Best Life Insurance Companies in Springdale

FAQs

• Can a life insurance policy in Springdale be canceled for late payment?

  The policy cannot be canceled for late payment if the insured in Springdale pays their life insurance premiums within the 30-day grace period. In Arkansas, this grace period ensures that a life insurance policy cannot be canceled and prevents insurance companies from refusing coverage due to an acceptable late payment.

• When will the insurance company in Springdale pay the benefits to the surviving members of the deceased policyholder?

  There is a regulatory mandate in Springdale that requires insurance companies to pay out the sum of a life insurance claim to the designated beneficiary within a certain timeframe, specifically two months from the date the claim is officially submitted. Noncompliance with this rule may result in penalties for the insurer.

• Is it possible to have more than one beneficiary in a life insurance policy in Springdale?

  Yes, it is possible to have more than one beneficiary in a life insurance policy in Springdale. There are two approaches to naming multiple beneficiaries:

  • Per capita: The process of dividing the profit across all identified beneficiaries equally. If one of them is no longer alive, their share is not created, and the others get more.
  • Per stirpes: The act of distributing a beneficiary's share equally to their heirs in the event that they have passed away.

• When an insured person in Springdale passes away, how will their family members receive a payout?

  When the policyholder dies, the family members or designated beneficiaries will receive the guaranteed death benefit if the policy premiums have been paid on time. This payment is tax-free and equals the face amount of the policy, less any policy indebtedness. The majority of life insurance claims are settled within 10 days of the death certificate being submitted.

• What happens to life insurance plans if the insurer in Springdale fails to operate?

  The Arkansas Life and Disability Insurance Guaranty Association, an organization that supports legally regulated insurance carriers in Arkansas, will protect the life insurance policies handled by an insurer in Springdale if it ceases to function or goes out of business. Policyholders must have made all of their payments on time to qualify.

• 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.