Best Life Insurance Companies in Albany

FAQs

• Should you get Guaranteed Issue life insurance in Albany if you are healthy?

  Because Guaranteed Issue life insurance allows you to avoid medical exams, it may be less valuable in your case than traditional insurance. For being healthy, you can obtain lower-cost life insurance premiums in Albany through traditional policies. Guaranteed Issue life insurance is a better option for people with health issues.

• When is an irrevocable life insurance beneficiary designation useful in Albany?

  Consider making an irrevocable life insurance beneficiary designation during divorce and when you have a second marriage or blended family. This procedure ensures that your insurance benefits reach your designated beneficiary after your death. For example, it permits benefits to be paid to your biological child rather than your stepchildren or spouse. In Albany, an irrevocable designation can also be used during divorce settlement to prevent the wife from being written off the policy without permission.

• Can you really get lower premiums in Albany if you buy a no-load or low-load policy?

  A no-load or low-load policy is referred to as such because it includes fewer expenses, such as marketing costs and agent commissions, which can result in savings for policyholders. These policies can typically be purchased directly from insurance companies or financial advisors in Albany who charge flat fees for their services.

• Can you use life insurance as a source of income upon retirement in Albany?

  Yes, if your Albany life insurance policy includes an investment option or a cash value component. Variable-life or equity-indexed life insurance, for example, allows you to invest in mutual funds and index stocks to fund your retirement. When you retire, you can withdraw the cash value component of your permanent life insurance policy.

• How much money can you get from your claim in Albany under state protection if your insurance company goes bankrupt?

  If your insurance company goes bankrupt, the Life Insurance Guaranty Corporation of New York will pay up to $500,000 in claim payments. This is the total amount for death benefits and cash-value payments per insured person, which means this is the most you can get regardless of how many different or the same type of policy you obtained from the insolvent company in Albany.

• 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.