Best Life Insurance Companies in Scottsdale

FAQs

• Can you recover some money if your life insurance company in Scottsdale goes bankrupt?

  If your insurer in Scottsdale goes bankrupt, the Arizona Life and Disability Insurance Guaranty Fund may provide some or all your life insurance benefits, usually up to $300,000. Should this happen, do not stop paying your premiums because your benefits can be possibly terminated. A new insurance company will send more information through your mail, so it is important to keep your contact information updated.

• Will your life insurance be taxed in Scottsdale?

  Generally, the cash earnings of your life insurance in Scottsdale will not be taxed unless some events happen. These events can be cashing in the policy and selling or transferring it to another account. The IRS may also tax the benefits if the policy no longer complies with the IRS's definition of a life insurance policy.

• What are the income eligibility requirements for insurance under Arizona Long Term Care System in Scottsdale?

  To be eligible for insurance under the Arizona Long Term Care System (ALTCS), you should have an income of $2,313 in Scottsdale. Should your income be more than this limit, you can still become eligible by putting the excess income into a Miller Trust. Some conditions of this trust include placing Medicaid as the recipient once the beneficiary passes away and making the trust irretrievable.

• Do you need life insurance in Scottsdale if you are single?

  Even if you are single, life insurance in Scottsdale can be used to pay for your debts, funeral expenses, and long-term care, should the need arise. For example, the proceeds of your life insurance will be able to pay your debts if you have a co-debtor or your assets are not enough. Additionally, these can also be used for long-term care should you have conditions such as Alzheimer's, cancer, and arthritis.

• Can benefits be claimed by creditors when the policyholder in Scottsdale dies?

  It depends. The state law, A.R.S. § 20-1131(A), offers provisions for beneficiaries of certain life insurance against creditor claims. Under the law, proceeds of life insurance cannot be used by creditors as payment for the debts of the policyholder in Scottsdale. However, if the deceased policyholder left the benefits to their estate, not to specific beneficiaries, creditors may be able to go after the estate.

• 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.