Best Life Insurance Companies in Highlands Ranch, CO

FAQs

• How can whole life insurance benefit an individual in Highlands Ranch?

  An individual in Highlands Ranch can get lifetime protection with whole life insurance. There are several ways policyholders can obtain benefits from this type of insurance. One, policyholders can tap into the cash value component while they are still alive and use it for various financial needs, including debt payment and college education funding. Second, the death benefit can be used for final expenses and source of income for beneficiaries.

• If you cannot locate the insurance policy of a deceased family member in Highlands Ranch, what should you do?

  To find a policy, use the online engine Life Insurance Policy Locator found on the website of the National Association of Insurance Commissioners. You can also contact the Colorado Division of Insurance at 800-930-3745 or visit its office at 1560 Broadway, Suite 850 Denver, CO 80202. CDI's email address is dora_insurance@state.co.us. Families in Highlands Ranch who recently had a death in the family are encouraged to check for any missing policy their deceased family member may have left behind.

• Is an annuity in Highlands Ranch a life insurance product?

  No, an annuity is not a type of life insurance policy but is a kind of investment product. It is a contract between the policyholder and the insurance company in Highlands Ranch to provide benefits after a specified period or when certain conditions happen. Many life insurance companies usually offer annuities.

• In what situations is the Colorado Life & Health Insurance Protection Association not able to help policyholders in Highlands Ranch?

  If the policyholder's insurance company officially went out of business before July 1, 1991, the Colorado Life & Health Insurance Protection Association cannot help anymore. In addition, the insurance company must be licensed in the state and the policyholder must be a state resident to be covered by the association. There are also a few conditions, such as financial limits, that may restrict the extent of help the association can provide a policyholder in Highlands Ranch.

• Can you use benefits from life insurance in Highlands Ranch to pay off your mortgage?

  Yes. Depending on the conditions, benefits from life insurance can be used for various financial needs in Highlands Ranch. As an example, death benefits from all life insurance types can be used by beneficiaries to pay off mortgages. Similarly, the cash value component of life insurance can be withdrawn to pay for the mortgage balance while the insured is still alive.

• 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.