Best Life Insurance Companies in Pueblo

Frequently Asked Questions

• Is suicide covered by life insurance plans in Pueblo?

  Most life insurance plans in Pueblo have a limitation known as a suicide clause or provision, wherein beneficiaries may not be able to claim if the limitation is reached, meaning if the suicide occurs within the first two years of coverage. However, if the suicide happens after the two-year clause, then the claim cannot be denied. The exclusion provision is not enforceable if it’s longer than one year in Colorado.

• Can you still be insured under your company's group life insurance policy in Pueblo if you have a disability?

  Group life insurance policies in Pueblo have a provision called a life waiver of premium or extension of death benefit, which allows individuals to remain insured even if they have a disability. The coverage will continue as long as the person meets the definition of disability in the policy and even if the employee is not a part of the company anymore.

• Can permanent life insurance act as an income replacement in Pueblo?

  A permanent life insurance policy can act as an income replacement since it has a cash-value savings component available on a tax-deferred basis. Permanent life insurance policy owners in Pueblo can access the plan's accumulated cash through loans or withdrawals. The funds can be used depending on your needs, such as business expansions, educational costs, emergency funds, or supplemental retirement income.

• Can you cancel your life insurance policy in Pueblo?

  You can cancel your life insurance policy in Pueblo, but repercussions may vary depending on your policy. Since term life insurance is set within a specific time period, you can stop paying premiums when the policy is about to end. With whole life insurance, you need to fill out a policy surrender form and pay surrender charges. If you've just recently purchased your plan, Colorado has a 15-day free look period wherein you can cancel your policy within 15 days.

• Can an ex-spouse beneficiary receive life insurance proceeds after a divorce in Pueblo?

  As per Colorado law, a divorce or annulment ends beneficiary designations for the former spouse, so the ex-spouse beneficiary does not receive life insurance proceeds. However, the former spouse may remain a life insurance beneficiary if both parties agree. If there is a contract relating to the division of marital estate, the policy can be cashed out, and the proceeds can be divided. If the policy is subject to ERISA law, the last-named beneficiary will get the 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.