Best Life Insurance Companies in Garden Grove

Frequently Asked Questions

• Can you name anyone as a beneficiary in your life insurance policy in Garden Grove?

  If you are single in Garden Grove, you can select beneficiaries for your life insurance policy and change them anytime since most life insurance policies are revocable, meaning policyholders can modify beneficiaries freely. However, issues can become more complex in specific states like California when the insured person is married or going through a divorce.

• Are life insurance policies considered community property in Garden Grove?

  In Garden Grove, life insurance policies are subject to community property rules. This means that during a marriage, all property acquired is considered joint property. In the event of a divorce, the policyholder can typically keep their term life insurance policy and choose new beneficiaries, excluding their ex-spouse. However, if the policy has a cash value, as is common in whole life or universal life policies purchased during the marriage, the cash value will be split between spouses.

• Can your life insurance rates increase after your policy is issued in Garden Grove?

  If you choose a term life insurance policy with guaranteed level premiums in Garden Grove, you pay the exact same premium rate every month through the end of the term you select, no matter how long your coverage lasts. However, this does not apply to renewable-term life insurance policies. In renewable-term life insurance, premiums increase as the policyholder gets older.

• Is life insurance part of the probate process in Garden Grove?

  In Garden Grove, if your life insurance policy is updated at the time of your passing, it will not be subject to taxation or involved in the probate process. A policy is considered up-to-date when it is regularly paid, and the named beneficiaries are alive and easily reachable. However, if your life insurance is not up to date, it will be considered part of your estate, and it will undergo the probate process.

• What happens if a life insurance beneficiary dies before the policyholder in Garden Grove?

  If the person designated as the beneficiary in a life insurance policy passes away before the insured individual in Garden Grove, the death benefit will be divided among any contingent beneficiaries. If there are no contingent beneficiaries named, the benefit will become part of the estate and go through the probate process.

• 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.