As you know, a well-rounded estate plan can go a long way. Estate plans incorporate wills, trusts, guardianships, powers of attorney, and more. That being said, if you are someone who is looking to create a comprehensive estate plan, you should also strongly consider the importance of carrying life insurance. While doing so may seem like a daunting task, with our experienced Pennsylvania estate planning attorneys at your side, it does not have to be. Please continue reading and speak with our firm to learn more about estate planning & life insurance in PA. Here are some of the questions you may have:
Why is having life insurance important?
When someone has life insurance, they essentially have a contract between themselves and their insurance company. When the person with life insurance passes away, the insurance company will give that individual’s beneficiaries either regular life insurance payments or a lump-sum payment. Life insurance payments come in exchange for an individual making premium payments over the course of his or her life.
Are there different types of life insurance in Pennsylvania?
There are various forms of life insurance, though the most common types of life insurance policies are as follows:
- Term life insurance: This type of insurance is generally ideal for individuals who’ve lost an amount of income during their years in the workforce. This type of insurance covers the cost of any lost income, though when you pass on, your loved ones will receive a one lump-sum death benefit, instead of regular payments.
- Universal life insurance: Universal life insurance is designed to give the insured individual lifetime coverage. This type of insurance is flexible (it gives the policyholder the right to raise or lower premium payments or coverage amounts at different points in life), however, universal life insurance generally entails 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 entails fixed payments and higher premiums. When someone with whole life insurance passes away, in most cases, the cash value of the payments made will act as a savings component and will accumulate, tax-deferred, for their beneficiaries.
When will beneficiaries receive death benefits?
In most cases, as long as all paperwork is filed on time and correctly, claims should be processed within 14 days. That being said, there are times where life insurance claims can take up to 60 days to process. For any additional questions about life insurance and & estate planning, give our Pennsylvania estate planning attorneys a call today.
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Whether you are dealing with matters involving estate planning, estate administration, or elder law, you need a legal team that you can feel confident will represent your best interests, every step of the way. We are that legal team. Contact Heritage Elder Law & Estate Planning today so we can get started.