Best Life Insurance Companies in Milpitas

Frequently Asked Questions

• Can a life insurance policy in Milpitas go through a probate process?

  In Milpitas, when there are named beneficiaries on a life insurance policy, the money usually goes directly to them when the insured person passes away, skipping the probate process. But if there are no named beneficiaries or issues with the policy, the funds may become part of the insured person's estate and go through probate.

• Do life insurance firms in Milpitas notify their customers before terminating their coverage?

  Indeed, life insurance companies in Milpitas are required to send notices of policy termination by mail to different parties, including the policy owner, the person named in the policy, known assignees, and other relevant parties. Failing to provide this required notice means the insurance policy cannot be terminated.

• Yes, insurance companies in Milpitas establish a two-year contestability period for new life insurance policies. During this period, they can review documents provided by the policyholder's beneficiaries after the policyholder's death to prevent fraud or inaccuracies. This period begins with the first premium payment to safeguard the insurance company from fraudulent actions.

  Can insurers in Milpitas dispute a life insurance claim?

• Can an ex-spouse in Milpitas obtain the death benefits of the deceased insured?

  Even if the ex-spouse in Milpitas is not listed as the beneficiary, they may be eligible for a payout or death benefits if the premiums were paid from joint funds. This is because California is one of nine (9) states with community property laws, meaning that all assets earned during a marriage belong to both parties equally.

• How many people can be named as beneficiaries on a life insurance policy in Milpitas?

  Depending on the insurance provider, one may specify one or more beneficiaries on their life insurance policy in Milpitas. The proceeds may be distributed among multiple beneficiaries, or a single beneficiary may be selected who will get all of the benefits. When naming recipients, policyholders have the option to specify whether the money will be distributed per stirpes or per capita.

• 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.