Best Life Insurance Companies in Alexandria

FAQs

• Will you get your benefits if you pass away during the two-year contestability period in Alexandria?

  Yes, if you die within the two-year contestability period, your Alexandria insurance policy will continue to pay your benefits. However, your insurance company has the right to investigate any misrepresentations in your policy application, and if discrepancies are discovered, you will not be awarded the full coverage of your life insurance.

• Will you lose your life insurance coverage if you miss a payment in Alexandria?

  No, if you miss a premium payment in Alexandria, you will not automatically lose your life insurance coverage. For missed payments, insurance companies provide a 30-day grace period. During this time, your insurance coverage remains in effect, and you are still protected. If you make your payment within 30 days, it will not be considered late.

• Are you allowed to have more than one life insurance policy in Alexandria if you are a service member?

  Yes, having more than one life insurance policy in Alexandria is allowed if you are in the military. As a member of the armed forces, you are automatically enrolled in Servicemembers Group Life Insurance, an affordable policy designed specifically for military personnel. To fill in any gaps in your SGLI policy, you may also purchase a separate life insurance policy.

• Do you need to pay taxes on life insurance payouts in Alexandria?

  No, life insurance payouts in Alexandria are tax-free on both the federal and state levels if the insured dies. However, the portion of your death benefit from an annuity is taxable. Another situation in which your life insurance benefits may be taxed is when you reach the maturity age of your policy and choose to withdraw the cash value.

• How can your beneficiaries get your death benefit payout in Alexandria?

  If you die, your named beneficiaries in Alexandria can start the process of claiming your life insurance benefits by submitting a copy of your death certificate and other paperwork to the insurance provider. If you have complete documentation, you should be able to receive the death benefit within 30 days.

• 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.