Best Life Insurance Companies in Palmdale

FAQs

• What is the difference between permanent and term life insurance in Palmdale?

  Permanent life insurance in Palmdale refers to an assurance plan that covers the insured's entire life and carries a cash value. Term life options only cover a specific portion of the insured's existence, but the premiums are usually cheaper since there is a smaller window within which benefits are due.

• Are term life insurance policies renewable in Palmdale?

  There are renewable term life insurance policies in Palmdale on a periodic or annual basis. It is also possible in some cases to convert a term plan into a permanent one. However, this would usually entail an uptick in the premiums due since a greater span of the individual's life would be covered.

• Who should get life insurance coverage in Palmdale?

  In Palmdale, life insurance policies are for those who need to support others like family or wish to leave a legacy for charities. The contract is designed to leave behind a sum of money to beneficiaries if the insured party passes, and this money should make up for the support or money that the deceased will no longer be able to pay.

• Why do insurers in Palmdale scrutinize one's medical history during applications for life insurance?

  Insurers in Palmdale scrutinize one's medical history during life insurance applications to determine how much premiums to charge. Companies will ask for more money if the insured is in poor health and has conditions like heart disease. The corporation might also ask for a medical exam to clarify ambiguous matters.

• If a person in Palmdale needs permanent coverage but has trouble paying premiums, what option should be taken?

  If a person in Palmdale needs permanent coverage but has trouble paying premiums, they should consider a universal life insurance plan. These provide permanent assurance coverage like a whole policy but are adjustable based on the insured's needs and ability to pay. The downside is that death benefits also might fluctuate.

• 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.