Arizona Whole Life Insurance

Reader’s Question:

Hi, I am just confused, why I pay higher than what my sister pays for life insurance in Arizona. I am insured under whole life insurance and my sister avails a term life insurance. Are they different?

Arnold

Yuma, AZ

 

It’s really great that you asked, Arnold.

I know a lot of people who get easily confused about the differences between these types of life insurance policies. Well for one, term life insurance is just raw, basic insurance. It pays cash to the beneficiary on the death of the insured person. The policy has no cash value as time builds up. You cannot borrow against a term life policy and if you stop paying the premiums, you will have nothing to show for the premiums you’ve already paid. The big advantage of term life insurance is that it has the lowest cost way to get a large amount of coverage.

On the contrary, whole life insurance does build ongoing cash value. The longer you keep the whole life insurance policy, the more value it has. And this is actual cash value that can be made available to you in the form of loans with low interest rate. You can also choose to loan against it without any interest but would diminish your death benefits. Because of its cash value build up, whole life insurance is more costly than term life insurance. In many cases, the cash value of a whole life insurance policy can actually exceed the total of all the premiums you have paid for the coverage because the insurance company invests the money they gather as premiums. Depending on the details of your particular whole life insurance policy in Arizona, there may come a time when you will no longer need to continue paying premiums, but you will still retain the coverage of the whole life insurance policy. This is called ‘paid up whole life insurance’.

Whole Life Insurance Arizona AZ

Reader’s Question:

I am planning to avail a whole life insurance in Arizona. Are there any features to know or to consider?

Jabez

Scottsdale, AZ

 

Thanks for asking, Jabez.

Yes, availing a whole life insurance policy in Arizona is really worth a time discussing and you must also consider some points. Just to give you an idea, a whole life insurance policy is an insurance policy that combines life insurance with savings. It can remain in force for the insured person’s whole life, thus called whole life insurance. The payments or premiums for “whole life Insurance” are higher than for a term life insurance policy. Whole life insurance costs more because the difference among the two payments goes into a savings or investment account at the insurance company. As you may have guessed, you have no control over the way the insurance company invests your payment. Nevertheless, you also do not have to take on the responsibility of allocating your savings in an appropriate way. You also do not have the flexibility of variable premiums if you have a whole life Insurance policy.

Whole life Insurance policies can be complicated! There are ample of insurance agents who are happy to help you, since such policies provide insurance agents with a good commission.

Keep in mind though that you should sit down with a licensed agent to discuss “whole life insurance” details…and you better ask all the questions that pop on your mind. “Whole life Insurance” may make sense in certain instances, especially in proper estate planning. So, rather than discussing “whole life insurance” with an insurance agent, it may be better to discuss also such policies with another type of financial professional like a financial planner or a tax professional who specializes in estate planning.

 

 

Buy Health Insurance Arizona AZ

Reader’s Question:

What are the things I need to know before I consider purchasing any health insurance policy in Arizona?

Jason

Chandler, AZ

It’s good that you asked, Jason.

You see, regardless of its type, you need to know if the plan will let you choose the doctors and hospitals that you might want to choose. Otherwise, you have to know how much more you will need to pay if you choose a doctor, hospital, or any medical provider that is not within the insurer’s network. Also, better know the monthly premium and your probable yearly deductible. There are also some health insurers in Arizona which will let you pay a percentage of your health care bills which most health insurance companies call ‘co-pay’. Get to know the ceiling on how much you will pay in a year as your out-of-pocket limit. Health insurance policies have lifetime limits, so know yours too. There are also rules for coverage on prescription drugs in case you health insurance policy will have coverage for that and it is best that you familiarize yourself on how you can save money on this aspect. It is also very important that you see a list of services and benefits for your prospective health insurance plan. For any serious health problems, some health insurance companies will not cover, or if it does will hardly cover right away. You better ask questions if serious illnesses will be covered by your health insurance plan. And the most important thing to watch out for, see to it that your health insurance plan has guaranteed renewability. There are cases of health insurance policies that got cancelled when the policyholder got sick, and that’s the last thing that you want to happen to you.

Cheap Auto Insurance Arizona AZ

Reader’s Question:

I have been shopping around for auto insurance rates online and it seems most I got are beyond my budget. There are two quotes in Arizona though that most likely fits my budget. Should I get the budget auto insurance policies? Is price really a very good priority?

