Cynthia Nakaya, Life Insurance Broker
Cynthia Nakaya
Life Insurance Broker Licensed in CA, AZ, GA, ID, MO, NC and TX
16+ Years of Experience
Contact Details
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Location
Jurupa Valley, CA
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About Me
Welcome! I'm Cynthia, a local life insurance specialist who understands the importance of protecting what matters most. From growing families to individuals planning ahead, I help people at every stage of life choose coverage with confidence.
Q&A with Cynthia Nakaya
What is the difference between a beneficiary and a contingent beneficiary?
Answer: The term beneficiary is also referred to as a primary beneficiary. This is the person/ entity first in line for the life insurance benefit. The contingent beneficiary is second in line. For example, if the insured is a husband and the primary beneficiary is the spouse, and they pass away at the same time, the contingent beneficiary will inherit the insurance proceeds.
Having a contingent beneficiary is extremely important. If a primary beneficiary passes away and there is no contingent, the funds go to the estate. Estates generally must go through probate before funds are released to survivors and may be subject to taxation.
Are there life insurance policies with no waiting period?
Answer: There are policies available with no waiting period. However, all states have a 2-year period of contestability, where the insurer can review the application in case of a death to ensure there were no omissions or misrepresentations.
If you have a pre-existing condition, you may only qualify for a graded policy- one that has a 2-year waiting period. Some insurance companies have longer waiting periods. During this time, beneficiaries receive all premiums paid into the policy, plus interest (usually 10%, depending on the insurer). After the waiting period has passed, beneficiaries receive the full face value upon the insured's death. Some policies offer immediate coverage for individuals with pre-existing conditions by charging a higher premium.
Questions? Feel free to contact me.