Best Life Insurance Companies in Franklin

FAQs

• Is there a system in place in Franklin that offers protection for people whose life insurance provider has become insolvent?

  Residents of Franklin are covered by the Tennessee Life and Health Insurance Guaranty Association, which protects policyholders by collecting funds from its member insurers to fulfill the financial obligations of the insolvent insurer. It's still essential for individuals to pick well-managed and financially sound insurance companies since the protection the guaranty association provides has limitations.

• Can residents of Franklin renew term insurance even with health changes?

  Term insurance typically offers renewability regardless of health shifts. Each renewal may see higher premiums. Some firms in Franklin promise stable rates for a steeper premium and a specified period. A health evaluation could be needed, and premiums might increase. Understanding potential premium hikes and any age cutoffs for renewability is crucial.

• Can residents of Franklin obtain life insurance without undergoing a medical examination?

  Franklin residents can secure life insurance without a medical exam, also known as no exam life insurance. This only requires applicants to provide some basic health details. Approval hinges on whether the applicant's health information aligns with the insurer's underwriting criteria. This ensures a swift and straightforward process for obtaining coverage.

• Why could someone in Franklin be denied life insurance coverage?

  Individuals in Franklin can face denial of life insurance due to severe medical conditions, engagement in high-risk pursuits, or a felony conviction. False information on the application is also a potential ground for refusal. Moreover, if certain events, like a policyholder's suicide within the policy's first two years, beneficiaries might not receive the promised death benefit.

• If a resident of Franklin is denied insurance coverage, what should they do?

  When a Franklin resident faces insurance denial, they should first identify the reason for the rejection. It could be due to health, inaccuracies in the application, or past records. Once identified, they can adjust, like bettering their health, or explore other insurance options. It's also beneficial to consult a licensed insurance broker to understand alternative avenues.

• 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.