Best Life Insurance Companies in Baldwin Park, CA

FAQs

• Do life insurance policyholders in Baldwin Park get a grace period for missing a premium payment?

  Yes. California Insurance Code section 10113.71 requires insurance companies in Baldwin Park to provide a grace period of 60 days at the minimum to policyholders with unpaid premiums. The policy’s coverage remains active during this period. Failure to pay the overdue premium after the grace period can be grounds for cancellation of the policy. A notice of the potential cancellation must be sent to the policyholder and their designated representative 30 days before the expected cancellation date.

• Can you still claim the life insurance death benefits of your family member if the insurer goes out of business in Baldwin Park?

  If your departed family member’s insurer was licensed in California and their premium payments were up to date, you can claim the benefits from the California Life and Health Insurance Guarantee Association. Beneficiaries in the Los Angeles metro, including Baldwin Park, can contact the Association at (213) 897-8921 or (800) 927-4357. Note that the Association will only pay 80% of your family member's death benefit and up to a maximum of $300,000.

• Why is it not advisable to list your minor children as beneficiaries of your life insurance in Baldwin Park?

  Insurance companies in Baldwin Park will not pay death benefits to beneficiaries under 18 years old. The proceeds will go to a court-appointed guardian who will manage the proceeds until the beneficiary turns 18. You can avoid this and make the proceeds readily available for your children’s needs by setting up a trust for your kids and designating that trust as insurance beneficiary. Or, you can appoint a custodian/guardian of your choice through the California Uniform Transfer to Minor’s Act.

• What happens to your life insurance policy during the divorce process in Baldwin Park?

  Life insurance policies that were acquired while married and paid for with marital funds are treated as community property and will be included in the assets to be divided during divorce in Baldwin Park. The court may also award you the insurance policy or order you to buy life insurance to guarantee child or spousal support. This may happen if the financially supporting spouse is of fragile health or the other spouse is unable to fully support the children’s needs.

• Are policyholders in Baldwin Park allowed to cancel their new life insurance if they change their mind?

  Yes. California Insurance Code Section 10127.9 gives policyholders a free-look period of 10 days minimum and 30 days maximum. Check your new policy to see how many free-look days you have. If you change your mind, you can return the policy to your insurer in Baldwin Park for cancellation within this period. Also, you should get a refund of any premium you have already paid within 30 days of the cancellation.

• 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.