Best Life Insurance Companies in Mesa

Frequently Asked Questions

• What questions should an individual in Mesa ask when applying for a life insurance plan?

  When applying for a life insurance plan, an individual in Mesa should ask questions pertaining to the amount of protection needed, the risks and reasons behind acquiring the plan, and the length of time one wishes to be covered. The kind of product needed will change, depending on whether or not a person needs lifelong coverage or for only a decade, or if the goal is to save for retirement or set up a college fund.

• In Mesa, what is term life insurance?

  In Mesa, term life insurance protects the insured against risk during a set period, ranging from a decade to three in length. The policy has a death benefit which is payable when the insured passes, but there is nothing received if the individual outlives the length of the contract.

• In Mesa, what differentiates whole life insurance from term life insurance?

  In Mesa, whole life insurance is differentiated from term life insurance by the length of coverage and the existence of a cash value. Unlike term life insurance, a whole life policy is good for the insured's whole existence, and there is a savings component called the cash value, which the insured may borrow from though at the cost of lifelong premium payments.

• How is the cash value of a whole life insurance plan in Mesa taxed?

  A whole life insurance policy in Mesa has its cash value taxed on a deferred basis. The growth of the tax value is not diminished by the government until the proceeds are paid to the insured. Nothing is due before the insured takes out a loan from the policy.

• When is it a good idea in Mesa to change one's life insurance plan?

  It is a good idea in Mesa to change one's life insurance plan when there are major changes to one's life that alter critical needs and circumstances. A person who is married may want to get better coverage to cover one's spouse or future children, and one who suddenly purchases a new home may want to bundle the property insurance and lower the premiums on the life plan.

• 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.