Best Life Insurance Companies in Vallejo

Frequently Asked Questions

• 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.