Term Life Insurance in California - Your Options Discussed
There are two basic types of life
insurance in California – term
and cash value. Term insurance provides coverage for a specific
period of time. Cash value is also called permanent life insurance,
and has the added benefit of accruing a return on premiums paid.
However, it's a lot more expensive than term insurance, and might
not be the best choice if you're just starting out. Term life insurance
is good for young families with a number of financial obligations,
for instance. California can be an expensive state to live in,
and for certain people, term life insurance can help them get coverage
without breaking the bank.
If you're relatively young and healthy, and want California Life Insurance primarily as an emergency measure, term life insurance might be
for you. Other reasons to use term insurance include if you have
a temporary need for life insurance, such as waiting until your
children leave the nest, or if you expect to be in better financial
straits at the end of the term. Terms are available in periods
as short as five years, or as long as thirty.
Some terms are renewable, allowing you to get essentially the
same policy again once they expire. Renewing the policy will usually
get you a higher rate, though. Insurance companies charge according
to the risk they feel they are taking on when you sign the policy,
and the older you get, the riskier insurers believe you to be.
There are several things you can do to get a better rate on your
term life insurance. The first is to keep yourself in the best
health you can. Most life insurance companies require a physical
before they'll insure you. Working in a low-risk job will also
improve your premium. If you can't do either of these things, try
Sometimes you can get a little more coverage and pay less. Multiples
of $250,000 in coverage can cost a little less per month, so you
might get a better deal for a term plan of $250,000 coverage than
one of $240,000. If you suffer from a condition that affects your
health, look for a company that offers competitive rates. These
companies analyze your case individually, rather than lumping you
in as a risk, regardless of other factors. If you smoke, drink,
or spend a lot of time being sedentary, quitting any of these things
will make you a better risk in an insurance companies eyes. Smokers
can pay as much as twice the rate for term life insurance as nonsmokers.
Last, make sure you look for hidden fees, like convenience charges
on your monthly payment. These can rack up and cost you a lot more
in the end than you save by splitting up your payment.
You have a lot of options for term life insurance in California.
Knowing how you can reduce your rate and choosing the kind of insurance
that best applies to your situation are the best ways for you to
get a good deal. Term life insurance may just be the right option