Frequently Asked Questions
Section 1 — General Questions
Section 2 — Life Insurance
Section 3 — Health Insurance (ACA, Individual & Medicare)
Section 4 — College Planning with Life Insurance
Section 5 — Annuities & Retirement Planning
Section 6 — Long-Term Care Insurance
Section 7 — Final Expense Insurance
Section 8 — Employee Health & Supplemental Benefits
General Questions
Q. What services does AMS Financial Services offer?
A: We offer a wide range of insurance and financial protection solutions including Life Insurance, Health Insurance (ACA Marketplace, Individual, and Medicare), College Planning using life insurance, Annuities, Retirement Planning, Long-Term Care Insurance, Final Expense Insurance, and Employee Health & Supplemental Benefits. We serve individuals, families, seniors, and employers across Texas, Louisiana, and Maryland.Describe the item or answer the question so that site visitors who are interested get more information. You can emphasize this text with bullets, italics or bold, and add links.
Q: Is AMS Financial Services a licensed insurance agency?
A: Yes. AMS Financial Services, LLC is a licensed insurance agency with agents operating in Texas, Louisiana, and Maryland. Our agents are licensed professionals committed to helping you find coverage that fits your needs and budget.
Q: How do I get started?
A: Simply submit a quote request through our website or give us a call. One of our agents will reach out to learn more about your needs and walk you through your options — no pressure, no jargon, just honest guidance.
Q: Does AMS Financial Services charge a fee for consultations?
A: No. Our consultations are completely free. We are compensated by the insurance carriers we work with, so there is never a cost to you for our advice or guidance.
Q: How do I update my existing insurance policy?
A: Life changes, and your coverage should keep up. Simply give us a call or send us an email and one of our agents will walk you through any updates to your existing policy. We're here to make the process simple and stress-free.
Q: What educational resources does AMS Financial Services provide?
A: We are committed to helping our clients understand their coverage. Our website includes educational articles, FAQs, and a glossary of insurance terms to help you navigate the world of insurance with confidence. We also partner with third-party organizations to offer financial literacy workshops, and we proudly offer the HST Medicare Clarity System — an innovative, engaging educational experience designed specifically to help Medicare beneficiaries understand their options and make informed decisions. Ask us how to get access.
Life Insurance
Q: What is the difference between term and whole life insurance?
A: Term life insurance provides coverage for a specific period of time — such as 10, 20, or 30 years — and pays a death benefit if you pass away during that term. It is typically more affordable and straightforward. Whole life insurance provides permanent coverage for your entire life and includes a cash value component that grows over time. The right choice depends on your goals, budget, and stage of life.
Q: How much life insurance do I need?
A: There is no one-size-fits-all answer. A common guideline is 10–12 times your annual income, but your ideal coverage amount depends on your debts, dependents, income, and long-term financial goals. Our agents will help you assess your situation and find a coverage amount that makes sense for your family.
Q: Can I get life insurance if I have a health condition?
A: In many cases, yes. Some policies — particularly final expense and guaranteed issue life insurance — require no medical exam and have simplified underwriting, making them accessible to individuals with health conditions. We will work with you to find a policy you can qualify for.
Q: When is the best time to buy life insurance?
A: The best time is as early as possible. Life insurance premiums are based largely on age and health — the younger and healthier you are when you apply, the lower your premiums will be. Waiting can mean higher costs or difficulty qualifying.
Health Insurance (ACA, Individual & Medicare)
Q: What is the ACA Marketplace and do I qualify?
A: The ACA (Affordable Care Act) Marketplace is a platform where individuals and families can shop for health insurance plans. You may qualify for premium tax credits or cost-sharing reductions based on your household income. Open enrollment typically runs from November 1 through January 15, though special enrollment periods are available for qualifying life events such as losing a job, getting married, or having a baby.
Q: What is the difference between Medicare Advantage and Original Medicare?
A: Original Medicare (Parts A and B) is the federal program that covers hospital and medical services. Medicare Advantage (Part C) is an alternative offered by private insurers that bundles Parts A and B — and often Part D prescription drug coverage — into one plan, sometimes with additional benefits like dental and vision. Each option has pros and cons depending on your health needs, preferred doctors, and budget. We help you compare both so you can choose with confidence.
Q: When can I enroll in Medicare?
A: Your Initial Enrollment Period begins three months before the month you turn 65 and ends three months after. If you miss this window, you may face late enrollment penalties. There are also Annual Enrollment Periods and Special Enrollment Periods for certain life events. Our agents can help you understand your timeline and avoid costly mistakes.
Q: What is a Medicare Supplement (Medigap) plan?
A: A Medicare Supplement plan — also called Medigap — is a private insurance policy that helps cover the out-of-pocket costs that Original Medicare does not pay, such as copayments, coinsurance, and deductibles. Medigap plans are standardized by the federal government, making them easier to compare across carriers.
Q: What if I need health coverage outside of open enrollment?
A: You may qualify for a Special Enrollment Period if you experience a qualifying life event such as losing job-based coverage, moving, getting married, or having a child. We can help determine whether you qualify and guide you through your options.
College Planning with Life Insurance
Q: How can life insurance be used to save for college?
A: Certain permanent life insurance products — such as whole life or indexed universal life — build cash value over time on a tax-deferred basis. That cash value can be accessed to help pay for college expenses. This strategy combines the protection of life insurance with the flexibility of a savings vehicle that is not restricted to educational use like a 529 plan.
