Best Life Insurance Companies in Louisville

FAQs

• When should you choose whole life insurance in Louisville?

  Choose a whole life insurance plan if you want to be protected for your entire existence in Louisville, and if you want the option to take back a lump sum while still alive. This is because a whole life insurance plan has a savings account called a cash value account, which grows without taxes over time. You can take money out or borrow against it while you are alive.

• How do age and health affect life insurance premiums in Louisville?

  In Louisville, being old and unhealthy makes insurance premiums more expensive. Insurers are more willing to insure healthy young persons because there is a reduced risk of untimely death and of payouts being made before sufficient premiums have been paid. Generally, if there's a higher probability of someone having a longer life, the policy tends to be more affordable.

• How can a life insurance plan be used for estate planning in Louisville?

  A life insurance plan in Louisville is usable as an estate planning tool because the value of the policy serves as an additional fund for the beneficiaries, who in turn could be the insured person's heirs or legatees. The transfer of funds on the plan might receive favorable tax treatment too and does not need to pass through probate.

• Is it wise in Louisville to stick to a single life insurance plan without making changes?

  It is not always advisable in Louisville to stick to a single unchanging life insurance plan. The needs and goals of the insured may change over time as may life circumstances. The birth of a new child or a divorce may necessitate a revision in the named beneficiaries, and the expiration of a term life contract may require extension or conversion.

• In Louisville, how does universal life insurance differ from whole life insurance?

  While a universal life insurance plan is similar to a permanent whole-life plan in that the scope is for the insured's whole life, it has more flexible premium payments that could be adjusted lower or higher, depending on a person's goal and earning ability in Louisville. With traditional whole-life policies, the premiums are unchanging.

• 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.