California Life Insurance FAQs

Term life insurance is a more simple and inexpensive way to cover debts such as mortgages, help one’s spouse pay daily costs, financially support dependant children, and pay for their daycare and schooling in case of death.

Mortgage life insurance is a life insurance policy you set up so that your family can cover the cost of your mortgage in the event of death. You pay designated premiums, and the insurance company pays an agreed-upon sum of money to your family upon death.

Insurance companies generally offer insurance to smokers, but the cost may be greater than for non-smokers. Some companies also specialize in insurance for people at risk, such as people with high-risk jobs or hobbies (car racing or sky diving, for example) or certain diseases (such as cancer or heart disease).

Many companies have cut-off ages for the purchase of new life insurance policies, ranging from about 60 to 80 years old. The premium for an older person is generally higher than for a younger person, and the returns on the cash value of a policy with investment opportunities are generally lower overall.

Life insurance that you are assured you can get as long as you can afford the premiums. Guaranteed issue life insurance does not require medical examinations or tests, or medical history information from the insured.

You can purchase Survivorship (2nd-to-Die) life insurance. This type of coverage is usually a Whole life or Universal life plan. The difference is that it covers two people and pays the death benefit upon the second death. In this way, estate tax liabilities are paid after both people die rather than being deducted from the survivor’s benefits.