Best Life Insurance Companies in Chico

FAQs

• Is there a catch in the ads of life insurance companies in Chico claiming “you can not be turned down"?

  The ads in Chico claim that applicants cannot be turned down because this insurance does not require health exams, hence the name. Such insurance is offered by insurers who balance risks by charging higher premiums or lowering coverage amounts. In most cases, these ads are for guaranteed life insurance policies, which may be a good option for consumers who are unhealthy but may cost more through the years than what can be obtained in benefits.

• How can you cancel a term life insurance in Chico?

  You can cancel a term life insurance in Chico by not paying your premiums and letting your policy lapse, usually after the 30-day grace period. Other ways to cancel your insurance would be to write a letter or call your insurer. Terminating your term life insurance at any point does not entail penalties. Also, you may be able to get your money back if you cancel during the free-look period.

• What are the usual exclusions in a life insurance policy in Chico?

  Death by suicide is the most common exclusion in a life insurance policy. However, this exclusion applies only for a certain period, which is two years in Chico and throughout California. Death from criminal activities is typically excluded from life insurance. Some less common exclusions include death during wartime or those related to dangerous hobbies or aviation incidents.

• Should married couples in Chico each have their own life insurance?

  In certain situations, it makes sense for married couples to insure themselves. One is when both spouses are working to support the household, whereby the death of one can cause financial hardship to the family. Another situation would be if the couple has accumulated a lot of debts or has increasing expenses. In these cases, married couples in Chico can opt to buy separate or joint life insurance.

• What happens to the cash value component when the insured in Chico dies?

  In most cases, when the insured passes away, the beneficiaries will only receive the death benefits no matter how much amount was accumulated in the cash value component. If there are loans, these will be subtracted from the death benefits in Chico. There are some whole life insurance policies that pay out both the cash value component and death benefits.

• 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.