How Do You Choose The RIGHT California Life Insurance Company?
There are all kinds of life insurance around, being offered by
all kinds of companies. What policy should you choose? There's
term, universal, and whole life insurance. You can shop through
an agent, a broker, in the phone book or online. Each option has
its drawbacks and benefits, and each option will be better suited
for some people than for others. The best way to decide the right
California life insurance company for you is to know a bit about
Term insurance is life insurance that covers a set period of time,
after which it expires. This can be as little as 5 years or as
much as 30. The benefit of term life insurance is that it's lower
cost than other kinds. The drawback is that once the insurance
term expires, you'll either have to renew your insurance at a higher
rate or get a new policy elsewhere. This can be hard if your health
has taken a turn for the worse. Term insurance is best for young
people who need insurance, don't expect to be in poor health, and
can't afford higher premiums. It can get you started in life insurance
at a low rate.
Universal life insurance and whole life insurance are both part
of a category called cash value insurance. This combines the death
benefits of term insurance with an accumulation feature. The premiums
are higher in the earlier years than for term insurance, but the
extra premium is invested, and a certain portion of it is returned
to the policyholder at their request. Until the return is requested,
this money is tax-free. Whole life insurance is the most traditional
form of this insurance and has guaranteed premiums and death benefits,
as well as a minimum interest rate. This is best for people who
are looking for reliability and stability, both in cash value accumulation
and in premiums.
Universal life differs from whole life insurance in allowing the
policyholder to very the amount and timing of particular premium
payments and the death benefit to be paid. The cash value is accumulated
by crediting the premium payments to a fund, with deductions made
for expenses and insurance cost. The rate of accumulation will
be adjusted for the prevailing interest rate. This policy is good
for people who don't want to worry about term expiration but need
flexibility in their insurance rates. And also means that getting affordable life insurance is easier to do.
The best way to get your life insurance in California will also
vary. If you're in a hurry, the Internet might be most helpful.
If you need some help figuring out the details of policies, you
could talk to a broker, and if you prefer to do your own deciding,
but want to talk in person, you could contact many insurance agents.
Just what the right policy will be for you will vary according
to your situation. However, if you make sure you know what you're
doing, it can be easy to get the right California life insurance
policy for you.