Best Life Insurance Companies in Hollywood, CA

FAQs

• Are policyholders permitted to make withdrawals from their life insurance policies in Hollywood?

  Yes. Policyholders are permitted to make withdrawals from their life insurance policies in Hollywood. However, people who borrow money against their life insurance might have to pay interest on top of the sum. The sum will be subtracted from the beneficiary's death benefit if the borrower passes away before the due date.

• Who may be named as the beneficiary of a life insurance policy in Hollywood?

  As long as there are no legal restrictions, anyone can be named as a beneficiary in a life insurance policy in Hollywood. Policy owners may name individuals, organizations, trusts, or estates. This includes individuals who may not have a personal connection with the insured person.

• What happens when a Hollywood resident falsifies information on a life insurance application?

  Residents of Hollywood who are discovered to have lied on a life insurance application will no longer be insured. Moreover, a contestability period is in effect to discourage individuals from providing inaccurate or withholding information that might have made them eligible for lower rates meant for less risky applicants.

• If the policyholder in Hollywood passes away within the first two years of the term, what happens to their life insurance?

  If an insured person in Hollywood dies within the first two years of their policy, the insurance company will investigate the application for fraud or deception before paying out. This happens during the contestability period, during which the insurer can review the application for dishonesty. If they find any wrongdoing, they can deny the death benefit claim.

• Does the replacement of your life insurance policy with a new one affect the contestability period in Hollywood?

  Yes, if you decide to replace an existing insurance policy in Hollywood with a new one, it triggers a reset of the contestability clock. This means that the insurance company starts over with a new two-year contestability period from the moment the new policy is issued to you.

• 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.