Best Life Insurance Companies in Lake Forest

FAQs

• Is it advisable for businesses to use working capital to pay the premiums for key person insurance in Lake Forest?

  No, because this approach depletes a Lake Forest company's available capital reserves and any surplus funds allotted for future business expansion. An alternative would be third-party premium financing involving banks or financial institutions, which offers a more favorable interest rate. This approach frees up available capital for the purpose of business expansion and the pursuit of essential strategic initiatives.

• What are the premium payment options available to policyholders of life insurance in Lake Forest?

  Lake Forest life insurance policyholders can make premium payments in periodic installments or a one-time lump sum. With regular installments, policyholders should make regular premium payments at specified intervals. On the other hand, choosing the lump sum payment option enables policyholders to settle their entire life insurance policy premium with a single upfront payment.

• Who may benefit from having life insurance coverage in Lake Forest?

  Life insurance would probably be necessary for Lake Forest residents with dependents who need financial assistance in the event of premature death. The death benefit from life insurance can be used to cover expenses such as a child's education, lost income replacement, or mortgage payment. Another advantage of life insurance is that, in most cases, its proceeds are exempt from federal income taxes.

• How can Lake Forest residents determine the amount of life insurance that is appropriate for them?

  Residents of Lake Forest can assess their required life insurance coverage by taking various factors into consideration, such as the presence of a spouse or children. They should also factor in the requirements of an elderly parent or a family member with physical disabilities. Prospective life insurance policyholders must also consider whether their retirement savings are sufficient to protect their spouse's financial well-being in the face of the increasing cost of living.

• Where can Lake Forest residents check the license status of their life insurance agents?

  Prospective Lake Forest life insurance policyholders can verify the license status of their agents by reaching out to the Department of Insurance at 800-927-4357. This precautionary measure serves to protect against instances of insurance fraud, such as the case of Karen Marie Dondanville, a former insurance agent from Lake Forest. Karen was apprehended for engaging in insurance transactions without a license and was ordered to pay $20,000 in penalties.

• 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.