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LIFE INSURANCE

Life insurance can provide that peace of mind letting you know that your beneficiary could financially survive because that policy provided wages, cost for childcare, or anything that you would have provided for them for however many years you chose based on the death benefit. Life Insurance is also good for business purposes as it can help compensate for the lost of losing your key employee(s). Whatever your reason for choosing a life insurance plan, just know at our agency we only sell 2 basic kinds of life insurance; whole life or term life insurance. Whole life insurance policies are a little more costly than your term life insurance but has a few more benefits.

  • Whole life insurance is permanent, meaning that you will always have it as long as you pay your premium. You can accrue cash value in the event that you surrender your policy and it has a loan value so you can take loans out. Another advantage of this type of policy is that your payments will always stay the same, known as a level premium, and your beneficiary will receive the death benefit that you chose as tax-free. 

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  • A term life insurance policy is temporary, meaning you can choose how long you want to have your policy in force going by the provided increments. An example of this would be a 5, 10,15, 20 or 30 year term. At the end of this term, you will have the option to convert this to a whole life policy without going through the underwriting process again like you did in the beginning, known as guaranteed insurability. Also, there is no cash/surrender value or loan value on this type of policy.

 

Now that you understand life insurance a little more, let’s discuss the underwriting process briefly and your free look period. Usually all life insurance policies request an underwriting exam called a paramed exam. The exam helps to determine your health and insure that you are in the right pricing bracket. A paramed exam requires a registered nurse to come meet you at a place of your choice, usually your home, and includes medical questions, bloodwork, urine sample, blood pressure, overall health intake, etc. Sometimes, more a rare basis, further information will need to be provided by your doctor to help the underwriting process. Bare in mind though, that after all this and you decided to purchase your life policy, you get a free look period to determine that life insurance policy you just purchased is right for you. Every state is different on how long you get, so make sure to read your state specifics; PA has a 10 day free look period. During this free look period insurance companies have to accept the policy return and provide you with a refund.