Best Life Insurance Companies in Montgomery

FAQs

• How can senior citizens in Montgomery make life insurance more affordable?

  Senior citizens in Montgomery can make life insurance more affordable by reducing the amount covered by the policy. The elderly do not need as much coverage because they usually do not have too many dependents who are not adults. All that needs to be covered are final expenses like burial and funeral costs.

• Why is it good for people in Montgomery to quit smoking before getting life insurance?

  It is a good idea in Montgomery to quit smoking before getting life insurance because insurers are reluctant to grant favorable premium rates to people in poor health. Smoking worsens the health of individuals and is associated with outcomes such as lung cancer and emphysema, raising the odds of an untimely passing.

• How does one in Montgomery determine how much life insurance to get?

  One in Montgomery may determine how much life insurance to get by asking how much one's dependents will need in the event of an untimely passing. The applicant must factor in the amount of savings and income one has plus the expenses and debts that need to be paid in order to determine the shortfall that insurance must cover.

• When is it a good idea in Montgomery to get universal life insurance over whole life options?

  It is a good idea in Montgomery to choose universal life insurance over whole life options if one needs adjustable premium payments and access to a policy's cash value. Unlike whole life contracts, the monthly payments for universal policies may be adjusted to be lower when money is lean and greater when funds are abundant.

• What is the remedy if a term life plan holder in Montgomery wants more extensive coverage?

  A term life plan holder in Montgomery who wants more extensive coverage may renew the plan if the policy allows for it, extending the period of coverage. It is also possible in some cases to convert the existing term life contract into a whole life one, depending on the insurer and the product one is on.

• 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.