Best Life Insurance Companies in Palm Bay

FAQs

• What is the difference between term life insurance and permanent life insurance in Palm Bay?

  In Palm Bay, term life insurance covers you for a set duration and grants a payout if you pass away within this period. It's a good fit for temporary coverage needs with clear endpoints. On the other hand, permanent insurance ensures lifelong protection, paying the full face amount as long as you keep up with premiums and avoid loans, surrenders, or withdrawals. It accumulates cash value and is priced for long-term retention due to its lifetime coverage.

• What is material misrepresentation in Palm Bay?

  Material misrepresentation in Palm Bay refers to knowingly omitting, concealing, or providing false information during the insurance application. This information, if known to the insurer, would significantly impact the contract's nature. However, insurance companies often use material misrepresentation as an excuse to deny life insurance claims.

• What choices do beneficiaries in Palm Bay have if a life insurance policy is misplaced or lost?

  If someone in Palm Bay is struggling to locate a life insurance policy belonging to a deceased loved one, he or she should reach out to the following entities:

  • Florida Department of Financial Services.
  • Financial consultants.
  • Former employer.
  • The insurance company of the policyholder or all potential insurance providers. Engaging a lawyer to aid in the search for the deceased's life insurance policy is also a recommended course of action.

• Can a life insurance beneficiary designation that names a spouse be altered due to divorce in Palm Bay?

  In Palm Bay, the designation of an ex-spouse as a beneficiary for a life insurance policy is rendered invalid immediately after a divorce. The insured individual must reconfirm the ex-spouse as the designated beneficiary after the divorce if the separating parties wish to maintain this beneficiary arrangement. This situation often arises when a court mandates the insured individual to carry life insurance to ensure the payment of child support or spousal support.

• In what way can life insurance function as an investment in Palm Bay?

  While Palm Bay life insurance isn't a traditional investment, policies like whole life and universal life come with an investment feature, enabling wealth accumulation with tax deferment. This makes life insurance a strategic choice, especially for retirement planning. You can deposit funds into a cash-value account, allowing tax-deferred growth and potential tax reduction through loans.

• 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.