Health Insurance FAQs
Is it required to buy health insurance?
What is the penalty if I don’t have health insurance?
For 2017, the penalty is $695 per adult plus $347.50 per child, or 2.5% of your household income, whichever is higher. The fee will continue to increase each year until you purchase coverage.
Penalty is one or the other; whichever one has the higher amount
% of Household Income
Do I qualify for special enrollment?
You qualify for a special enrollment period 60 days following certain life events including:
- Legal separation or divorce
- Marriage or domestic partnership
- Cessation of dependent status (attaining the maximum age to be eligible as a dependent child)
- Birth, adoption, or placement for adoption
- Loss of coverage due to termination of employment or reduction in the number of hours of employment
- Relocating to California
- Returning from military active duty
- Release from incarceration
Do I qualify for federal subsidies?
Covered California and the IRS are connected in the sense where Covered California uses the household income and household size on the 1040 tax form to calculate health insurance premiums and check for eligible federal subsidies for the applicant.
Based on your annual household income, you may qualify for federal subsidies in the form of Medi-Cal, premium assistance, or cost-sharing reductions.
As long as you are a resident with a taxable income, you are required to have health insurance whether it’s through your employer, Covered California, etc. If you do not, you will be penalized and fined. To determine whether you qualify for premium assistance, please refer to the chart below:
What are HMO, EPO and PPO?
Here are the main differences among the three plans:
|Must choose a primary care physician||Y||N||N|
|Referrals are required to see specialists||Y||N||N|
|Benefits outside medical network||N||N||Y|
When choosing a health plan, take into consideration you and your family’s needs. If you have a primary care physician you want to see, make sure your primary care physician is in that network.
Which health insurance plan is right for me?
As you look for an individual plan, you might be asking yourself: What plan is right for me? Which plan do people like me choose?
If you’re a person who is in good health, you might want to consider a high-deductible PPO that’s compatible with a Health Savings Account. This option is best for people who seldom visit the doctor, and are looking for major medical coverage.
If you’d rather have more comprehensive individual health insurance coverage, such as preventive care coverage, consider a PPO or HMO plan with a lower deductible. You might not be able to use an HSA, but you’ll have coverage for routine doctor’s office visits and other preventive care. Typically, you’ll pay between $10 and $40 for a doctor’s office copayment depending on your plan. With this type of plan, you’ll also have major medical coverage.
Even if neither suggestion seems right for you, there are plenty of other options to choose from. What’s the best way to find out which individual health insurance plan is right for you? Get free quotes and get expert advice from a professional agent.
Which health insurance plan should I choose?
There are three types of plans: HMO, EPO, and PPO. In order to ensure that your family member receives the most health benefits at an affordable cost, please consult KCAL Insurance, a Covered CA Certified Insurance Agent, to help you find the most suitable health plan for you.
There are plenty of individual health insurance plans to choose from. Here are the most common types:
HMOs (Health Maintenance Organization). HMOs are one of the most affordable health plans available, and they offer comprehensive coverage. HMOs create networks of doctors, hospitals, clinics, specialists, and other care providers. Most HMO networks consist of thousands of health care professionals, ensuring you’ll have convenient access to medical care when you need it.
PPOs (Preferred Provider Organization). PPOs are affordable individual health insurance plans with an added benefit – you’ll have coverage with any health care provider. That means you can see any doctor or specialist you want, and your plan will cover the care. PPOs are great for flexible, comprehensive, and affordable health care.
Health Savings Account (HSA) Plans. There are 2 parts to HSA coverage: a high-deductible plan and a Health Savings Account. The high-deductible plan provides catastrophic coverage and features low monthly premiums. The HSA is a tax-free savings account where you save money to pay for routine medical expenses.
Fee For Service (FFS) Plans. FFS plan is a traditional form of individual health insurance. You get the care you need and then you’re reimbursed for a percentage of the cost.
What are Obamacare's Essential Health Benefits?
- Ambulatory patient services
- Emergency services
- Maternity and newborn care
- Mental health and substance use disorder services, including behavioral health treatment
- Prescription Drugs
- Rehabilitative and habilitative services and devices
- Laboratory services
- Preventive and wellness services and chronic disease management
- Pediatric services, including dental and vision care
Related reading: Take Advantage of Obamacare’s 10 Essential Benefits
When can I apply for health insurance?
The 2018 Open Enrollment Period starts on November 1, 2017. Please feel free to contact us at KCAL! We’d be more than happy to help you enroll or switch insurance plans for 2018!
