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Life Insurance

Central PA's Solution for Term Life, Universal Life, Whole Life, Equity Indexed Life, and Accidental Death Insurance




Life Insurance

There are many kinds of life insurance, but they generally fall into Two Categories: Term Insurance and Permanent Insurance.

Term insurance is designed to meet temporary needs. It provides protection for a specific period of time (the "term") and generally pays a benefit only if you die during the term. This type of insurance often makes sense when you have a need for coverage that will disappear at a specific point in time. For instance, you may decide that you only need coverage until your children graduate from college or until a particular debt is paid off, such as your mortgage.

In contrast, permanent insurance provides lifelong protection. As long as you pay the premiums, and no loans, withdrawals or surrenders are taken, the full face amount will be paid. Because it is designed to last a lifetime, permanent life insurance accumulates cash value and is priced for you to keep over a long period of time.

It's impossible to say which type of life insurance is better because the kind of coverage that's right for you depends on your unique circumstances and financial goals.

Term insurance is, by definition, temporary insurance. Each year, a premium is paid to cover the risk of death during that year. Term insurance has no cash value. This type of coverage has premiums that are designed to remain level for a period of 10, 15, 20, 25 or even 30 years.

Universal life insurance was created to provide more flexibility than whole life by allowing the holder to shift money between the insurance and savings components of the policy.

Premiums are fixed throughout the entire life of the insurance policy and are guaranteed to provide the insured with a death benefit upon Death.

Equity Indexed Universal Life Insurance combines most of the benefits, features, and security of traditional life insurance with the potential to earn a higher interest rate based on the positive movement of one or more of the equity indexes. Instead of being given a specific interest rate like traditional life insurance, interest rate earnings are credited based on increases in the value of one of the equity indexes.

Accidental Death and Dismemberment is a policy that pays benefits to the beneficiary if the cause of death is solely due to an accident. This type of policy can be purchased as a stand alone policy or can be added to a traditional life insurance policy.

Accidental Death
In the event of an accidental death, this insurance policy will pay benefits in addition to any life insurance held. Some of the covered accidents include traffic accidents, drowning, falls, homicide, and heavy equipment accidents. Accidental deaths are one of the leading causes of death in the United States. Deaths by illness, suicide, or natural causes is usually not covered by an accidental death policy.

Portions of the policy will be paid out to the beneficiaries if the covered insured loses a bodily appendage or sight because of an accident. Additionally, it usually pays benefits for the loss of limbs, fingers, sight and permanent paralysis. The injuries covered and the amount paid vary by insurance company and insurance policy. The coverage will be explained in detail in your policy.