California Life insurance

Buying California Life Insurance pertains to choosing from different forms of coverage, including whole life insurance, term life insurance, and burial life insurance.

Term life insurance will cover a person for a particular set number of years, and when the years are over, the coverage is over too. An example of this form of life insurance would be a 20 year term policy. The cost on this mode of California life insurance is the lowest because this is really temporary coverage.

Whole life insurance covers the insured for the Whole of a person, which in actuarial terms, is until age 100. The policy has a cash reserve that offsets the increasing mortality costs of the policy. This also termed as the cash value, which can be utilized as a loan for the policy owner, who is usually the insured. If the insured dies and there is a loan outstanding against the policy the death benefit will be paid less the loan amount.

A limited pay life policy is another form of whole life. An example of this would be a 10 pay policy, which would still provide coverage until age 100, but in 10 years the policy would be paid off. Another format is an endowment policy, where the death benefit amount of the policy is paid to the insured at a particular age, such as an endowment at age 65 type of policy.

The applicant for life insurance has to be in good health in order to purchase life insurance. A medical questionnaire is allowed to be completed by most companies for coverage up to certain amounts. For amounts in higher ranges, a physical is mandatory with blood and urine samples which is then submitted to the home office of the insurance company.

There are benefits for the insured if a physical exam is taken, however. The exam is usually paid for by the insurance company, which amounts to a free physical for the applicant. In many circumstances, a serious medical condition is uncovered where it might have gone unnoticed, especially if the applicant is not a regular doctor person.

Burial insurance is a mode of California life insurance, which covers burial and final expense costs. The premiums have extra cost factors built in to the premiums due to older age applicants and the fact that many of them are in poorer health. The policy type is mainly a form of whole life.

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