Best Life Insurance Companies in Honolulu

FAQs

• How long is the free-look period of a life insurance policy in Honolulu?

  Under state laws, the free-look period of a life insurance policy in Honolulu is at least 10 days. Some insurance companies offer a longer period. Anytime within this time, the policyholder can cancel the contract and receive a full refund of any payments. There will be no penalties for canceling.

• How can endowment life insurance help a policyholder in Honolulu?

  Endowment life insurance provides a death benefit and lump sum at the end of the term if the policyholder is still alive. The lump sum amount depends on the premiums and the term chosen. In general, the coverage can be available for ages 18 to 60. Additionally, policyholders in Honolulu can use the insurance to fit financial goals at different stages in life.

• What are the consequences of insurance fraud in Honolulu?

  A misdemeanor fraud can lead to fines of up to $2000 and one year imprisonment. If it is a felony, consequences include up to $10,000 in fines and 10 years of imprisonment. Under Section 431:2C of the Hawaii Revised Statutes, it is illegal to file deceitful claims or give false information on a claim and pursue legal action based on such claims. Fraud in Honolulu can be reported to (808) 587-7416.

• Do state laws provide a specific deadline when death benefit claims in Honolulu should be paid by insurers?

  There is no exact time period when death benefit claims should be paid out. HI laws state that claims must be provided to beneficiaries in a timely manner. However, these laws impose an interest that must be paid by insurers for each day no payment is given since the death of the insured. Because of this regulation, insurance companies in Honolulu typically pay out benefits within a month.

• Who is considered to have a high-risk profile when buying life insurance in Honolulu?

  Honolulu individuals with a high-risk profile have risky hobbies, unhealthy lifestyles, medical conditions, and jobs that are exposed to hazards. They can also be considered risky for insurers if their family has a history of cancer, heart disease, and diabetes. Life events such as incarceration, bankruptcy, drug abuse, frequent travel, and driving-related infractions are also put into consideration. Some high-risk health conditions include all forms of mental disorders, autoimmune diseases, and sleep disorders.

• 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.