Best Life Insurance Companies in Westminster

FAQs

• How does a term life policy differ from a permanent one in Westminster?

  A term life policy in Westminster is one that covers a portion of the life of the insured and generally has no living benefits or cash value. A permanent life insurance plan covers the entire life of the insured and has living benefits or cash value. The consequence of the added coverage is that premiums cost more.

• Is it safe in Westminster to stay on the same policy without reviewing it?

  It might be safe in Westminster to stay on the same policy without review, but it is better to review the plan every year or whenever there is a major life event. A person may need to change beneficiaries and coverages when the circumstances of life change, like when getting divorced.

• What are group life insurance policies in Westminster?

  Group life insurance policies in Westminster are products meant for employers who wish to cover the lives of multiple employees in the business. The coverage is basic and paid for by the company leadership, while each employee may buy additional protection on their own individual basis.

• In Westminster, what differentiates the beneficiary from the insured in a life insurance policy?

  In Westminster, a beneficiary is a person who receives the proceeds of a life insurance policy if the contingency in an insurance policy is triggered. The insured is the person upon whose death the distribution of proceeds is contingent. It is possible in some insurance policies for the beneficiary and insured to be the same person.

• Why do life insurance applicants in Westminster undergo medical exams?

  A medical exam in Westminster is used to determine the overall state of health of the insured. This is vital because the healthier someone is, the cheaper life insurance premiums will be. Insurers prefer to insure those who will live a long time because the odds of paying out early are lower the later the insured dies.

• 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.