Best Life Insurance Companies in Cicero, IL

FAQs

• Will the life insurance policy be protected if the insurer in Cicero fails?

  Residents of Cicero who purchase life insurance from licensed companies are protected even if the company goes bankrupt. Insurers must be members of the Illinois Life and Health Insurance Guaranty Association in order to protect policyholders. The association provides coverage up to certain limits: $300,000 for life insurance death benefits on any single life, regardless of policy count, and $100,000 for life insurance policy net cash surrender and net cash withdrawal values.

• Can a wife obtain a death benefit from life insurance in Cicero even if the deceased husband's ex-spouse is the designated beneficiary?

  In Cicero, a wife may be unable to obtain a death benefit from life insurance if the deceased husband's ex-spouse is the designated beneficiary because the court determined that the benefit is only payable to the person named as beneficiary. The courts have determined that terms like the wife of the insured are merely descriptive, so it makes no difference if someone is no longer married to the insured.

• Can someone borrow against their life insurance policy in Cicero?

  Yes, most Cicero insurers allow policyholders to borrow up to 90-95% of the cash value of their life insurance. Because the insurance uses the cash value as security, the loan is granted immediately without a credit check or lengthy procedures. However, interest will be charged on the loan. The borrower will not be required to repay it to the insurance company within a set timeframe.

• Does a life insurance policy loan in Cicero impact credit scores?

  Taking out a loan from a life insurance policy in Cicero will not have a negative impact on an individual's credit score. This can be an option for someone looking for alternative sources of funding because it provides a financial avenue that is discrete and separate from the credit history.

• What happens to the life insurance payouts if the beneficiary in Cicero deliberately kills the insured?

  In accordance with the Illinoi's slayer rules, the beneficiary of a life insurance policy in Cicero will be unable to receive the death benefit if they are proven to have been involved in the murder of the insured person or to have been connected to it in any other way. In these cases, the death benefit will be distributed to the alternative beneficiaries or the insured person's estate by the insurer.

• 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.