Best Life Insurance Companies in Naperville

FAQs

• What are living benefit riders to life insurance policies in Naperville?

  Living benefit riders in Naperville are documents that are attached to a life insurance policy and provide benefits to the insured while they are still alive. While most life insurance policies pay out when the insured dies, there are some that provide periodic benefits while the contracting party is still alive.

• What kind of insurance option in Naperville is best for paying mortgage debts?

  In Naperville, a term life insurance policy is best for paying off a mortgage. When paying off debts, one may assume that the obligation is not permanent. Because there is no need to cover the portion of one's life after paying the dues, a permanent life assurance option is too expensive for the client's needs.

• What other contexts in Naperville can a life insurance policy be useful in besides families?

  Businesses, in addition to families, may benefit from a life insurance policy in Naperville. A company may want to insure the lives of key moneymaking officers, such as a CEO or CFO, whose death would cause financial hardship for the company. They may also provide life insurance benefits to their employees as a work-related perk.

• What distinguishes variable life insurance policies from whole life insurance policies in Naperville?

  Variable life insurance in Naperville is comparable to whole life options in that it provides coverage for the insured's entire life and includes cash value. In variable policies, however, there is also an investment component that has the potential to accelerate the growth of the proceeds relative to the payment of proceeds alone.

• How can life insurance in Naperville be used as an estate planning tool?

  Life insurance in Naperville can be used to supplement a decedent's estate because the proceeds form a separate fund that passes directly to the heirs upon death. This transfer of funds also avoids probate because insurance proceeds are not subject to court processes as long as the beneficiaries are also the heirs.

• 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.