Best Life Insurance Companies in Austin

FAQs

• Does Austin joint life insurance provide two payouts?

  No, a joint life insurance plan in Austin only provides a single payout. If you have life insurance that pays out when the first partner dies, it is known as a first-to-die insurance policy. If your insurance is second-to-die, it will pay out to your beneficiaries following the passing of both policyholders.

• Does a medical exam have to be completed for every life insurance policy in Austin?

  Although medical examinations are frequently required when applying for life insurance in Austin, not all insurers require them. During an application, you will be required to fill out a questionnaire about your medical condition. But, if you only need a small amount of coverage, you might not be required to have a medical exam. Additionally, some insurance policies, including funeral insurance, exempt applicants from having a physical examination.

• What happens to your life insurance policy after you leave a job in Austin?

  When you quit your work in Austin, your employer's life insurance policies usually come to an end. However, some policies might be "portable" after you quit your work, allowing you to pay for the exact same coverage through a renewable term life insurance policy. In some cases, you can convert your employer-provided life insurance into a long-term individual life insurance policy.

• Can your life insurance plan in Austin that has lapsed be reinstated?

  The reinstatement clause in your life insurance policy in Austin outlines the conditions that must be satisfied in order to reinstate your policy. For instance, you must present proof of your ability to be insured in order to reinstate your policy. You might need to attest that your health hasn't changed since the policy started in order to demonstrate your insurability.

• Are policies for permanent life insurance taxable in Austin?

  If you take money out of the cash section of your permanent life insurance policy in Austin, it will be taxable. On the other hand, if you borrow against your insurance, the amount you borrow is not subject to taxes. Furthermore, death benefits provided to your designated beneficiary are exempt from both estate and income tax.

• 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.