Best Life Insurance Companies in Tampa

FAQs

• Does Tampa have a grace period if your life insurance policy lapses?

  Yes, there's a grace period in Tampa between when you miss a payment and when your insurance lapses. Depending on your insurance, grace periods normally last approximately 30 days. You can renew your life insurance plan during the grace period by paying the unpaid payment and all associated late fines.

• What occurs to the death benefit if your primary life insurance beneficiaries in Tampa die, and there's no secondary beneficiary?

  Your estate will get the death benefit of your Tampa life insurance policy instead of the persons or organizations you've chosen if your primary beneficiaries are deceased and you don't have any secondary beneficiaries. Estate taxes will be applied to the payout. Then, your payout's receiver will subsequently be chosen by a judge in probate court.

• Can Tampa creditors claim your life insurance policy's death benefit if you have unpaid bills when you pass away?

  Creditors can only claim your life insurance policy's death benefit for unpaid bills if you don't have a beneficiary designated on the policy. If you have a correctly named beneficiary on your insurance policy, the death benefit goes to that person or organization without any intervention from your creditors.

• Who should choose a return of premium life insurance policy in Tampa?

  A return of premium life insurance policy in Tampa is recommended for individuals who are willing to spend a little bit more each month on their premiums and want to earn some savings. Receiving a significant amount of money at the expiration of the life insurance policy may be beneficial to someone who is approaching retirement, particularly since the cash is tax-free.

• If you only have life insurance via your workplace, are you considered underinsured in Tampa?

  Although the group insurance plans provided by your company in Tampa can be a practical method to obtain low-cost coverage, they normally only pay out between one and two times the amount you make each year, meaning you may be underinsured. This may not be sufficient to meet all of your family's expenses if you are the main provider of income.

• 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.