Best Life Insurance Companies in Santa Barbara

FAQs

• Do you need a life insurance policy in Santa Barbara if you already have employer-provided life insurance?

  Yes, you are encouraged to have a life insurance policy in Santa Barbara even if you already have employer-provided life insurance to have additional coverage. Everyone is advised to have life insurance coverage at least several times of annual salary. The reason for this is that employer-provided life insurance may not be enough to cover expenses in case of your death.

• In Santa Barbara, what type of life insurance should you choose?

  It depends on your needs and goals. You may choose term life insurance if you want more affordable protection coverage. In most cases, your premiums will remain the same throughout the life of your policy unless you opt to change them. If you want coverage that extends throughout your lifetime, you can purchase whole life insurance. The premiums are always more expensive but you can access the cash value of your plan early.

• What is the best age to purchase life insurance in Santa Barbara?

  There is no specific age to purchase life insurance in Santa Barbara. Individuals are advised to get insurance as soon as possible while they are healthy and younger. You may still acquire life insurance during your 50s, however, your life insurance can be more expensive due to health and lifestyle risks.

• Can you make your minor child your life insurance beneficiary in Santa Barbara?

  Yes, you can make your minor child your life insurance beneficiary in Santa Barbara, however, the process is more complicated because you need to undergo a legal process. You may opt to consider other ways to avoid complicated processes like getting a separate life insurance policy for your minor child or adding a child life insurance rider to your policy.

• How often should you review your life insurance policy in Santa Barbara?

  You should review your life insurance policy in Santa Barbara whenever there are changes happening in your life. If you recently acquired a new home, expecting a baby, or there is a change in your relationship status or career, you must assess your life insurance to determine whether your coverage is still enough for your lifestyle and financial needs.

• 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.