Best Life Insurance Companies in Temple, TX

FAQs

• How do life insurance companies in Temple pay death benefits?

  Life insurance agencies in Temple pay death benefits in a single lump sum or through a fixed period, an interest at regular intervals, and a set amount monthly. Insurers must provide the death benefits within two months of receiving the proof of death and verifying beneficiaries. However, if the policyholder dies during the contestable period, which is the first two years of the plan, life insurance companies may take longer to provide death benefits to beneficiaries.

• Why does the life insurance company take longer to pay death benefits in a contestable claim in Temple?

  In Temple, life insurance companies take longer to provide death benefits in a contestable claim due to the process complexity and several required documents to submit. During a contestable claim for life insurance policies, insurers investigate that no material misrepresentation may cause a denial of payment. They also order medical records and require beneficiaries to submit a death claim authorization signed by them or the personal representative of the deceased's estate.

• How long is the grace period In Temple to pay for a missed life insurance premium payment?

  Temple residents have a minimum of 30 days to pay their overdue life insurance premiums before their coverage expires, according to Texas life insurance laws. The grace period helps individuals from lapsing policies, prevents underwriting, and protects beneficiaries from lost claims. However, if a policyholder dies within the timeframe, insurance companies are still required to make a full payment to the beneficiaries.

• What rules are placed on insurance companies to encourage Temple residents to buy life insurance policies?

  Under the Texas Insurance Code, insurers in Temple are prohibited from not selling life insurance policies or denying coverage to applicants based on their religion, color, age, race, and marital status. Anyone who violates this legislation has to pay an average of $25,000 penalty depending on the seriousness of the intent. On the other hand, life insurance companies are allowed to deny policies or charge higher premiums if they prove that the stated factors directly affect the policyholder's mortality rates.

• Do life insurance agencies in Temple deny policies for those with criminal records?

  It depends. Some life insurance companies in Temple may sell policies to individuals with criminal backgrounds, but they may charge higher premiums, require several documents to submit, and offer limited coverage. Meanwhile, several insurers refuse those with criminal convictions from providing life insurance plans due to risk factors that may affect their life expectancy. However, House Bill 1934 bans life insurance companies that deny coverage solely for having a criminal history.

• 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.