Best Life Insurance Companies in Des Moines

FAQs

• What is term life insurance in Des Moines?

  Term life insurance in Des Moines provides protection for a predetermined period of time and is often less expensive than whole life insurance. It has stable premiums and is available in a variety of terms, from one year (annual renewable term) to 20 years (level term). Term life insurance can also be converted to permanent coverage, allowing you to adjust as your circumstances evolve.

• What are the reasons for buying life insurance for children in Des Moines?

  You should consider purchasing life insurance for children in Des Moines to:

  • Ensure a child's insurance eligibility and financial stability with unalterable coverage despite future health concerns.
  • Build tax-free cash value for borrowing over the policy's duration.
  • Secure lifelong affordable premiums by locking in childhood rates.
  • Offer a timeless gift to commemorate a significant milestone in a beloved child or grandchild's life.

• What is the cost of life insurance in Des Moines?

  The cost of life insurance in Des Moines can vary significantly due to various factors. Insurance companies use a rating method to determine the coverage amount for your policy, considering your age, occupation, general health, and more. Premiums may begin at $15 per month for a young, non-smoking female but can exceed $1,000 per month for a middle-aged male who smokes.

• Does life insurance incur taxes in Des Moines?

  Typically, life insurance payouts in Des Moines are tax-free when directed to a named beneficiary like your children or spouse. However, if you designate your estate as the beneficiary, the proceeds might become taxable. In such cases, the proceeds are considered a part of your estate and may be taxed.

• When should you consider obtaining life insurance in Des Moines?

  As soon as you conclude that acquiring life insurance in Des Moines is advantageous for you or your family, make the purchase. Delaying the purchase incurs increased expenses due to rising premiums as you age. Qualifying for life insurance is also easier when you're still young and healthy. Additionally, purchasing life insurance is a good idea whenever you go through a life event that affects your financial responsibilities, like getting married or having a child.

• 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.