Best Life Insurance Companies in Tuscaloosa, AL

FAQs

• Does the location you live in Tuscaloosa influence the cost of your life insurance?

  No, your Tuscaloosa life insurance premiums are unaffected by where you live, even if it is prone to severe weather or has a higher risk of violence. However, because life insurance is governed by state law, your location may have an impact on the laws that apply to your policy.

• Will a high-risk pregnancy affect your Tuscaloosa life insurance rate?

  If you currently have a high-risk pregnancy, your Tuscaloosa life insurance premium will not increase. However, if you are getting a new policy and you or your unborn child are at risk for health problems while pregnant, it could raise your life insurance premium or cause a delay in the application process. Weight gain and high blood pressure are common risk factors in high-risk pregnancies.

• Can your Tuscaloosa life insurance provider cancel your policy?

  Yes, your life insurance provider has the authority to cancel your policy under very specific circumstances, usually while it is still in the contestability period. It would be extremely difficult to cancel your policy once the contestability period has expired. One of the primary reasons an insurance company may cancel your life insurance coverage is nonpayment. Furthermore, if your insurance company discovers that you lied on your application, your policy may be canceled.

• If an individual attempted suicide or self-harmed in the past, can they still obtain life insurance in Tuscaloosa?

  Yes, some Tuscaloosa life insurance providers can provide coverage to someone who attempted suicide or self-harmed in the past, particularly if a sufficient period of time has passed since the incidents occurred and there is proof of treatment and stability. However, it is typically difficult to obtain life insurance in Tuscaloosa if the individual has a history of suicide attempts or self-harm because insurers view these as higher risks.

• Can someone with high cholesterol still purchase life insurance in Tuscaloosa?

  Yes, even if you have high cholesterol, you can buy Tuscaloosa life insurance. However, the policy's accessibility and terms may change depending on how severe your cholesterol levels are and how physically fit you are. To compensate for the increased risk associated with high cholesterol, insurance companies may require extensive medical records, physical exams, or higher premiums.

• 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.