Q: How is this different from a 529 college savings plan?
A: A 529 plan is a tax-advantaged account specifically designed for education expenses, but the funds must be used for qualified education costs or you face penalties. Life insurance-based college savings offer more flexibility — the funds can be used for education, emergencies, or any other purpose — and in many cases have less impact on financial aid eligibility.
Q: When should I start a college savings plan using life insurance?
A: Your Initial Enrollment Period begins three months before the month you turn 65 and ends three months after. If you miss this window, you may face late enrollment penalties. There are also Annual Enrollment Periods and Special Enrollment Periods for certain life events. Our agents can help you understand your timeline and avoid costly mistakes.
Annuities & Retirement Planning
Q: What is an annuity and how does it work?
A: An annuity is a financial product issued by an insurance company that allows you to accumulate savings on a tax-deferred basis and then convert those savings into a guaranteed income stream — either for a set number of years or for the rest of your life. It can serve as a personal pension, ensuring you do not outlive your money.
Q: What is the difference between a fixed and an indexed annuity?
A: A fixed annuity earns a guaranteed interest rate set by the insurance company, providing predictable, stable growth. An indexed annuity ties your earnings to a market index (such as the S&P 500) with a floor that protects against loss — you participate in market growth without full exposure to market risk.
Q: Are annuities safe?
A: Annuities issued by insurance companies are backed by the claims-paying ability of the issuing carrier and are regulated at the state level. Fixed and indexed annuities do not directly participate in the stock market, which provides a level of protection against market downturns. We only work with financially stable, reputable carriers.
Q: Can I use an annuity alongside Social Security and Medicare?
A: Absolutely. Many retirees use an annuity to supplement Social Security income and cover expenses not paid by Medicare. Together, these income streams can provide a more complete and reliable retirement income picture. We help you see how all the pieces fit together.
Long-Term Care Insurance
Q: Does Medicare cover long-term care?
A: Medicare provides limited coverage for short-term skilled nursing facility care following a hospital stay, but it does not cover custodial care — the kind of ongoing personal assistance (bathing, dressing, eating) that most people need as they age. Long-term care insurance is specifically designed to fill this gap.
Q: How much does long-term care cost without insurance?
A: Long-term care costs vary by location and type of care, but can be significant. In Texas, for example, assisted living can cost several thousand dollars per month, while nursing home care can run even higher. Without insurance, these costs are typically paid out of pocket, which can deplete a lifetime of savings quickly. Long-term care insurance helps protect your assets.
Q: What is the best age to purchase long-term care insurance?
A: Most experts recommend purchasing long-term care insurance in your mid-50s to early 60s, before health issues arise that could affect your eligibility or increase your premiums. The younger and healthier you are when you apply, the more affordable your coverage will be.
Q: What if I never need long-term care — do I lose my premiums?
A: Some long-term care products are linked to life insurance or annuities in a hybrid format, meaning that if you never use the long-term care benefit, a death benefit is paid to your beneficiaries. We can walk you through both traditional and hybrid options to find what makes most sense for you.
Final Expense Insurance
Q: What is final expense insurance?
A: Final expense insurance is a type of whole life insurance designed to cover end-of-life costs such as funeral and burial expenses, outstanding medical bills, and other debts left behind. Policies are typically smaller in face value — ranging from $5,000 to $25,000 — and are designed to be simple, affordable, and easy to qualify for.
Q: Do I need a medical exam to qualify?
A: Most final expense policies require no medical exam. Instead, they use a simplified health questionnaire or offer guaranteed issue options for those with serious health conditions. This makes final expense insurance accessible to seniors and individuals who may not qualify for traditional life insurance.
Q: Will my premiums increase over time?
A: No. Final expense insurance premiums are fixed at the time of issue and will never increase, regardless of changes in your age or health. Your coverage also cannot be cancelled as long as you continue paying your premiums.
Q: How quickly can my family access the benefit?
A: Most policies pay out relatively quickly after a claim is filed — often within a few days to a couple of weeks — so your family has access to funds when they need them most. The exact timeline depends on the carrier and the completeness of the claim documentation.
Employee Health & Supplemental Benefits
Q: What size employer does AMS Financial Services work with?
A: We work with employers of all sizes — from small businesses with just a handful of employees to larger organizations with more complex benefits needs. Our goal is to help every employer find a benefits package that supports their team and fits their budget.
Q: What is the difference between group health insurance and supplemental benefits?
A: Group health insurance is the primary medical coverage offered to employees — covering doctor visits, hospital stays, prescriptions, and more. Supplemental benefits are additional policies that help employees cover costs that major medical does not, such as dental, vision, disability, critical illness, and accident insurance.
Q: Are employers required to offer health insurance?
A: Under the Affordable Care Act, employers with 50 or more full-time equivalent employees are generally required to offer health insurance that meets minimum essential coverage standards. Employers with fewer than 50 employees are not required to offer coverage, but many choose to do so to attract and retain talent. We can help you understand your obligations and options.
Q: Can employees choose their own supplemental benefits?
A: Yes. Many supplemental benefit programs are offered on a voluntary basis, meaning employees can choose the coverages that make sense for their individual needs and pay for them through payroll deduction. This allows employers to offer a robust benefits menu without absorbing the full cost.
Q: How often should we review our employee benefits package?
A: We recommend an annual review of your benefits package — ideally before open enrollment each year. Carrier rates, plan options, and your team's needs change over time, and a regular review ensures your benefits remain competitive, compliant, and cost-effective.