Best Life Insurance Companies in Bethlehem

FAQs

• How do insurers in Bethlehem verify the death of a policyholder and notify beneficiaries?

  Insurers in Bethlehem cross-check their insureds' active policies with the death master file semiannually. After a match, they confirm the death using other records within 90 days. If benefits are due, they try to find beneficiaries and guide them on claiming procedures, including providing necessary forms and instructing them to submit an official death certificate if the policy requires.

• How does universal life insurance work, and what benefits can Bethlehem policyholders gain from choosing this policy?

  Universal life insurance offers lifelong coverage with the added benefit of flexible premiums. Bethlehem policyholders can decide their contribution levels beyond a predetermined minimum, which also influences the policy's face amount. Furthermore, these policies accumulate a tax-deferred cash value, presenting an advantage for the insured by allowing their money to grow without immediate tax liabilities. The guarantees associated with the policy depend on the claims-paying capacity of the issuing company.

• What are the primary benefits of obtaining whole life insurance for individuals in Bethlehem?

  Whole life insurance offers lifelong coverage for individuals in Bethlehem. It ensures protection for the insured's entire life and doubles as an investment opportunity. While policyholders might pay higher premiums initially, the policy accumulates cash value over time that they can access in the future. These features make whole life insurance a valuable option for individuals seeking both security and financial growth.

• How can Bethlehem residents determine if an individual had a policy with a life insurance company?

  Bethlehem residents can use the National Association of Insurance Commissioners Life Insurance Policy Locator Service to determine if someone had a policy with an insurance company. This service asks life insurance companies to verify their records. If a policy exists and the requesting party is the named beneficiary, the insurance company will reach out to them. For further details or help, individuals should contact the Department's Bureau of Consumer Services at 1-877-881-6388.

• What is the difference between a medical exam and a no-medical exam life insurance policy in Bethlehem?

  A medical exam life insurance policy mandates a health assessment by a doctor in Bethlehem. A no-medical exam policy bypasses this step. For residents with robust health, this distinction is vital. Choosing the medical exam route is cost-effective and may lead to potential savings in premiums. Understanding this difference helps individuals make informed insurance decisions.

• 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.