Best Life Insurance Companies in Fayetteville

FAQs

• How can one determine if the insurance company in Fayetteville is licensed?

  People can check with the Arkansas Insurance Department to see if a Fayetteville insurance company is licensed to do business in the state. The agency checks insurance companies, goes after insurance fraud, and makes sure that state insurance laws and rules are followed. Its license division makes sure that all of the rules are followed when it comes to license renewals and continuing education requirements for insurance companies.

• Who can be named a beneficiary in a life insurance policy in Fayetteville?

  A policyholder's life insurance beneficiaries in Fayetteville may include their spouse, family members, close friends, financial relationships, a trust, or their estate. There are no hard and fast rules about who a person can name as their beneficiary, though there may be restrictions for married people living in certain areas.

• Do minors in Fayetteville who are designated beneficiaries on life insurance policies receive the proceeds?

  When a policyholder dies, the funds are usually transferred to a legal guardian for any minor beneficiaries. To gain more control over the situation, it is best to name a trust as the beneficiary. This arrangement ensures that the benefits are paid directly into the trust, which can be beneficial if the funds will be used for the minor's care.

• What is the grace period for paying life insurance in Fayetteville?

  The policyholder is given a grace period of 30 days to pay for their Fayetteville life insurance policies. The insurance company is not allowed to cancel the policy or refuse coverage during this time period. It acts as a safeguard to prevent an immediate lapse in coverage due to minor payment delays, giving policyholders a reasonable window to meet their payment obligations without having their policy canceled.

• How long can a beneficiary of a Fayetteville life insurance policy make a claim?

  In Fayetteville, there is no set deadline for claiming a life insurance payout. As long as the policy is in force or the premiums were paid at the time of the covered person's death, the insurance company cannot deny the claim and must pay the recipient the money. However, filing the claim as soon as possible can expedite the payout process.

• 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.