Best Life Insurance Companies in Irvine

FAQs

• How soon can Irvine residents expect life insurance payouts?

  For Irvine residents, insurance firms generally process life insurance claims promptly if they submit accurate forms and a verified death certificate. Many claims get settled within a fortnight, and seldom does it surpass 60 days. Insurers offer beneficiaries the choice of either a mailed check or an electronic fund transfer to their bank.

• What should Irvine residents consider when buying life insurance or annuities through banks or brokerage firms?

  When considering life insurance or annuity purchases via banks or brokerages in Irvine, it's essential to ensure that the seller is a licensed life insurance agent. For variable annuities, they should also hold a securities dealer license. When obtaining an annuity from these sources, request the name of the managing insurance company, as they oversee your investment. This inquiry helps ensure transparency and informed decision-making.

• How can Irvine residents utilize the benefits of a life insurance policy?

  In Irvine, life insurance proceeds can aid beneficiaries in multiple ways: settling home mortgages, facilitating children's college expenses, covering end-of-life costs, and managing regular monthly household outlays. For primary earners, the mortgage assistance becomes especially vital. Planning should encompass current or anticipated educational fees and any significant end-of-life expenditures to ensure adequate coverage.

• What distinctive features of California's life insurance laws should Irvine residents be aware of?

  Life insurance regulations in Irvine encompass specific provisions, such as requiring insurance carriers to settle claims within 30 days of receiving satisfactory proof of death, with interest owed for delays. Policyholders also have a minimum 60-day grace period for premium payments. A "free look period" allows new policyholders to cancel within 10 days without penalties. Additionally, insurers can contest potentially fraudulent claims within a limited timeframe, usually up to two years, except for nonpayment of premiums.

• How does the California Life and Health Insurance Guarantee Association safeguard Irvine residents?

  The California Life and Health Insurance Guarantee Association acts as a safety net for Irvine residents in case the insurer becomes insolvent, as long as the insurer is licensed to operate in California. This association might directly cover you, arrange a stable insurer to adopt your policy and claims, or join forces with other state counterparts to craft a protection plan.

• 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.