Best Life Insurance Companies in Carrollton

FAQs

• Can a Carrollton policyholder pick out how the death benefit sum of a life insurance is distributed?

  Yes. The lump sum is the most typical option, although there are additional options as well:

  • Interest option. The funds are invested by the insurance company, and the recipients only receive interest payments on a predetermined schedule.
  • Fixed period. The insurer will pay out the beneficiaries with interest-bearing funds at the time you specify.
  • Life refund. For the remainder of their lives, the beneficiary will get a fixed sum each month.

• Is everyone in Carrollton eligible for life insurance?

  No. Health issues, like chronic illnesses and prescriptions, and extreme hobbies like rock climbing and skydiving can all affect a life insurance company's decision to provide you coverage. In addition, insurance companies have the discretion to reject applications from individuals engaged in high-risk occupations, including flight attendants, pilots, firefighters, law enforcement personnel, and bartenders. Contact an experienced life insurance agent in Carrollton for options if you fall into any of these categories.

• Where can residents of Carrollton file complaints about unethical life insurance agency actions?

  Carrollton citizens may contact the Texas Department of Insurance, which oversees the state's insurance industry. If policyholders have already spoken personally with their agencies and are still unsatisfied with the outcome, they may utilize the Department's online complaint system or call the Help Line at 800-252-3439, which is available Mondays to Fridays, 8 a.m. to 5 p.m. Note, however, that the Department cannot compel an agency to refund surrender charges or other fees specified in a life insurance policy, nor can it prevent them from raising premiums.

• How does one obtain life insurance in Carrollton?

  Life insurance in Carrollton can be obtained from an insurance company, agent, or broker who sells insurance from multiple agencies. Companies decide whether or not to offer you a policy through underwriting. Usually, you have to take a medical exam and answer questions about your health, job, and habits, and a firm may deny a policy if your health or other reasons make you high-risk. Employers and organizations, like churches, unions, and associations, offer group life insurance to their employees and members. Underwriting is less rigid, and health questions are not required.

• What happens if there is no legal beneficiary for a life insurance policy in Carrollton?

  Life insurance proceeds go to the policyholder's estate if there is no legally named beneficiary, and any life insurance payout to the policyholder's estate is susceptible to creditors' claims. Doctors, hospitals, hospices, credit cards, and other personal debt may be among those creditors, and the executor must pay the debts before the heirs receive any inheritance. To avoid this hassle, it is advisable to consult with your insurance agent to ensure that your beneficiary designation adheres to legal requirements.

• 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.