Best Life Insurance Companies in Chesapeake

FAQs

• What is the optimal approach to integrating life insurance into one's financial portfolio in Chesapeake?

  Consider getting a Chesapeake term life insurance policy. A significant portion of your funds should also be invested in tax-deferred individual retirement accounts and 401(k) plans. Cash-value policies are less likely than stock funds to provide financial benefits. Additionally, if you already have a cash-value policy, keep it. Tax-deferred investments can have significant monetary value, and high-quality corporate bonds or long-term CDs can take 15 years or more to yield a decent return. As a result, include higher-yielding investments like stock funds in your policy to strike a balance.

• Should you purchase life insurance policies in Chesapeake for your children?

  It depends. You can use college savings or, if available, a rider on your existing policy to purchase life insurance for children in Chesapeake to cover the cost of a child's death. Nonetheless, if you purchase life insurance for your child, they may use it to cover a parent's final expenses. However, if your current policy has a cash value that includes a death benefit and an investment or savings component, purchasing a policy for your child may not be necessary.

• Can you borrow against the cash value of your Chesapeake Guaranteed Acceptance Life Insurance policy?

  In Chesapeake, if your policy is active and has a cash value, you are eligible to borrow against it. A compounded interest rate of 8% is applied to the loan each year. The policyholder's death benefit is lowered by any unpaid loan balance and interest at the time of death.

• What happens if the beneficiary in Chesapeake dies before the policyholder?

  If a life insurance policy recipient in Chesapeake dies before the covered individual, the death benefit is distributed to alternative beneficiaries. If there are no contingent beneficiaries, the benefit will be administered by probate. You can avoid this by designating multiple beneficiaries to prevent your estate from receiving the death benefit. Beneficiaries should be aware of your life insurance policy and how you wish for the proceeds to be distributed.

• Can creditors seize a death benefit when a person dies with unresolved debts in Chesapeake?

  Creditors in Chesapeake can only claim the death benefit if it is deposited into your estate after your death. This occurs only when no beneficiary is named in the policy. A creditor has no legal rights to the death benefit of a properly named beneficiary on a life insurance policy because it is paid directly to the authorized person or people.

• 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.