Best Life Insurance Companies in Cranston

FAQs

• Is there an entity in Cranston that regulates insurance companies?

  Yes, the Department of Insurance is in charge of overseeing insurance companies in Cranston and the rest of the state. Their responsibilities include conducting financial audits of domestic insurance companies to ensure their financial solvency. They also ensure that these businesses follow state laws and regulations. In addition, they are responsible for investigating insurance rates and handling consumer complaints.

• Is it possible for the insurance provider in Cranston to reject a claim if the cause of death is attributed to acts of terrorism?

  Yes, life insurance policies in Cranston exclude coverage for terrorist acts. If the insured's death was the result of a terrorist act, the claim is more likely to be denied. Another possibility is that the policyholder died while visiting a country with a travel advisory due to terrorism. Furthermore, if the insured person worked in a high-risk occupation or engaged in activities that were targeted by terrorist attacks, the policy would be null and void.

• What are common reasons for beneficiary disputes in Cranston life insurance policies?

  One of the most common beneficiary disputes in Cranston life insurance policies is the absence of a named beneficiary. Another possibility is that both the spouse and the ex-spouse file for benefits. Furthermore, conflicts arise when children from first and second marriages seek benefits. Other causes of problems include fraudulent recipient updates and ineffective beneficiary updates. If this occurs, the insurance companies will rely on the court to resolve the issue.

• Can the policy be terminated if the policyholder starts missing premium payments in Cranston?

  Policyholders who have fallen behind on their premium payments should contact their insurer in Cranston as soon as possible. The insurer may grant the policyholder a grace period of 31 days to update missed payments. Failure to update premiums within the grace period will result in policy lapse. The policyholder should file a formal request for reinstatement, which usually entails making up any missed premium payments and informing the company of any changes in health status.

• In Cranston, what is the difference between renewable and nonrenewable term insurance?

  Most term life insurance policies in Cranston can be renewed at the end of the term, even if your health has changed. When you renew a term policy, the premiums rise. Before renewing the policy, ask if you will be paying the same premium. Check to see if you will lose the ability to renew the coverage after a certain age. Nonrenewable term insurance, on the other hand, cannot be renewed. To maintain coverage, you must enroll in a new policy.

• 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.