Best Life Insurance Companies in Lexington

FAQs

• What is the difference in Lexington between life insurance and disability insurance?

  The difference in Lexington between life insurance and disability insurance lies in the risk protected against. Life insurance protects against the chance that the insured will die and leave the beneficiaries without love and support. Disability insurance guards against the risk that the insured will be disabled and unable to provide support even if alive.

• What factors significantly influence the cost of life insurance in Lexington?

  In Lexington, life and health are the biggest factors that affect the price of the premiums due. Insurers are reluctant to insure people who will die before they have paid enough premiums since it raises the odds of releasing money before recouping the cost of the policy. Hence insurers would rather insure the young and healthy.

• How is life insurance useful as an income-generation tool in Lexington?

  Dependents in Lexington may use life insurance to generate income once the insured dies. Similar to the estate planning use of life insurance, beneficiaries will receive the proceeds of the policy once the insured passes, and this cash may be used for various purposes, like paying debts, taxes, and living costs.

• Is it a good idea to get whole life insurance policies in Lexington if the insured wishes to support the higher learning of a spouse?

  It may be better in Lexington to get a term life plan if the goal is to support the higher learning of a spouse. The partner will not be studying forever and the assurance coverage does not have to extend beyond the graduation date plus whenever the student loans are paid.

• In Lexington, how many beneficiaries can there be in a single life insurance policy?

  In Lexington, there may be multiple beneficiaries to a single life insurance policy, though their respective shares would have to be divided between them. The naming of multiple beneficiaries is usually done by estate planners to avoid probate since insurance proceeds do not need to pass through the court.

• 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.