Best Life Insurance Companies in Folsom

FAQs

• How do you determine if you are a beneficiary of a life insurance policy in Folsom?

  You should contact the probate court in the city or district of the deceased individual to determine if you are a beneficiary of a life insurance policy. Access public records, including the person's will, which is typically available through probate court records. If your name is listed as a beneficiary in the will, you will need to communicate with the executor to initiate the process of claiming life insurance benefits in Folsom.

• Is life insurance affordable for new parents in Folsom?

  Yes. Term life insurance, typically suitable for new parents in Folsom, can often be purchased for less than $20 a month if you're a healthy 30-year-old seeking coverage, such as a $250,000 20-year plan. It provides a financial safety net for your family, ensuring that your child is protected in case something were to happen to you.

• Do you need to undergo a medical examination when applying for life insurance in Folsom?

  In most cases, yes. While some insurers offer policies without medical exams, they are not the standard practice. Typically, insurers in Folsom require a medical examination to assess your health and determine the level of risk associated with insuring you. This information helps determine your premium rates and coverage options.

• What happens if your Folsom life insurance policy lapses due to missed premiums?

  If you fail to pay your premiums and your Folsom life insurance policy lapses, it becomes inactive. To regain coverage, you will need to reapply for life insurance through a new policy. However, you will likely face higher premiums, undergo underwriting again, and start a new contestability period. Concealing information on the new application and passing away during the first two years of the new policy could result in your beneficiaries losing out on the death benefit.

• Is it possible for the life insurance policy owner in Folsom to designate a beneficiary other than their spouse or children?

  Yes. Irrespective of their marital status, a policy owner in Folsom holds the authority to change the designated beneficiary, replacing their spouse or children with another individual. Note that the effectiveness of these modifications depends on state regulations, with most life insurance policies being revocable, allowing the policy owner to change the beneficiary. On the other hand, some policies may appoint irrevocable beneficiaries, which means the beneficiary cannot be changed.

• 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.