Best Life Insurance Companies in Amherst

FAQs

• Do health conditions prevent companies from approving life insurance applications in Amherst?

  Health is one of the factors insurance companies look into when qualifying someone in Amherst for life insurance. At times, health conditions may deter someone from seeking life insurance coverage options. However, insurance companies may still grant coverage to people with health conditions, given that they are working with a medical professional to manage their condition well.

• Can your life insurance in Amherst pay for your student loans?

  A life insurance policy in Amherst can help reduce or pay the entire student loan debt in the event the student or graduate dies before their student loan is paid off. It can also financially protect cosigners, such as the student's parents. If the student has a term life insurance policy, the death benefit can be used to pay off the student loan when the borrower passes away.

• Do you need to undergo a medical exam to get life insurance in Amherst?

  Most life insurance companies in Amherst require applicants to undergo a medical exam before qualifying them to be insured. However, there are also some life insurance coverage options that do not require medical exams. Some of the life insurance policies with no medical exams required include simplified issue life insurance, guaranteed issue life insurance, and employer-paid group life insurance.

• Does having dangerous hobbies affect life insurance in Amherst?

  Life insurance premiums in Amherst vary depending on the perception of risk an underwriter perceives. One of the factors underwriters consider is one's hobbies. If an individual is regularly involved in dangerous activities, they are referred to as high-risk. Underwriters may either qualify the person for life insurance with substantially higher premiums or totally reject the application. Your premium will not be affected if your participation in dangerous activities is all in the past or if you decide to engage in a risky hobby a year after you sign up for life insurance.

• Can you name others as beneficiaries of your life insurance policy in Amherst other than your spouse or child?

  Yes, technically, anyone can be named as a beneficiary in your life insurance policy in Amherst. Friends are subject to spousal permission. People with whom the policy owner has a financial relationship, like a cosigner for a mortgage or business loan, can be designated as beneficiaries. A policy owner can also choose to leave behind proceeds to a charity, trust, or estate.

• 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.