Best Life Insurance Companies in Columbia

FAQs

• In Columbia, why should an individual take out a life insurance policy sooner rather than later?

  It is cheaper in Columbia for an individual to take out a life insurance policy sooner rather than later because the cost of insurance goes up the older a person becomes. Insurers will charge older individuals more in terms of premiums because of the higher chance of death or disability.

• Besides age, what factors determine the cost of life insurance in Columbia?

  Besides age, life insurance costs in Columbia are determined by the kind of plan chosen, with whole life costing more than term life. Factors like gender are taken into account, and insurers also determine if the insured has any high-risk hobbies like skydiving. The higher the odds of an untimely death, the more expensive coverage becomes.

• Is it possible in Columbia to get whole life insurance without having to pay premiums for one's entire life?

  Yes, it is possible in Columbia to get whole-life insurance without paying premiums for one's whole life. Some plans allow a person to make limited yet more expensive payments in exchange for lifelong protection. There are also options for paying a single lump sum, though the premium can get very pricey.

• How much life insurance coverage should be purchased by residents of Columbia?

  Residents of Columbia who wish to purchase life insurance coverage may determine the amount they need by seeing how much their expenses are versus how much they see themselves making before they die. The difference between the projected costs and income could be covered by a life insurance plan.

• When is a term life insurance plan in Columbia preferable to whole life options?

  Residents of Columbia may only need a specific portion of their lives covered by life insurance and in these times term life policies are better. It would be wasteful to get a whole life policy if the goal is only to cover a child's college years or to see a spouse get that master's degree.

• 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.