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If insurance was never a matter of priority in the fulfilments of life, then it should be. Life throws many obstacles at everyone’s way and there is no choice but to find the right solution to overcome these difficulties. Term life insurance is one of these solutions which can secure anyone’s future as well as their families. This type of insurance sets the standard for protecting the family financially in the event of the untimely death of a loved one and it serves as a reliable means to pay any outstanding debts left behind. Searching for the right insurance company to provide financial coverage for yourself and your immediate family these days can be quite a task. At Body-Borneman we are committed to looking after the well-being of our policyholders.
Body-Borneman is a dependable insurance company dedicated to providing many types of insurance policies to our clients. When signing up with Body-Borneman, these policyholders can rest assured that their financial needs are adequately and efficiently met by our staff. Body-Borneman has been in existence from 1962 and has committedly served over 17, 000 clients in the state of Pennsylvania. Year after year, our expert and caring staff works hard to understand every client’s needs. We are always readily prepared to ensure that every client and their family receives top notch service in difficult times.
Term life insurance is the most popular and, coincidentally, the most inexpensive type of life insurance. Anyone who is in need of financial stability and coverage for his or her immediate family, can reap the benefits of term life insurance. Term life can usually be purchased depending on the number of years, usually 10, 20 or 30 years. This is a sufficient period of time to accumulate enough money to keep your family financially secure. No one knows when death will occur. Having this type of financial support in place for funeral expenses and payment of outstanding debts can help bring relief to the surviving family members. These immediate family members, usually the beneficiaries, will definitely be paid the funds due, upon the death of the policy holder during the period of the term life insurance policy.
Struggling through life is not easy for anyone. Although some may be able to handle the pressures of life better than others, everyone experiences some type of emotional distress at one time or another. Thinking of the bills left behind by a loved one upon his or her death significantly adds to the frustration and hopelessness that is felt by many during this difficult time. Although the death of a loved one will never be easy to deal with, having a term life insurance policy in place ensures that the family can focus on healing emotionally, with no additional financial stress. This can be very helpful, especially if the grieving spouse is unemployed or is struggling to make ends meet for the survival of the family. Credit card debts, a mortgage, children’s education, renovations for the home, and purchasing groceries are just some of the essential life duties we must keep up with following the death of a loved one. Certainly, term life insurance adequately seeks to cover the debts which the policy holder agrees upon, should death occur, in place of his or her income that will no longer be readily available to maintain the financial needs of the family.
There are many benefits to purchasing a term life insurance policy:
After the term expires, coverage at the previous rate of premiums is no longer guaranteed and the policy holder must either stop the coverage, or potentially obtain further coverage with different payments or conditions. Term life insurance serves its purpose in a similar way to most other types of insurance. Generally, it satisfies claims against what is insured if the premiums are up to date and the contract has not yet reached its expiry date. It is therefore imperative that the policy holder keeps abreast with the premiums to be paid. This will ensure that the beneficiary receives funding to take care of the family and to cover any outstanding bills.
When purchasing term life insurance, it is important to consider the different types of term insurance. This will enable you to choose what is right for you and your family. The younger and healthier you are, along with the terms you set for your term life policy will all affect your premium.
Furthermore, most term life policies include an option to convert the term life policy to a Universal Life Policy or to a Whole Life policy. This option can be very useful to an individual who has purchased the term life policy with a preferred rating class and later is diagnosed with a condition that would make it difficult to qualify for a new term policy. The new policy is issued at the rate class of the original term policy. This right to convert may not extend to the end of the term life policy. The right may extend to a fixed number of years or to a specified age.
There are many different types of term life insurance. Here is some information about each type:
The annual premium will stay the same and so does the face amount. Level term life insurance policies can last for up to a period of 30 years or less. Level term life insurance covers the policy holder for a fixed period and pays out a lump sum if he or she dies during the policy term. It does not really matter when claims are made. Should a claim be made on day eight or in the tenth week, the amount the policy will pay out will be the same, ensuring the immediate family is protected financially should the worst occur. A level-term policy is a very good option for family protection when paying out a lump sum that the family can invest in, to live on once the policy holder dies. The investment can be anything: to pay off a mortgage, children’s education and so on.
It is also therefore considered to be a good option if one needs a specified amount of coverage for a certain length of time. For instance, to cover an interest-only mortgage that is not covered by an endowment policy. One may have a number of reasons for enrolling in level term life insurance, but it is necessary to make sure that you only pay for the insurance which is actually needed. Although it may be normal to take a coverage for a substantial amount of money to provide the family with a huge lump sum in the event of death, the more coverage you have, the more expensive the premiums will be.
Most of the level term policies include a renewal option which allows the policy holder to renew the policy for a maximum guaranteed rate, if the insured period needs to be lengthened. The renewal may or may not be guaranteed, and the insured person should go over the contract to determine whether evidence of insurability is required to renew the policy. Usually, this contract is invoked only if the health of the insured declines significantly during the term, and ill health would prevent the individual from being able to provide proof of insurability.
Before the end of the insurance term for your policy, you may be able to convert the term life coverage into a permanent policy. If one does not convert by the deadline, he or she will have to undergo a medical exam to qualify for a new whole life insurance policy. This actually means that if the policy holder has a $40,000 convertible term policy, he or she can convert it into a $40,000 whole life policy without giving a health history. There is typically a time frame in which you can choose to do this. The premiums will then increase. Be sure to work out the spending budget before opting for this type of insurance. Bear in mind that if you stop paying the premiums at any time, your coverage will stop immediately and you will not get any money back.
