Life insurance is a part of estate planning in the United States of America. This may not be a necessity to everyone. But, it can be useful, especially for the parents to support young children, aged grandparents, spouse and disabled adult or child, if any. Life insurance not only supports the dependants but also can provide immediate cash at death. Life insurance benefits are a big source of income to pay off the debts and funeral expenses of the deceased. Now, we shall discuss about the life insurance options available in California in the forthcoming paragraphs.
Life Insurance Companies in California:
To offer life insurance to the people of California, there are a good number of life insurance providers in California. To mention a few of the reputed companies, they are Haven Life, Banner Life, AIG, Prudential, MetLife, Voya Financial, Mutual of Omaha, Genworth Financial, New York Life Insurance Company, Fidelity Life Insurance, John Hancock Life Insurance Company, Pacific Life and Annuity Company, Principal Life Insurance Company, Sagicor Life Insurance Company and Transamerica. Some of them are popular for quick coverage or high risk or company size or for chewing tobacco users and more.
Determining who offers the best life insurance is not that much easy. It is true that you can get California life insurance quotes through the companies by direct approach or through their websites, most of you will not be able to decide whether you are choosing the best policy for your specific coverage.
To guide the people in this regard, there are independent insurance agents, private insurance agencies and brokers, who may represent many insurance companies. They will be able to search for you and provide you the best life insurance coverage that suits your needs and budget. They will also assess your family needs and suggest the apt policy for the betterment of the family future.
These agencies will get life insurance quotes from leading companies and provide them to you for comparison purposes. This will enable you to arrive at the right decision. As on today, there are hundreds of insurance companies to choose from and each of them will have its own brand of products and services. Therefore, it is difficult for a common man, who has no experience in the insurance field, to narrow down the list and choose the best one. This difficult task is made easy by such agencies.
The best insurance companies will usually offer a varieties of products and satisfactory customer service and have flawless reputation built by their stupendous services for a long term.
Types of Life Insurance:
There are two major types of life insurance and they are “term life insurance” and “permanent life insurance”.
Term Life Insurance:
Term life policy is an affordable life insurance policy for a fixed term of period and is suitable and least expensive for a majority of the people. A term life insurance is a straight insurance with no investment plan. You are buying a life coverage that lasts for a specific period of time to be set by you for a specific face value to be decided by the policyholder. Annual renewable term is purchased year by year and there is no necessity to provide proof for your good health condition.
If you buy this term life insurance policy at a young age, then you will have to pay a lower premium rates for annual renewable term insurance even for $250,000 worth of coverage. You can get term life insurance quotes from the prospective insurance companies and select the one that is affordable to you. Usually the period of this policy will be 20 years, but it can be set for 5 or 10 or 15 or 20 or 25 or 30 years.
Whole Life Insurance:
Whole life insurance is a type of permanent insurance and this is a combination of life coverage and an investment fund. This policy will pay a fixed amount as your death benefit and part of your premium goes towards building cash value from investments made by the insurance company. You can borrow against cash accumulation value without being taxed. The amount you pay usually does not change throughout the life of the policy.
Universal life is another type of permanent policy. This policy is a combination of term insurance with a money market-type investment that pays a market rate of return.
Variable life and variable universal life are also types of permanent policies with an investment fund tied to a stock or bond mutual fund investment. But, the returns are not guaranteed.
To buy any type of insurance, you can get life insurance policy quotes online and buy life insurance online. There is no need to visit company after company in search of life insurance policies.
Life Insurance with no Medical Exam:
Some of the companies are licensed to sell life insurance no medical exam. But, the insurance policy with a medical exam is advantageous as it often saves you money on your policy. If you has an accurate health profile, then the insurance companies will place you in the appropriate class and the premium will be charged based on your health conditions.
Life insurance no medical exam may be a convenient choice for many people. But, it might cost you more, because the mortality rate has to be shared among all the policies. As the insurance companies are not aware of the individual health conditions of the policyholders, they will calculate the average cost and it may be higher for such policyholders with no medical exam.
Insurance Benefits to Employees:
Suppose you are an employer and you have employed less than 100 employees, then you can opt for group life insurance employee benefit policies offered by insurance companies in California. There are group insurance policies even if you have employed more than 100 employees. The benefits of such group insurance policy are as follows.
All employees can be covered for a flat amount. They can be benefited by accelerated death benefit under the scheme of the policy and much more.
Any policyholder should nominate a person who benefits from life insurance benefits in the event of his or her premature death. Otherwise, some problems may arise among the family members regarding the beneficiary. You must be crystal clear about the beneficiary after your death.
Conclusion: Life is precious, no doubt. No one will like to die before fulfilling the family commitments. But what will happen if you die all of a sudden? It is nothing but an adequate life insurance that will do the rest for your family.