Best Life Insurance Companies in Iowa City, IA

FAQs

• Is it impossible in Iowa City for senior citizens to get insurance?

  No, it is not impossible in Iowa City for senior citizens to get insurance. While premiums are usually higher the closer the applicant is to death, insurers offer options to lower the price of policies for the elderly. The coverage may be negotiated down to cover only funeral expenses, and the term may be shortened to cover only the likely period when death will occur.

• What is the correlation between sex and insurance premiums in Iowa City?

  In Iowa City, it is usually cheaper to insure females rather than males. Insurers find men are likelier to die than women and will be charged higher premiums to compensate. Women will be charged less because they generally live longer, and there is a lower risk of an untimely passing before premiums have accumulated.

• Why is it preferable in Iowa City to select term life over whole life insurance to cover a spouse's postgraduate studies?

  It is preferable in Iowa City to select term life over whole life insurance to cover a spouse's postgraduate studies because those studies take only a limited number of years. Whole life assurance is overkill since once the spouse graduates and has paid off the tuition, there is no more need for lifelong coverage.

• In Iowa City, what is the appropriate life insurance product for a person who wishes to invest?

  In Iowa City, the appropriate product for a person who wishes to invest while getting life insurance is a variable universal life policy. These products are permanent and have cash value like a traditional whole-life option. But, the premiums are also applied to investments that can allow for potentially greater monetary growth.

• Why should one in Iowa City get an insurance policy even if income is good?

  One in Iowa City should get a life insurance policy even if income is good because life is unpredictable, and there is no telling if the good times will keep on going. It is possible that the economy might dip or that the insured may lose the ability to earn as much. In either case, insurance should ideally be available to fill the monetary gaps.

• 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.