Best Life Insurance Companies in Houston

FAQs

• What are the key living benefits offered by permanent life insurance policies in Houston?

  Houston policyholders who opt for permanent life insurance policies can enjoy benefits during their lifetime, including cash value growth. This accumulated cash value can be utilized by the policyholder for various purposes, such as settling debts, augmenting their retirement income, or covering unexpected emergency expenses. These benefits not only enhance financial security but also provide policyholders with increased financial flexibility throughout their lifetime.

• How can Houston residents determine the appropriate level of life insurance coverage they need?

  Residents of Houston can gauge their life insurance requirements by evaluating their financial status and defining their financial objectives. The death benefit should ideally range from seven to ten times their annual pre-tax income. It is important to note that families with stay-at-home parents and young children require more than ten times their income to adequately address future expenses.

• What types of cash-value life insurance policies are available to people in Houston?

  Residents of Houston have access to cash-value life insurance options, including whole-life policies. These policies combine term life coverage with an investment component. Also, a universal life policy offers flexibility in terms and pairs term insurance with an interest-earning money market account. Moreover, variable life policies link the life insurance policy's death benefits to the performance of the associated investment account.

• How long is the contestable period for new life insurance policies in Houston?

  According to Texas state regulations, newly issued life insurance policies in Houston come with a two-year contestability period. During this timeframe, insurance firms have the opportunity to assess the accuracy of the information supplied by the policyholder since the activation of the policy. If the insured dies during this period, the carrier retains the option to reject the payout. If the policy lapses and is subsequently reinstated, the two-year contestability period resets.

• What are the child life or spouse life and accidental death and dismemberment coverage options for Houston Independent School District employees?

  Employees of the Houston Independent School District can choose from three coverage options, which include coverage equivalent to one, two, or three times their annual base salary. Additionally, if they opt for supplementary coverage for themselves, they have the opportunity to acquire life insurance and accidental death and dismemberment coverage for their spouses and children.

• 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.