Indeed, policyholders are allowed to convert term policies only until the age of 65. Thus, the period during which conversion is possible is shorter than the period of coverage. In addition, the policy holder can convert the term policy into whole life insurance even if health begins to decline. It is equally important to note that the premium’s new rate will be based on one’s age, health and other factors at the time of the conversion. One should also remember that the cost of whole life insurance is greater than the cost of the term life insurance, even if all other factors are the same. This type of plan provides the advantage of obtaining less expensive term life insurance, while having the choice to convert to a permanent policy at a later date as insurance needs and financial resources may change.
This type of policy can be renewed only for one year or yearly. The simplest form of obtaining renewable term life insurance is for one year. The death benefit would be paid by the insurance company if the insured died during the one year term, while no benefit is paid if the insured dies one day after the last day of the one year term.
The renewable term life insurance plan offers the policy holder the choice of renewing the life insurance policy at the end of its term, at least up until a certain age. It depends on the length of the current term life policy. The policy will also state the maximum number of times that it can be renewed. There is no need to worry if you still need insurance and the period is about to end. If you are thinking about purchasing term life insurance but worry about what your next plan and budget will be when the policy reaches the expiration date, you may want to consider renewable term life. A renewable term life policy will allow a policy holder to renew or to extend on his or her current term policy for an additional term regardless of the current state of health. This can be regarded as a huge benefit because even if one’s health suddenly changes and has made the owner uninsurable, the insurance company has deemed it fit to renew the policy up to a certain age. It is important to note that even though the policy holder has the right to renew the term policy, the premiums for the same amount of coverage will be based on one’s current health. Premiums increase with each renewal due to your attained age. Annual renewable term life insurance allows one to set in a period of insurability, which is the length of time one will be able to renew the policy annually without reapplying or taking another medical exam. When you decide to renew the term policy, without evidence of insurability, it is because you are not required to re-qualify on a renewal. If you become terminally ill, your policy renewal can never be declined.
Another great benefit of having renewable term life insurance is that it provides affordable asset security, meaning that if you have a mortgage or you have a loan for another asset that you want to make sure would be paid off in the event you die, renewable term life insurance is an excellent choice of insurance to purchase.
The premium will rise with each passing year based on your new age and your increased statistical chance of dying. The main challenge of annual renewable term life insurance is that if you renew for many years, you could end up paying more in premiums than you would if you had bought a level term life or permanent life insurance policy in the first place. Be sure that you have a budget in place for the possibility of renewing the insurance policy which will benefit you family in the future.
However, with renewable term life insurance there is no cash value that builds. When you die the beneficiary gets the amount of the face value of the policy. If you do not die during the policy term there is no cash value for yourself. The policy simply ends there.
This is a type of term life insurance coverage that provides a return on some of the premiums paid during the policy term if the insured person continues to live beyond the duration of the term life insurance policy. For instance, if a policy holder has a ten year return on a premium term life insurance plan and the ten year term has expired, the premiums paid by the holder will be returned, less any fees and expenses which the life insurance company retains. Best of all, the premium money refunded to you is not taxable.
3 main reasons why people purchase return of premium insurance are:
It is very important to note that with a regular term life policy you pay the premium for the life of the term, and if you survive the term, neither you nor your beneficiaries get any of your investment back. But if you do pass away, as previously said, your beneficiaries will receive funding. With a return of premium term insurance policy, however, if you survive to the end of the term, you get 100 percent of all the money spent on premiums refunded back to you. Indeed, you will get back only what you spend on your premiums without interest. If you decide to terminate the policy before the term expires, you may not get any refund. You decide what is best for you and what will benefit your family more in the future.
Check with our Body-Borneman insurance agents to see which type of term life insurance will suit your needs and your budget. Body-Borneman Insurance agents have an extensive amount of knowledge on life insurance plans. If you feel that a company which you previously chose really did not understand you, did not have the premium which you expected, or did not adequately give you the proper coverage, we encourage you to speak with one of our agents about purchasing a life insurance policy from Body-Borneman insurance company. We will provide you with the best quotes and with the most accurate information, allowing you to make an informed decision. Choosing the type of term life insurance carefully can provide many benefits to you and your family in the event of death. Having term life insurance is a way of protecting your family’s future. Weigh out all of the options and come up with flexible terms for your policyspecifically tailored to your needs. Let your expectations be known to Body-Borneman and we will do what is necessary to ensure that you are fully covered. As previously mentioned, term life insurance is an inexpensive type of insurance which is bought by many individuals.
Feel free to call our expert staff or to visit our office during our office hours in the state of Pennsylvania. We will make sure that we are able to find you the right term to suit you at an affordable premium. If you have any questions to be answered, you are sure to have them answered in a patient and accurate manner. No matter how long, Body-Borneman’s staff will sit with you as long as you need, to make certain that you have the right coverage, enableing your beneficiary to possess the claim upon death to pay any outstanding bills and to cover funeral costs. Remember, the power is in you to invest in a term life insurance plan. No other company provides clarity, accuracy, problem solving strategies, or unsurpassed customer service like that of Body-Borneman. Give you and your family some peace of mind and make the choice to come talk to one of our agents today.