Best Life Insurance Companies in Tracy, CA

FAQs

• Can the court order you to purchase a life insurance policy during your divorce in Tracy?

  The court may order you to purchase a life insurance policy during your divorce in Tracy if the children are still dependent on the spouses, there is a significant disparity between the spouses’ financial capacities such that one spouse may not be able to support the children, and if a spouse is of unstable health or advanced age.

• How does a DUI conviction affect your life insurance in Tracy?

  If you are shopping for life insurance in Tracy and had a DUI conviction in the last 10 years, expect your premium quotes to be higher than average. Having a DUI on record represents an enhanced risk. You may even be denied insurance if it’s only been a year since your arrest or conviction. Your life insurance rate won’t stay high forever, and you may see some decrease around five years after your DUI conviction.

• Why is it not advisable to designate your child with special needs as a beneficiary of your life insurance in Tracy?

  If your special needs child is receiving or may be eligible to receive government aid in Tracy, such as Medicaid, naming them as your life insurance beneficiary may eventually result in the removal of those government benefits. Once they receive your death benefit in the future, their assets may increase to the point where they are no longer eligible for government support. Instead, you should create a trust for your child and list that trust as your beneficiary.

• Will you be notified if your life insurance company goes out of business in Tracy?

  Policyholders of an insolvent insurance company in Tracy will be notified by the Department of Insurance. The California Life and Health Insurance Guarantee Association will then take over your policy or hand it to another insurance company. Throughout this process, you should keep your premium payments current so your insurance coverage is uninterrupted.

• What is the contestability period indicated on your policy in Tracy?

  The contestability period indicated on your policy refers to a timeframe, usually two years, for the Tracy insurer to find fraud, omissions, or mistakes on your insurance application. Once the contestability period ends, your insurance claims cannot be denied except for the reason of premium nonpayment. However, if you pass away while the contestability period is ongoing, it may delay the payout of your death benefit, or, if material misrepresentation is found, may deny your beneficiary's claim for the benefit.

• 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.