Best Life Insurance Companies in New Bedford

FAQs

• 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.

• 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.