Best Life Insurance Companies in Reading

FAQs

• What is under permanent life insurance in Reading?

  Permanent life insurance in Reading is a lifelong coverage with a cash value aspect. Its first type is whole life insurance, which offers fixed premiums and guaranteed payouts to beneficiaries with a growing cash value. The other one is universal life insurance, which provides more flexibility, allowing adjustments to premium payments as the cash value accumulates.

• What factors should you consider when applying for a life insurance policy in Reading?

  When applying for a life insurance policy in Reading, determine your dependents' financial needs, especially for married individuals with a partner and children. They must consider living expenses, like mortgages and loans, as they impact coverage. Also, plan for final expenses such as hospital bills and burials.

• What specific life changes should cause a review in your life insurance in Reading?

  Reviewing your life insurance policy in Reading is essential when specific life changes occur, such as births, deaths, divorces, and marriages, which affect your family's financial needs. Buying a home, changes in your financial situation, and retirement are significant triggers. Regular reviews every two years are crucial to ensure your coverage remains adequate and adaptable to changing circumstances.

• What to do when your life insurance claim is denied in Reading?

  If your life insurance claim is denied in Reading, request a clear explanation from the insurance company. If it's related to medical exam results, verify the accuracy of your medical records with your doctor, as inaccuracies can lead to rejections. After addressing any discrepancies, consider collaborating with an independent life insurance for assistance.

• Why should you get life insurance in Reading?

  Securing life insurance in Reading provides financial security for your loved ones by delivering tax-free death benefits. Life insurance protects businesses by enabling partners to buy out a deceased partner's interests, preventing forced liquidation. Moreover, whole life insurance policies' tax-deferred cash value growth presents living benefits, allowing for withdrawals or loans to cover expenses like education or home down payments.

• 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.