Best Life Insurance Companies in Citrus Heights, CA

FAQs

• How does a whole life differ from a universal life insurance in Citrus Heights?

  Your premium, coverage, and cash build-up rate are fixed with whole life insurance. Meanwhile, with universal life, you have the flexibility to lower or raise your premium, and adjust the coverage if your financial capacity changes in Citrus Heights. Also, universal life insurance's cash build-up rate is dependent on the stock market’s performance, so it won't guarantee stable growth like a whole life policy.

• When can you expect a response from the insurer for your life insurance claim in Citrus Heights?

  You should get an initial response from your insurer in Citrus Heights 15 days after filing. If more information is needed, the insurer should send you a written notification along with the list of information required within 40 days of receiving your claim. From the time the insurer receives all required information, they have 40 days to investigate the claim and issue an acceptance or rejection. These are stipulated under the California Code of Regulations Title 10 Section 2695.7.

• What conditions are commonly excluded from life insurance policies in Citrus Heights?

  Almost all life insurance policies would have an attempted suicide or suicide exclusion. Note that a death resulting from an accident while intentionally engaging in a reckless activity is not considered suicide. Another widespread exclusion in the life insurance industry is death while perpetrating or attempting to perpetrate a crime. Some insurers in Citrus Heights also exclude deaths caused by war, aviation accidents, and dangerous activities.

• Do you have a right to your spouse’s life insurance death benefit in Citrus Heights if you weren’t designated as a beneficiary?

  If your departed spouse’s life insurance was purchased in Citrus Heights while you were married and marital funds were used to pay premiums, it will be considered community property to which you have a 50% claim. Unless you signed a release of your community interest, your 50% claim as spouse overrides the listed beneficiaries' claims. Even after signing the release, you can still have a claim as a beneficiary if your spouse listed you as one.

• Can a Citrus Heights insurer rescind a life insurance policy after the policyholder’s death for fraud or misstatements on the application?

  It depends if the policyholder passed away within or after the two-year contestability period. Citrus Heights insurers are given two years after the policy's issuance to evaluate the application for misrepresentations, errors, and fraud. Once that period ends, the insurer cannot rescind the policy or deny claims for fraud or misstatement, according to California Insurance Code Section 10113.5. If the policyholder dies within the contestability period and fraud is found, the insurer may have grounds to rescind the policy.

• 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.