Whole Life Insurance Policy California CA
Reader’s Question:
For forty years we have kept a whole life insurance policy. It provides a significant death benefit. There is also substantial cash value. We have our first grandchild, Alicia. As our children are doing pretty well, we are thinking about trying to make sure Alicia can afford to go to college in California. Can our whole life policy help?
Sandy
Fresno, CA
Hello, Sandy!
That’s a pretty generous offer and one Alicia will never forget. Sounds like you have taken good care of your tax-free cash value in your whole life policy. You probably know you can borrow against that cash value. The time may come when you want to consider that to help Alicia or any future grandchildren.
Most whole life policies pay dividends. Does yours? If you do not need the dividends, you could use them to begin a college savings program for Alicia. Why don’t you start this early?
Another possibility is that you could add Alicia as a beneficiary of your whole life policy. Your policy probably allows you to set a pre-determined death benefit for Alicia, leaving the remainder to other beneficiaries. It is a good idea to discuss this aspect of your whole life policy with your carrier in California.
Whole life is for the benefit of your loved ones. Sounds like you know that and are considering using it for a very worthwhile cause. Congratulations on your newest family member and for recognizing your whole life policy as an asset that will work hard for your loved ones.
Los Angeles Health Insurance Claims
Reader’s Question:
I recently had an appendectomy. Although the doctor who did the procedure was one of my health insurance’s providers, my insurer refused to pay my full claim on the grounds that the doctor’s bill is higher than what is ‘customary and reasonable’ cost of the procedure. What does that mean? Is there anything I can do about my claim? I live in California.
Marie
Los Angeles, CA
There is always something you can do, Marie.
I think your health insurance company invokes legal basis for ‘customary and reasonable’ cost which can really vary from region to region and state to state. ‘Customary and reasonable’ cost, hen put in simpler words, just means the average cost of the procedure in your area.
On that contention, you can simply ask your health insurance company how they arrived at the ‘customary and reasonable’ cost for your appendectomy. After your health insurance company has given you that information, you can then refer back to medical providers, doctors, and hospitals how much they actually charge for the same procedure. You can also cross examine with the doctor who did the procedure if there was any special procedure done in your case why it was higher than the average fee for appendectomy. This can sometimes happen especially if you had some complications during the surgery which might have caused the doctor to bill you more than the average. You can also account for a possible mistake in other aspects like documentation and many other intervening factors. It might take a while but this is one of the common problems with health insurance companies and policyholders caused by inadequate information or understanding of the health insurance policy. In any case, you an always ask assistance from your health insurance company for them to verify the accuracy of the doctor’s billing.
California Student Health Insurance
Reader’s Question:
My son will be going to an out-of-state college soonest. Unfortunately, his health insurance coverage is only within California. However, emergencies outside CA will be covered, but that wouldn’t count much since he’ll be living away full time. Should I sign him up for a student health insurance through his university and cancel his health card in CA? His is a Blur Cross HMO and university insurance might be expensive!
Paul
Berkeley, CA
Way to go, Paul!
I suggest you better check to see if your Blue Cross HMO has any providers under contract in the area where your son will be spending college. If there is none or just quite a few, then your current health insurance card is of no use while your son is in college. With regards to the university student health insurance, you better check first if it is a comprehensive plan. If so, that will be a better option for your son’s health insurance while he is away. However, you need to make sure that your son’s coverage will not be limited to the university will cover even outside the school year and even in California, which is his home.
Aside from that, you also need to verify is the insurance company in California has a track record of financial stability and good ratings from unbiased reports, opinions of your friends, and colleagues.
I also had the same experience as yours. My daughter had to leave for an exchange student program in Australia 2 years ago. Her health insurance card was only limited to US states and she was to stay in Australia for 2 years for that program. I had to cancel her old health insurance card after I purchased one from her school in Australia. Heads up for you though…before you cancel anything, make sure your son is already with health insurance coverage, especially is he is starting to travel. That way, you are sure that he is protected by health insurance, wherever he goes.
Buy Cheapest California Life Insurance
Reader’s Question:
Will I get a cheaper insurance policy if I purchase from the insurance companies with big names here in California? If I apply for a large amount of coverage, should I purchase from different companies to spread the risk?
Andrew
Bakersfield, CA
Hello there Andrew!
Yes, it will really be cheaper from the biggest life insurance companies in California. Do not be surprised if the biggest life insurance companies are normally the ones that offer the cheapest life insurance rates. They tend to offer the cheapest rates because they want to be more competitive in the market.
More often than not, it is not apt to assume that smaller or lower rated life insurance companies will give you cheaper life insurance rates. In fact, the best offers usually come from the top-rated and biggest life insurance companies.
