Best Life Insurance Companies in Elk Grove

FAQs

• Who is eligible for basic group term life insurance program in Elk Group?

  Employees in Elk Group who are permanent, have a limited term of six months or more, and work in a contractual agreement are eligible for basic group term life insurance plans. According to California Government Code section 19849.11, workers who fill a vacant role on a temporary appointment basis for a supervisory, confidential, and managerial position can also participate in the program. Basic group term life insurance is benefits provided by employers; however, qualified employees must apply for supplemental coverage by themselves.

• Are life insurance payouts subject to federal tax in Elk Grove?

  In Elk Grove, federal tax on life insurance payouts varies on situations and factors, like the amount of the disbursement and the type of policy. For instance, life insurance proceeds received by the beneficiary due to the policyholder's death are not subject to federal tax and are not included in the gross income. On the other hand, payouts that exceed the policy premiums may be taxable—and if the proceeds are in installments, the interest part of each payment is only subject to federal tax.

• In Elk Grove, what fees are associated with buying a life insurance policy?

  Administration and fund management fees are included when obtaining a life insurance plan in Elk Grove, which compensates fund managers and is used for maintaining the coverage, like recordkeeping and accounting. Policyholders can be subject to a surrender charge deducted from the cash value if they terminate the insurance within the surrender charge period. They may also pay for mortality and expense risk, premium loads, and monthly per thousand bills.

• How does the permanent life insurance work in Elk Grove?

  A permanent life insurance policy in Elk Grove provides financial coverage throughout the life of the policyholder. It has a guaranteed death benefit payout for beneficiaries, regardless of the time of the holder's passing. Permanent life insurance plans can also serve as financial investments, as their cash value increases annually and are not subject to federal tax. However, their premium costs are higher.

• What is included in the underwriting process of life insurance policies in Elk Grove?

  In Elk Grove, underwriting may include a physical exam, blood test, and review of motor vehicle records, criminal history, and credit reports. Applicants with life-threatening medical conditions, a history of physical or mental health problems, or dangerous hobbies are more likely to require additional underwriting steps. This is because they are at a higher risk of death or disability.

• 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.