.
Females live longer and therefore pay less in premiums than males.
You can purchase life insurance from anyone that is licensed to sell life insurance. Many captive and independent property and casualty agents also offer life insurance.
Your employer may offer some coverage that is temporary. Do not mistake this coverage as a solution; instead look at it as a temporary benefit at little or no cost. This policy will expire, and when it does, the cost of obtaining a new policy won’t be inexpensive.
Plan now, and lock in permanent insurance that will compliment whatever term your employer offers.
Because actions speak louder than words, and taking the risk of losing your income isn’t worth it. Saying “I love you” isn’t enough. Acting on this love and setting your children up for financial success should accompany these words. The policy owner sees little gain from the policy, except for the peace of mind knowing that their loved ones won’t suffer financially when they are not here any longer.
Because if structured properly, you can buy an asset that builds value over time, RISK FREE! You won’t build very much wealth by leaving all of the money in the bank or putting it all in risk-based securities.
Because letting someone else deal with your burial isn’t fair to them, nor is it responsible of you.
Because asking your loved ones to take care of you when you can no longer take care of yourself is not fair to them, nor is it responsible of you.
Because leaving your loves ones with debt is not fair to them, nor it is responsible of you.
Because building and transferring wealth for your family should be on your agenda.
Because protecting your family business’s longevity should be on your agenda.
The simplest process in determining the death benefit amount needed for your loved ones to sustain is the income replacement method. Take the number of years your income is needed for dependents, and multiply that times your current income. That is the minimum amount of coverage you will need so that your family can continue to live in the house and drive the cars on which you owe.
Not having life insurance isn’t going to work.
Relying on employer-sponsored group term life insurance is not financially prudent.
If you do not have $1M in the bank, you need life insurance to CREATE IT.
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