Best Life Insurance Companies in Norfolk

FAQs

• Can you name multiple beneficiaries for your life insurance policy in Norfolk?

  Yes, you can designate multiple beneficiaries for your life insurance policy in Norfolk. This can include various individuals, such as your adult children or grandchildren. It's worth noting that in Virginia, children can only inherit directly in their own names once they reach the age of 18. To address this, you might consider establishing a trust with your children as the designated beneficiaries of the trust.

• Can creditors seize life insurance benefits in Norfolk?

  In Norfolk, life insurance policies are typically protected from creditors under certain conditions. If you designate your estate as the beneficiary of your life insurance policy, the death benefit becomes part of your estate's assets and may be used to pay off debts you owe to creditors. However, if you name specific individuals or entities as beneficiaries, the insurance proceeds go directly to these beneficiaries. In such cases, creditors cannot claim it.

• Is suicide covered by life insurance in Norfolk?

  Typically, life insurance policies in Norfolk include coverage for death by suicide. However, there is a waiting period of two years from the policy's inception. This means that if the policyholder dies by suicide within the initial two years of the policy, the insurance company may not pay the full death benefit to the beneficiaries. Instead, they might either deny the claim or conduct a thorough investigation to determine the circumstances of the death.

• What is the "incontestability clause" in a life insurance policy in Norfolk?

  In a Norfolk life insurance policy, the 'incontestability clause' typically establishes a two-year timeframe from the policy's start date. This provision serves as a safeguard for the policyholder, preventing the insurance company from disputing or denying claims due to inaccuracies or false information provided by the policyholder. However, once this initial period has passed, the insurance company generally loses the ability to challenge claims based on the policyholder's prior misrepresentations or inaccuracies.

• Can you name anyone as a beneficiary in your life insurance policy in Norfolk?

  In Norfolk, you have the flexibility to name almost anyone as either a primary or contingent beneficiary for your life insurance policy. This includes a wide range of options, such as family members, friends, financial institutions, charitable organizations, and trusts. It's important to consult with your insurance provider or financial advisor to understand the specific rules and guidelines that may apply to beneficiary designations in your policy.

• 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.