Best Life Insurance Companies in Anchorage, AK

FAQs

• Can an insurance guaranty association protect Anchorage life insurance policyholders when an insurance company goes bankrupt?

  Yes, insurance guarantee associations provide a safety net for life insurance policyholders in Anchorage in the event that an insurance provider becomes insolvent. These state-sponsored associations will maintain coverage as long as premiums are regularly paid. They may do it directly or transfer the policy to a different insurance company. Policyholders should keep up with premium payments to ensure their coverage remains active.

• What examples of life-changing events may prompt Anchorage life insurance policyholders to review their coverage?

  Anchorage residents holding life insurance policies should reconsider their coverage when significant life events occur, such as getting married or divorced. Other examples of life-changing events include starting or expanding a business, buying a new home, or refinancing a home mortgage within the last six months. A policy coverage review can confirm whether the existing insurance coverage can protect against potential risks.

• How does the life insurance cost for women in Anchorage compare to that of men?

  In Anchorage, women enjoy lower life insurance premiums due to their longer life expectancies compared to men. For a policy with coverage set at $250,000, men typically pay $18 per month, while women's premiums are only $16 per month. When considering an $860,000 policy in the city, men face monthly premiums of around $48, while women's monthly premiums amount to $39.

• What are some common examples of coverage options for life insurance in Anchorage?

  Anchorage residents who own life insurance policies or are planning to purchase one have different coverage options, including term or whole life. Term life insurance provides coverage for a predetermined duration, while whole life insurance offers lifelong coverage. Additional coverage choices include universal life, mortgage protection, and final expense insurance.

• Is it advisable to purchase life insurance for a spouse or children in Anchorage?

  In some instances, it is advisable to purchase life insurance for a spouse or children, but this should not be a substitute for adequate life insurance for the family's primary income earner. Life insurance for a non-income-earning spouse in Anchorage is recommended to cover the expenses associated with household services that would be lost following their demise.

• 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.