Best Life Insurance Companies in Santa Clara

FAQs

• Which type of permanent life insurance policy offers greater flexibility in premium payments in Santa Clara?

  Residents of Santa Clara seeking increased flexibility in their premium payments may want to consider universal life insurance. Policyholders can modify the frequency and quantity of their premium contributions within predetermined parameters. These premium payments are deposited into an interest-bearing account from which policyholders can satisfy their financial obligations. Withdrawing cash from this account does not affect the death benefit.

• What type of life insurance is accessible to active hourly and salaried county employees holding regular coded positions in Santa Clara?

  Public employees are entitled to $25,000 in basic life insurance coverage under most bargaining units. For full-time coded employees, Santa Clara County covers the entire cost. Meanwhile, part-time employees contribute a proportionate amount based on the number of regular hours worked during each pay period. The county sponsors life insurance for public employees holding regular coded positions and working one-half time or more per week.

• Do Santa Clara employers allow their employees to purchase additional group life insurance?

  Yes. Employers in Santa Clara permit their employees to purchase additional coverage if they require more coverage than the basic plan provides. However, most group life insurance policies are term-based. This means they expire when the policyholder’s employment with the company concludes. The availability and terms of supplemental life insurance also depend on the policies and offerings of each individual employer.

• What considerations should life insurance policyholders in Santa Clara make before making any changes to their policies?

  Prior to making any changes in their life insurance plans, residents of Santa Clara and the state of California should be aware that they might be required to cover initial expenses once more. Additionally, they should consider the potential for increased premiums throughout the policy's term because they have become older. Individuals looking to switch policies may encounter different loan terms and lose eligibility for tax-advantaged loans.

• Are life insurance companies in Santa Clara required to offer coverage to all applicants, regardless of their health status?

  In accordance with California's insurance regulations, Santa Clara insurance providers are obligated to offer life insurance coverage to all applicants, irrespective of their health condition. However, carriers may impose higher premiums on individuals with pre-existing medical conditions. The state also requires insurers to provide policyholders with specific details about their insurance, such as premium costs and death benefit amounts.

• 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.