Best Life Insurance Companies in Bellingham

FAQs

• Should Bellingham residents who have reached their retirement-related savings account limits get a variable universal life insurance policy?

  Individuals in Bellingham who have reached the limits of their retirement-related savings accounts, such as IRA and 401(k), should consider purchasing a variable universal life policy. Once the policyholder of a variable universal life policy has made a certain amount of premium payments, they can change the death benefit amount, the frequency, and the amount of premium payments. Additionally, they can aggressively increase the cash value component of their coverage.

• What are the common reasons for backdating your life insurance policy in Bellingham?

  Backdating your Bellingham life insurance policy can lower your premium by calculating your risk at a younger age. Since your life insurance rate will often rise as you get older when you apply, you may be able to lower your cost by citing a younger age when the coverage is underwritten. Backdating a policy could also help your payment deadline fall on a day that's convenient for you.

• How do you get payments from your Bellingham life insurance policy's long-term care rider?

  Your Bellingham life insurance policy's long-term care rider could pay out in one of two ways: indemnity or reimbursement. If your policy offers indemnity payments, you receive a predetermined monthly sum you can spend any way you like. If your policy has a reimbursement plan, you can get your money back for the covered costs by providing your monthly bill receipts to your insurer.

• What typical errors should you avoid during a life insurance phone interview in Bellingham?

  Avoid making the following common errors during your life insurance phone interview in Bellingham as they could have a negative effect on your application:

  • Acting evasively or unwillingly in the interview.
  • Ignoring subsequent demands for more details or medical records.
  • Forgetting crucial information regarding your medical or health history.
  • Overstating or understating your health issues or dietary preferences.

• What are the financial drawbacks of canceling your Bellingham life insurance policy?

  The cash value you have built up in your Bellingham life insurance policy may be liable for surrender fees or charges when you cancel it. The amount of money you will receive upon surrendering your policy may be drastically reduced by these fees. Additionally, canceling your policy may have tax consequences since the surrender value may be viewed as taxable income.

• 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.