Best Life Insurance Companies in Newark

FAQs

• What is the average cost of a 10-year life insurance policy for men and women in Newark?

  In Newark, men typically pay around $20 per month for a 10-year term life insurance policy, while women pay approximately $17 per month for the same duration of coverage. The average monthly premium for a $250,000 coverage policy among men in the city is about $13. On average, women pay approximately $11 per month for a similar policy.

• How can Newark residents determine the amount of life insurance they need?

  The amount of life insurance Newark residents should get depends on their goals, the needs of their families, and the bills they have to pay when they pass away. People who only want to cover funeral costs can consider funeral and burial expense insurance. Those who want to help with bigger expenses like paying off a house or tuition might need a term or whole-life policy.

• How much do smokers expect to pay for life insurance in Newark?

  Individuals who smoke can expect monthly life insurance premiums in Newark to range from approximately $107 to $196 on average. Among the insurance providers in the city, Transamerica stands out as the most budget-friendly option, offering coverage at a rate of $107 per month. Another provider is State Farm, which offers premiums at $126 per month.

• Do life insurance beneficiaries incur taxes in Newark?

  Yes. Although life insurance death benefits are typically exempt from income tax for beneficiaries in Newark, they could potentially be liable for estate taxes. Note that life insurance remains part of the estate's assets, even when the payout is directed to a designated beneficiary.

• Why is life insurance important to Newark residents?

  As a financial planning tool for Newark residents, life insurance offers support to their dependents in the event of their passing by replacing lost income. Furthermore, the death benefit is exempt from federal income tax and can help pay expenses such as funeral and burial costs. Policyholders can also utilize life insurance to make a charitable contribution by designating a charity as the beneficiary.

• 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.