Best Life Insurance Companies in Edmond

FAQs

• How does life insurance provide peace of mind to Edmond policyholders and their loved ones?

  Life insurance policies offer a financial security net for the loved ones of Edmond's policyholders via the death benefit. Furthermore, permanent life insurance policies include a cash value element that accumulates over time on a tax-deferred basis. People without significant assets to leave behind can also utilize life insurance to provide an inheritance to their family members.

• Can Edmond residents take a lump sum from their whole life insurance policies?

  It is possible for Edmond residents to receive a lump sum from their whole life insurance policies, provided they continue to pay their premiums. However, receiving a lump sum may reduce the death benefit that will be disbursed to their beneficiaries when the policyholder passes away.

• Will indexed universal life policyholders in Edmond be credited negative interest rates?

  Indexed universal life policyholders in Edmond cannot be credited negative interest rates because most policies come with a minimum interest rate guarantee. Universal life insurance policies for Edmond residents may link to a specific stock index, such as the S&P 500, and accrue credited interest according to its performance. The cash value has the potential to grow if the index performs well.

• How are Edmond residents classified for life insurance rate purposes?

  To classify Edmond residents for life insurance rate purposes, insurers group people into several categories, such as preferred, standard, and substandard. Individuals with moderate health conditions, like diabetes, can secure insurance coverage, but at a higher premium cost. Those with chronic ailments or occupations are assigned to the substandard category, and people diagnosed with terminal illnesses are considered uninsurable.

• What are the tax advantages of variable life insurance policies in Edmond?

  A variable life insurance policy offers tax advantages to Edmond residents through its cash value component, which grows on a tax-deferred basis. This means that individuals who hold these policies are not required to pay taxes on the growth of their cash value until they decide to withdraw the funds. This arrangement enables people to grow their wealth over time.

• 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.