Best Life Insurance Companies in New Bedford

Frequently Asked Questions

• What distinguishes cash value from term life insurance in New Bedford?

  In New Bedford, cash value life insurance is a policy that you can keep for as long as you need it. It provides savings or investment provisions that allow policyholders to receive payouts while still alive. Meanwhile, term life insurance is a policy that you can purchase for a set period of time. If the insured dies during the period, the beneficiaries receive payment. Furthermore, it aims to provide lower coverage for a specified period and does not build cash value.

• Can a New Bedford insurance provider deny coverage because you lied on your application or committed suicide?

  Yes, an insurance company in New Bedford has the right to refuse a payout if the policyholder withheld information during the application process or committed suicide within the first two years of the policy's issuance. Withholding information about a medical condition would have resulted in your insurance being denied. If you lie about your age in order to get a lower premium, the insurance company will reduce your death benefit to match your premiums at the proper age.

• What actions should be taken in case of a policy lapse in New Bedford?

  You should contact your New Bedford insurance provider and request that the policy be reinstated. If you do not make payments, your insurance company may cancel your coverage. You may be able to catch up on missed premium payments and interest for up to five years with certain insurance companies. However, before your policy can be reactivated, you may be required to pass a medical exam.

• Do life insurance companies in New Bedford provide a grace period for late payments?

  Life insurance companies in New Bedford allow policyholders to make payments and reinstate their policies in good standing 30 days after the due date. However, this varies depending on the policy and insurance provider. If you are unsure about the grace period associated with your coverage, you should either review your policy documentation or contact the customer service department of your insurance provider.

• Where will you file a complaint if you are a victim of insurance fraud in New Bedford?

  You can file a complaint with the Division of Insurance if you're a victim of insurance fraud in New Bedford. You can access the agency's online complaint form at https://sbs.naic.org/solar-web/pages/public/onlineComplaintForm/onlineComplaintForm.jsf?state=MA&dswid=-2919. You may also send a complaint form by mail to: Division of Insurance Consumer Services Unit 1000 Washington Street, Suite 810 Boston, MA 02118-6200

• 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.