Best Life Insurance Companies in Frisco

FAQs

• What is the state-recommended life insurance coverage amount for Frisco residents?

  Texas' recommended life insurance coverage amount for Frisco residents is $719,000. This coverage comes at a higher cost because it considers various state-specific factors, such as age, cost of living, and household income. For male applicants, MassMutual offers policies aligned with the state's recommended coverage amount at a monthly premium of $32. Female applicants can obtain budget-friendly policies from Nationwide with a monthly premium of $22.

• Can term life insurance policies be converted to permanent life insurance policies in Frisco?

  Yes. Term life insurance plans available in Frisco can be converted to a permanent life insurance policy, such as whole life or universal life. This conversion option can be completed by carriers without requiring a new medical examination or proof of insurability from policyholders. It also offers individuals the chance to extend their insurance coverage beyond the initial term in response to changes in their requirements or situations.

• Can a stay-at-home parent in Frisco get a life insurance policy?

  Yes, because life insurance is applicable to more than just those who work outside the household. Even stay-at-home parents in Frisco play a significant financial role within their families, despite not receiving a traditional paycheck. They perform essential family responsibilities, such as childcare, cooking, and cleaning. These services are valued at approximately $40,000 annually when considering their replacement cost.

• Does the life insurance benefit provide income tax-free money to beneficiaries of Frisco policyholders?

  Yes, life insurance death benefits are generally paid out to Frisco beneficiaries free of income tax. This specific benefit can be used to cover funeral costs, settle debts, and fund educational expenses. Furthermore, it offers protection for the policyholder's business, allowing partners to acquire the shares of a deceased partner and avoid the necessity for a forced liquidation.

• What are the tax advantages of a variable life insurance policy in Frisco?

  Variable life insurance provides tax benefits to Frisco policyholders, as the cash value within the policy grows without incurring immediate taxes. The cash value accumulates on a tax-deferred basis, and policyholders are not required to pay taxes until they decide to withdraw or receive the funds. This arrangement enables policyholders to potentially earn a greater amount of money within the policy over time.

• 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.