Best Life Insurance Companies in Van Nuys

Frequently Asked Questions

• Can a spouse receive a portion of a life insurance payout if they are not named as a beneficiary in Van Nuys?

  Yes, even if they are not named as a beneficiary, a spouse may be entitled to a portion of the life insurance proceeds. According to California's community property laws, if the life insurance policy was purchased with community funds during the marriage, it is considered equitably owned by both spouses.

• Can you contest a life insurance beneficiary in Van Nuys?

  Yes, you have the right to contest a life insurance beneficiary after the policyholder's death if you have a valid legal claim that the individual listed as the beneficiary with the life insurance company is not the one intended by the insured. If two or more beneficiaries are vying for the proceeds, the insurance company may file an interpleader lawsuit to settle the dispute.

• How long do you have to make a payment before your life insurance policy gets terminated in Van Nuys?

  You generally have 60 days from the date on which the premium was due or left unpaid to make a payment, according to California's life insurance laws. In the state of California, insurance companies are required to provide insurance policyholders notice within 30 days after a premium payment is due.

• What happens to your life insurance policy after a divorce in Van Nuys?

  According to California law, any life insurance purchased during a marriage is considered community property in the event of a divorce. When it comes to accumulated cash value life insurance policies, such as whole life or universal life insurance, the cash value is expected to be divided equally among the spouses. However, the spouse who was named as the beneficiary will typically take ownership of the policy.

• Who can change the beneficiaries on a life insurance policy in Van Nuys?

  A life insurance policy's beneficiaries can only be changed by the policyholder or an individual who has been granted the authority to make decisions on the policyholder's behalf through a durable power of attorney. A spouse, children, an estate, a trust, a charitable organization, or a legal entity, such as a company, are all examples of life insurance 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.