Chillicothe, Ohio
96 E 4th Street
Chillicothe, OH 45601
(740) 773-1620
Hummel & Plum Insurance is located in Chillicothe, Ohio. We specialize in all types of insurance: Home Insurance, Auto Insurance, Life Insurance, Health Insurance, Business Insurance and Specialty Risk Insurance.

4 Frequently Asked Questions About Life Insurance April 4, 2019

Chillicothe, Ross
4 Frequently Asked Questions About Life Insurance, Chillicothe, Ohio

Life insurance financially protects your family after you’re gone. Because buying the right policy is so important, you must have a good understanding of what life insurance is, the differences between policies, and how to purchase the right amount of coverage for your needs. Below are a few common questions most people have about this unique protection.

Life Insurance FAQ

What does life insurance cover?

These policies are intended to help a family financially after a loved one dies. As a result, they can cover medical and burial expenses, provide money for your children’s college fund, pay down mortgage and other debts, feed into a retirement fund, or keep a business functioning.

Are there different types of life insurance?

Permanent life insurance policy offers protection from the time the policy is purchased until death, provided payments continue to be made. Conversely, term life insurance is only active for a specified time, usually 10, 15, or 30 years. Along with death benefits, a permanent policy also accumulates cash value, which makes it similar to an investment tool. Term life only offers death benefits, and if you live beyond the term, you won’t receive your benefit unless you reapply.

Which one is right for me?

life insuranceMany people choose term life because it’s less expensive. However, people with larger estates, including valuable assets and property, usually choose a permanent policy to help with estate planning. An insurance agent can help you decide on the right policy.

Is life insurance taxable?

This typically depends on how your policy is structured. If you’ve listed a direct beneficiary, such as a spouse or a child, the proceeds usually won’t be taxed. If you’ve listed your estate as the beneficiary, the proceeds of your life insurance will become included in your estate. Accordingly, they will be subject to the same estate taxes as the rest of your assets.


While life insurance is essential, finding the right policy can be complex. That’s where the skilled agents at Hummel & Plum Insurance Agency take over. For more than a century, this company has helped people in Chillicothe, OH, secure the right coverage at a price they can afford. As an independent agency, they work with multiple carriers to ensure you receive coverage suitable to your life and financial situation. They also offer a wide variety of insurance products, including homeowners insurance, auto coverage, health insurance, and even policies suited to farm owners. Schedule a consultation by calling (740) 773-1620, and visit the website to get started on your quote.

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