Best Life Insurance Companies in Phoenix

FAQs

• Are life insurance benefits guaranteed even if the insurance company in Phoenix goes out of business?

  Yes, all life insurance benefits are guaranteed by the Arizona Life and Disability Insurance Guaranty Fund up to a certain limit. The guaranty fund provides up to $300,000 in death benefits and $100,000 in cash value component regardless if the coverage is above this amount. To be able to be eligible for this benefit if the insurer goes out of business, the policyholder in Phoenix must have been up-to-date with the payments and the insurer must have been licensed in the state.

• In Phoenix, how many days is the grace period for being unable to pay premiums on time?

  Policyholders in Phoenix are given a 30-day grace period after the due date of each premium, with the exception of the first payment. Within this period, they must pay the lapsed premium to avoid termination of the coverage. However, their benefits could be reduced if they file a claim before they can keep their payments updated.

• What is a cash value component in whole life insurance in Phoenix?

  A cash value component in whole life insurance is the amount paid by the insurer should the policyholder choose to surrender the policy. Policyholders in Phoenix can surrender their insurance if they give up future death benefits. The amount of the cash value component is usually the total payments made minus the fees imposed by the insurer. It is lower than the death benefits.

• Can you sell an annuity in Phoenix?

  In Phoenix, you can legally sell an annuity as a whole or just a portion without any court approval. However, annuities obtained from settling a lawsuit need approval from the court. In addition, be aware of the tax implications of selling an annuity. If you receive a lump sum payment from the sale, it will generally be treated as income and, therefore, subject to taxation.

• Can an employer benefits package in Phoenix be enough coverage for life insurance?

  It depends on your needs. Group life insurance as part of the employer benefits package provides a smaller amount of coverage. The policy amount is typically up to three times your salary. Should this be insufficient for your needs, you can get another life insurance. This can also provide you coverage if you lose your group insurance when you change jobs in Phoenix.

• 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.