The health care system in the United States entered a new era passing the Affordable Care Act (ACA), better known as “Obamacare” signed into law in 2010. This system required nationwide contracted health insurers to expand Medicaid eligibility, also prohibiting insurance companies from denying coverage (or charging more) due to pre-existing conditions, and requiring insurance plans to cover a list of essential health benefits.
There is an application period to apply for Obamacare insurance, known as the Open Enrollment, which takes place from November 1st to December 31st (in 2020). Due to the ongoing COVID-19 pandemic, an executive order was signed to reopen insurance enrollment from February 15th, 2021 – May 15th, 2021, giving new coverage opportunities for those in need.
Frequently Asked Questions
A good way of estimating how much coverage should be included in your life insurance policy, is to:
- Add up the expenses you want to cover, such as income replacement for your job, a mortgage, and future college expenses, etc.
- From there, subtract the amounts that your family could use to cover those expenses, such as savings and existing life insurance.
The resulting amount is your life insurance sum needed. It can seem high, especially if you’ve factored in several years of income replacement. Remember that life insurance quotes are free, so it doesn’t hurt to estimate the price of the coverage you will need.
If your premium payments turn out to be unaffordable, you can buy what you can afford now to secure a good rate – you can buy more later, just keep in mind that your rate will be based on your older age and future potential health conditions.
Considering all of the life insurance options available, it may seem difficult to choose the right one. Start by deciding between term life and permanent life insurance.
Term life insurance is a good choice if your budget is limited. It provides protection for a specific amount of time, and it’s not a cash value life insurance policy, so the rates will be lower than permanent life insurance.
Permanent life insurance is a policy that will last for the duration of your life. If building cash value is important to you, look into this option.