California Residents – What You Need to Know About Life Insurance
Having the right life insurance is pivotal in planning for the future of you and your loved ones. Life insurance can help you fulfill promises you’ve made your family when you are gone.
Don’t leave the future of you and your loved ones to chance. Don Williams & Associates can help you find the right life insurance coverage for you, and help ensure that your policy continually meets your needs.
Life changes – so should your policy
For each of our neighbors in California, the right life insurance will be unique for you and dependent on your personal and financial needs. As your life changes, your life insurance coverage may need to change in order to adapt to your current needs. Some life transformations that may require a policy “tune-up” and our help at Don Williams & Associates include:
- You recently married or divorced
- You have a new child or grandchild
- You have opened or expanded a business
- Your health or your spouse’s health has deteriorated
- You are providing care or financial assistance to a parent
- Your child or grandchild requires assistance or long-term care
- You recently purchased a new home
- You are planning for a child or grandchild’s education
- You are concerned about retirement income
- You have refinanced your home mortgage in the past six months
- You or your spouse recently received an inheritance
- You have a sizable estate
Term Life Insurance
Term life insurance provides protection for a specified period of time. If you do not currently have life insurance, term can be a good place to start. It’s generally less expensive than permanent (whole) life insurance, and is available in varying time periods with fixed premiums from a one year (annual renewable term) to 20-year (level term) period. Furthermore, term life insurance is sometimes convertible to permanent coverage, providing you with flexibility as your needs change.
Pros:
- Affordable
- You get flexibility by being able to choose how long you want coverage to last
- Sometimes may not even require a medical exam.
- Extremely Simple. Choose how much coverage you want and how long you want it to last.
Cons:
- Does not include a savings benefit like whole life
- Unlike whole life, coverage will eventually expire if you outlive the term length.
Whole Life Insurance
Whole life insurance is a form of permanent life insurance that remains in force for your entire lifetime, provided premiums are paid as specified in the policy. Whole life insurance can be an investment opportunity, as many whole life insurance policies also build cash value over time.
Pros:
- Lifelong coverage
- Living Benefits
- Many different permanent options to choose from
Cons:
- Expensive
- Not Flexible
- Can take a long time to build cash value
- Policy loans are subject to Interest
Universal Life Insurance
Universal life is a form of permanent life insurance characterized by its flexible premiums, face amounts and unbundled pricing structure. Universal life can build cash value, which earns an interest rate that may adjust periodically but is usually guaranteed not to fall below a certain percentage.
Pros:
- Flexible payment options
- Lifelong coverage
- Living benefits
Cons:
- Can Be Expensive
- Can Lapse if you are not careful
- Cash value can diminish quickly
What are the advantages of life insurance?
Having the right life insurance is essential to planning for your present, and your future. Not only can life insurance provide assurance for your family after you are gone, but many life insurance options also offer other benefits and investment opportunities you can take advantage of while you are living.
Advantages of the life insurance death benefit: When you pass away, your life insurance provides income tax-free money to your named beneficiary or beneficiaries that can be used to pay funeral expenses, debt, tuition, estate taxes or virtually any financial need. Your policy can help provide security for your business security as well, by enabling partners to buy out the interests of a deceased partner and prevent a forced liquidation.
Advantages of Living Benefits: The cash value growth of a permanent (whole) life insurance policy is tax-deferred, meaning you do not pay taxes on the growth of cash value, unless money is withdrawn. Loans or withdrawals can be taken against the cash value of a permanent life insurance policy to help with expenses, such as college tuition or the down payment on a home.
Who are the best life insurance companies?
These are just a few of the life insurance companies we work with but they all currently offer a great combination of affordable pricing and unique coverage offerings.
Banner Life Insurance Company
Banner Life Insurance Company is owned by Legal & General America. They currently offer a term and universal life product. They not only make the process of purchasing life insurance extremely simple but they have extremely competitive rates, especially on their term insurance product.
Protective Life Insurance Company
Protective Life Insurance Company not only offers an affordable price for all ages, they are one of the few carriers that offer affordable life insurance for older customers. They offer a number of different riders that you can add onto your life insurance to make sure your policy is customized for your specific needs.
Transamerica Life Insurance Company
Transamerica Life Insurance Company offers term and whole life policies. They provide customers with the ability to choose much higher death benefits and longer-term amounts than your normal company. They also have a final expense product.
The right life insurance coverage for each and every one of our neighbors in California is unique. Talk with our team today and start your own quote online here to find out how to protect your family and your future with the right life insurance.