Best Life Insurance Companies in Stamford

FAQs

• What type of life insurance should you have if you want to grow your wealth in the Stamford market?

  If you want to grow your wealth in the Stamford market, you should acquire variable life insurance. This long-term insurance allows your loved ones to obtain tax-advantaged cash value. Using a model-portfolio approach, you can customize your policy depending on your time horizon, risk tolerance, and goals.

• How does universal life insurance in Stamford differ from other types of permanent insurance?

  Universal life insurance in Stamford allows policyholders to pay flexible premiums. This means that they can decide on how much insurance rates they want to pay. Also, this type of insurance accumulates cash value that can potentially grow over time. If you withdraw the cash value of your universal life insurance, you may pay a 10% federal income tax penalty.

• Can life insurance policyholders in Stamford add long-term care rider coverage?

  Yes, policyholders in Stamford can add long-term care rider coverage to their life insurance. Most of the time, individuals who have concerns about paying long-term care costs obtain this type of coverage. Long-term care rider coverage enables individuals to use the death benefit to pay other expenses while they are still alive.

• In Stamford, how much life insurance do individuals need?

  There is no specific amount because life insurance rates are based on every individual's situation in Stamford. The premiums typically depend on their financial obligations or priorities, how much money is needed to pay funeral costs or medical bills, and how much mortgage or credit card loan debts must be paid by their loved ones.

• What happens if you lie on your life insurance application in Stamford?

  If you lie on your life insurance application in Stamford, your application might be rejected, or a claim may be denied if the false information is discovered within the first two years of the policy. You may also pay higher insurance premiums or be sued for filing a claim after the two-year contestability period.

• 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.