Best Life Insurance Companies in Staten Island

FAQs

• How long does it usually take life insurance carriers in Staten Island to process claims?

  In Staten Island, when a life insurance claim is lodged, New York State mandates insurance companies to pay the beneficiary within 30 days after receiving a death verification. Delays in payments lead to accrued interest on the owed amount and potential fines for the insurer. Residents seeking more insight on these regulations can consult the New York State Department of Financial Services.

• Can Staten Island residents access cash value when surrendering a traditional whole life insurance policy?

  Yes. Staten Island policyholders with traditional whole life insurance typically amass a cash value over time, mirroring home equity accumulation. Upon surrendering the policy, the holder is entitled to a part of this value. The exact amount varies, considering factors like outstanding loans or unsettled premiums that may reduce the cash value.

• For Staten Island residents, is it necessary to pay premiums lifelong to maintain a whole life insurance policy?

  Not always. While traditional whole life insurance in Staten Island often demands uniform premiums for the insured's entire life, some policies offer single payments or shorter durations, like 20 years or until 65, at higher rates. Participating policies might apply dividends, although they're not guaranteed, to offset premiums. If surrendered, the policy's value can buy reduced insurance or a temporary term coverage, outlined in the "non-forfeiture" provision.

• What are the primary distinctions between term and whole life policies for Staten Island residents?

  Term life policies in Staten Island offer coverage for a fixed period, usually between 10 and 30 years, with consistent premium payments during that span. After the term, both coverage and payments end. Typically, term premiums remain low. On the other hand, whole life policies provide coverage for the policyholder's entire life without a specified expiration. They tend to have enduring premiums, ensuring lifelong protection.

• In Staten Island, should residents prioritize life insurance for the main income earner before considering policies for children or non-wage-earning spouses?

  Yes. Staten Island residents should first ensure that the primary breadwinner has sufficient life insurance coverage. Once this is in place, they can contemplate insuring children or a spouse not bringing in a salary. The rationale is that insuring a non-earning spouse can help cover the costs of household services they provide, while in homes with two earners, both incomes should be protected. Insuring children might be apt in specific circumstances but should not precede the main earner's coverage.

• 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.