Life insurance in Scranton, PA is a form of protection that compensates your beneficiaries in case of your death. While we anticipate living a long time, anything can happen. You want to give your family support in such an event. There are still financial obligations to meet such as burial expenses and medical bills. Life insurance policies are set for a certain amount. This amount depends on your financial needs, number of dependents, and debts. Most agents would suggest an amount ten times that of your annual income.
You can buy several kinds of life insurance policies. One type of policy is term life insurance. Term life insurance covers the insured for a designated time period. Terms may be anything from fifteen to thirty years. The beneficiaries do not get benefits if you are still living at the end of the period. You have the option of renewing, but the premium will increase. Whole life insurance is a permanent coverage. It lasts as long as you pay premiums. Whole life provides a guaranteed pay out to beneficiaries. A portion of the premiums on a whole life policy are put into a savings. You are allowed to withdraw the savings and the refund are tax exempt. The premiums may be paid in a single payment or a lump sum. A variation on whole life is universal life insurance. This type of policy is more flexible allowing you to add another policy holder and surrender the policy for the savings accumulated. However, universal life insurance is the most expensive.
The cost of insurance depends on rates set by the provider. Life insurance rates are based on several factors. One factor that providers consider is your age at the time of a policy. Older individuals will pay more in premiums. This is because providers see them as an increased risk to illnesses. Taking out a policy while you are young will save on the cost. Another factor is your health. Smokers and overweight policy holders et charged more. Life insurance is something to consider for the financial well-being of your family after your death. Learning more about it will help you decide how much insurance you need and save on premiums.
