Best Life Insurance Companies in Baytown, TX

FAQs

• In Baytown, what kind of life insurance product is fit for those who wish to support a child's schooling?

  If an individual in Baytown wishes to fund a child's tuition, the ideal product is term-life insurance. A child will finish school at some point, and the insurance policy only covers the period when the insured's untimely death might jeopardize their education. There is no need to cover the rest of one’s life.

• What is the remedy in Baytown for one who wishes to extend the coverage of a term-life policy?

  One who wishes to extend a term-life policy in Baytown may extend the plan on an annual basis to get additional coverage, but the new premium will cost more than the previous one. In the case of renewal, it is unnecessary to take a new medical exam. Depending on the insurer, converting to whole life may also be an option.

• What is the appropriate insurance product in Baytown for those who may need the benefits while still alive?

  For those in Baytown who need insurance benefits while they are still alive, it is possible to obtain a permanent life insurance plan since these policies have a cash value. This represents the savings component of an insurance contract and may be withdrawn before death. The downside is that the death benefits will be reduced.

• What are riders in life insurance contracts drafted in Baytown?

  In insurance contracts drafted in Baytown, a rider is an added clause or document that modifies the agreement or adds terms and conditions outside the policy's terms. Some riders may impose new conditions for payouts, like releasing half the death benefit once the insured has less than a year to live.

• How are whole life policies different from universal life policies in Baytown?

  A whole life insurance policy in Baytown has permanent coverage and cash value like a universal plan. However, the former has set values for premium payments, established when the contract is taken out and left unchanged until it ends. Universal life insurance products have variable premium payments, which can be altered based on factors like ability to pay or age.

• 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.