Best Life Insurance Companies in Largo

Frequently Asked Questions

• Can life insurance proceeds in Largo be probated?

  No, because there is a beneficiary designation in the policy, there is no legal requirement in Largo for life insurance proceeds to go through or be subject to Florida probate. As a result, the beneficiary of the life insurance policy, rather than the insured's estate, receives the policy proceeds immediately following the insured's death.

• What happens if the insured fails to specify a beneficiary on its life insurance policy in Largo?

  When there is no beneficiary named on a life insurance policy in Largo, the funds are typically directed to the insured person's estate, where they become part of their probate assets. This can also happen if the policy's original named beneficiary dies and no replacement beneficiary is named in a timely manner.

• Who is eligible to be listed as the beneficiary of a life insurance policy in Largo?

  An individual, an organization, a corporation, a trust, or an estate may be named as the insured's beneficiary on a life insurance policy in Largo. When a child is named as a beneficiary in a plan, the court appoints a guardian to handle the case; the guardian will be in charge of the funds until the minor reaches the age of majority.

• Can the insured in Largo modify the beneficiaries specified on their life insurance policy?

  The insured in Largo has the right to change the beneficiaries on a life insurance policy or other financial account at any time. Divorce, remarriage, and death are just a few examples of situations in which the beneficiaries' list may need to be updated. It may be impossible to update or name a new beneficiary in some unusual circumstances, such as an irreversible designation or a change in policy ownership.

• Is it still possible to name an ex-spouse as a beneficiary on a life insurance policy in Largo?

  While a divorce usually terminates beneficiary status under Florida law, the policyholder in Largo has the option to keep the ex-spouse as a beneficiary. This is especially true when parents divorce but still need to make financial plans for their children's well-being. Following the death of the policyholder, their ex-spouse may be entitled to benefits under their employment-related life insurance, which is governed by the federal Employee Retirement Income Security Act of 1974 (ERISA), which takes precedence over Florida state laws.

• 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.