Best Life Insurance Companies in Ofallon

Frequently Asked Questions

• What happens when an O'Fallon resident's life insurance agency goes bankrupt?

  If your insurer goes out of business, your claim will be paid by the Missouri Life & Health Insurance Guaranty Association, which is similar to the FDIC for banks. This firm gets its funding from insurance agencies operating in the state. The Guaranty Association will pay the $150,000 death benefit if you pass away if, for instance, your insurer in O'Fallon has a life insurance policy on you with a $150,000 death benefit.

• Which government agency in O'Fallon handles complaints against life insurance companies?

  You can take up your complaint with the Division of Consumer Affairs within the Missouri Department of Commerce & Insurance. The Division is responsible for investigating consumer grievances against insurers and agents and providing information to policyholders. O'Fallon residents may call the Division at 800-726-7390 to raise general questions about life insurance matters. They may also file their complaints online through https://sbs.naic.org/solar-web/pages/public/onlineComplaintForm/onlineComplaintForm.jsf?state=MO&dswid=2056.

• Is suicide covered by life insurance in O'Fallon?

  Life insurance policies discourage policyholders from having a financial motive to commit suicide, thus the suicide clause in a life insurance policy states that if the policyholder commits suicide within the first two years of obtaining the policy, no death benefits will be paid out. After the exclusion period, beneficiaries are entitled to a death benefit irrespective of the cause of death. The coverage for suicide may depend on the type of policy. Speak with an experienced insurance agent in O'Fallon for more information about the clause.

• Can an insurer in O'Fallon deny a life insurance claim if the beneficiary was not legally assigned?

  Yes. A life insurance claim in O'Fallon may be denied if the policy has not been correctly assigned or transferred to the intended beneficiary. In the absence of a valid beneficiary designation, the policyholder's estate may receive the life insurance proceeds instead of the named beneficiary. In addition, the insurance company may deny the claim if the policyholder designated a beneficiary but did not complete the necessary documentation to officially assign or transfer the policy to that individual.

• Can an O'Fallon resident still change their mind after obtaining a life insurance policy?

  Yes. O'Fallon insurance companies typically allow customers a reasonable period, ranging from seven to 30 days, to cancel their life insurance policies. This is called the "free look" period, and you are entitled to a complete refund of any premiums you have paid if you cancel during this duration. Note that even though insurance providers are not obligated by Missouri law to provide a trial period, any such policy must be applied uniformly and equitably to all similar consumers. Contact your insurance provider or review your policy to see what options are available.

• 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.