Best Life Insurance Companies in Springfield

FAQs

• How much life insurance do you need in Springfield?

  The amount of life insurance you need depends on your future needs and the impact of inflation on your soon-to-be death benefits. Life insurance rates vary based on your marital status, the number of children you have, your debt load, and the future earning potential of both you and your spouse.

• When should policyholders review their life insurance in Springfield?

  Policyholders in Springfield must review their life insurance whenever there are major changes in their lives. For example, they bought a new home or car. They need to upgrade their life insurance to prevent estate taxes that can be passed on to their loved ones in case they die. They also need to review and update their insurance if they start their own business or adopt a child.

• If you lose your job in Springfield, can your life insurance pay your bills?

  Yes, your life insurance can be used as income replacement in case you lose your job in Springfield. If your family depends on you, you can use this to pay grocery bills and educational and childcare expenses. Life insurance can also help in settling mortgage payments and health insurance premiums.

• Is life insurance in Springfield free from taxes?

  Yes, life insurance in Springfield is tax-deferred. This means that policyholders or their family members do not have to pay taxes for the cash value interest. However, if they withdraw the money, they might pay taxes. Withdrawn funds can be used to pay home down payments and college tuition fees.

• What are the advantages of having guaranteed universal life insurance in Springfield?

  Guaranteed universal life insurance in Springfield can help you obtain funds in case you become terminally ill. You can use full or partial accelerated death benefits from this type of insurance. You can also customize the length of your benefits. For example, you can have a guaranteed policy that is only applicable until 60 years old.

• 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.