Open enrollment for Covered California health insurance plans happens once a year. During this open period, individuals can enroll, switch plans, and get subsidies. Unless you meet special conditions, open enrollment is the only time of year you can get a major medical plan that counts as minimum essential coverage in the individual and family market.
Can I apply for healthcare at any time?
Unless you qualify for special enrollment, you can only purchase health insurance during the Open Enrollment Period, which occurs only once a year.
The 2018 Open Enrollment period starts on November 1, 2017 and ends on January 31, 2018. If you would like your insurance policy to become effective on January 1, 2018, then you must apply by December 15, 2017. If you apply by January 31, 2018, then your new policy will become effective on March 1, 2018.
How can I apply for health insurance?
KCAL Insurance is a Covered CA Certified Insurance Agent, with more than 100 insurance agents. We are professionally trained to help you choose a health plan that is most suitable for you and to help you apply for government premium assistance. If you wish to apply for Covered CA, please bring the following documents to any KCAL office for our agents to assist you:
- Social Security Number (SSN) of entire household
- Proof of citizenship (U.S. passport) or proof of residence (i.e. green card) for entire household
- 2013 tax forms
- Proof of wages from the past month
If you are already a Covered CA member, please bring the additional documents with you when you come to our office:
- Current health insurance information (insurance card)
- Covered CA renewal notice that you received in the mail (green envelope)
How do I calculate my monthly premium and subsidy amount?
How can I lower my monthly premium?
What will my deductible be?
How can I insure just my child?
When getting quotes for your child(ren) only, enter the child’s gender and birth date in the “Applicant” or first row. Additional children should be entered below in the “Child” rows, but not the “Spouse” row.
However, many health insurance companies require one policy per child. So if you have more than one child, try entering just one child to see a larger selection of plans and prices. Feel free to apply for each child separately.
When should I consider a Health Savings Account (HSA)?
Health Savings Accounts (HSAs) are becoming increasingly popular due to their flexibility and immediate tax savings. This plan is suitable for people who seldom need medical care but would like to prepare for any catastrophic ailments or injuries. Who is eligible for Health Savings Account?
- Not entitled to benefits under Medicare
- Be covered under a high deductible health plan
- May not be covered under any health plan that is not a high deductible health plan
- Not be claimed as a dependent on another person’s tax return
What are the advantages?
- Contributions to the account are tax deductible
- Amounts in an HSA belong to the individual and are fully portable
- Amounts in an HSA earn tax-free interest
- Unused amounts in the account at year-end remain available for future years
- Distributions are not taxed if used for qualifying medical expenses
Who should buy individual health insurance?
Anybody who does not have insurance. This may be for several reasons:
- People who work for a small business that does not provide a health plan.
- Those who do not obtain individual health insurance.
Can individuals with pre-existing conditions apply for health insurance?
Workers’ Compensation Insurance FAQs
What is Workers' Compensation Insurance?
Workers’ Compensation Insurance is required in most states when you have W-2 employees. In some states the requirement may include that you cover your 1099 contractors. Workers’ Compensation insurance covers your employees’ medical and disability expenses caused by work-related illness and on-the-job injuries. In some states, owners, officers, partners and other principals can decline to participate in their own companies’ workers’ compensation coverage.
Employer’s Liability coverage, also included in these policies, protects your company in the event that an employee claims that his or her injury or illness was caused by your company’s negligence or failure to provide a safe workplace.
What are the benefits of Workers' Compensation Insurance?
What does Workers’ Compensation cover?
What are the penalties for not having Workers’ Compensation?
If the Division of Labor Standards Enforcement (DLSE) determines that an employer is operating without workers’ compensation coverage, they will face fines and penalties:
1. The DLSE can issue a stop work order and require employers to cease all business operations at the worksite until they furnish proof of workers’ compensation insurance.
2. Employers are still required to pay salaries until they reopen.
3. The DLSE will assess a penalty of a minimum of $1,500 up to $100,000 per employee.
4. If an employee gets hurt or sick because of work and the employer is not insured, the employer is responsible for paying all the bills related to the injury or illness.
How is workers’ compensation premium calculated?
Premiums for workers’ compensation insurance are calculated by the formula below:
Payroll x Classification Rate x Experience Modifier = Premium
Workers’ compensation premium is based on the estimated amount of payroll paid to employees during the 12-month policy period. Employers can make a single payment or in a monthly installment.
After the 12-month policy has lapsed, insurance companies will require employers to check the actual payrolls that were paid to employees, which could result in additional premiums being due or a decrease in premiums at the end.
