Best Life Insurance Companies in Milpitas

FAQs

• 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.

• How does life insurance work?

  The details of how life insurance works depend on your individual plan, but the basics are as follows: 

  • You pay a premium to purchase the insurance. Typically the premium is paid monthly, but it could be rolled into quarterly, bi-annual, or annual payments. 
  • As long as you are meeting or have met premium obligations, if you pass away, the insurance company makes the agreed-upon payment to the beneficiaries you designated. 
  • Beneficiaries usually have to provide the insurance company with a death certificate to receive their payments.

• How much is life insurance?

  The cost of life insurance ranges widely. Term life insurance can cost as little as a few dollars a day, and whole life insurance can cost thousands per month on the high end. Factors that impact the cost of your life insurance include whether you're choosing term life insurance or whole life insurance, your age, how much coverage you want, your overall health, and your gender.

• Is life insurance taxable?

  Life insurance proceeds are the funds paid via your plan to your beneficiaries if you pass away. These are also called death benefits. Typically, these are not considered income for taxes. If you take out cash value from a whole life insurance investment and the amount exceeds how much you paid in premiums, the difference may be considered taxable income.

  
  

• Can I buy health insurance that is not Obamacare?

  When people say "Obamacare insurance," they typically mean insurance within the health insurance marketplace. You can get health insurance outside of the marketplace by going through your employer, choosing COBRA coverage if you leave your job, or buying a short-term health insurance policy through an insurance agent. ACA-compliant plans meet all the benefits and coverage requirements of the Affordable Care Act. But you may be able to find supplemental or short-term coverage that simply provides peace of mind for major medical expenses.

• Can I buy health insurance anytime?

  To buy health insurance in the marketplace, you must purchase it within open or special enrollment periods. But you can purchase short-term coverage to bridge the gap between now and the next open enrollment period. These plans are meant to be used for less than a year. You can purchase them online or via insurance agents, but they may not be ACA-compliant.

• Who should buy supplemental health insurance?

  Supplemental health insurance is a product that helps cover the cost of services that your primary health insurance policy doesn't. One popular option is secondary insurance that helps cover some of the costs associated with high deductibles. Medicare supplemental insurance is also popular. Medicare doesn't cover everything, and older adults on a limited income can face large prescription or medical bills after Medicare pays. Supplemental insurance helps reduce those patient costs.