Best Life Insurance Companies in St. Louis

FAQs

• Are there any tax advantages associated with the living benefits of a permanent life insurance policy in St. Louis?

  Yes. The cash value accumulated under a permanent life insurance policy in St. Louis is tax-deferred. This means that policyholders are not liable for taxes on the cash value's growth until they make a withdrawal. Policy owners have the option to utilize loans or withdrawals against the cash value to cover various expenses, such as funding college tuition or making a down payment on a home.

• How do life insurance rates in St. Louis vary between men and women?

  In St. Louis, the average monthly premium for a $250,000 life insurance policy is $19 for men and $17 for women. However, when opting for the recommended coverage amount of $625,000 in Missouri, the average monthly rates rise to $36 for men and $32 for women. Additionally, average premium costs can fluctuate significantly based on the length of coverage.

• Which life insurance policy can help St. Louis beneficiaries pay off mortgages?

  A mortgage cancellation life insurance policy in St. Louis offers protection to policyholders' loved ones if they pass away unexpectedly. It is important for potential buyers of this insurance to be cautious and not accidentally acquire it through unsolicited offers. The reason for this is that there are policies available that lack flexibility and primarily cover the mortgage itself rather than providing benefits directly to the policyholder and beneficiaries.

• What are the two basic types of term life insurance policies in St. Louis?

  In St. Louis, term life insurance policies generally fall into two primary categories: level and decreasing terms. Under a level-term policy, the death benefit remains consistent throughout the policy's duration. On the other hand, the death benefit decreases gradually over time, while the premium usually remains unchanged in a decreasing-term life insurance policy.

• Is cash value an additional benefit under a traditional whole life insurance policy in St. Louis?

  No, cash value serves as an alternative benefit available to St. Louis life insurance policyholders. It is generated through the combination of premium payments and investment returns. As an alternative benefit, policyholders can use the cash value they have accumulated throughout their lifetime to cover diverse expenses, including educational or retirement income costs.

• 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.