Best Life Insurance Companies in New York City

FAQs

• When can you not consider having life insurance in New York City?

  If you are single and living alone in New York City, and you have enough savings for your future, you may consider not having life insurance. You can also forgo this type of insurance if you have no outstanding debts, and your family members do not need your financial support.

• Does your lifestyle affect your life insurance premiums in New York City?

  Yes, one of the factors that affect life insurance premiums in New York City is an individual's lifestyle. If you maintain a good health condition and healthy lifestyle, your life insurance premium might be cheaper. However, if you have existing medical conditions and use products that contain nicotine, you will pay higher insurance costs.

• In New York City, can you cancel your life insurance policy anytime?

  It depends on the situation. If your life insurance contract allows you to cancel your policy anytime, then it is fine. However, some insurance carriers in New York City require policyholders to finish a specific period prior to canceling the policy. Individuals who cancel their plans within a certain period may face penalties or charges.

• How long do beneficiaries receive life insurance payouts in New York City?

  In New York City, beneficiaries may receive their life insurance payouts within 14 to 60 days. Individuals or family members are encouraged to process their claims as soon as possible for faster claims process. However, if there is inaccurate or wrong information regarding the policyholder or missing documents, the payout might be delayed.

• Can minor children be named as life insurance beneficiaries in New York City?

  Children under 18 years old can be named as life insurance beneficiaries in New York City, however, the court may need to appoint a guardian or adult custodian who will manage their funds in case of policyholders' unexpected death. When minor children reach the legal age, they can start assessing their benefits.

• 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.