Best Life Insurance Companies in Yuma, AZ

FAQs

• It is advisable to purchase life insurance for a spouse or children in Yuma?

  In some situations, it is smart to think about getting life insurance in Yuma for a spouse or children. But it should never replace the more important step of getting life insurance for the person who brings in the most money for the family. Protecting the earning potential of the family's main income earner should come before getting life insurance for non-earning children or a spouse.

• Can term life insurance policies be converted to permanent ones in Yuma?

  Yes, one significant benefit of this conversion option is that it allows policyholders in Yuma to avoid searching for a new life insurance policy. It is important to note that if a person purchased a policy two or three decades ago, they may have developed health conditions that make obtaining a new policy difficult.

• Is it possible to utilize an existing life insurance policy to cover the repayment of an outstanding mortgage loan in Yuma?

  Yes, in the unfortunate event of the policyholder's death, an active life insurance policy, whether term or cash-value life insurance, can be used to pay off any outstanding mortgage loan balance. While a Yuma-based lender may occasionally present mortgage protection term policies to potential borrowers, it is rarely a mandatory requirement.

• What key attributes should Yuma residents consider when choosing life insurance brokers?

  When selecting a life insurance broker, Yuma residents should ensure that these professionals have extensive knowledge of the region's insurance requirements. Applicants must also find brokers with effective communication skills who can simplify insurance terms. Additionally, brokers with exceptional attention to detail aid in preventing coverage gaps and overlaps. Lastly, a good insurance agent should be familiar with the local market and have strong relationships with insurance companies in order to negotiate the best prices for clients.

• Is it advisable for Yuma residents to purchase credit life insurance?

  Yuma residents should exercise caution when considering credit life insurance, as it tends to be more expensive than traditional term life insurance. Lending institutions and financial institutions recommend this type of insurance to pay off debts in the event of the borrower's death. It is not advised for individuals with adequate life insurance coverage to meet their financial needs, including debt repayment.

• 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.