Do I need to post a Labor Law Poster?
California law requires employers to post an updated Labor Law Poster annually in a conspicuous place where employees can easily see it during the workday. Any employer that fails to post the poster may be subject to citation and penalty up to $10,000.
The poster must state the name of the current workers’ compensation insurance carrier, the policy number and contact information. Employers also have to put the information of the workers’ compensation network next to the Labor Law Poster.
How do I get the Labor Law Poster?
You can get a free Labor Law Poster from our branch nearest you, or call us at 1-800-681-8288.
Auto Insurance FAQs
Am I covered under my personal policy if I also use my auto for business?
If you own your car and simply drive to and from your principal place of business, this is considered personal use and will be covered under your personal policy.
If in addition to commuting to work, you also use your vehicle for other business-related driving, such as traveling on sales calls or carrying tools, supplies, and equipment to a job site, this is considered business use. It may or may not be covered under your personal policy.
To ensure that you have the appropriate insurance for your needs, consult with a qualified insurance representative and check your policy for restrictions.
If I borrow someone else's car, what insurance pays?
Can I convert my policy from term to permanent?
Do I need comprehensive and/or collision on all my autos?
After an accident, how do I file a claim against the other driver?
Does my auto insurance policy cover rental vehicles?
How can I save money on auto insurance?
There are many things you can do to make sure you’re getting the best premium possible.
- Increase your deductible
- Maintain a good driving record
- Maintain a good credit rating
- Take a driver safety course
Research before buying. Learn which cars are the least expensive to insure. KCAL Insurance offers discounts for cars that have anti-theft devices, air bags, and anti-lock brakes, for example. KCAL Insurance can give you free, no-obligation quotes on any cars you’re considering purchasing; just call us with the VINs of the vehicles you’re interested in buying. Take advantage of KCAL Insurance’s multi-policy discounts, which provide discounts on certain coverage when you purchase two or more policies, such as an auto and homeowners policy.
How much auto insurance do I need?
- How high should my liability coverage limits be? No one can predict exactly how much you would have to pay if you were to cause an accident. Ask yourself how you would pay for any damages exceeding your coverage limits. The higher your liability coverage limits are, the more likely your policy will be able to pay all of the damages.
- How high or low should my collision and comprehensive deductibles be? Higher deductibles lower your premium but increase the amount you must pay out of your own pocket if a loss occurs. Ask yourself how much you would be willing and able to pay on short notice in order to save on your premium.
- Should I carry collision and comprehensive coverage?
You may be required to carry collision or comprehensive coverage if your vehicle is leased or financed. Once you have paid off your car, and its value decreases, you might consider dropping this coverage to save money on premiums. However, consider whether the savings would be enough to offset the risk of having to pay the entire cost of repairing or replacing the vehicle.
How much liability coverage do I need?
If I loan my car, would I be covered if there's an accident?
Should I buy extra insurance protection on a rental car?
What discounts are available for auto insurance?
Discounts, Discounts, Discounts. Auto insurance companies have a variety of discounts available to help lower your insurance cost, but the discounts may vary from company to company. Our agents are trained to assess our client’s situation and find the best discounts to ensure they aren’t overpaying. Some of the common discount categories are listed below: Good Driver Discount: If you qualify, this one is automatically added to every policy. In CA, the definition of a good driver is a person with at least 3 years of driving experience (so you have to be at least 19 years old). You can only have gotten 1 minor ticket OR 1 at-fault accident within the last 3 years, but this accident can not have caused anyone any injuries. Even if a $1 claim was made by you, anyone in your car, or anyone in the other car, it could cause this accident to be considered at fault with injury, which could in turn cause you to lose the good driver discount. You can’t have any major violation like racing, speeding over 100, hit and run or other major violations within the last 5 years. Driving under the influence, DUI or DWI, will stay on your record for 10 years and will not qualify you for the good driver discount, which would make at least a 20% difference in premium.
- Good Student Discount
- Mature Driver Discount
- Driver Training Discount
- Occupation Discount
- Special license and degrees
For more discounts, please check with your agent. Please drive carefully. To avoid accidents, don’t multitask in the car. Obey traffic regulations and go to traffic school to waive tickets when possible – your wallet will thank you for driving safely.
What happens if I'm a passenger in a friend's car and I'm injured as a result of an uninsured motorist?
What is a deductible?
What is not covered under my auto policy?
What is the difference between collision and comprehensive coverage?