Jamie

Gilbert, AZ

It’s good that you asked, Jamie.

It’s very important that you do a little research first before you decide to buy the cheapest ones. Try not to listen to snappy commercials and cartoon mascot that you see in Arizona. These auto insurers may guarantee you lower premiums but their coverage might not be very inclusive as the traditional companies. Budget auto insurers can offer basic coverage and can fit the needs of many car owners who are on a skimpy budget. Despite that, be wary about difficult process in case you make insurance claims from low cost insurers.

Low-ball rates normally have very inconvenient consequences for most consumers since budget auto insurers would typically make up for it with lack of coverage. It can result to exhausting marathons when you make claims full of red tape here and there. Expectedly, lower premium rate auto insurance policies would likely have lower standards which can almost be far below industry standards.
The rule of thumb in the context of choosing auto insurance is to shop around first, but never get attracted so easily with the cheapest rates. Check other factors like deductibles which may affect your premium, company history and consumer complaints, possible discounts you may avail of, and grace period for traffic violations and accidents.

Like they say, if it sounds too good to be true, then it probably is…and you better watch out!

Group Health Insurance Chandler AZ

Reader’s Question:

I have a group health insurance policy which the company I am working for gives to its employees. Is this enough to help me get protected?

Michelle

Chandler, AZ

 

Hi there, Michelle.

I cannot answer you with a yes or no since there are many factors that we have to consider to verify if your group health insurance will be adequate for your medical protection in Candler AZ. First, I’d like to state that a group health insurance can be sponsored by your employer and mostly you are given an option to include your other family members at your own expense. An individual health insurance, sometimes called disability insurance, is a health insurance you get for your own. With the group insurance, of course it comes cheaper for your employer since there is a corresponding group discount for a certain number of headcount who gets a health insurance from them. With individual policy, it might be a little higher on premiums but with more extensive benefits.

There can be numerous types of health insurance policies such as managed care insurances like HMO, PPO, & POS plans. HMOs are normally prepaid fixed fee. PPO has no separate physical facility in which patients are normally being checked. You can check first if your current health insurance plan under your employer is any of these types. Also, some employers would have you to participate in paying your premiums at a certain percentage. IN relevance to your needs, you have to verify your current coverage. You can take a closer look at your policy provisions which your employer has probably given you and shop around for specifications of individual health insurance policies and try to compare.

Arizona AZ Health Insurance

Reader’s Question:

My daughter just turned 23 and his coverage under my health insurance was removed. I tried to reach my health insurance agent I found online. What she recommends is a health net plan that will cost me $51 monthly. It has a 25% deductible for every visit made up to $1500 annually. Apparently, my daughter can get a physical exam free of charge. This covers only a few generic medications except birth control or pregnancy. I got her plan by answering NO to all questions in the application form. Is this a good deal? We live In Arizona.

Peter

Glendale, AZ

 

Hello there, Pete!

Tough question for me, but I’d have to say, everything depends on how much of a gambler you really are. First of all, none of us can predict whether or not your daughter gets sick or gets injured in college. Another thing that you should also consider is that if your daughter does not have a car and will have to look for a new doctor in a new town, at the time when she’s sick, then that might be too bothersome.

For me, what’s more important here is that your daughter is insured so that she can seek medical treatment in cases of emergencies in a place away from home, in the most convenient way possible. You never know what happens especially that you are not actually physically present to attend to your daughter’s needs when she is sick in a far place.

I think what’s the safest choice for you at this point in time is to opt for a college insurance in Arizona, and I should say it is also what I did for my son. There are also health insurance companies out there in Arizona that offer individual health insurance policy for students like your daughter. Among the few I know are individual health policies like Blue Cross, Atena, and Blue Shield, but these are also among which have high deductibles. However, it might not be a very good decision to skimp much on a health insurance policy for your daughter, so you better get one!

Life Insurance Phoenix Arizona AZ

Reader’s question:

I am a banker from Phoenix Arizona and I currently have 2 life insurance policies. Should I consolidate my coverage by replacing my existing smaller policy?

Jill

Phoenix, AZ

 

Very practical question, Jill.

If you’d ask me, I’d rather let you think things over first before you decide. But before anything else, it is very important that you never cancel an existing insurance until you have replacement insurance.

