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California Life Insurance
If you have a family, finding the right California life insurance policy is paramount to making sure that your loved ones will be financially protected should some unexpected tragedy befall you. Before deciding on a policy, however, you should make sure to inform yourself about the difference between kinds of life insurance. California insurance providers offer you several options when it comes to life insurance policies, but the basic choice is between “whole” life insurance versus “term” life insurance policies. So what is the difference between “whole life” and “term life”?
California Whole Life Insurance
Some people think of Whole Life insurance as a kind of long term investment. When you opt for Whole Life insurance in California, you receive a policy that you pay into for your whole life regardless of whether you only live one more year or whether you live to be 100.
Your Whole Life Insurance policy will continue to grow throughout your life so that when you die your dependents will receive a large sum. In fact, if you choose to terminate your Whole Life Insurance before you death, you will usually receive a portion of your investment back.
The drawback of Whole Life Insurance is that the costs are much higher than term life insurance. Since the insurance company is virtually assured of needing to pay out a huge amount in the event of your demise, they must collect more money to protect their investment.
California Term Life Insurance
When it comes, however, to term life insurance, California insurance companies offer you substantially lower policy premiums. This is because term life insurance only lasts for a particular length of time. California term life insurance will generally only cover you for your working life or for a pre-designated length of time such as 10, 20 or 30 years. Your California life insurance quote will usually offer you level payments throughout the period. Should you die during the term of the policy, the policy will pay your surviving beneficiaries. But should you live beyond the policy period, the policy terms out—at which point most people do not renew because of the increased cost or because they no longer have dependents.
Because California term life insurance doesn’t always pay out, life insurance providers can offer it for a much lower cost than “Whole Life” insurance.
Most financial analysts favor California term life insurance over Whole Life insurance and recommend you use other forms of investment in place of Whole Life Insurance.
Other Types of California Life Insurance
When you look for California life insurance quotes you will come across other variations on Whole Life and Term life insurance. California quotes will often be for “Variable,” “Universal,” “Return of Premium,” or “No Exam” life insurance policies. Here is what these terms mean:
- “Variable” Life Insurance: When a California life insurance policy is designated as “variable” that means that you can set aside a portion of your life insurance premium and invest it in one of the portfolio options offered by the life insurance policy.
- “Universal” Life Insurance: Universal life insurance is a more flexible form of life insurance that allows you to invest part of your life insurance in a portfolio and often guarantees a certain amount of return, but which has higher administrative fees as a result of this flexibility.
- “Return of Premium” Life Insurance: California life insurance carriers that offer “return of premium” term life insurance policies agree to return your premiums when the policy terms out.
- “No Exam” Life Insurance: Exactly as the name indicates “no exam” life insurance allows you get life insurance without a medical check-up. In many cases, these kinds of policies are much higher in cost and some may require that you meet with a company agent with a California life insurance license rather than just talk to them on the phone.
Other Considerations When Purchasing California Life Insurance
There are several other considerations you should take into account when you are purchasing your California life insurance. You want to make sure that the company you are purchasing your life insurance from is a reputable life insurance company who has been around for a while and will still be around when your life insurance terms out.
Be sure that the life insurance agent selling your policy has a life insurance license. California requires that those selling life insurance in California carry a California life insurance license in order to sell policies. If your carrier cannot produce proof of their license this is a red flag.
One benefit of using Incorporated Insurance Services is that we only deal with reputable life insurance carriers and we make sure that your life insurance will be there when your family needs it. Each and every IIS agent you deal with when purchasing life insurance will have a California life insurance license and will know all the ins and outs of the policies he or she is recommending for you.
How Much Life Insurance Should You Carry?
The question of how much is enough, is another difficult question for first time purchasers of life insurance. California quotes for life insurance can be significantly different from one another and figuring out exactly what your beneficiaries will receive can be quite difficult for those unfamiliar with insurance policy jargon.
Our experienced life insurance agents will help you compare your policy options so that you can come to a clear understanding of how individual policies differ. Using their extensive expertise, our agents will help you figure out how large your life insurance would need to be in order to maintain your family at their current lifestyle while still making mortgage payments and saving for college.
We will also help you come to a better understanding of how your age and health status may affect the health insurance quotes you may receive.
Put simply, when you come to IIS, we will help you to plan out your California life insurance so that you can make clear practical decisions about your future and help protect your family in case an unexpected circumstance should take you away from them.