Best Life Insurance Companies in Allen

FAQs

• Are cash value life insurance policies available in Allen?

  Residents of Allen can secure cash value or permanent life insurance policies. These plans link premiums to investment options like stocks and bonds. The benefits include tax deferrals on savings and the possibility of borrowing against them. Such policies aim to provide coverage up to ages 100 or 120 based on the insurer and offer living benefits.

• What steps should Allen residents take to prevent fraud when purchasing life insurance?

  When buying life insurance, Allen residents should refrain from being persuaded to cash in current policies for new ones. After acquisition, they should double-check with the provider to ensure the policy is correctly registered. Note that genuine insurance offers won't rush decisions. Lastly, they must confirm the agent's state license through the Texas Department of Insurance's resources.

• What must insurers in Allen prove to deny a life insurance policy based on a misrepresentation?

  In Allen, insurers must show that misrepresentation in the life insurance contract was made with an intent to deceive. Required by the Texas Supreme Court, it upholds a longstanding common law principle. Insurers can't refuse a claim without establishing this deceptive intent. This ruling safeguards policyholders and keeps insurers accountable.

• In Allen, what happens to the death benefit of a combination life insurance product when the long-term care benefits are utilized?

  When an individual uses the long-term care benefits of a combination life insurance product, the death benefit decreases accordingly. Policyholders in Allen need to understand that drawing from the long-term care segment directly affects the amount left for beneficiaries after their demise. This policy may not suit those solely seeking term life insurance without the long-term care component.

• What options are available to life insurance policyholders in Allen diagnosed with a terminal illness?

  Life insurance policyholders in Allen diagnosed with a terminal illness can consider a viatical settlement. This option allows them to sell their life insurance policy to a viatical company and receive a portion of the death benefit upfront. The policyholder's heirs will not be entitled to death benefits after the policyholder's passing. Thus, policyholders need to weigh the benefits and implications of this option for their families before deciding.

• 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.