Best Life Insurance Companies in Tracy

Frequently Asked Questions

• Can the court order you to purchase a life insurance policy during your divorce in Tracy?

  The court may order you to purchase a life insurance policy during your divorce in Tracy if the children are still dependent on the spouses, there is a significant disparity between the spouses’ financial capacities such that one spouse may not be able to support the children, and if a spouse is of unstable health or advanced age.

• How does a DUI conviction affect your life insurance in Tracy?

  If you are shopping for life insurance in Tracy and had a DUI conviction in the last 10 years, expect your premium quotes to be higher than average. Having a DUI on record represents an enhanced risk. You may even be denied insurance if it’s only been a year since your arrest or conviction. Your life insurance rate won’t stay high forever, and you may see some decrease around five years after your DUI conviction.

• Why is it not advisable to designate your child with special needs as a beneficiary of your life insurance in Tracy?

  If your special needs child is receiving or may be eligible to receive government aid in Tracy, such as Medicaid, naming them as your life insurance beneficiary may eventually result in the removal of those government benefits. Once they receive your death benefit in the future, their assets may increase to the point where they are no longer eligible for government support. Instead, you should create a trust for your child and list that trust as your beneficiary.

• Will you be notified if your life insurance company goes out of business in Tracy?

  Policyholders of an insolvent insurance company in Tracy will be notified by the Department of Insurance. The California Life and Health Insurance Guarantee Association will then take over your policy or hand it to another insurance company. Throughout this process, you should keep your premium payments current so your insurance coverage is uninterrupted.

• What is the contestability period indicated on your policy in Tracy?

  The contestability period indicated on your policy refers to a timeframe, usually two years, for the Tracy insurer to find fraud, omissions, or mistakes on your insurance application. Once the contestability period ends, your insurance claims cannot be denied except for the reason of premium nonpayment. However, if you pass away while the contestability period is ongoing, it may delay the payout of your death benefit, or, if material misrepresentation is found, may deny your beneficiary's claim for the benefit.

• 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.