California Insurance FAQ
Here is a list of questions that we are often asked with their answers. Feel free to send us a message with additional questions.
Q. Can I save money by buying direct with the insurance company or by buying through a web site or the mail?
A. Face it, someone always makes a profit when you buy insurance. This is true when you buy most things. However, when you deal with a faceless agent, you give up the right to have a professional broker shop for you to the find the best quality insurance policy for the least amount. Even worse, you have no one to help guide you through the application process, which can be confusing to say the least. Having a good broker on your side can help make the application process run more smoothly. Plus a good broker can help you when it comes to filing a claim by acquiring the proper paperwork and helping you fill out and submit the necessary paperwork.
Now here is the kicker, you should know that when an insurance company files their rates with the State of California, this is their published rate that is used by ALL agents including the ones that work at the insurance company. There is no difference. Surprised?
Q. How much life insurance do I need?
A. If you are providing financial support for people who are depending on you, you probably need life insurance. To determine how much you need, deduct the total income that would be lost upon your death from the sum required for your families ongoing financial stability. Beyond that, it depends on your particular circumstances (e.g., whether you have considerable net worth or few backup resources) and whether you want insurance for other purposes, such as educational funds or your own retirement income. Although there is no substitute for a careful evaluation of the amount of coverage needed to meet your needs, one rule of thumb is to buy life insurance that is equal to five to seven times your annual gross income.
Q. I am single. Do I need life insurance?
A. Single people often think they don't need life insurance, and in many cases, they are right. However, there are many factors that determine your need for life insurance; marital status is just one.
What you need to consider is if you died tomorrow, would you leave enough to cover your funeral expenses? If not, who would be responsible for paying? For many families, even a relatively simple funeral can create a major financial burden. For this reason alone, you might consider purchasing a small life insurance policy, or even a simple burial policy. As an alternative, you could invest the premiums you would spend on such a policy, and make sure your family knows this investment is earmarked for your final expenses, should the need arise.
Q. What is a pre-existing condition?
A. A pre-existing condition is any health condition you have or have had prior to applying for a health insurance policy.
Q. What is HIPAA?
A. HIPAA stands for the Health Insurance Portability and Accountability Act, which is a law mandating that anyone belonging to a group health insurance plan must be allowed to purchase health insurance within an interval of time beginning when the previous coverage is lost regardless of current health status.