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Life Insurance in Pittsburgh, PA

Life insurance is essential to protect your loved ones financially if you pass away unexpectedly. If you die while your life insurance policy is active, your insurer agrees to pay a death benefit to your chosen beneficiaries to help them pay for your funeral and replace your income or serve as an inheritance. Contact James L. Smith Insurance in Pittsburgh, Pennsylvania, to learn more about our life insurance policies.

How Does Life Insurance Work?

Your life insurance policy is a legally binding agreement between you and your insurer. The exact coverage details will vary with your insurer and your chosen insurance coverage. There are two primary types of life insurance coverage:

  • Term life insurance is typically the less expensive option. It provides coverage for a set duration (e.g., 10 or 15 years). At the end of your term, your insurer will no longer provide a death benefit to your beneficiaries.
  • Permanent life insurance is generally more expensive, but it can provide coverage for your entire life. Policies vary among insurers; however, you may be able to use your permanent life insurance policy to accrue wealth. This type of insurance is also known as universal life insurance or whole life insurance.

Both types of life insurance coverage may have a level premium. This means the amount you pay will stay the same over your lifetime, even when you age and require more coverage.

How Can I Utilize Life Insurance While Still Living?

You may be able to access your life insurance policy funds while you’re still alive. Whether or not you can do this depends on your insurer and policy type. For example, if you have a permanent life insurance policy, your policy may accrue cash value, which you may be able to borrow against as a loan or withdraw for personal use.

Another possibility is that you can sell your life insurance policy or surrender it for cash value. Depending on your insurer, you may be able to do this with either permanent life insurance or term life insurance.

You should know there may be tax implications or penalties for withdrawing cash value from your policy. Consult your insurance agent for more information on using your life insurance policy while alive.

How Many Life Insurance Policies Can I Have?

There’s no legal limit to the number of life insurance policies you can own. In some cases (e.g., you’ve recently started a business or had a child), buying a second life insurance policy could be beneficial to obtain more coverage. Ask your insurance agent or contact James L. Smith Insurance for more information on purchasing multiple policies.

How Much Life Insurance Do I Need?

Your coverage needs are unique to you. Contact James L. Smith Insurance to speak to an insurance agent about life insurance coverage and to get a tailored insurance quote.

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