Best Life Insurance Companies in Garden Grove

FAQs

• Can you name anyone as a beneficiary in your life insurance policy in Garden Grove?

  If you are single in Garden Grove, you can select beneficiaries for your life insurance policy and change them anytime since most life insurance policies are revocable, meaning policyholders can modify beneficiaries freely. However, issues can become more complex in specific states like California when the insured person is married or going through a divorce.

• Are life insurance policies considered community property in Garden Grove?

  In Garden Grove, life insurance policies are subject to community property rules. This means that during a marriage, all property acquired is considered joint property. In the event of a divorce, the policyholder can typically keep their term life insurance policy and choose new beneficiaries, excluding their ex-spouse. However, if the policy has a cash value, as is common in whole life or universal life policies purchased during the marriage, the cash value will be split between spouses.

• Can your life insurance rates increase after your policy is issued in Garden Grove?

  If you choose a term life insurance policy with guaranteed level premiums in Garden Grove, you pay the exact same premium rate every month through the end of the term you select, no matter how long your coverage lasts. However, this does not apply to renewable-term life insurance policies. In renewable-term life insurance, premiums increase as the policyholder gets older.

• Is life insurance part of the probate process in Garden Grove?

  In Garden Grove, if your life insurance policy is updated at the time of your passing, it will not be subject to taxation or involved in the probate process. A policy is considered up-to-date when it is regularly paid, and the named beneficiaries are alive and easily reachable. However, if your life insurance is not up to date, it will be considered part of your estate, and it will undergo the probate process.

• What happens if a life insurance beneficiary dies before the policyholder in Garden Grove?

  If the person designated as the beneficiary in a life insurance policy passes away before the insured individual in Garden Grove, the death benefit will be divided among any contingent beneficiaries. If there are no contingent beneficiaries named, the benefit will become part of the estate and go through the probate process.

• 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.