Buy Whole Life Insurance Arizona AZ

Reader’s Question:

I want to buy a whole life insurance policy. One of the reasons is because of the cash value component. What are the things that I should know about the cash value?

Andrea

Phoenix AZ

Aside from the death benefit, one of the attractive incentives of the whole life insurance policy is the cash value. Unlike the term life insurance policy where the life insurance company pays only after you die, Arizona whole life insurance policy accumulates cash that you can use while you are still alive.

The cash that accumulates is actually not subject to income tax. Aside from this, cash value is guaranteed and can be increased by dividends if earned and paid up addition. You should however note that dividends are not guaranteed. The cash can actually offset the additional cost of permanent policies after a few years even though this type of policy makes you pay more. In case you need cash, you can take a loan or surrender a policy and repay at your convenience including the interest. If your cash is large enough, you can use this to pay off your mortgage. You can also use the accumulated cash to add to your retirement fund.

Tags: life insurance, whole life insurance

No-Exam Life Insurance Options Arizona AZ

Reader’s Question:

What kind of insurance can I look for here in Arizona if I don’t want to go through any form of medical tests?

Kirsten

Flagstaff, AZ

You should look into getting a No-Exam or Guaranteed Acceptance Life Insurance provider there in Arizona. For many reasons some people today are just not comfortable having to go through any sort of physical or medical screening just for life insurance and there is no problem with that. The life insurance industry is a very competitive place and companies today can’t really be too choosy in accepting customers cause otherwise they will be quickly out of business.

With No-Exam and Guaranteed Acceptance policies you would not have to submit any form of medical histories nor would you need to answer extensive questionnaires. The most that would be asked involves the basic necessary information about you as well as your beneficiaries. This type of policy also tends to be approved the fastest.

Here’s the catch though. You do face having to pay much higher life insurance premiums or rates. Due to lack of any information to determine how long you will live you therefore represent a very high-risk to the providers business and to compensate for that risk they will charge more. Some might include stipulations that hold death benefit entitlement if you die too early within the coverage period where you will have to wait two or three years before coverage becomes activated. It would be smart to understand the terms of the agreement before agreeing to buy this kind of policies.

Tags: No-Exam life insurance, life insurance premiums, life insurance coverage, advise

Out of Pocket Costs for Health Insurance Policy Arizona AZ

Reader’s Question:

I was told I’d still have to shell out some cash if I needed some kind of medical attention. Can you explain to me the how out-of-pocket costs are determined? This is Berny from Arizona.

Berny

Glendale, AZ

You’re right. Even though you have pretty broad health insurance coverage, some of the expenses will have to come from you. First of all, you’ll have to pay for the deductible. The lower the premium of your health insurance policy is, the greater the deductible. So this one really depends on how much you have agreed to pay as deductible.

Second, there are certain cost-sharing amounts that you take out of your own pocket. Health insurance policies have a “coinsurance clause,” which states that you must share the cost of your medical bills. For example, if you have a 90/10 coinsurance arrangement, you must pay ten percent of your medical expense. It comes in different proportions such as 80/20 or 70/30. This should have been explained to you when you purchased your health insurance policy there in Arizona.

Finally, if you opt to hire the services of a top physician who charges you a whole lot, or you go through an expensive medical or surgical procedure, you might also end up shelling out more. Health insurance companies set “customary” charges for certain medical procedures. This is the amount they consider reasonable. If they find that you were charged unreasonably high rates by a health provider, they may choose to cover only a certain percentage of it.

Tags: Health Care, health insurance