Best Life Insurance Companies in Allentown

Frequently Asked Questions

• When is it advisable for Allentown residents to reassess their life insurance policies?

  When significant life events occur, Allentown residents should reevaluate their life insurance coverage. Tying the knot is one such instance that may result in a change in beneficiaries. However, the most significant shift in requirements occurs after having children because they represent a long-term obligation that necessitates ample provision for their future welfare.

• What factors should Allentown residents consider when deciding on life insurance coverage amounts?

  Personal priorities must be considered when purchasing life insurance in Allentown. Some people obtain policies to pay for their children's university education. Others base coverage on their debt amount to ensure beneficiaries can meet their financial obligations. Some people link their insurance to annual income in order to leave years' worth of earnings for loved ones.

• Who can help Allentown residents if their insurance company faces difficulties?

  If an insurance company in Allentown fails, the Life & Health Insurance Guaranty Association of Pennsylvania steps in. With certain limitations, this body provides protection. It provides up to $300,000 in unclaimed death benefits and $100,000 in unclaimed cash surrender. When planning their financial safety nets, Allentown residents should keep these limitations in mind.

• How does whole life insurance work for policyholders in Allentown?

  Whole life insurance does not have a set term. Allentown policyholders typically pay premiums until they die. A benefit is paid out upon their death. Some people may choose to claim a portion of this benefit in advance, lowering the overall payout. Many people prefer this type of insurance because it combines savings with a death benefit.

• How can Allentown residents find out if they are the beneficiaries of a life insurance policy?

  Residents of Allentown can use the National Association of Insurance Commissioners' life policy finder service to see if they are the beneficiary of a life insurance policy. This service requests that insurance companies search their records. If an Allentown resident is named as a beneficiary on a policy, the company will contact that person. It is an efficient way for people to find out if they are eligible for life insurance benefits.

• Which is better, term or whole life insurance?

  Life insurance is a personal financial tool, so the right type of insurance for you depends on your goals and current situation. One of the main differences between term life insurance and whole life insurance is that term life insurance only covers you for a set period of time. Once you meet the premium payment requirements on a whole life plan, it covers you for the rest of your life. Whole life insurance also builds cash value, making it a potential investment. But whole life insurance is typically much more expensive than term life insurance.

• How much life insurance do I need?

  A common recommendation is purchasing life insurance that is equal to five times your current salary, or more. But you can also estimate how much life insurance you need by adding up your debts, annual expenses for dependents multiplied by the years you want to ensure support, and any other items you wish to cover, such as a future wedding or college tuition.