6 Best Life Insurance Companies of 2023 Hero Image

Our top pick for the best life insurance company of 2023 is MassMutual, which features a wide variety of policies and riders and excellent financial strength ratings.  

6 Best Life Insurance Companies of 2023

Term life insurance only pays out if you die within a certain time period. It does not acquire value and terminates when the set period expires. This is useful if you only require short-term financial security for your dependents, such as until your child graduates or your home loan is paid off. Meanwhile, whole or permanent life insurance covers you for the rest of your life and accumulates cash value. Term life insurance in Gilbert is usually less expensive than whole life insurance.

Life insurance is typically purchased to benefit your dependents in the event that you die early, allowing them to maintain their existing lifestyle, pay for death expenses, and settle any debts you may leave behind. When assessing the value of your life insurance coverage in Gilbert, keep the following factors in mind: 
<ul>
<li>The number of children that will require financial assistance.</li>
<li>Any existing debts that must be paid.</li>
<li>Your and your spouse's estimated future earnings.</li>
<li>Ages of you and your spouse.</li>
</ul>

If your life insurer in Gilbert&nbsp;becomes insolvent or goes out of business, the Arizona Life and Disability Insurance Guaranty Fund will assume the&nbsp;provision of your policy's benefits, albeit with restrictions. The Arizona GF will pay payments up to $300,000 in death benefits and $100,000 in withdrawal values, whichever is less than the policy limits. It is authorized to pay insurance claims, as well as continue your coverage or transfer it to another solvent insurer.

A juvenile whole life insurance policy in Gilbert can protect your finances should the tragedy of child loss hit you or give your child financial security when they reach adulthood. It typically provides the following benefits: 
<ul>
<li>Lower rates which are locked in throughout the child’s lifetime.</li>
<li>Pays for end-of-life expenses in case of child loss.</li>
<li>Builds up value that the child can later access for college expenses, etc. </li>
<li>Transferrable to your child when they reach legal age, usually 18 years.</li>
</ul>

Life insurance policy lump sum death benefit payments are tax-free in Arizona. If your Gilbert beneficiaries choose to receive payments in installments, any interest earned by your insurance fund will be taxed. Furthermore, if your benefits are sent to your estate, the amount is taxed. Additionally, if you pay out or surrender your policy, you may be taxed.

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.

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.

The details of how life insurance works depend on your individual plan, but the basics are as follows:&nbsp;<ul><li>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.&nbsp;</li><li>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.&nbsp;</li><li>Beneficiaries usually have to provide the insurance company with a death certificate to receive their payments.</li></ul>

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.

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.

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.

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.

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.

Gilbert, AZ

Arizona Department of Insurance and Financial Institutions