Best Life Insurance Companies in Oxnard

FAQs

• How long is the minimum grace period for life insurance in Oxnard?

  According to California's life insurance laws, the minimum grace period is 60 days after the due date or after it goes unpaid. However, insurance companies may be able to extend the grace period at their discretion. Before a life insurance policy can be terminated in Oxnard, insurance companies have the obligation to provide notice to their policyholders within 30 days after a premium payment is due.

• Should you get a new life insurance policy if your current policy has lapsed in Oxnard?

  No, you don't have to get a new life insurance policy if your existing policy has lapsed because of the non-payment of premiums. In fact, insurance companies in Oxnard typically give policyholders two to five years to reinstate their policy after it lapses. However, you may have to meet certain requirements before the policy can be reinstated, such as submitting a reinstatement application and taking a life insurance medical exam.

• What happens if your insurance company in Oxnard goes out of business?

  If your insurance company in Oxnard goes out of business, a life and health insurance guaranty association in the state of California will provide you with coverage as long as you keep your coverage in force by continuing to make your premium payments. California's life and insurance guaranty association is The California Life and Health Insurance Guarantee Association.

• Should you continue to pay your premiums if your insurance company goes out of business in Oxnard?

  Yes, you should continue to pay your premiums to your insurance company in Oxnard even if it goes out of business. The premiums you pay will go to the guaranty association, which will continue to provide you with coverage or may transfer your policy to another insurance company. If you fail to make your premium payments, you will lose your life insurance coverage.

• Can a beneficiary spouse in Oxnard collect a death benefit if the life insurance policy has lapsed?

  No, a beneficiary spouse in Oxnard cannot collect a death benefit if the life insurance policy has lapsed, according to the state of California's life insurance laws. A life insurance policy lapse occurs when the policy owner stops paying their premiums, and the contractual grace period has ended. In other words, the policy owner loses their life insurance coverage, and their beneficiaries will not get any life insurance money when the policy owner dies.

• 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.