Best Life Insurance Companies in Durham

FAQs

• Why should Durham individuals purchase life insurance?

  Individuals in Durham must purchase life insurance to help them support their families' needs in case of income loss due to unexpected death. Life insurance can help them preserve family businesses, pay mortgage and household debts, and settle college or healthcare expenses. It also allowa individuals and families to establish an emergency fund and protect existing assets.

• If you are a first-time life insurance buyer in Durham, what should you do?

  If you are a first-time life insurance buyer, you must determine what type of coverage you need in Durham. You may choose between term and whole life insurance coverage for death benefit protection and cash value accumulation. You must also check with your insurance carrier and determine whether they process claims quickly.

• Who should be your life insurance beneficiary in Durham?

  Your life insurance beneficiary in Durham can be anyone you want to protect from monetary responsibilities in case you pass away. They can be people who depend on your financial expenses or will pay for your death expenses. Your primary beneficiary will be the one who will receive your death benefits and your second beneficiary can only receive death benefits if the first beneficiary is unable to do so.

• What is the difference between term and permanent life insurance in Durham?

  In Durham, term and permanent life insurance differ in their protection effectiveness. Term life insurance is set for a specific time, usually for 5, 10, 15, 20, and 30 years. Whereas permanent life insurance remains in effect for the rest of your life. Do note that there are three types of permanent life insurance: variable, universal, and whole life coverage.

• Is there another option if you think your traditional life insurance in Durham is not enough to cover your expenses when you retire?

  If you think your traditional life insurance in Durham is not enough to cover your expenses when you retire, you may purchase long-term car insurance. Most of the time, LTC insurance is purchased by individuals who need assistance with their daily living activities. This insurance can be used to pay nursing home, assisted living, and home care expenses.

• 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.