Best Life Insurance Companies in Las Cruces

FAQs

• In Las Cruces, can you convert your term life insurance policy to a permanent policy?

  Some insurance companies in Las Cruces allow customers to convert their term life insurance to permanent life insurance. You must select any type of level-premium permanent life insurance policy; no proof of insurability is required. Policyholders who meet the requirements must undergo a medical examination. The amount of insurance coverage, in addition to your gender, age, and risk category, will determine the cost of your policy.

• What options do policyholders in Las Cruces have when it comes to personalizing their life insurance policy?

  Those looking to purchase a life insurance policy in Las Cruces can customize their policy and receive additional protection by selecting from several rider options. An accidental death benefit rider can be purchased by the insured, which would pay out in the event of death caused by a covered accident. Furthermore, the insured can purchase a child rider, which provides a death benefit if one or more children die.

• Who would you choose as the receiver of your Las Cruces life insurance if you are single?

  In Las Cruces, if you do not have a spouse and you have a life insurance policy, you can choose your kids as beneficiaries. If you do not have any, you can choose your parents or siblings. Another choice is to leave the money to a charity. Additionally, money might be divided between your heirs and creditors and transferred to your estate.

• Can you purchase life insurance to support a child with a disability financially in Las Cruces?

  In Las Cruces, parents who have children with disabilities have the option of buying a life insurance policy to help their kids financially if they die too soon. One can set up a trust fund if they want to give someone else control of their money while still making sure that their goals are met. It is a good idea to talk with your agent about the possible risks and insurance coverage needed for a child with a disability.

• What is a collateral assignment of life insurance, and how does it impact your policy in Las Cruces?

  Life insurance collateral assignment in Las Cruces uses the death benefit as loan collateral. If you are unable to pay, the lender may take the collateral from your coverage. However, using your life insurance policy as collateral can have an impact on your beneficiaries if you fail to make loan payments or die with a balance owed. As a result, the death benefit payment to your beneficiaries may be reduced.

• 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.