Best Life Insurance Companies in Evansville

FAQs

• What is the difference between term and whole life insurance in Evansville?

  Term life insurance offers protection for a specific period of years, typically ranging from 10 to 30 years. In the event that an Evansville policyholder dies within this period, the beneficiary receives the death benefit. In contrast, whole life insurance lasts until the policyholder reaches the age of 100 or passes away, whichever comes first. It also has a cash value component that accumulates over time and can be utilized by policyholders for their financial needs.

• How does the cash value component of a universal life insurance policy in Evansville benefit policyholders?

  The cash value component of a universal life insurance policy provides Evansville policyholders access to cash for unexpected financial needs. Beginning in the second policy year, the insured individual can make an annual partial withdrawal of up to 10% of the total accumulated value without incurring any surrender fees. Once the policy reaches its tenth year, policyholders become eligible for a preferred loan.

• Can Evansville residents access the cash value of a whole life insurance policy while they are alive?

  Yes, Evansville policyholders have the option to access the cash value, which serves as a savings component within their policy, by means of policy loans, withdrawals, or surrenders. In the event of the insured's passing, the whole life insurance policy pays out to the designated beneficiary or beneficiaries. It is important to note that policyholders enjoy lifelong coverage under this type of insurance.

• Which life circumstances should be taken into account by Evansville residents to assess whether they require life insurance?

  One of the factors Evansville residents need to take into account when deciding if they require life insurance is whether they have a spouse who relies on some or all of their income. Individuals seeking life insurance should also evaluate their children's financial requirements, the effects of retirement on their financial responsibilities, and the consequences of a business partner's passing.

• Which life insurance state laws should Evansville policyholders be aware of?

  Owners of life insurance policies in Evansville must be aware that insurers are required to give them a free copy of their policies. Furthermore, life insurance policies cannot be canceled or declined for any reason except when premiums are not paid. Indiana law also requires insurers to disburse death benefits within 60 days upon receipt of valid proof of death.

• 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.