Best Life Insurance Companies in Norfolk

Frequently Asked Questions

• Can you name multiple beneficiaries for your life insurance policy in Norfolk?

  Yes, you can designate multiple beneficiaries for your life insurance policy in Norfolk. This can include various individuals, such as your adult children or grandchildren. It's worth noting that in Virginia, children can only inherit directly in their own names once they reach the age of 18. To address this, you might consider establishing a trust with your children as the designated beneficiaries of the trust.

• Can creditors seize life insurance benefits in Norfolk?

  In Norfolk, life insurance policies are typically protected from creditors under certain conditions. If you designate your estate as the beneficiary of your life insurance policy, the death benefit becomes part of your estate's assets and may be used to pay off debts you owe to creditors. However, if you name specific individuals or entities as beneficiaries, the insurance proceeds go directly to these beneficiaries. In such cases, creditors cannot claim it.

• Is suicide covered by life insurance in Norfolk?

  Typically, life insurance policies in Norfolk include coverage for death by suicide. However, there is a waiting period of two years from the policy's inception. This means that if the policyholder dies by suicide within the initial two years of the policy, the insurance company may not pay the full death benefit to the beneficiaries. Instead, they might either deny the claim or conduct a thorough investigation to determine the circumstances of the death.

• What is the "incontestability clause" in a life insurance policy in Norfolk?

  In a Norfolk life insurance policy, the 'incontestability clause' typically establishes a two-year timeframe from the policy's start date. This provision serves as a safeguard for the policyholder, preventing the insurance company from disputing or denying claims due to inaccuracies or false information provided by the policyholder. However, once this initial period has passed, the insurance company generally loses the ability to challenge claims based on the policyholder's prior misrepresentations or inaccuracies.

• Can you name anyone as a beneficiary in your life insurance policy in Norfolk?

  In Norfolk, you have the flexibility to name almost anyone as either a primary or contingent beneficiary for your life insurance policy. This includes a wide range of options, such as family members, friends, financial institutions, charitable organizations, and trusts. It's important to consult with your insurance provider or financial advisor to understand the specific rules and guidelines that may apply to beneficiary designations in your policy.

• 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.