Best Life Insurance Companies in Lansing

Frequently Asked Questions

• Can you borrow money from your variable life insurance plan in Lansing?

  Yes, the cash value of your variable life insurance policy will be used as collateral for a loan from your Lansing insurance provider. Your insurance provider will charge interest like any other lender, but repayment terms for loans secured by life insurance are far more flexible. The cash value of your policy determines how much you can borrow against it.

• Will your Lansing life insurance coverage be affected by your retirement?

  Retirement has no bearing on your Lansing personal life insurance policy. However, unless you convert it, the group life insurance plans provided by your employer expire when you retire. If your employer's coverage expires and you have a personal life insurance policy, you should consider purchasing final expense insurance, also known as burial insurance, as it is an affordable option designed for seniors.

• How do you fix a mistake on your Lansing life insurance application?

  If you make a mistake on your Lansing life insurance application, contacting your insurance company will assist you in making the necessary corrections and updating your application with the correct information. If you discover that you unintentionally falsified information after receiving a policy, your insurer will walk you through the reinstatement process, which may include amending your application and possibly changing your premiums.

• What details are gathered in a Lansing life insurance phone interview?

  A life insurance provider in Lansing will ask you numerous questions during the phone interview to acquire crucial information, such as your:

  • Medical background, such as past operations, illnesses, or hospitalizations.
  • Family's medical history, including any hereditary disorders that could put you at danger.
  • General health condition, including any existing illnesses or underlying problems.
  • Lifestyle choices, like drinking and smoking.
  • Financial situations, including debts and assets.
  • Occupation and any risky activities you participate in.

• Are you required to pay taxes on the cash you obtained as a beneficiary of a life insurance policy in Lansing?

  No, the payout from a Lansing life insurance policy that you receive as the beneficiary is not considered gross income and is therefore exempt from tax reporting. However, any interest earned is taxable and must be declared as income. If you are not sure whether you have to pay taxes on your life insurance payout, you can consult the IRS's Interactive Tax Assistant tool.

• 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.