One of the most important components of an estate plan involves having life insurance. To learn more about the benefits and how you can best plan for your loved ones’ futures, read on and give our skilled Butler County estate planning & probate attorneys a call today. We are here to help you through each step of the way.
What are the benefits of having life insurance in Pennsylvania?
If someone has life insurance, they basically have a contract between themselves and their insurance company. In the event that the person with life insurance passes away, the insurance company will provide that individual’s beneficiaries with either regular life insurance payments or a lump-sum payment. Life insurance payments come in trade for an individual making premium payments over the duration of his or her life.
What are the different types of life insurance benefits?
There are a number of different kinds of life insurance, even though the most common types of life insurance policies include the following:
- Term life insurance: This type of insurance is typically perfect for individuals who have 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, rather than regular payments.
- Universal life insurance: Universal life insurance is created to provide 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 typically entails higher premium payments than term life insurance.
- Whole life insurance: Whole life insurance is a kind of permanent life insurance, and in most instances, whole life insurance involves fixed payments and higher premiums. When someone with whole life insurance passes away, oftentimes, the cash value of the payments made will act as a savings component and will accumulate, tax-deferred, for their beneficiaries.
When do beneficiaries receive benefits?
In most common situations, so long as all paperwork is filed on time and correctly, claims should be processed within 14 days. With that being said, there are times when life insurance claims can take up to 60 days to process. For any further questions about life insurance and & estate planning, give our Western Pennsylvania elder law & estate planning attorneys a call today.
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