Best Life Insurance Companies in Salem, OR

FAQs

• How can residents of Salem leverage the benefits of life insurance for financial needs?

  Salem residents can use the accumulated cash value in their permanent life insurance policies to pay for costly expenses like college tuition or down payments on a home. Additionally, life insurance can also be a way to cover funeral costs and estate taxes. Note that the growth of this cash value is tax-deferred, which means you won't owe taxes until you take money out of the policy.

• How long is the "free look" period for life insurance policies in Salem?

  In Salem, residents have a standard 10-day "free look" period in their life insurance policies, ensuring a complete reimbursement upon policy return. Oregon state legislation extends this interval to 30 days for individuals replacing their existing coverage. Policyholders must carefully examine their policy before its expiration and consult with tax specialists, financial advisors, or legal experts for proper guidance.

• Under what circumstances should one think about obtaining life insurance in Salem?

  Life insurance becomes essential for Salem residents when they have a partner, offspring relying on them, an elderly kin, or a relative with special needs. It's also imperative for those with insufficient retirement funds facing escalating expenses, or those holding significant assets or running businesses. This coverage safeguards the fiscal well-being of the policyholder's family.

• What age groups in Salem may not require life insurance?

  Single individuals and older people in Salem may not require life insurance. Typically, single individuals, unless they support dependents like elderly parents, and older individuals with grown, self-sufficient children may find that a well-structured savings plan can reduce their need for life insurance. However, each person's financial situation is unique, and assessing individual circumstances is advisable when considering life insurance.

• Is indexed universal life insurance a good choice for Salem residents seeking tax-free retirement income?

  Indexed universal life insurance may not fit Salem residents planning for tax-free retirement income. Unlike a Roth IRA, which allows most of the contributions to be invested, indexed universal life insurance has higher expenses, including premiums and administrative costs. While it offers potential tax-free distributions, it involves complex features and may not be ideal for most investors.

• 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.