Best Life Insurance Companies in Vallejo

FAQs

• What is second-to-die life insurance in Vallejo?

  A second-to-die insurance is taken out against the life of two individuals, typically spouses. It pays death benefits only after both insured individuals have passed. When both spouses pass in Vallejo, their surviving family may have to pay estate taxes on the spouses' assets. The second-to-die policy benefits may be used to pay these taxes so the family can keep the assets without financial burden.

• Can you change your mind and cancel a life insurance policy you just bought in Vallejo?

  You are entitled to a free look period of 10-30 days under California Insurance Code Section 10127.9, during which you can change your mind and return the policy for cancellation. The free look period should be 30 days minimum for Vallejo policyholders 65 years or older. Once canceled, it becomes entirely void. The insurer must then refund the premiums you already paid.

• Will your insurer in Vallejo automatically cancel your life insurance policy if you miss a payment?

  You should get a grace period minimum of 60 days after the premium due date before the insurance company can cancel your policy. This is according to California Insurance Code Section 10113.71. Also, the Vallejo insurer must send you a notice of the impending cancellation 30 days before the cancellation date. If you fail to settle the unpaid premium within the grace period and the cancellation notice has been sent, the insurer can proceed with terminating your policy.

• What type of life insurance should you purchase in Vallejo if you only need one year of protection to address a temporary financial responsibility?

  You can opt for an “annual renewable term life insurance.” This insurance policy only covers you for one year and pays out a death benefit if you pass away within the covered year. You can have the policy renewed for another year if needed. Some insurers in Vallejo may also allow conversion of the policy into permanent life insurance. It is cheaper than a standard 10-year term life insurance or permanent life insurance.

• Will your ex-spouse be automatically removed as a beneficiary of your life insurance policy in Vallejo after divorce?

  While California has a law that revokes an ex-spouse's beneficiary designation on non-probate assets like insurance, it has an exclusion for life insurance. Your ex-spouse remains as your life insurance beneficiary after divorce unless:

  • You contact your Vallejo insurer and have the ex-spouse removed from the policy.
  • The divorce decree indicates the removal of the ex-spouse's beneficiary designation.
  • The ex-spouse voluntarily waives the beneficiary designation.
  • The insurance contract has a stipulation that automatically removes divorced spouses as beneficiaries.

• 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.