Best Life Insurance Companies in New Rochelle

FAQs

• What are the benefits of the cash value growth of a New Rochelle life insurance?

  Cash value growth is a feature unique to permanent life insurance policies in New Rochelle that act as an interest-accumulating savings or investment account that is funded when you pay your premiums. This feature is available to you for a variety of critical financial needs throughout your lifetime. Furthermore, the cash value of your insurance grows tax-free.

• How does participating life insurance work in New Rochelle?

  Participating life insurance policyholders in New Rochelle receive dividend payments in addition to death benefits. These dividends represent a shareholder's share of the company's investment profits. Although dividends are typically paid once a year, the return value is not guaranteed. Policyholders can choose to apply the dividend to their premium or receive it in cash.

• How can one determine how much life insurance coverage they need in New Rochelle using the DIME formula?

  The DIME formula presents a valuable approach to determining the ideal life insurance coverage for individuals residing in New Rochelle. The formula takes into account four crucial factors that can significantly impact an individual's financial stability:

  • Debts and final expenses.
  • Income for the number of years required to support one's family, multiplied by the individual's annual wage.
  • Mortgage.
  • Education cost for dependents' schooling. Basically, adding up the expenses in each category, one can derive an estimate of the necessary life insurance coverage.

• Are there specific exclusions in New Rochelle life insurance policies?

  Exclusions from life insurance policies offered by New Rochelle's various providers, such as suicide, aviation accidents, wartime cases, and military service risks. Some policies only cover accidental death and exclude illnesses, chronic health conditions, illegal behavior, substance abuse, and high-risk activities like rock climbing or skydiving. Before purchasing life insurance, consult with an advisor to learn about its limitations.

• Can you place life insurance into trust in New Rochelle?

  Yes, you can transfer ownership of your life insurance policy to a New Rochelle trust. In this case, the payout will go to the trust and be managed by a trustee after your death. If you choose to set up an irrevocable life insurance trust, you can avoid estate and income taxes, exercise control over distribution, liquidate assets, and eliminate any limitations the beneficiary may face when receiving government benefits, ultimately maximizing your dependent's benefit.

• 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.