Best Life Insurance Companies in Camden

FAQs

• Can you withdraw money from your whole life insurance policy in Camden?

  Yes, you can withdraw on your whole life policy, not exceeding the amount of premiums paid tax-free. However, it may reduce your death benefit. Withdrawals over the amount of total premiums can be taxed in Camden. Consider taking out a loan against the cash value of your insurance policy if you require additional money.

• Can you sell your life insurance policy in Camden if you don’t need it anymore?

  Yes. The sale involves entering into a viatical settlement with the buyer in which the buyer assumes payment of your upcoming premiums and receives the insurance proceeds upon your death. Policyholders enter viatical settlements, develop a life-threatening medical condition, are in need of immediate cash, or no longer need coverage. Before selling, consider other options, like surrendering the policy for cash. Also, consult a Camden financial expert about fair pricing and the tax implications of the sale.

• Who will pay your death benefit if your life insurance company in Camden becomes insolvent?

  The New Jersey Life & Health Insurance Guaranty Association will pay the death benefit of policyholders if their insurer closes business. However, the amount paid will be limited to a maximum of $500,000 for the death benefit and up to $100,000 in cash surrender value. The Guaranty Association may also transfer your policy to another solvent insurer in Camden. Thus, you should keep your premium payments up to date throughout this process to keep your coverage active.

• Is there a grace period for missed life insurance premium payments in Camden?

  Yes. The New Jersey Statutes Section 17B:25-3 requires life insurance companies in Camden to provide policyholders with a minimum of a 30-day grace period after a missed payment. You must pay your overdue life insurance premium within 30 days to avoid your policy lapsing. Your coverage remains active during the grace period.

• Will life insurance companies in Camden pay the death benefit if the insured dies of suicide?

  It depends. Most life insurance companies in Camden enforce a suicide clause, which indicates nonpayment of the death benefit if the insured passes away due to suicide during the contestability period. The insurer would instead refund the policy’s cost. If the suicide, including physician-assisted suicide, occurs after the contestability period, the insurer may pay the death benefit.

• 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.