The facts of California life insurance

Life insurance is something we typically don't like to think about. Why? Because it forces us think about how death financially impacts loved ones dependent on us to support their lives and dreams. To be objective, let's separate the emotional aspects from the practical questions.

Do I really need life insurance?

If someone depends on you financially, you probably need life insurance. The following life events can trigger the need to evaluate your coverage:

• Getting married
• Becoming a parent
• Buying a home
• Changing jobs
• Nearing - or in - retirement years

How much do I need?

The average insured adult American has roughly $110,000 in life insurance coverage, or about 3 times his or her gross annual income. When you consider what life insurance proceeds need to fund, your true need may be 10, 15 or even 20 times your gross annual income.

What kind should I buy?

There are two basic types of life insurance, each with a multitude of variations: term & permanent.

• Term Life Insurance.

  This pays only a death benefit and provides protection for a specific period of time. This type of insurance makes sense if your need for coverage will disappear at some point (although it's difficult to forecast future needs as circumstances change). The policies generally lock in coverage from 1 to 30 years, with a 20 year period being a common option. Term is often a good choice for young families on a tight budget.

• Permanent Life Insurance.

  This offers lifelong protection and you can accumulate cash value on a tax-deferred basis. The premium often stays the same for your entire life. Many people use permanent life insurance to supplement their retirement income. The downside? Initial premiums are often significantly higher than what you would pay for a term policy with the same face amount.

Many people have a need for a combination of the two types of life insurance. Also, many term plans are convertible to permanent life insurance plans over time as your needs and income change.

How do I buy it?

Term Life Insurance Quote - CLICK HERE