Best Life Insurance Companies in Abilene, TX

FAQs

• What are the benefits of buying life insurance for your kids in Abilene?

  Most child life insurance policies are whole life, which means your child will have lifetime coverage if premiums are paid. Because you are purchasing insurance for a young person, the premium will be much lower, and you can lock it in, ensuring that it will not increase. Some Abilene parents purchase child life insurance to ensure their child's insurability even if they develop a medical condition in the future. Furthermore, the child can eventually borrow the policy's accumulated cash value.

• What other life insurance coverage options can you consider when shopping for life insurance in Abilene?

  Consider the premium waiver for individuals with a disability option. It will pay your upcoming premiums to keep your Abilene insurance active if you become disabled. A common alternative is the accelerated death benefit rider, which will pay a portion or all of your death benefit if you are diagnosed with a terminal illness. In addition, you can add an accidental death rider to your policy. Accidental death is compensated with an accident benefit in addition to the death benefit.

• Can you have multiple beneficiaries for your life insurance in Abilene?

  In Abilene, you can have multiple beneficiaries on your life insurance policy. You can name family and non-family members as beneficiaries, as well as a charitable organization. You can also specify how much of your death benefit will be distributed to each beneficiary. In addition to your primary beneficiaries, it is recommended that you have a contingent beneficiary. If one of your primary beneficiaries dies before you, your contingent beneficiary will receive their portion of your death benefit.

• Can you get life insurance in Abilene if you have been diagnosed with a mental illness?

  Yes, having a mental illness does not automatically rule you out of getting life insurance. However, keep in mind that acceptance of your insurance application is not guaranteed, and the coverage that you can obtain will be determined by the insurer's guidelines, including the severity and management of your mental illness. Because of the mental illness, the premium quotes in Abilene may be higher than average.

• What happens if you designate your child as your life insurance beneficiary and you pass away before they reach adult age in Abilene?

  Your life insurance benefit will not be paid to your minor child directly. Most likely, the court will appoint a custodian/guardian to receive the benefit on their behalf. It is best if you designate a trusted adult to receive and manage the insurance proceeds for minor beneficiaries on your policy. Alternatively, you can establish a trust fund in Abilene to hold the proceeds until your child reaches the age of majority, and appoint an adult fiduciary to manage the trust.

• 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.