Best Life Insurance Companies in Santa Monica

FAQs

• What are some critical events in which Santa Monica residents might consider getting life insurance?

  Santa Monica residents might consider getting life insurance when starting a family since it can act as a safety net for one’s child. In having a home, life insurance may help the family pay off the mortgage upon the policyholder’s death and avoid losing the property. Life insurance may safeguard business beneficiaries and partners from financial repercussions. It also helps manage debts and offers financial security during retirement, divorce, and in paying the healthcare costs of aging parents.

• What is the best way for a diabetic Santa Monica resident to apply for life insurance?

  The best way for a diabetic Santa Monica resident to apply for life insurance is to seek the help of an agent who specializes in insuring diabetic people. Before applying, the client must have their condition under control. They should maintain healthy levels of blood sugar, have a healthy diet, exercise regularly, and follow their doctor’s orders and recommendations. The insurance company may need a medical exam that includes blood tests for measuring blood sugar levels.

• What are the advantages of getting life insurance for one’s child in Santa Monica?

  One advantage of getting life insurance for one’s child in Santa Monica is that it offers financial protection and the insurability is guaranteed. Should the child develop a health-related condition that makes them uninsurable, they will already have one in place. Some children’s policies also grow and accumulate cash value with time, which may be used for future expenses. Insurance for children also usually has lower premiums because they are generally healthy and have a lower risk of dying.

• What are the disadvantages of getting life insurance for one’s child in Santa Monica?

  One disadvantage of getting life insurance for one’s child in Santa Monica is that it may be considered an unnecessary expense because children usually have a lesser risk of dying. A better investment could be growing their retirement or emergency fund since investing elsewhere may earn higher returns. Another disadvantage is that children’s death benefits are usually significantly lower than adult policies. They have limited coverage and may not be enough to cover all expenses in case of death.

• What are the advantages of getting life insurance for homeowners with a mortgage in Santa Monica?

  An advantage of having life insurance for homeowners with a Santa Monica mortgage is that allows beneficiaries to pay off the mortgage. Unlike traditional insurance policies for mortgage protection, life insurance is not restricted to just paying the mortgage balance. It can be used for college tuition costs, childcare, and household and medical bills. In addition, a life insurance’s death benefit does not diminish with the mortgage balance. Refinancing the home does not affect the life insurance plan.

• 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.