Comprehensive coverage pays for physical damage to your auto caused by things such as fire, theft, hail, vandalism, and animals. These events are called “perils” in your policy. Some examples of a comprehensive loss include:
- Your auto is struck by debris that falls from an overpass
- Your auto is damaged by a tree falling on it
- Your auto is partly or totally submerged in water
- Your auto is maliciously scratched
- Your auto’s tires are slashed
- Your auto’s windshield is cracked by a stone
Collision coverage pays for physical damage if your auto is hit by another vehicle or runs into an object. This coverage will pay for damage to your auto regardless of who causes the accident. Some examples of a collision loss include:
- Your auto strikes or is struck by another auto
- You hit a pedestrian, damaging your auto (the pedestrian’s injuries are covered under liability coverage)
- Your auto hits debris lying in the road
- Your auto strikes a tree or fence
- Your auto is struck by a shopping cart
What is Underinsured Motorists (UIM) coverage?
Who are covered drivers under my auto insurance policy?
Why do I need Uninsured Motorists (UM) coverage?
Will higher deductibles lower my auto insurance premium?
Will my insurance rates go up if I make a claim?
Adjusting insurance premiums is not an easy decision. We want to assure you that we are doing everything we can to keep your insurance costs at KCAL Insurance equitable, while providing you with quality service. If an accident or loss occurs, certain factors can result in an increase to your policy premium, including:
- Determination of fault
- Amount of damages paid
- State regulations
- Previous accident and violation (conviction) history
- Type of accident or violation
- Severity of accident or violation
Homeowners Insurance FAQs
I own antiques and fine art. What kind of coverage would adequately protect them?
If I have a loss, do I need to show proof of what was in my home?
What's Condo / Townhouse Insurance Policy?
What's Dwelling Fire Insurance Policy?
What's Homeowners Insurance Policy?
What's Renters Insurance Policy?
What is Medicare?
Medicare is the federal health insurance program for people who are 65 or older, certain younger people with disabilities, and people with End-Stage Renal Disease (permanent kidney failure requiring dialysis or a transplant, sometimes called ESRD). For more information, please visit Medicare.gov
Medicare is the medical health plan designed by the US government for individuals who are 65 or older. Certain younger individuals with disabilities or End-Stage Disease may also qualify for Medicare. This plan can help pay for partial medical costs, but does not include full coverage or most long-term care costs.
Who is qualified for Medicare?
If you are a United States citizen or a green card holder who has legally stayed in the US for more than 5 years, and fulfill any of the following requirements, you can apply for Medicare:
- People who are 65 or older,
- People who are younger than 65 but have received disability benefits for over 2 years due to any disability,
- People with End-Stage Renal Disease (permanent kidney failure requiring dialysis or a transplant, sometimes called ESRD) or Amyotrophic Lateral Sclerosis (ALS).
What are the four different parts of Medicare? What is the difference between Medicare Parts A, B, C, and D?
Medicare Part A (Hospital Insurance): Covers inpatient hospital stays, care in a skilled nursing facility, hospice care, and some home health care.
Medicare Part B (Medical Insurance): Covers certain doctors’ services, outpatient care, medical supplies, and preventive services.
Medicare Part C (Medicare Advantage Plans): Offered by a private company that contracts Medicare to provide you with all your Part A and Part B benefits. Medicare Advantage Plans include Health Maintenance Organizations, Preferred Provider Organizations, Private Fee-for-Service Plans, Special Needs Plans, and Medicare Medical Savings Account Plans. If you’re enrolled in a Medicare Advantage Plan, Medicare services are covered through the plan and aren’t paid for under Original Medicare. Most Medicare Advantage Plans offer prescription drug coverage.
Medicare Part D (Prescription Drug Coverage): Part D adds prescription drug coverage to Original Medicare, some Medicare Cost Plans, some Medicare Private-Fee-for-Service Plans, and Medicare Medical Savings Account Plans. These plans are offered by insurance companies and other private companies approved by Medicare. Medicare Advantage Plans may also offer prescription drug coverage that follows the same rules as Medicare Prescription Drug Plans.
When you apply for Medicare at the Social Security Office, after joining Part A and Part B, you still need to purchase Part C and Part D through an insurance agency. You need to make sure you have Prescription Drug Coverage in order to avoid the liability for a lifetime penalty or the cost generated from prescription drug purchase, which will increase your economic burden.
What is Medicare Advantage (Part C)?
