Best Life Insurance Companies in Decatur

FAQs

• How does smoking tobacco or cigarettes impact life insurance in Decatur?

  It will affect your life insurance rates; your premium will be higher than that of non-smokers. If you only smoke occasionally, you may get a better rate than if you smoke everyday. Some Decatur insurers would offer to lower your premium if you quit smoking for a certain period. The best way to get preferred rates is to stop smoking and stay healthy.

• What happens if the insured dies during the two-year contestable period of the life insurance policy in Decatur?

  The policy application will be reviewed for accuracy and any intentional discrepancies. If everything goes well, the claim should be paid out. On the other hand, if there is a material misrepresentation in the application, it may be grounds for the Decatur insurer to reduce the death benefit payout or void the policy altogether. The premiums will be reimbursed if the policy is canceled, but the death benefit will not be paid.

• Does your dead husband’s ex-spouse have a claim to his life insurance benefits in Decatur?

  An ex-spouse is automatically removed as a beneficiary of life insurance policies after divorce in Decatur. However, an ex-spouse may be reinstated as a beneficiary in three instances and be able to claim benefits:

  • The divorce decree designated the ex-spouse as a beneficiary
  • The insured redesignated the ex-spouse as beneficiary after the divorce.
  • The ex-spouse was designated a beneficiary in trust to receive insurance proceeds for the insured’s child.

  These are stipulated under Illinois Statutes Chapter 750 Section 5/503 (b-5)(2).

• What exclusions are common in life insurance policies in Decatur?

  Most life insurance companies in Decatur would not pay death benefits if the insured died by suicide within two years of the policy issuance. Another typical exclusion is death due to war, including war-related deaths during military or naval service. Aviation-related deaths are also excluded from life insurance policies, except if the insured was a fare-paying passenger riding a scheduled flight with a commercial airline.

• How soon can you expect a life insurance claim to be paid by the insurer in Decatur?

  According to Illinois Statutes Chapter 215 Section 5/224(j), the insurance company in Decatur should pay the death benefit within two months of receiving the proof of death. If the insurance proceeds payment is not settled within 30 days, the insurer must pay any interest that the proceeds earn until the time payment is made.

• 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.