Best Life Insurance Companies in Brooklyn Park

FAQs

• Do policyholders automatically lose coverage for missed payments on their life insurance in Brooklyn Park?

  No, individuals in Brooklyn Park who miss a life insurance premium payment do not immediately lose coverage. Typically, life insurance policies include a grace period of at least 31 days for scheduled premium policies and 61 days for flexible premium policies. During this grace period, if the insured were to pass away, the beneficiaries would still be entitled to the policy's death benefit, minus the unpaid premium and any late fees.

• Is it possible to use an existing life insurance policy to pay off an outstanding mortgage loan in Brooklyn Park?

  Yes, people can use their current life insurance policies for a variety of purposes, such as paying off a home loan balance in the event of their demise. They may utilize their policy, regardless of whether it is a term or cash-value plan. Although a lender may advise against mortgage term protection, it is infrequently required.

• How should someone assign beneficiaries in life insurance policies in Brooklyn Park?

  When establishing a life insurance policy in Brooklyn Park, individuals must select beneficiaries in two ways:

  • Primary Beneficiary: A person, a trust, a charity, or an estate designated by the insured to receive the insurance benefit.
  • Contingent Beneficiary: In the event that the primary beneficiaries die or are unable to receive the benefits, the fund is distributed to the designated contingent beneficiaries.

• What happens if the named primary and contingent beneficiary in a life insurance policy in Brookly Park dies?

  In Brooklyn Park, if both the primary and contingent beneficiaries of a life insurance policy die, the benefit will be paid to the estate and subject to probate. To prevent this, individuals can name multiple beneficiaries and specify the portion of the death benefit each should receive, ensuring that the death benefit is not included in the estate.

• Do minors in Brooklyn Park who are designated beneficiaries on life insurance policies receive the proceeds?

  No, minors in Brooklyn Park can be designated as beneficiaries, but life insurance companies will not pay them directly. If the insured names their child as a beneficiary and the child is a minor at the time of their death, the court will appoint a guardian to manage the funds until the child becomes an adult.

• 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.