Best Life Insurance Companies in Edison, NJ

FAQs

• Can you secure a mortgage in Edison using your life insurance policy as collateral?

  You could use your life insurance policy as collateral for a mortgage loan through a method called collateral assignment of life insurance. First, you need to find a lender in Edison willing to do this and check whether you can use your existing life policy or take out a new one. If you pass away before paying off the loan, the lender can use the money from your life insurance policy's death benefit to cover the remaining loan balance.

• Can you only receive a lump payment from your life insurance claim in Edison?

  Other ways to receive your life insurance payout aside from the lump sum are to receive installments over time, opt for the interest option with only interest paid initially, or select a fixed-period option where both principal and interest are paid for a specified period. There's also the fixed-amount option, which shells out a regular amount until it's exhausted, and the increasing benefit, where payments rise yearly. Finally, the life income option offers payouts for your entire life in Edison.

• Can the beneficiaries of a life insurance policy in Edison utilize their payout for any reason?

  The beneficiaries may utilize their life insurance payout in Edison for any reason. They can use it to make up for lost income, settle debts, cover college costs, pay for funeral costs, or achieve other financial objectives. In general, life insurance payouts are not subject to income tax, but this also depends on the type of insurance.

• Does borrowing from your life insurance plan in Edison come with any risks?

  Borrowing from your life insurance in Edison may lower the policy's cash value and death benefit if you are unable to repay the loan in full. Additionally, if you pass away with an outstanding loan, your beneficiaries may not receive the full amount of your death benefit.

• What is the repayment process for the loan that you took out of your life insurance policy in Edison?

  Generally, you can pay back the loan in monthly installments or all at once. To prevent potential harm to the cash value and death benefit of your insurance, early repayment is necessary. The procedure for repaying a loan from your life insurance coverage in Edison varies based on your contract and insurance provider.

• 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.