Best Life Insurance Companies in Troy

FAQs

• Can a life insurance company in Troy deny death benefits claim if the insured misrepresented their health conditions in the application?

  A life insurance provider in Troy can deny death benefit claims if the insured provided false information on their application, but this is only possible during the contestability period. According to Michigan Legislature Section 500.4014, insurers have a two-year window from the policy's initiation to contest claims. However, they can dispute claims after this period under specific circumstances, such as unpaid premiums, policy violations linked to wartime military service, provisions concerning disability benefits, and additional insurance covering accidental death.

• Can you still cancel a life insurance policy in Troy if you have already received it?

  Yes. Michigan Legislation Section 500.4015 mandates that insurance companies in Troy must offer a 10-day free look period, allowing you to decide on keeping or canceling the policy. Should you opt to cancel during this period, the insurer is obligated to refund the premiums and fees you have paid. You can initiate cancellation by submitting a written request and the life insurance policy.

• What happens if a life insurance policyholder in Troy passes away during the grace period with an unpaid premium?

  Should a policyholder in Troy pass away within the grace period with an overdue premium, the insurance company will subtract those, along with its associated interests, from the claim amount. Alternatively, if the policyholder is alive and has outstanding premiums, they have a 30-day window, as mandated by Michigan law, to settle the payments.

• Is there a governing body that protects the interests of life insurance policyholders in Troy?

  Yes. The Michigan Department of Insurance and Financial Services is the organization that acts as the regulatory authority, ensuring life insurance companies comply with Michigan's laws. Consumers in Troy have the option to approach DIFS for information or address concerns regarding financial institutions and individual licensees, such as insurance providers.

• Where can you seek help in Troy if your life insurance provider becomes insolvent?

  If your Troy-based insurance company faces insolvency, you can contact the Michigan Life & Health Insurance Guaranty Association. The goal of the non-profit organization MLHIGA, which consists of several life and health insurance providers, is to safeguard policyholders if a member firm is unable to fulfill its financial obligations. In such scenarios, the organization evaluates its member insurance companies to secure funds for covering the claims and maintaining the insurance coverage of insured individuals, albeit within limitations.

• 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.