Best Life Insurance Companies in Arlington

Frequently Asked Questions

• When can you expect to receive the death benefit from your departed loved one’s life insurance in Arlington?

  Issuance companies in Arlington have two months from the date the beneficiaries are verified and proof of death is received to deliver the deceased's death benefit. It should be noted that if your loved one died during the contestable period, this process may be extended. Also, ensure that the death benefit payout includes interest earned by the insurance fund between receipt of proof of death and agreement to the payment.

• Are you allowed to add other people as your life insurance beneficiaries aside from your spouse in Arlington?

  Yes, just make sure to include these additional beneficiaries on your policy. Because Texas is a shared property state, unless you state otherwise or list other beneficiaries to receive a share of your death benefit, your legal spouse and minor children automatically become your beneficiaries. You can also leave your insurance benefit in Arlington to your estate, a group, a trustee, or a charity. It is best to have multiple beneficiaries in case the primary beneficiary dies.

• Does your ex-spouse still have a right to your life insurance benefits after getting divorced in Arlington?

  No, according to Texas Family Code Section 9.301, once a divorce decree is issued, spouses lose the designation of insurance beneficiary. In Arlington, there are only three ways for your ex-spouse to receive the proceeds of your life insurance policy:

  • Your ex-spouse is named as your beneficiary in the divorce decree.
  • You decide to rename your ex-spouse as beneficiary.
  • Your ex-spouse acts as trustee, receiving the proceeds for or on behalf of a dependent, such as your child.

• Can you have your lapsed life insurance policy reinstated in Arlington?

  Yes, insurers generally allow reinstatement within five years of your policy lapse. For your policy to be reinstated, the missed premiums and interest must be paid, and some insurers may require a new medical exam. You can avoid having your policy lapse in the first place. Arlington insurers typically give policyholders a grace period of 31 days from the payment due date to settle any outstanding premiums.

• Will your beneficiaries be taxed in Arlington for the death benefits they will receive from your life insurance policy?

  Death benefits are rarely subject to taxes in Arlington. The payouts your beneficiaries receive from your life insurance are not considered taxable income because they are considered compensation for their loss. When there is no beneficiary listed on a life insurance policy, tax may be owed. This results in the payment of your death benefit to your estate, which is then distributed to your legal heirs. Distributions from an estate may incur tax liability.

• 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.