Best Life Insurance Companies in Atlanta

FAQs

• How can you calculate the amount of life insurance coverage you need in Atlanta?

  The first method to determine how much life insurance you should get in Atlanta is the "lump sum need" strategy, which calculates the amount required to cover taxes, living expenses, educational fees, urgent requirements, unpaid debts, and burial expenditures. The "income replacement" method, the second strategy, determines how much money is required to replace a certain proportion of your salary for a predetermined period of time.

• Do beneficiaries of life insurance plans in Atlanta have to pay taxes?

  In most cases, beneficiaries in Atlanta who obtain a lump sum death benefit from a life insurance policy are exempt from paying taxes on that amount. On the other hand, the beneficiary may be required to pay taxes on any interest earned by the annuity account if they choose to get their death benefit payout as an annuity, which is a series of payments spread out over several years.

• In Atlanta, what occurs to a life insurance policy if there is no beneficiary?

  If the primary beneficiary passes away earlier or at the same time as the policyholder, and there is no contingent or secondary beneficiary, the policy payout will go into the policyholder's estate. Also, it may be subject to estate taxes and creditors' claims. It is important to note that the owner of a life insurance policy in Atlanta must designate a minimum of one primary beneficiary.

• Is it possible to change a term life insurance policy in Atlanta into a whole life policy?

  Some Atlanta term life insurance plans are convertible to whole life at the expiration of the policy's term. You will find a term conversion rider in your policy documentation if your insurance plan offers the option of conversion. The conversion period, or window of time in which you can make the transfer, will also be outlined in that document.

• Do loans for life insurance policies in Atlanta need to be repaid?

  In Atlanta, policyholders are often required to repay the loan's principal amount and interest over the course of their lifetimes. If they don't repay a life insurance loan and the total debt and interest surpass the death benefit payout, the policy may expire without giving out any benefits to beneficiaries.

• 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.