Medicare Advantage Plans are comprehensive medical plans offered by private health insurance companies. Part C can provide coverage for outpatient surgery, emergency room/ambulance, primary care physician, special care and etc. The insured would only need to pay the low-amount deductible.
Part C also provides coverage for prescription drug purchases, which is also covered under Part D. Besides all the benefits mentioned above, Medicare Advantage also provides benefits for vision, dental, acupuncture, hearing aid and medical transportation, which are not covered under any other plans.
Part C can be categorized into two types: PPO and HMO
PPO: Medical cost will be taken care of by the insurance company and original Medicare. You can choose any in-network doctors for services and it provides coverage through 50 states.
HMO: The insurance company and independent practice association (IPA) have shared responsibility for your medical cost. The insurance company will pay for high cost services such as hospitalization and emergency care while IPA will pay for low cost services such as preventive care. You will need a referral from the assigned primary care physician (PCP) before you can see any other health care professionals, which has to be within 30 miles of your residence.
Part A and B only cover 80% of the medical cost, how I can get the rest covered?
Option One: Purchase Medicare Supplement + Prescription Drug Coverage (Part D)
Medicare Supplement provides coverage for the out-of-pocket amount not covered in Part A and Part B. Part D provides coverage for costs generated from prescription drug purchases.
Option Two: Purchase Medicare Advantage (Part C)
Medicare Advantage not only provides coverage for the out-of-pocket amount not covered in Part A and Part B, but it also covers the cost generated from prescription drug purchases. Meanwhile, it also provides other medical benefits.
How much does Medicare cost?
Hospital Insurance (Medicare Part A): If you live in the US for more than 10 years, and have paid federal Medicare tax when you were working, then you will receive free Part A coverage; if you are already 65 years old, but haven’t worked over 10 years, you have to pay a monthly premium for Part A up to $441 per month.
Medical Insurance (Medicare Part B): In 2016, the monthly standard premium for Part B is $121.80. However, if your retirement income is over $85,000 for a single person or $17,000 for a retired couple, you have to pay a higher monthly premium for Part B as the standard request. One thing you need to pay attention to is if you don’t apply for Medicare Part B during the Initial Enrollment Period, you may need to pay higher Part B premium for joining later.
Medicare Advantage (Part C): The premium depends on which plan you enroll in.
Prescription Drug Coverage (Part D): The premium depends on which plan you enroll in.
When can I apply for Medicare?
If you are eligible for Medicare because you are 65 years old, the Initial Enrollment Period begins three months before you turn 65, including the month of your 65th birthday, and ends three months later.
Whether you are retired or already starting to receive Social Security, you need to contact the Social Security Office three months before turning 65 years old to apply for Medicare.
You can apply for Medicare during your Initial Enrollment Period (IEP). The IEP is the seven months surrounding your 65th birthday. It includes the three months before you turn 65, the month you turn 65, and the three months after.
If you have current employer insurance, you can also sign up while you are still working and for up to eight months after you stop working or you lose your coverage. This window of time is called the Part B Special Enrollment Period (SEP).
If you do not enroll during these times, you can enroll during the General Enrollment Period (GEP), which is January 1st through March 31st of every year. Your coverage will start July 1st of the year you enroll. You may face a late enrollment penalty if you were eligible for Part B before you enrolled during the GEP. If you have been receiving Social Security Disability Insurance (SSDI) for 24 months, then you are automatically enrolled in Medicare in the 25th month you receive SSDI.
What is the result for not applying for Medicare on time?
If you don’t apply for Medicare Part B during the Initial Enrollment Period, you can still apply between January 1st and March 31st each year. The premium will be effective in July of the same year. However, for each 12-month period delay, your monthly premium for Part B will increase by 10%.
Besides that, you need to purchase Part C and Part D through your insurance agency. Without Prescription Drug Coverage (Part D), you will be liable for a lifetime penalty and the costs generated from prescription drug purchases will increase your economic burden.
If my employer has provided me with group health insurance, do I still need to join Medicare?
Business Insurance FAQs
What are my coverage options?
What are the benefits of Business Owners Insurance?
Commercial insurance is designed to help protect many of the risks your business may encounter, including:
- Damage or destruction to your business vehicles
- Certain liability exposures resulting from the operation of your business vehicles
- Damage or destruction to your office equipment or inventory
- Loss of income in case you have to suspend your business temporarily due to a covered loss
- Certain business related liability exposures such as wrongful entry or search, libel, slander, and even certain offenses arising out of your business’s advertising
- Risks to your cargo while in transit or storage
- Theft or loss of tools and equipment
- Crime coverage including robbery, burglary, even employee dishonesty
What are the benefits of Commercial Auto Insurance?
