Best Life Insurance Companies in Chattanooga

FAQs

• Will a Chattanooga life insurance provider pay the death benefit if the policyholder commits suicide?

  It varies. The suicide clause specifies that if the owner of a life insurance plan in Chattanooga committed suicide within two years of acquiring their coverage, the insurer will return the cost of the policy but will refrain from paying out the death benefit. In the same vein, the insurance provider will refrain from paying out the death benefit but will reimburse the amount paid for the policy if the applicant lied about their lifestyle or health condition.

• Can you still purchase life insurance in Chattanooga if your hobby is dangerous?

  In Chattanooga, you may still purchase life insurance despite engaging in risky hobbies, but you might have to pay a little bit more to cover the added risk. You need to complete a written questionnaire first so that they can learn more about your activity. The questionnaire will ask you things like how long you've been involved in this hobby, whether you are paid or employed for it, and whether you've taken any special training for it.

• Do Chattanooga life insurance companies run criminal background checks?

  Yes, because when you apply for life insurance in Chattanooga, the insurer will inquire about your criminal past, driving record, lifestyle, line of work, health, finances, and pastimes in order to assess your potential risk. The insurance company will then compare the data you supply to public records. Your ability to get life insurance, as well as the amount of the death benefit and the rate you are eligible for, may be impacted by a criminal record.

• Should you submit several life insurance applications to different companies in Chattanooga?

  It is not a good idea to submit applications to various Chattanooga life insurance companies. It is crucial to remember that almost all insurance firms use the same database to keep track of applications and records. Applying to several insurers at once could give the impression that you're attempting to over-insure yourself, which could lead to the denial of some or all of your applications.

• What are the possible payout options for a life insurance beneficiary in Chattanooga?

  The following are the Chattanooga life insurance beneficiary's payout choices:

  • A lump sum, via check or bank transfer.
  • Installments in batches over a certain time period.
  • Annuity, through a yearly percentage of the death benefit with interest.
  • Retained asset account, to access their money all at once and earn interest.

• 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.