Best Life Insurance Companies in Little Rock

FAQs

• How do beneficiaries of life insurance policyholders in Little Rock receive their payments?

  After the death of a Little Rock policyholder, the designated beneficiary will be entitled to the guaranteed death benefit. This is only possible as long as the premiums have been consistently paid by the policy owner. The payment is tax-free and is equivalent to the face value of the policy, with any policy indebtedness deducted.

• How are the rights of Little Rock life insurance policyholders protected by the state of Arkansas?

  The Arkansas State Code serves as the governing authority for managing life insurance claims and protecting the interests of consumers both in Little Rock and across the entire state. Among its provisions is a 30-day grace period for late payments before insurers are permitted to terminate said policies. Any life insurance policies in the state achieve the status of non-contestability after a minimum of two years. An exception applies to cases involving non-payment of premiums.

• What makes employment-sponsored life insurance policies insufficient for residents of Little Rock?

  Employer-provided life insurance falls short as an effective risk management solution for residents of Little Rock due to its dependence on the employment status of the policyholder. In the event of job changes or unemployment, policyholders run the risk of losing their life insurance coverage. This absence of transferability can leave individuals without the important protection they need during critical times.

• Who in Little Rock should contemplate obtaining life insurance?

  Those who should contemplate obtaining life insurance in Little Rock include affluent households. Life insurance can assist in covering estate taxes for wealthy individuals who possess numerous properties. Moreover, adults who jointly own property should also weigh the option of acquiring life insurance to mitigate the potential loss of income in the event of an unexpected demise. Parents with either dependent minors or children with specific needs should also consider securing life insurance.

• Why is it important for Little Rock residents to have life insurance coverage?

  Residents of Little Rock can utilize life insurance for multiple purposes, including contributing to charitable organizations. It can also be used to cover federal death and estate taxes after the policyholder's demise and protect the assets intended for heirs and beneficiaries. Moreover, life insurance can play a role in covering end-of-life expenses, including medical bills, funeral expenses, and burial costs.

• 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.