Best Life Insurance Companies in Centreville

FAQs

• Will a life insurance company in Centreville inform the insured if their coverage is about to lapse?

  Yes, all life insurers in Centreville are required to notify the policyholders of any potential coverage gap caused by late premium payments, as mandated by Virginia Code section 38.2-232. To follow this legal requirement, they must send a notice to the policyholder's registered address that indicates the missed premium payment and the date when the coverage may lapse.

• What is the grace period on a life insurance policy payment in Centreville?

  The grace period for a life insurance policy payment in Centreville is 30 days. During the grace period, policyholders have an additional 30 days beyond the premium due date to make payment without the policy lapsing. However, specific terms and grace periods may still vary depending on the insurance company and the policy contract.

• Is it possible for a person in Centreville to cancel their life insurance if they change their mind?

  Yes. When residents of Centreville decide they no longer want to continue their life insurance for any reason, they have around 10 days to request policy termination. The 10-day "free look" period in Virginia enables policyholders to cancel their life insurance coverage and get a complete reimbursement of all premium payments. The death benefit is still paid out if the covered person dies during this time.

• What happens to the policy in the event that a life insurance company in Centreville files for bankruptcy?

  When Centreville insurance companies went insolvent or ran out of money, the Virginia Life, Accident & Sickness Insurance Guaranty Association backed the policies they underwrote. As long as customers continue to pay premiums or have cash worth, this guarantee company will honor the original insurance policy. This can be accomplished either directly by the company or by transferring the policy to a different insurer.

• Is it possible for a minor in Centreville to apply for life insurance?

  Yes. Minors who are at least 15 years of age in Centreville are permitted to apply for and maintain a life insurance policy for themselves, their family members, or both. However, if minor applicants live with at least one of their parents, that parent's written approval is required for the application for insurance coverage.

• 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.