- Liability Coverage: In case you’re sued as a result of an auto accident.
- Collision Coverage: Helps cover physical damage to your vehicle due to collision or upset.
- Comprehensive Coverage: Helps cover physical damage to your vehicle due to fire, theft and glass breakage.
- Rental Reimbursement Coverage: Helps cover the cost of a replacement vehicle for a specified period of time when your vehicle is disabled due to an insured loss.
What is Business Liability/Commercial General Liability Insurance?
Commercial General Liability Insurance Protects Your Business From Common Liabilities.
Your business is exposed to liabilities every day. The only way to protect your assets is to carry adequate business liability insurance. A Commercial General Liability (CGL) insurance policy is the first line of defense against many common claims.
General Liability insurance covers claims of bodily injury or other physical injury or property damage. It is frequently offered in a package with Property insurance to protect your business against incidents that may occur on your premises or at other covered locations where you normally conduct business. Commercial General Liability enables your business to continue operations while it faces real or fraudulent claims of certain types of negligence or wrongdoing.
Travel Insurance FAQs
If I want to go back to China to treat a pre-existing condition, will the insurance company provide coverage for my medical costs?
What is the minimum number of days of coverage for Foreign Student Insurance?
If I need to travel to more than one country, do I need to submit an application for each country I go?
Do I have to wait until I arrive in the USA and then go to KCAL’s office to fill out the application for travel insurance?
Does travel insurance provide coverage for onset of chronic disease during the trip?
Do I have to pay anything else besides the daily premium?
How long will it take for my travel insurance to become effective?
If I am a Green Card holder, and I want to travel back to my country of citizenship, how should I purchase travel insurance?
You cannot purchase travel Insurance if you are going back to your country of citizenship.
Life Insurance FAQs
Can I renew my term life policy after the initial term expires?
How can I save money when buying life insurance?
You can lower your premiums and save money in the long run by purchasing now while you are young. Premiums for the same coverage increase the older you become. The longer you wait, the more you risk developing a health condition that could increase your premium further, or make you unable to become insured.
If you want Permanent Life but you’re on a budget, consider some Term for now. You can save money initially by buying some Term Life in combination with Permanent Life. Later on, if your budget increases, consider converting the Term policy to Permanent Life. Consider group life insurance offered through your employer. It may be available at a low cost. But keep in mind that your group coverage may end or become more expensive when you leave your job.
How do I know what term to select?
How much insurance do I need?
How much will life insurance cost me?
Premium rates for life insurance are typically based on factors such as age, sex, height, weight and health status, including whether or not you smoke or participate in high-risk activities or occupations.
The type of policy you purchase will also affect the amount of the premium. Rates for term insurance are typically lower, at least at younger ages. Premium rates for permanent policies like Whole Life are typically higher at earlier ages, but do not increase as you age. Lastly, paying premiums monthly or quarterly rather than annually will result in higher premiums.
In addition to protection, what am I trying to accomplish with my life insurance?
What are some of the reasons for converting to a permanent life insurance policy?
What are the tax advantages of life insurance?
Death benefits are generally income tax-free. In the case of Permanent Life Insurance policies, cash values accumulate on an income tax-deferred basis. That means that you would not have to pay income tax on any earnings in the policy as long as the policy remains in effect. In addition, most policy loans and withdrawals are not taxable. However, if you surrender your policy or it lapses, you may have income to the extent that distributions and/or withdrawals exceed your policy basis (i.e., total premiums paid less prior distributions).
Pursuant to IRS Circular 230: The information contained in this website is not intended to (and cannot) be used by anyone to avoid IRS penalties. This website supports the promotion and marketing of insurance products. You should seek advice based on your particular circumstances from an independent tax advisor.
What if I already have insurance coverage?
If you already have a life insurance policy, it’s a good idea to review it every few years to make sure it still meets your needs. Check to make sure all beneficiaries and other information are current. Do any of the “ifs” below pertain to you? If so, it might be time to speak with your representative. If you…
- Were recently married or divorced
- Have a child or grandchild who was recently born or adopted
- Provide care or financial help to a child or parent
- Want to ensure that financial resources are available to provide assistance or long-term care for a loved one
- Purchased a new home recently
- Have children or grandchildren who are about to enter college
- Refinanced your home mortgage in the past six months
- Receive an inheritance
- Retired or your spouse has retired
- Have started a business