Best Life Insurance Companies in Fort Smith, AR

FAQs

• Can someone who chews tobacco purchase life insurance in Fort Smith?

  Yes, Fort Smith residents who chew tobacco can obtain life insurance; however, their rates will be higher than non-chewers. Because tobacco use is regarded as a known health risk in the field of life insurance, it immediately raises the risk that the insurer assumes by offering the individual a policy. When applying for life insurance, it is critical to be truthful about your smoking habits because lying could result in the policy being canceled.

• Which individual should a policyholder of a life insurance plan in Fort Smith select as their beneficiary?

  A Fort Smith life insurance policyholder should name a beneficiary who has an insurable interest in their life. A beneficiary has an insurable interest if they stand to lose money as a result of the insured's death. Spouses, fiances, parents, divorced spouses, legal guardians with permanent custody, siblings, children, grandparents, and business partners are all examples of those with insurable interests.

• What can you do if you currently have a permanent whole life insurance policy in Fort Smith but no longer want to make premium payments?

  If you have a Fort Smith permanent whole life insurance policy and are tired of paying the premiums, you have two options: surrender the policy or use the accrued cash value to convert the policy to a lower paid-up insurance coverage. As a result, your death benefit will be reduced, but your insurance will continue to be active. Furthermore, when you convert to reduced paid-up insurance, the death benefit will be the same as the cash value.

• Are life insurance payouts in Fort Smith liable to estate tax?

  No, life insurance payouts are typically exempt from estate taxes in Fort Smith, particularly if the policy is properly structured. When the insurance is owned by the insured but is not included in the insured's estate, the death benefit is typically paid directly to the designated beneficiary. However, the proceeds may be subject to estate taxes if the insured is also the policy's owner.

• What is the primary benefit of life insurance riders in Fort Smith?

  The main benefit of Fort Smith life insurance riders is the ability to customize coverage to meet specific needs. By adding riders, you can tailor the insurance to your specific needs and obtain complete coverage. It eliminates the need for multiple life insurance policies. However, one potential consequence of adding riders is an increase in cost, which may make the policy less affordable.

• 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.