Best Life Insurance Companies in Albuquerque

FAQs

• Is there an organization in New Mexico that will continue coverage for out-of-state policies from bankrupt companies in Albuquerque?

  If you're an Albuquerque resident, the New Mexico Life Insurance Guaranty Association ensures your coverage if your insurance firm fails. Your residing state's association shields you when the insolvency order is issued, no matter where you bought the policy. Typically, if the bankrupt company wasn't licensed in your state, the association where the company primarily operated steps in to cover you.

• Why do insurance agents in Albuquerque label term insurance as "temporary"?

  In Albuquerque, insurance agents often describe term insurance as "temporary" because it covers a set duration. However, just like auto or homeowner policies, it's not truly short-lived. These policies are designed for certain time frames and require renewal once that period concludes. It's the duration-specific nature, not the brevity, that leads to the "temporary" designation.

• How does cash value withdrawal affect insurance premiums and death benefits in Albuquerque?

  If you extract the cash value from your insurance in Albuquerque, there's a risk it won't sufficiently cover future premiums. Consequently, the insurer might mandate that you start making premium payments again or might decrease your death benefit to a value that the residual cash can support. It's essential to consider this before tapping into the cash value.

• In Albuquerque, under what circumstances will a life insurance policy provide a payout?

  In Albuquerque, life insurance policies predominantly disburse benefits if the insured individual passes away while the policy remains active. No benefits are extended if the policy gets terminated prematurely or if the insured person outlives the policy term, excluding instances involving universal policies that possess cash values.

• What are the tax advantages for Albuquerque residents who hold life insurance policies?

  For Albuquerque residents, life insurance presents notable tax perks. Death benefits given to beneficiaries are typically free from local, state, and federal taxes. Permanent life insurance policies see their cash values grow tax-deferred, meaning taxes apply only upon payout receipt. Plus, any loans or funds withdrawn from a permanent life policy aren't subject to taxation, enhancing the policy's fiscal appeal.

• 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.