Best Life Insurance Companies in Sacramento

FAQs

• What is the right amount of car insurance in Sacramento?

  The right amount of car insurance in Sacramento should align with your needs, budget, and compliance with state and lender obligations. The appropriate amount should adhere to California's requirements, which include liability coverage for damages to others and often no-fault coverage for medical expenses. While not legally mandated, it's essential to also have coverage to meet financial responsibilities. Insurance is typically necessary for financed cars, including collision coverage and comprehensive coverage.

• What do collision and comprehensive coverages cover in Sacramento?

  In Sacramento, collision coverage provides insurance for damage to your vehicle resulting from accidents, including collisions with other vehicles or objects, single-vehicle accidents, hit-and-run incidents, uninsured or underinsured motorists, and rollover accidents. On the other hand, comprehensive coverage extends protection to non-collision incidents like theft, fire, vandalism, natural disasters, animal collisions, and falling objects. Both coverages include a deductible, which you must pay before the insurance covers the rest.

• How is personal injury protection different from medical payment coverage in Sacramento?

  Personal Injury Protection and Medical Payment Coverage cover medical expenses for you and your passengers, regardless of fault. However, PIP offers extra benefits like lost wages and funeral expenses, often with higher limits and a potential deductible. Neither covers vehicle damage, which falls under collision coverage or the at-fault party's responsibility. Lastly, PIP is optional in Sacramento.

• What is the significance of a deductible in your car insurance in Sacramento?

  The significance of a deductible in your car insurance in Sacramento lies in its impact on collision and comprehensive coverage, which address damage to your vehicle and not liability. When you purchase your policy, you choose the deductible amount, which can vary for each coverage type. It's essential to ensure that your selected deductible is affordable if you need to cover it, and maintaining it in an emergency fund is advisable.

• What can affect your car insurance rate in Sacramento?

  Several factors can affect your car insurance rate in Sacramento, including the type of car you drive, location, and zip code, as densely populated areas and cities may have higher rates. Furthermore, your vehicle's age, moving record, and adding new drivers to your policy may also affect your premium.

• 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.