Tips for Finding a Trusted Life Insurance Provider
If you have been thinking about finding a life insurance provider for you and your family in California, the end of the year is the perfect time to venture out for the hunt. The good news is that there are approximately 1,000 life insurance providers in the country to choose from, with more than 300 available here in the state.
Life insurance is vital, as it covers you and your family for a death by illness, accidents, or natural causes; coverage includes death from diseases, falls, accidental overdoses, car accidents, and Covid-19.
The journey to finding just the right provider that can be trusted with your life and your loved ones, however, involves a lot of homework on your end. To save you some time, we have tips and information that will help you get started.
What Are the Types of Life Insurance in California?
There are two main types of life insurance in California: term life and permanent life.
Term life insurance, which a majority of Californians purchase, allows you to choose the length of coverage, from 10 to 30 years. It is an inexpensive option, covering an amount of time that you choose for you and your beneficiaries. Term life is also flexible to cover a variety of financial needs, such as:
- Funding for your family
- Income replacement
- Providing money, including college tuition, for young families
- Paying off your house mortgage
Permanent life insurance is beneficial for those who prefer a payout regardless of when they die and can support specific financial goals, such as funding an heir trust or retirement savings. It is also more expensive than term life because there is a cash value connected to the policy that adds up tax-free until you cash in. Two more specific types of permanent life insurance are:
- Whole life, which is consistent and fixed through the premiums, cash value, and overall dollar amount of the policy.
- Universal life, which is more flexible and carries adjustable premium payments and benefits.
What Should I Look for in a Life Insurance Provider?
Now that you have learned more about what type of life insurance would be best for you, we have gathered a list of four things to look for in finding a trusted life insurance provider licensed in California.
- How financially stable are they? Check into the strength of the agency’s financial ratings to ensure they can pay future claims. You can usually find this information on their website.
- What does your financial advisor think? Hire a professional who can offer you some added insight into a specific provider and the overall market.
- What is the policy review period? While it varies from state to state, you have a legal right to review and understand your insurance policy thoroughly before accepting it. You should never be rushed, and this window of time should always be disclosed; that info is usually on the front page of the policy.
- Do they follow a code of ethics? To find out about the principles and ethics they follow, you can check the Compliance and Ethics Forum for Life Insurers and the California Department of Insurance for more peace of mind.
Applying for Life Insurance in California
Once you know the type of life insurance policy that is best for you, you have hired the provider you feel you can trust the most with that policy, and you have the best quote in hand, you will just need to fill out an official application. This will be followed by more detailed questions about you and your lifestyle, and may also include a medical exam. If in the future you have trouble with a claim denial, contact our San Diego life insurance lawyers.