Best Life Insurance Companies in Hawthorne

FAQs

• Why is life insurance useful as an estate planning tool in Hawthorne?

  Life insurance is a useful estate planning tool in Hawthorne because the proceeds of a policy can be used to augment the estate left behind by the deceased. The yield is also not part of the decedent’s estate since it passes automatically to the heirs if they are the named beneficiaries, and this removes the need for probate.

• In Hawthorne, what kind of insurance is suitable for a person who principally wishes to pay for funeral expenses later in life?

  A term life insurance policy in Hawthorne is useful for those who wish to pay for funeral expenses later in life. There is only a need to cover the later part of a person's life, and the pricier premiums that come with age may be negotiated by limiting the coverage strictly to the sums needed to give someone a decent burial.

• What kind of life insurance in Hawthorne is ideal for those who have a child with permanent disabilities?

  A whole life insurance plan is ideal for someone in Hawthorne who has to support a permanently disabled child. It is safe to assume that the offspring will be dependent forever and that support will always be needed even after adulthood arrives. In this situation, it is best to leave behind a permanent policy to cover the potential untimely death of the parents.

• How does one in Hawthorne determine the amount of life insurance necessary?

  The amount of life insurance needed is determined by how much income and assets one has versus how much costs and liabilities will be absorbed by the dependents. The insurance policy in Hawthorne has to cover the difference between what the person will earn in a lifetime and what debts will be left behind at death.

• Does a resident of Hawthorne need to talk to an agent to get a life insurance quote?

  While there are online tools in Hawthorne that will estimate the life insurance quote of a person, it is still best to consult with an agent afterward. The agent can shop around for insurance companies and products that will be mixed and matched to give the insured the appropriate option for each unique set of needs.

• 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.