Best Life Insurance Companies in Goodyear

Frequently Asked Questions

• 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portion of the premium not allocated for death benefits and functions as a savings account that earns interest, can be withdrawn, and is potentially tax-free.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.