Best Life Insurance Companies in Goodyear

FAQs

• Why do insurance companies in Goodyear deny life insurance claims?

  In many cases, life insurance claims in Goodyear can be denied due to material representation. This happens when the policyholder, whether willfully or unknowingly, supplied incorrect information such as their age and medical history during the application process. Some insurance claims may also be denied if the death occurred during the contestability period or is not covered by the policy. A lapse in coverage can lead to claim rejection.

• Is death by suicide covered in a life insurance policy in Goodyear?

  Generally, personal life insurance in Goodyear covers death by suicide that happened after the two-year contestability period. This is in accordance with state laws under AZ Rev Stat § 20-1226. However, exclusions may apply, depending on the insurance company and policy. On the other hand, if the life insurance is part of a group coverage purchased by an employer, suicide is usually covered even within the said contestability period.

• What factors will be considered when determining life insurance rates in Goodyear?

  One of the biggest factors that determines life insurance rates is the amount of coverage. The higher the coverage amount, the higher the premiums will be. Age, lifestyle, gender, driving record, and the health condition of the applicant in Goodyear will also be considered. If the applicant smokes, their premiums will be greater than to a non-smoker's.

• Is there life insurance in Goodyear with flexible premiums?

  Variable universal life insurance offers options for policyholders in Goodyear to adjust their premiums. They can do this by lowering their premium amount, skipping payments, or making a lump-sum payment. However, the accumulated payments they have made through the years should be enough to cover insurance costs and administrative expenses. Otherwise, their policy could lapse.

• What is the cash value component in life insurance in Goodyear?

  The cash value component is a feature of several life insurance types such as universal, whole, and indexed life insurance. It is a portion of the premium not allocated for death benefits and functions as a savings account that earns interest, can be withdrawn, and is potentially tax-free. Term life insurance does not carry a cash value component, but some insurance companies in Goodyear offer term life policies that can be converted into whole life insurance.

• 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.