Best Life Insurance Companies in Pasadena

FAQs

• In Pasadena, how long are life insurance plans contestable?

  Life insurance policies in Pasadena typically include a contestable period of two years. In the event of your demise during this specified timeframe, the insurer reserves the right to conduct a thorough examination of the details provided in your insurance application. If any inconsistency or false information is found, the agency may deny payment. However, the agency must reimburse premiums to your beneficiary if it denies payment.

• Is it legal for a Pasadena individual to sell their existing life insurance policy?

  Yes. Life insurance policies in Pasadena can be sold in the same manner as other belongings, but there are particular guidelines to follow. Terminally sick individuals can transfer life insurance policies to life settlement providers. This requires a doctor's declaration that you have two years or less to live, and life settlement proceeds are tax-free. If you need to pay living expenses after retiring, you may wish to sell your policy. However, you will likely have to pay taxes on the sale proceeds.

• Is it possible to obtain a loan from a life insurance policy in Pasadena?

  Yes. Policyholders of permanent life insurance plans are typically allowed to borrow money from the policy's savings component. This is called a policy loan, where Pasadena clients withdraw funds from the cash value. Note that interest will be charged on the borrowed amount, which can decrease the payout for beneficiaries in the event of the policyholder's death.

• What happens if a Pasadena resident stops paying their life insurance premiums?

  If you fail to pay your insurance premiums on time, your life insurance policy may lapse or be renewed at a reduced rate. The specific benefits accessible to you in the event of nonpayment can be found in your policy's conditions. In addition, some policies may include a grace period prior to coverage termination. Contact your insurance provider in Pasadena if you can no longer afford to pay your life insurance premium and need to have them adjusted.

• What considerations influence the cost of a Pasadena life insurance policy?

  The price you pay for Pasadena life insurance depends on several things:

  • Your age: Younger people usually pay less.
  • Gender: Women often pay less because they tend to live longer.
  • Income: If you earn more, you can buy more coverage.
  • Health: Your physical condition and medical history matter.
  • Hobbies: Risky activities like skydiving or scuba diving can make it more expensive.
  • Lifestyle: Your driving record and travel history can affect the price.
  • Occupation: Some jobs, like law enforcement or pilots, may cost more. Note that military personnel often have their own government insurance.

• 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.