Best Life Insurance Companies in Beaumont, TX

FAQs

• Can a Beaumont life insurance policyholder have more than one beneficiary?

  Yes, individuals with life insurance policies in Beaumont can designate beneficiaries using either the per capita or per stirpes methods. The death benefit is distributed equally among all named beneficiaries under the per capita approach. If a beneficiary dies, their share is divided among the remaining beneficiaries. In contrast, the per stirpes approach divides the death benefit among family branches. The share of deceased beneficiaries is passed down to their descendants.

• Are Beaumont residents allowed to carry multiple life insurance policies?

  Yes, there are no specific rules that limit the number of insurance policies a Beaumont resident can have. But insurance companies are careful about giving new policies to people they think are already covered too much. Multiple-term life insurance policies are recommended for people whose coverage needs have changed over time.

• What are the advantages of universal life over whole life insurance policies in Beaumont?

  Policyholders in Beaumont who have universal life insurance can choose when and how much they pay in premiums. It also lets them change the amount of the death benefit as needed. On the other hand, whole-life policies guarantee that the premiums will stay the same from the time the policy starts until the age of 100, when they are no longer needed.

• What distinguishes a life insurance broker, agent, and consultant in Beaumont?

  Most life insurance agents in Beaumont work for a single insurance company. On the other hand, brokers often work on their own and offer price quotes from a variety of insurance companies. They are paid on commission. Consultants are usually brokers themselves, but they focus on serving larger companies and get paid through fee-based arrangements.

• Can you provide cases of how life insurance can replace the income of deceased Beaumont policyholders for their dependents?

  The most common scenario in which life insurance serves as income replacement in Beaumont is with parents who have young children. It is, however, also applicable to couples in situations where the financial well-being of their parents, siblings, or adult children would be impacted by the death of one partner. Furthermore, the death benefit provided by a life insurance policy can supplement the government or employer-provided life insurance benefits for the surviving spouse or domestic partner.

• 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.