Best Life Insurance Companies in Temecula

FAQs

• How can a life insurance policy in Temecula be used as an estate planning tool?

  A life insurance policy in Temecula may be used as an estate planning tool because the proceeds of the life plan are usable as a probate avoidance mechanism. They are not part of the decedent's estate and can be passed upon death to the heirs without fuss and without need for courtroom intervention.

• Why do insurance agents in Temecula recommend getting life insurance when one is young?

  Insurance agents in Temecula advise their customers to be insured early because the premiums for life plans become pricier the older one gets. Youths are less likely to die untimely deaths and insurers face lower risks of having to release the contract's benefits before making back the amount through premiums.

• How is health insurance different from life insurance in Temecula?

  In Temecula, health insurance is principally concerned with risks concerning medical conditions and treatments, and the beneficiary receives payouts when there is a need to undergo a covered medical treatment or remedy. Life insurance is contingent upon the risk of death, and beneficiaries receive money if someone they depend on passes away.

• What is the biggest disadvantage of choosing a term life insurance plan in Temecula over a whole life option?

  A term life insurance plan in Temecula may be cheaper than a whole life option, but it is limited in scope. The insured is only covered against the risk of death for a limited period usually ranging from a decade to three. The insurer will pay nothing if the insured is healthy enough to outlive the contract.

• In Temecula, how do insurers determine the eligibility of an individual for life insurance?

  In Temecula, insurers determine the eligibility of an individual for life insurance by examining the individual's application. The medical history of the applicant will be examined by underwriters. Tests may be demanded to see how likely the person is to die an untimely death. Insurers will generally avoid insuring people who will likely die soon.

• 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.