California Life Insurance
What is Life Insurance?
If you have life insurance you can better guarantee that your loved ones will be able to maintain their own livelihood, even if you die. A policy can provide money (known as a death benefit) to help them cover sudden costs or ongoing expenses you might otherwise have supported had you remained alive.
Your death will cause your loved ones to lose the income and support you once provided them. That could deal a blow to their long-term security. Instead, you might want to leave them life insurance to help them support themselves. Policies can provide financial help for the people and things dear to you, both during their bereavement and later.
Life insurance is regulated on a state-to-state level, so each state has its own unique laws. It is important to know the laws in each state so when you are purchasing a policy you know what to expect.
Rules and Regulations in California
There is a free look period in the state of California regarding life insurance policies. This means that if you who purchase a life insurance policy, you are given ten days to change your mind and decide if you want to keep it. During this time, you have the option to cancel your coverage and receive a full refund.
In California there is a grace period, which means that if you miss a payment on your premium, you have thirty days to pay before your policy is canceled. This makes it so you will not be penalized or have your policy canceled if you miss a payment.
Also, all California life insurance companies must pay all claims within thirty days of receiving proof of death. They are legally required to make timely payments and if they do not, then the beneficiary will collect interest and the insurer will accrue penalties.
California State Guarantee Association
If for some reason your life insurance company goes out of business during your term, then in the state of California you will still be protected for life insurance. You can be protected for up to $250,000 in lost death benefits and for up to $100,000 in lost cash surrender from The California Life and Disability Insurance Guaranty Association. If this does happen to you, in order to qualify, your insurer must be legally licensed to practice business in the state of California.
RWM Insurance Brokers is an industry award winning, independent life insurance brokerage firm, providing expert services for Californians since 1970. We can help any resident in the Golden State get covered with exceptional protection. Get your free quote today – click here.