Best Life Insurance Companies in San Pedro

FAQs

• Does life insurance cover death with dignity in San Pedro?

  Yes, life insurance policies in San Pedro cover doctor-assisted suicide, also known as "death with dignity," as long as the suicide clause and contestability period have passed and there are no exclusions that would make the policy legally invalid. California is one of the states where death with dignity is considered legal in some instances.

• Do you need life insurance if you have savings in San Pedro?

  Yes. Even if you have savings and other assets in San Pedro, you may still need life insurance. Among the benefits of purchasing a life insurance policy are replacing your income if you pass away, protecting your spouse and children from financial losses, helping to pay for living expenses, helping to pay off debts, and helping to pay final expenses.

• Is your insurance company in San Pedro covered by the California Life and Health Insurance Guarantee Association?

  To find out if your company in San Pedro is covered by the California Life and Health Insurance Guarantee Association, you will have to check if it is licensed to write and do business in California. You can call the California Department of Insurance at (800) 927-4357 or (213) 897-8921.

• How long is the period of contestability for life insurance in San Pedro?

  According to California's laws, the contestability period is two years from the effective date of the life insurance policy in San Pedro. The life insurance contestability period refers to the time when the insurance company can investigate death claims. The purpose of having this clause in life insurance policies is to protect the companies against fraud claims and enable them to evaluate the credibility of the information.

• What happens to a life insurance policy if there aren't any beneficiaries in San Pedro?

  If a life insurance policy in San Pedro has no designated beneficiaries, the insurance proceeds or the death benefit will be paid out to the estate of the policyholder. The proceeds, along with the deceased's investments and assets, will then be distributed according to the insurance contract and will. After that, the estate may have to go through the probate process, and the death benefit may be subject to state and federal taxes.

• 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.