Best Life Insurance Companies in El Monte, CA

FAQs

• Can your spouse claim your life insurance benefits in El Monte if you didn’t name them as a beneficiary?

  California recognizes community property, so if the policy was purchased in El Monte while you were married and marital funds were used to pay for it, your spouse is entitled to a share even though they're not listed as a beneficiary. Furthermore, you need your spouse's written consent to add someone else as a beneficiary or make policy changes. Do note that your spouse may waive their community property rights.

• Do life insurance policyholders in El Monte get a grace period for missed premium payments?

  Under California Insurance Code 10113.71, life insurance companies in El Monte are required to provide policyholders with a grace period of a minimum of 60 days for unpaid premiums. The period starts counting from the missed premium’s due date. You should settle the overdue premium within this period or your policy will lapse.

• Who gets the life insurance death benefits in El Monte if there are no beneficiaries listed on the policy?

  If there were no beneficiaries or the beneficiaries have all passed away before the insured’s death, the life insurance proceeds will be paid toward the insured’s estate in El Monte. The estate will then go through probate. Policyholders should designate primary and contingent beneficiaries to avoid the proceeds going to the estate and getting taxed. Contingent beneficiaries will receive the death benefit if the primary beneficiaries are no longer living.

• How does a bad driving record affect your life insurance rates in El Monte?

  If you have two or more traffic violations in the last three years or a DUI/DWI conviction in the last two years, most life insurance companies in El Monte will charge you a higher rate, about 35% higher than average. People with traffic violations and convictions are riskier to insure as reckless drivers have a higher chance of dying early. In fact, if you have multiple DUIs, some companies would refuse to insure you.

• How long is the contestability period for life insurance policies in El Monte?

  Under California Insurance Code Section 10113.5, the contestability period is two years from the date the policy was issued or reinstated. During this period, the insurance company should review the application and rescind or void the policy if any misrepresentation is found. After the contestability period passes, the El Monte insurer can no longer cancel the policy or deny an insurance claim for material misrepresentation.

• 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.