With regards to your second questions, it is not a very cheap move in buying life insurance policies by purchasing multiple policies from different insurance companies in CA to spread the risk if you intend to buy large amount of coverage. It is primarily because all insurance companies charge administrative and other corresponding processing fess on top of your regular premiums. Because of this, you will end up shelling out larger amount of money if you have multiple life insurance policies with different companies than by sticking to a large amount of coverage with a single life insurance company. Just make sure you purchase from the most established and financially stable life insurance company to minimize the risk.
For more details and so you can compare rates of insurance companies in your area, just enter your zip code on the space located on this page
Enjoy searching!
Buy Alhambra California Life Insurance
Reader’s Question:
I am interested in buying a term life insurance accessible in Alhambra, California but I don’t know where to start. Are there any tips you could share me?
Kent
Alhambra, CA
Hi there Kent! Thank you for your inquiry.
There are so many tips on how accessible a term life insurance in Alhambra. Here are some of them that can help you decide on what to get. Tip number one is you must learn about the terminologies linked with any life insurances. Once you begin to research on insurance options it can be hard to arrange and go over the many different terminologies used. Some of the general terms used are:
- Beneficiaries/Benefactors – these may be your spouse, your children or grandchildren, and even your favorite charitable cause whom you want to “benefit” from the income of your term life insurance policy. They will be receiving the proceeds that your policy provides when you die.
- Premiums/Payment – these are the fees you give to the insurance company for your policy. Your premiums can be paid each year, every 3 months or even on a monthly basis. Amounts will vary based on a number of reasons.
- Term life insurance – this insurance product is offered for specific period of time, or terms, usually between five to thirty years. If you die during the period you chose, your beneficiaries will be paid the amount stated in the policy. Term life insurance does not accumulate cash value.
Tip number two is you must determine your goal in securing your term life insurance. If you are going to buy any type of insurance that includes a low cost term life insurance, it is important to clear with your agent in Alhambra your plans why you want such insurance.
I hope this satisfied your question.
Diabetes Health Insurance California CA
Reader’s Question:
I have a type A diabetes. If I purchase an individual health insurance in California, will my health insurance cover my pre-existing condition?
Andrei
Los Angeles, CA
Hit here, Andrei!
The bad news is, most health insurance companies in California impose a pre-existing condition exclusion period for new applicants. From an employer’s group health insurance plan, the exclusion period is no longer than 12 months. Of course, pre-existing condition would vary from state to state. In some states, this period is for 12 months, in some for 18 months, and even in some states could be 24 months or longer. Some states would include in health insurance plans riders, which excludes coverage for those with pre-existing conditions like you.
However, do not be disappointed since job-based health coverage, can “credit” you for each month of prior creditable coverage. “Credit” offsets the pre-existing exclusion period. This means therefore that you must be credited for the 9 months of prior continuous creditable coverage if you were covered under a job-based plan for 9 months before changing jobs. Now let’s say you have more than 1 year of prior continuous creditable coverage, then you wouldn’t have to worry about exclusion period in your new job-based plan.
You have to remember though that the prior creditable coverage must be continuous for it to count, which means you cannot have a gap in coverage for more than 63 days, or else you will lose credit for everything prior to the gap.
Child Life Insurance California CA
Reader’s Question:
I am a single parent who just moved to California. I already have my own life insurance. Would it be a good idea to purchase a life insurance for my 10 year old son?
Fred
Anaheim, CA
Yes. I did the same for my child. Why buy for your child too? Because the earlier you begin, the lower the costs will be and, in the case of permanent life insurance policy, the longer time it has to accumulate cash value. By doing so, you are also protecting the child in case his health or other factors become a barrier in qualifying for life insurance in the future.
There are insurance companies in California that offer life insurance for children from 15 days to age 17 – all for a few dollars a month! With minimal withdrawals for premiums, you can give your child, or even grandchild, all the benefits.
There are also special riders available that waives premiums in case of your premature death or disability. Choose your policy well and search for a stable insurance company to get your child’s life insurance planning started right.
For complete information, contact your local agent in California…or you can start by typing your zip code on the form located on this site.
Smoker Life Insurance California CA
Reader’s Question:
When I bought my life insurance 2 years ago, the policy issued to me was a smoker rating. I have already decided to quit and I have not been smoking for more than a year. Can I inform my insurance company that I quit smoking so that my premium would be reduced?
Cynthia
Los Angeles, CA
Yes. It is definitely do-able Cynthia. By informing your life insurance company in California that you already quit smoking, you may be placed into a non-smoker rate. Most insurance companies in California require a minimum of one year for smokers to quit. You will then be submitted to a nicotine test prior to changing the rate.
Most people would contact their California life insurance agent or life insurance company if their policy was issued at a “Smoker” rate and they have now stopped smoking, to get a lower premium.
And so can you!
As long as you are certain that you have quit smoking, then by all means, contact your agent as soon as possible to save you a few dollars on premiums.
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