Best Life Insurance Companies in Lubbock

FAQs

• Is it mandatory for Lubbock residents to have life insurance in Texas and what are its benefits?

  While Texas doesn't mandate life insurance, it's wise for Lubbock individuals to consider it. Acquiring a policy provides financial relief to beneficiaries upon your passing. Absence of this coverage can burden your family with unforeseen costs, starting with funeral and burial charges. It also ensures your kin's welfare after you depart, assisting in funeral expenses, compensating for lost earnings, and preserving your estate.

• How long is a life insurance contestable period in Lubbock, and how does the initial two-year timeframe impact claims?

  For Lubbock policyholders, the first two years after securing life insurance is termed the contestable period. During this span, insurers can probe application details. If discrepancies emerge, even unintended or irrelevant to the death, the insurer may decline the benefit. Yet, they're obligated to refund paid premiums. Beyond this period, death benefits are unequivocally granted. Lapsed policies that are revived will reenter another two-year contestable period.

• For Lubbock residents, what occurs if they delay a premium payment or their insurance policy lapses?

  Most policies have a built-in 31-day grace period after the due date, meaning you can pay it during this period without interest and still be covered. If you pass away during this grace period, your beneficiary receives the death benefit after subtracting the unpaid premium. If an insurance policy lapses due to non-payment, it can generally be revived within five years by settling dues, potentially with added interest, and possibly undergoing a health assessment.

• In Lubbock, can existing life insurance be repurposed to cover a mortgage or significant loan expenses?

  Whether it's a term or cash-value life insurance policy, you can use it to cover your mortgage if you pass away. Do note that term life insurance doesn't have a cash-value account, so you can't borrow money from it to pay loan expenses. Credit life insurance is often suggested when you take out a loan for expensive things like appliances or a car.

• For Lubbock residents, what is the role of net payment and surrender cost indexes in evaluating insurance policies?

  In Lubbock, insurance evaluators often use two indices: the net payment index, which estimates a policy's cost over a 10 to 20-year span, and the surrender cost index, which weighs the investment's cash value. A lower net payment figure indicates a more budget-friendly policy focused on death benefits. For those valuing investment's cash aspects, a diminished surrender cost index is preferable. When comparing universal life policies, higher cash surrender values signify superior investments.

• 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.