Philadelphia, PA - Philadelphia is the capital of Pennsylvania and has a significant aging population who need life insurance. A life insurance policy is a contract with an insurance underwriter that guarantees your dependents will receive a lump sum payment upon your demise.
What To Know About Life Insurance
Most people know what life insurance is but little else beyond that makes buying life insurance very challenging. You should know as much about life insurance as possible to ensure you get the best deal and your beneficiaries can get maximum benefits from the policy.
The following are things all Philadelphians should know about life insurance:
Types of Life Insurance
The first and foremost thing Philadelphians should know about life insurance is that there are two main types of life insurance: term and whole life insurance.
Term life insurance will pay your beneficiaries only if you die during an active policy until a particular age.
On the other hand, whole life or permanent life insurance will pay your beneficiaries no matter when you die as long as the policy is active.
Term insurance often lasts for a specific time (10 to 30 years) hence the name, whereas whole life insurance will last for your entire life. Knowing the difference will help you choose the life insurance policy you need.
You Should Determine Your Coverage Needs
Another thing all residents of Philadelphia should know about life insurance is that you should determine your coverage needs before purchasing life insurance. You should determine your insurance needs based on your current financial situation.
How much money do you need to cover your family’s financial needs? Are you in retirement and have to supplement your income? Do you have any assets generating income? What financial situation will you be leaving your children in?
Determining how much coverage you need will help you make the best choice.
What Influences Your Premium Rate
The lump sum payment your beneficiaries receive after your demise is determined by how much premiums you pay for the life insurance policy. Therefore, you should know what affects your premium rate.
Generally, the younger and healthier you are, the lower your insurance rate will be; hence health and age are two critical factors. Your gender, lifestyle habits, location, and marital status will also determine your insurance rate.
Therefore, you should see how to improve these factors before shopping for life insurance in Philadelphia.
You Can Get Life Insurance Even If You Have Pre-Existing Conditions, Such As Diabetes
Speaking of health, you should also know that you can get life insurance coverage even though you might have pre-existing conditions like Diabetes. To know if you qualify for term life insurance for Diabetes, check here.
Pre-existing conditions refer to any illness, injury, or health disorder you may have before getting life insurance. Examples of pre-existing conditions are asthma, cancer, and cardiovascular diseases.
You should also know that your life insurance premium rate will probably be much higher than average if you have a pre-existing health condition.
Read Your Policy Carefully
It would be best if you were diligent about examining your life insurance policy regardless of who you buy it from in Philadelphia. All Philadelphians should know that life insurance includes various terms to which you need to adhere to so your dependents can gain the benefits.
Therefore, you should carefully read the terms in your life insurance policy. If necessary, you can get help understanding the policy from an attorney at a fee. If you are unclear on the life insurance policy terms, you may overpay for the policy, or your beneficiaries may receive less money than expected after your death.
Buying life insurance is a process that requires due consideration and knowledge. Before purchasing a life insurance policy in Philadelphia, all Philadelphians should know the types of life insurance, how to determine their coverage needs, the importance of reading the policy carefully, what affects their premium rate, and whether they can still get life insurance even with pre-existing conditions. There is much more to know about life insurance so keep learning.