Types of Pennsylvania Life Insurance

If you have ever looked at Pennsylvania life insurance you already know that there is a wide variety of choices. You need to know what type of policy best suits you and your families’ need.  You need to know that you have the benefits you need should unexpected events happen.

If you run your own business or have a family you need life insurance. There are many types of life insurance and making the correct choice can be confusing. You want the right policy for your family to cover their expenses should you die. The best policy that will meet your needs will be decided by you, your spouse, and your agent. There are four types of Pennsylvania life insurance that you will be considering.

Term Life

This is the basic form of life insurance. Term life insurance is purchased for a set period of time. The length of the term can vary from one year to well over twenty years. If the insured passes away at any time during the term policy, the beneficiary will receive death benefits. If the policy holder survives the term, the policy just runs out and there is no payout.

Whole Life

Whole life is a popular form of life insurance. Your premium costs are guaranteed during the entire life of the policy. The insured accumulates a cash value for the policy as the premiums are paid. The insurer sets the interest rate that is applied to the value in cash of the policy. The policy holder can “cash out” their policy or keep it in effect to cover expenses should they die.

Universal Life

Universal life insurance takes a more flexible approach to life insurance. As long as the cash value of the policy exceeds the policy’s costs the premium amount can vary. The policy holder can alter the policy’s future payouts but only while the policy remains in force. This makes it flexible for those that have rapidly changing needs.

Variable Universal

This type of insurance takes the flexibility of Universal life insurance and provides investment choices. The cash value is no longer based on the interest of the policy. The value of the policy is dictated by the performance of the investments. The policy holder allocates his premiums much like a person allocates investments in a 401K retirement account.

As you can see there is a lot to consider when buying life insurance. Let a Pennsylvania life insurance broker help guide you through the process.

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