Best Life Insurance Companies in Fontana

FAQs

• Can a life insurance policy in Fontana be canceled as a result of one missed payment?

  In Fontana, a single late payment on a life insurance policy does not immediately make it inactive. Life insurers must provide parties a grace period of at least 60 days from the due date for premiums before canceling a policy to give them an opportunity to catch up on payments, in accordance with the California Insurance Code 10113.71.

• Will a life insurance policy in Fontana be canceled even if no notice is given?

  The life insurance policy in Fontana cannot be terminated if the insurer fails to send the necessary notification to the pertinent parties. Additionally, benefits triggered by a coverage event must be paid out. The listed policy owner, a person specified by the policy, and any known assignees or other interested parties must receive the notice via mail.

• Can insured individuals in Fontana borrow money from their life insurance policy?

  Yes, insured people in Fontana can take out loans against their life insurance policies. However, when someone obtain a life insurance loan, they are typically required to pay it back with interest. If the borrower passes away before repaying the loan, the balance will simply be subtracted from the beneficiary's death benefit.

• How much of their life insurance coverage may Fontana residents borrow against?

  The borrowing limit available to policyholders in Fontana is determined by insurance companies, generally with an allowance of up to 90% of the policy's cash value. Taking a loan against the policy's cash value can result in a reduction of the payout that would be allocated to the beneficiaries when the policyholder passes away.

• Can the proceeds of a life insurance policy in Fontana be used to settle the decedent's debts?

  Yes, credit life insurance in Fontana may serve as a tool to alleviate or lessen the financial burden of outstanding debts in the event of the insured's passing. It's a specialized insurance policy tailored to clear specific debts if the borrower were to pass away before fulfilling their obligations. Typically, lenders offer credit life insurance when individuals take out significant loans.

• 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.