When you’re planning for the future of your family, life insurance is a critical element to consider. No one enjoys thinking about their own end, but if something unfortunate should happen to you, you need to know that your family will be provided for in the future. Purchasing life insurance in Chino Hills, CA, provides that assurance.
Good and Associates are highly qualified, fully licensed insurance brokers with ties to all major life insurance companies in California. We can help you understand how life insurance works, and help you select a policy that fits your budget as well as your future needs.
How Does Life Insurance Work?
Life insurance is a type of contract, formed between yourself and a life insurance provider. You pay agreed-upon monthly payments, and in return, the insurance company provides a payout to your family should you pass away.
Your life insurance policy works somewhat like your inheritance will – you choose the beneficiary. You can have the money paid out to the family as a whole, or to a specific individual. You could potentially even name a child and have the money placed in a holding account until the child reaches adulthood and can claim it.
Types Of Life Insurance
There are two basic types of life insurance: term insurance and permanent insurance.
Term life insurance, also called temporary life insurance, is only valid for a set amount of time. This is typically between 5 and 30 years. With a term life insurance plan, your monthly payments are almost always fixed. However, term insurance does not accrue value. Should you reach the end of the term without dying, you receive nothing back.
Permanent insurance, also called whole life insurance, is maintained for as long as you continue paying the monthly premiums. As long as you are alive and continue paying into the system, it accrues value, which will be paid out eventually. In some cases, you can even borrow against your accrued life insurance value.
Simplified vs Underwritten Life Insurance Policies
The other major decision to make is whether your life insurance is simplified, or fully underwritten. A fully underwritten policy requires receiving a medical exam, lab tests, and submitting your full medical history so that the insurance company has full knowledge of your health. This often results in lower monthly costs.
Simplified life insurance skips the tests but typically has higher premiums because the insurance company is taking a greater risk in insuring you.
Get Life Insurance in Chino Hills
There’s a lot to consider when choosing life insurance in Chino Hills, CA, but Good and Associates can make it easy. Our experienced brokers will help you navigate the system and find the perfect policy for you and your family’s future. Contact us to learn more and get a free quote today.
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LIFE INSURANCE FAQ
Why should I take up a life insurance policy?
The life insurance policy is usually a kind of protection scheme which would allow your family or beneficiary to survive financially after your death. This is called as the death benefit. And if you think that your family requires monetary support after you are gone then it’s better to take up a life insurance policy.
Which is best term life or permanent life policy?
In the term life insurance the duration of your policy exists only for a certain period of time. And if you live longer than the specified time period then the policy expires. Here the initial premiums are less but as you grow older the premium amount increases. So term life insurance is the best when you don’t need a life long insurance. But the permanent life insurance policy gives you a life long protection. This policy also provides you with loans which must be paid back. The permanent life insurance is a bit more expensive than the term life insurance if you don’t want the insurance for long.
What are the different types of permanent life insurance?
There are 3 types of permanent life insurance:
- Whole life
- Variable life
The whole life insurance is just like a normal life insurance, in which the premiums have to be paid for a specified time or for the entire life. But the premium amount would be constant here.In the universal life insurance, first you have to pay an initial amount later the premium amounts can be paid at your own will. You can also modify your death benefit amount.The variable life insurance would separate the term life and cash portions. And it allows you to manipulate the cash portions as you like.
What is the procedure for getting a life insurance policy?
First an application form should be filled and submitted to the insurance company. After the application form is processed the insurance company would conduct a medical exam and if all their conditions are met. Then the company would issue the policy.
How much should I insure?
This depends on your financial background and the amount you think would be sufficient for your family. Many financial experts suggest 10-20 times your annual earning to be insured.