Best Life Insurance Companies in Mobile

FAQs

• If someone in Mobile has passed away, how can you determine if they had a life insurance policy?

  For individuals in Mobile looking to ascertain if a deceased person had life insurance, no state department holds this information, including the Alabama Department of Insurance. However, you can use the Life Policy Search. This tool isn't under the Alabama Department's jurisdiction, and they don't receive the search results. Ensure you're prepared to provide personal details and follow the instructions diligently.

• In Mobile, can just anyone buy a life insurance policy for you?

  For residents of Mobile, not everyone can secure a life insurance policy for another individual. A valid insurable interest is essential. Examples of entities with potential insurable interest include family members affected financially upon your passing; creditors concerned about loan recovery; business associates; and immediate family members. Ensure the relationship suggests possible financial repercussions upon one's demise.

• How does the Alabama Insurance Code define an insurable interest concerning personal insurance for Mobile residents?

  For those in Mobile, the Alabama Insurance Code outlines insurable interest in personal insurance as a legitimate expectation of financial benefit from someone's ongoing life, health, or physical well-being. This also covers potential financial losses from their death or incapacity. Moreover, strong bonds formed through familial ties, either by blood or legal standing, can be deemed as insurable interest.

• What are the interest rate standards for borrowing against an insurance policy in Mobile?

  The insurance company can levy a top annual interest of 8% for Mobile residents borrowing from their life insurance policy. Alternatively, they may adopt a fluctuating rate but must clearly state its upper limit, and changes should not be more frequent than quarterly. Understanding these terms is essential before securing a loan against your policy.

• How does Alabama law address life insurance beneficiary rights after a divorce or annulment in Mobile?

  For Mobile residents, if an insured doesn't update their beneficiary post-divorce, the policy proceeds remain unaffected, assuming the policy lacks a marriage continuity clause for the beneficiary spouse. While annulment isn't specifically mentioned, a similar logic applies. If an individual doesn't change the beneficiary after the dissolution and the divorce or annulment decree omits insurance dispositions, the beneficiary's designation persists despite the marital termination.

• 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.

• How does life insurance work?

  The details of how life insurance works depend on your individual plan, but the basics are as follows: 

  • You pay a premium to purchase the insurance. Typically the premium is paid monthly, but it could be rolled into quarterly, bi-annual, or annual payments. 
  • As long as you are meeting or have met premium obligations, if you pass away, the insurance company makes the agreed-upon payment to the beneficiaries you designated. 
  • Beneficiaries usually have to provide the insurance company with a death certificate to receive their payments.

• How much is life insurance?

  The cost of life insurance ranges widely. Term life insurance can cost as little as a few dollars a day, and whole life insurance can cost thousands per month on the high end. Factors that impact the cost of your life insurance include whether you're choosing term life insurance or whole life insurance, your age, how much coverage you want, your overall health, and your gender.

• Is life insurance taxable?

  Life insurance proceeds are the funds paid via your plan to your beneficiaries if you pass away. These are also called death benefits. Typically, these are not considered income for taxes. If you take out cash value from a whole life insurance investment and the amount exceeds how much you paid in premiums, the difference may be considered taxable income.

  
  

• Can I buy health insurance that is not Obamacare?

  When people say "Obamacare insurance," they typically mean insurance within the health insurance marketplace. You can get health insurance outside of the marketplace by going through your employer, choosing COBRA coverage if you leave your job, or buying a short-term health insurance policy through an insurance agent. ACA-compliant plans meet all the benefits and coverage requirements of the Affordable Care Act. But you may be able to find supplemental or short-term coverage that simply provides peace of mind for major medical expenses.

• Can I buy health insurance anytime?

  To buy health insurance in the marketplace, you must purchase it within open or special enrollment periods. But you can purchase short-term coverage to bridge the gap between now and the next open enrollment period. These plans are meant to be used for less than a year. You can purchase them online or via insurance agents, but they may not be ACA-compliant.

• Who should buy supplemental health insurance?

  Supplemental health insurance is a product that helps cover the cost of services that your primary health insurance policy doesn't. One popular option is secondary insurance that helps cover some of the costs associated with high deductibles. Medicare supplemental insurance is also popular. Medicare doesn't cover everything, and older adults on a limited income can face large prescription or medical bills after Medicare pays. Supplemental insurance helps reduce those patient costs.