Best Life Insurance Companies in Champaign

FAQs

• Is there a maximum amount of life insurance that public employees in Champaign can purchase?

  Yes, public employees in Champaign have the option to purchase up to five times their yearly earnings or a maximum of $300,000 in optional term life insurance coverage. Note that for spousal coverage, the amount cannot exceed one-half of the employee's coverage or $100,000, whichever is the lesser of the two.

• Are life insurance policyholders in Champaign allowed to name a contingent beneficiary?

  Yes, individuals with life insurance policies in Champaign can designate a secondary beneficiary. This arrangement ensures that if the primary beneficiary dies before the policyholder, the contingent beneficiary will receive the portion originally allocated to the primary beneficiary. It is advisable for policyholders to maintain the accuracy of their beneficiary designations, especially in the event of significant life changes such as marriage or divorce.

• What factors must Champaign residents consider when selecting the proper life insurance coverage level for their specific situations?

  Champaign citizens shopping for a life insurance policy must consider affordability. Apart from selecting a plan that aligns with their budgets, it is important to consider the potential uses of insurance policy payouts. These can be used to cover lost income, address long-term care expenses, or fund children's higher education.

• Is it possible to donate a new or existing life insurance policy to organizations in Champaign?

  Yes, life insurance can be donated to an organization in Champaign. Specifically, Chabad at the University of Illinois and Champaign-Urbana welcomes life insurance contributions from individuals who are committed to supporting Jewish continuity within the region. This arrangement offers advantages to both the contributor and the organization, including the opportunity for an income tax deduction and lowered insurance expenses for younger donors.

• Can term life insurance policies be converted to a more permanent insurance solution in Champaign?

  Yes, the majority of term life policies can be converted into whole life or universal life insurance in Champaign. Term life is the most straightforward and cost-effective insurance choice, as it offers coverage at a consistent rate for a designated duration. It addresses the financial obligations of the policyholder, and the benefit will only be paid if the insured were to die during the specified term.

• 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.