Best Life Insurance Companies in West Covina

FAQs

• What is covered by a West Covina life insurance policy?

  The financial obligations left behind after a policyholder's passing are covered by a life insurance policy in West Covina. The amount of financial assistance the policy may offer the listed recipients depends on its size. It is typically used to pay for funeral costs, mortgages, and even college tuition for the beneficiaries.

• In West Covina, what kinds of life insurance are available?

  In West Covina, whole life insurance and term life insurance are the two forms of policy that people buy. Term life insurance gives protection over a predetermined timeframe, often 20 or 30 years. Although the premiums are less, they do not accumulate with time. On the other hand, whole life insurance offers coverage that lasts until your death. You pay higher premiums with a cash value and equity-building potential.

• Are life insurance policy transfers to children permitted in West Covina?

  In West Covina, it is legal to transfer the ownership of a life insurance policy to your child. All you need to do is fill out a change-of-ownership paperwork, which your insurance provider may supply. Even if the insurance has been transferred to the new owner, you are still covered when ownership changes.

• What types of life insurance riders are available in West Covina?

  In West Covina, examples of riders include the accelerated benefit rider, which enables access to death benefits while the policyholder is still alive, and the waiver of premium rider, which allows the policyholder to forego all premiums in the event of a disability that prevents him or her from working. Other riders include guaranteed insurability, accidental death, long-term care, disability, and child term.

• What is the West Covina grace period for paying life insurance policies?

  Insurance firms in West Covina and the rest of California are required to provide customers with a grace period of at least 60 days from the date the premium was due and unpaid. In addition, they must send notification of a late payment within 30 days and provide at least 30 days' notice before canceling or letting the policy lapse.

• 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.