Best Life Insurance Companies in Metairie

FAQs

• What are the major factors that determine the amount of life insurance needed by Metairie residents?

  Metairie residents can determine how much life insurance they need by calculating how much financial support their families would need if they died. Individuals who own or are considering purchasing insurance policies should consider other financial obligations that must be met upon their death, such as funeral expenses, probate fees, and outstanding car loan amounts. They should also consider their current savings and any existing life insurance policies.

• What is a beneficiary and who can be named as a beneficiary in a Metairie life insurance policy?

  A beneficiary is the policyholder's designated recipient of a death benefit upon the insured individual's death in the context of a Metairie life insurance policy. The beneficiary could be an adult individual, the insured's preferred charitable organization, or even a nonprofit entity. In some cases, policyholders may choose to establish a trust for the benefit of their minor children and name it as a beneficiary of their policy.

• What role does a life insurance policy play in protecting a Metairie business against financial losses in the event of the death of a key employee or owner?

  A buy-sell agreement is included in life insurance policies to protect the interests of Metairie business owners if a partner dies unexpectedly. The proceeds from a life insurance policy can be used to purchase the shares held by the deceased partner's surviving heirs. In the case of key person insurance, the proceeds of the policy can be used to pay for expenses related to the recruitment and training of a replacement for the deceased key employee or owner.

• What are the advantages of a universal life insurance policy over a whole life policy for Metairie residents?

  The main advantage of a universal life insurance policy over a whole life policy is its adaptability. This enables policyholders to respond to changing financial conditions. Policyholders in Metairie can reduce their premium payments in exchange for a lower cash value or a smaller death benefit. Universal life insurance is also less expensive than whole life insurance.

• What is the duration of term life insurance coverage in Metairie?

  In Metairie, people can get term life insurance with terms of 1 to 30 years. Most insurance companies offer policies that last either 5 or 10 years. Policyholders can choose to be covered for 5, 10, 20, or 30 years. When the chosen term ends, insured people can renew their coverage at a higher premium rate.

• 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.