California Life Insurance
Just because you die, that does not mean costs like mortgages, debts and other obligations will disappear. In fact, they might become even more of a burden on your survivors. Rather than leaving your loved ones without a financial cushion, consider the advantages of life insurance.
RWM Insurance Brokers is an industry award winning, independent life insurance brokerage firm, providing expert services for Californians since 1970. We can help any Golden State resident get covered with exceptional protection.
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.
Life insurance generally falls into two categories: term life and permanent life insurance policies.
Term Life Insurance
You can think of term life insurance as a policy that will provide benefits only as long as you want them. The policy’s term is a defined number of years that the policy remains active. If you die during the term, the policy will pay the death benefit.
A good use for a term policy might be if you have a mortgage. You can choose a term that lasts for the length of the mortgage, and a payout that will cover its value. If you die while the mortgage remains on the home, and the term remains in place, then the policy can provide a payout to cover the payments.
Permanent Life Insurance
Some people want to have life insurance for the rest of their lives. For example, you might want the benefits to pay for a disabled family member’s care after your death, regardless of when it occurs. In these cases, permanent life insurance policies might be a better fit.
Once activated, permanent life insurance remains in place indefinitely as long as you pay your premiums. There are several types of permanent policies, including:
- Whole Life Insurance
- Universal Life Insurance
- Indexed Universal Life Insurance
Permanent life insurance policies will pay death benefits, and they also include a cash value accumulation benefit. In many cases, you (the insured) can borrow against the cash value while you are still alive to supplement your own income.
Life Insurance FAQs
How much coverage do I need?
We recommend that everyone carries at least enough life insurance to cover their paycheck cost for several years. The rule of thumb is 10-15 times your annual income. If you are younger, 15-20 times your annual income.
Who Can Use My Death benefit?
When getting your life insurance, you have to name someone who will receive the money when you die. This is the policy’s beneficiary. It is highly recommended that you also name a contingent beneficiary. The beneficiary can be almost anyone , including:
- Your spouse
- Children (minors can qualify as beneficiaries but there are specific ways to handle 18 and under)
- Charitable organizations
- Your Trust, Estate or its Executor
Naming a trust as your beneficiary or contingent beneficiary can ensure the money goes to an intended purpose.
When Can I Get a Policy?
You can get life insurance at almost any age, but you should get it while you are young if you can. Enrolling early in life, while your health is good, might help you qualify for better policy options and lower premiums.
What Will it Cost?
Generally, term policies are cheaper than permanent policies. Your policy’s specific costs will vary based on multiple factors, usually including your age, gender, overall health and family health history. Smokers, for instance, will usually pay more than non-smokers for their coverage. As a broker we will match you with the best carrier for your health and family history profile, ensuring the best rate available.
Are Life Insurance Payouts Taxable in California?
The money is not counted as taxable income, and the beneficiary does not have to pay taxes on it. Ask your agent to clarify the tax stipulations of your specific policy.
What is Right for Me?
You are a unique person, and you have unique financial priorities and objectives. It’s impossible to assume what type of life insurance is the best one for you. Still, there is a great fit waiting for you. Let one of the experienced, qualified independent agents at RWM Insurance help you get covered right now.
No other agent or broker will give you more competitive pricing information. In researching the best coverage for you, we evaluate not only the offerings of multiple companies, but also every* policy available in the USA. By working for you, not an insurance company, our goal is to provide the best performing life insurance policy at the lowest cost from a top-rated insurance company.
* We represent carriers not available to other agents. The financial press rates RWM's policy shopping system as ‘the most objective and useful in the nation.’
How to Get a Free Life Insurance Quote
Step 1: Compare Price Quotes
Use our online quote form to get instant price quotes from more than 20 top life insurance companies.
How to Apply for Life Insurance
Step 1: Complete Application
Fill out and submit our secure online life insurance preliminary application anytime and anywhere.
Step 2: Health Assessment
You will receive a phone call from an exam company to complete a health interview and, if needed, to schedule a paramedical exam.
Step 3: Receive a Policy Offer
Typically, within 3-5 weeks you will receive an offer back from the insurance company. This you can choose to accept, reject, or modify with no cost or obligation.
Step 4: Activate Your Policy
Submit your acceptance forms and initial payment and you will be insured and your loved ones financially protected!
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