Best Life Insurance Companies in Springfield

FAQs

• What major life events might lead residents of Springfield to reconsider their life insurance coverage?

  Springfield residents might find themselves reevaluating their life insurance coverage in response to significant life events, such as marriage or divorce. Additionally, the acquisition of a new home, the process of refinancing an existing home, and assuming the financial obligations associated with an aging parent can all prompt policyholders to review and potentially adjust their policies.

• What is the significance of life insurance for Springfield residents who have dependents requiring financial support?

  Springfield residents who have dependents in need of financial assistance should consider acquiring life insurance, as the death benefit it provides can serve various purposes. This benefit can be used to settle outstanding debts, cover the costs of their children's education, and manage funeral expenses. In many cases, life insurance payouts are not subject to federal income taxes.

• Which type of life insurance policy is ideal for tax and estate planning purposes in Springfield?

  In Springfield, permanent life insurance serves as a valuable tool for both tax and estate planning purposes. This insurance category is also employed to establish trusts aimed at providing financial support for dependents with special needs. Many of these policies feature a savings element that grows on a tax-deferred basis. Furthermore, the premium for a permanent life policy generally remains consistent throughout the policyholder's lifetime, without any age-related increases.

• What are the common provisions mandated by Illinois insurance law for every life insurance policy issued in Springfield?

  Every individual life insurance policy sold in Springfield is required to include an incontestability clause. This clause ensures that an insurance company cannot cancel an individual life insurance policy once it has been active for two years unless the policyholder fails to pay their premiums. Additionally, insurance carriers are obligated to grant policyholders a 30-day grace period for payment of premiums.

• What happens if a life insurance applicant provides false information to carriers in Springfield?

  In Springfield, life insurance applicants who provide inaccurate information in their applications may encounter application denial, potentially leaving them without coverage. Insurance companies that detect discrepancies in applications at a later stage have the authority to cancel the life insurance policies of insured individuals.

• 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.