Best Life Insurance Companies in League City

FAQs

• How is life insurance death benefit paid to beneficiaries in League City?

  Typically, policyholders and beneficiaries in League City have the following options regarding how the death benefit is paid:

  • Lump sum – Beneficiary receives the full death benefit in one payment.
  • Fixed period – Beneficiary receives death benefit in installments over a specified period.
  • Life refund – Beneficiary receives the death benefit in a certain amount every month throughout their lifetime.
  • Interest only – The insurance company handles the death benefit as it earns interest. Interests get paid to the beneficiary on a regular basis.

• Will you get a refund if you cancel your life insurance policy in League City?

  Yes, if you have prepaid premiums on your life insurance policy, you should be refunded the unused premiums when you cancel the policy. Also, make sure you are canceling during the free-look period of the policy. If so, you are eligible for a full refund. While not required by law, most insurance companies in League City provide a free-look period of 10 to 20 days from the date of purchase of the policy.

• What can lead to your life insurance application being denied in League City?

  If you are considered high-risk, you may be denied life insurance in League City. People with dangerous occupations or hobbies, such as skydiving, as well as a DUI or criminal record, are typically considered high risk. Certain health-related conditions, such as heart disease, smoking, and drug use, can also make you uninsurable. If you believe the denial was based on inaccurate or outdated information, such as an old medical file, you can provide updated information and file an appeal with the insurer.

• How long does it take to get a life insurance claim payment in League City?

  Life insurance companies in League City have two months from the time they receive proof of death and verify the beneficiaries to pay the death benefit under Texas Insurance Code Title 7 Section 1101.011. If the insured dies within the two-year contestable period, the process may be extended. It should be noted that the death benefit begins to accrue interest after proof of death is submitted. These earned interests must be included in the settlement of the death benefit.

• What is the difference between a universal life and a whole life insurance policy in League City?

  Whole life and universal life are both permanent life insurance policies that provide coverage for your entire life. With a universal life insurance policy, you have the option of increasing or decreasing your death benefit amount as well as your premium. On the other hand, a whole life insurance policy maintains the same premium and death benefit. An experienced life insurance agent in League City can assist you in determining which policy type best suits your long-term needs.

• 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.