Best Life Insurance Companies in Avondale

FAQs

• What are the advantages of including a waiver of premium rider in your Avondale life insurance policy?

  This rider may provide you with the assurance that your beneficiaries will be taken care of even if you sustain a serious injury, become disabled, or suffer a critical illness in the future and are unable to pay your premiums. It exempts you from having to pay your life insurance premiums if this occurs while your policy is still active. Your Avondale insurance beneficiaries can still receive the policy's cash value and death benefit.

• Do policyholders in Avondale get a grace period for missing a premium payment?

  Yes, insurance companies in Avondale are required by Arizona Revised Statutes Section 20-1203 to provide policyholders with a 30-day grace period after a missed premium payment. If you do not pay the overdue premium within this time frame, the policy will be canceled. If you file an insurance claim during the grace period but before paying the unpaid premium, the amount of the premium will be deducted from the claim payment.

• What happens to the insurance policies of spouses who are going through a divorce in Avondale?

  If the insurance policies were purchased while the spouses were married, they will be considered community property and divided during the divorce in Avondale. The court will first determine the potential surrender value of the policy. The final division may be determined by a number of factors, including the beneficiaries, the intended purpose, and the policy type. For example, the court may allow a spouse to keep sole ownership of a policy purchased to care for an ailing parent.

• Why is it a good idea to purchase a child life insurance for your kid in Avondale?

  Being insured at a young age reduces the risk of becoming uninsurable later in life if they contract an illness. If you experience the tragedy of child loss, the policy will relieve financial strain by covering funeral expenses and lost work income while you grieve. In Avondale, look for a child life insurance policy that builds cash value at a consistent rate. Your child can borrow against or withdraw the accumulated cash for future personal use.

• What happens to your life insurance benefits if the insurer stops their operation in Avondale?

  Your beneficiaries can still receive your death benefit, but only up to a certain amount. This will be made possible by the Arizona Life and Disability Insurance Guaranty Fund, which was established to compensate policyholders of insolvent insurance companies. Regardless of your policy limits, the Fund will only pay up to $300,000 in death benefits and $100,000 in cash surrender value. To qualify, your Avondale insurer must be licensed in the state and your outstanding premiums must be paid.

• 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.