Regarding existing smaller policy you have, I’d like you to verify the length of time since you had it. The older the policy gets, there is a higher possibility that it has higher premiums too than when it was newer. So in your case, check your policy’s age. If the old policy has premium increase in a few years, it might be better to replace it now and look for a better replacement from a reputable life insurance policy in Phoenix.

Another consideration would be your health condition. You need to check whether you health has changed since the time you bought the old policy. Chances are, if your health has deteriorated, you will probably be either uninsurable or might be charged with higher premiums, depending on your medical condition.

Are you a smoker when you purchased the old policy? Then, you need to check whether you have completely stopped smoking since you purchased your old policy. If you did not, you will surely not get a preferred rate and you might be charged even higher than the current premiums you are paying. Smoking can deteriorate you health and can trigger risk factors to other chronic illnesses.

You can sit down and discuss this with you Arizona insurance agent in Phoenix. Carefully compare all the aspects of the proposed change. Once again, each state provides a comparison disclosure for anyone replacing an existing life insurance policy.

It is still best if you shop around the internet for more information on insurance replacement. Try to search for details and specific disclaimer for Arizona.

Cheap Smoker Life Insurance Arizona AZ

Reader’s Question:

I currently have a life insurance policy for a smoker in Arizona. I know that I can have a cheaper life insurance premium if I’d get the non-smoker insurance. Will I still qualify for a non-smoker if I quit smoking?

Stacey

Chandler, AZ

 

Good that you asked, Stacey.

Certainly, you will be able to get the cheaper life insurance if you quit smoking in Arizona. Most life insurance companies will give you 12 to 24 months to quit before you will be considered for non-smoker insurance rates. Since non-smoker rates are cheaper by 30-50%, you will be able to save much. If you have satisfactorily provided medical evidence that you are nicotine free, most companies may consider a reduction rate after a specified time period. You can verify from your insurance company for their specific guidelines and requirements which normally subject to change.

Be aware though that some companies in Arizona also have special rates for occasional cigarette smokers. If you happen to be in good health but us tobacco, you may also qualify for preferred smoker rates. These are usually cheaper life insurance rates than the special tobacco policies.
But I guess the best suggestion you can hear from me is to quit smoking permanently. You not only get cheaper life insurance rates, but get to reduce the risks of ailments caused by smoking.

Try to compare rates over the internet by finding the zip code space on this page and entering you zip code for free quotes in your area.
I hope you’ll enjoy shopping online!

Group Life Insurance Arizona AZ

Reader’s Question:

I am a 27-year old banker in Arizona. I am still single and have no dependents. I already have a life insurance policy which I purchased on my own. An insurance company is offering a group life insurance to my current employer. The company I am working requires its employees to participate in the premiums at minimal fee, though getting the insurance benefit is optional. Should I purchase extra?

Aubrey

Glendale, AZ

I have a nephew in Arizona who did purchase multiple insurance at a young age and he ended overspending for life insurances. I don’t think you like to be in the same situation.

Most insurance experts do not recommend young people in excellent health to purchase extra life insurance from their employers. It can be more expensive than by getting their own, unless there is a group discount being offered.

Some companies shoulder the premiums on their account. In your case, since your employer requires you to participate in the premiums, it is better to settle you’re your active life insurance policy to minimize withdrawals for premiums. By limiting your insurance policies, you minimize your annual withdrawal from your income.

Remember that experts say that your goal should be to withdraw 5% or less annually for premiums to make sure that you are getting more from your portfolio returns.

Divorce Life Insurance Arizona AZ

Reader’s Question:

I am from Arizona. When my husband died this week, I learned that he changed the beneficiary of his life insurance to a female friend of his. My divorce decree ordered him to continue to name me as his insurance beneficiary. Will the insurance company honor the divorce decree in Arizona?

Meg

Chandler, AZ

If this “female friend” is NOT his spouse and if you know the insurance company’s name, then you have to consult with either a civil law attorney or business law attorney in Arizona who has experience in filing interplead actions with insurance companies. Such action will put the life insurance company on notice that you object to the designated payee. The life insurance will then let the court decide on who rightfully gets the money.

Your hired attorney can look at the law in Arizona to determine whether there is a stipulation on this case. Remember that some life insurance companies operate on their ruled which might not agreeable with state law.

Also, you need to check whether your divorce decree specified any penalties in the event that your late husband did not keep the life insurance policy in force. Determine the payout value of his policy. Verify if he left a last will and testament that is being probated. Your prayer in court will be that you will be placed as an irrevocable beneficiary.