Best Life Insurance Companies in Spokane

FAQs

• Can your life insurance policy be canceled in Spokane?

  Your life insurance policy in Spokane may be terminated if you fail to pay premiums or engage in life insurance fraud during the application process, which may include providing false information about your health, smoking habits, lifestyle, hobbies, or income. Activities such as submitting false claims or making unauthorized changes to someone else's policy are also examples of life insurance fraud.

• Can you borrow against your life insurance policy in Spokane?

  It is possible to take out loans against your life insurance policy in Spokane, but this option is applicable primarily to permanent life insurance policies like whole life and universal life, which accumulate a cash value component over time. This cash value serves as collateral for obtaining a loan from your insurance provider once it reaches a certain minimum threshold. However, it is important to note that this threshold varies among insurers, so make sure to check with your insurer.

• Can anyone purchase life insurance for you in Spokane?

  In Spokane, it is essential to note that no one can buy a life insurance policy on your behalf without your explicit permission. Your spouse is the sole exception, as he or she may obtain insurance on your behalf. However, if you go through a divorce or dissolve a domestic partnership, your former spouse or partner can only be designated as your beneficiary if the court orders it or if you voluntarily update your beneficiary designation form.

• How can you verify the legitimacy of an insurance company in Spokane?

  You can perform a verification process on the website of the Washington State Office of the Insurance Commissioner to ensure the legitimacy of an insurance company in Spokane. On their website, you can search by the insurer's name, the agent's name within a specific city, the Washington State license number (WAOIC), the National Producer Number (NPN), or their Doing Business As (DBA) name.

• Can you have multiple life insurance policies in Spokane?

  Multiple life insurance policies are available in Spokane. However, the total coverage amount you seek frequently influences the number of policies you can obtain. Certain life insurance companies may decline your application if they suspect you are attempting to obtain an unusually large amount of coverage. The maximum coverage you are eligible for is usually determined by your financial situation, which includes your assets, debts, and 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.