Best Life Insurance Companies in Silver Spring

FAQs

• How long does it take to receive payment for a life insurance claim in Silver Spring?

  Life insurance companies in Silver Spring should send the money to the beneficiaries within 30 days of receiving proof of death. If the claim is not settled within 30 days, the money from the life insurance will start to earn interest, which the insurance company must also pay to the beneficiaries.

• What does it mean if your life insurance policy in Silver Spring is already fully paid up?

  It means that your Silver Spring life insurance policy has received enough payments or built up enough cash value to pay your premiums for the rest of your life. You will not be required to pay premiums anymore unless you take some of the cash value that was supposed to pay for the premiums. If your cash value is not enough to cover the premiums, you may have to start paying again.

• Will your life insurance policy in Silver Spring lapse if you miss paying a premium?

  Not right away. Before your policy ends, you will have 30 days to pay the late premium. Section 16-202 of the Maryland Code says this is the case. Your insurance will still cover you during this 30-day grace period. If you do not pay the premium by the end of the period, the Silver Spring insurance company may be able to cancel your policy.

• What happens if the sole beneficiary and the insured pass away together in a car crash in Silver Spring?

  In cases where two people die at the same time, Maryland law says that the insured person lived longer. Since there are no living beneficiaries, the money from the life insurance will go to the insured's estate and go through probate. On a life insurance policy, it is best to name a contingent beneficiary. If the policy has a contingent beneficiary, the money would go to them if both the insured and the primary beneficiaries died in the Silver Spring car accident.

• Is it possible for you to reclaim control of the life insurance policy purchased by your ex-spouse in Silver Spring during your marriage, now that your ex-spouse's financial interest in it has been removed by the divorce?

  No, unless the divorce decree states otherwise, your ex-spouse retains ownership of the policy. The validity of insurable interest in Silver Spring is determined during the policy purchase. If the insurance was purchased during your marriage, your ex-spouse has a valid insurable interest. You can negotiate directly with your ex-spouse to transfer ownership of the policy to you.

• 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.