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Life insurance in California

Life insurance is essentially a contract between you and the insurance company to pay a sum of money to your beneficiaries in the event of your death. This death benefit can help your loved ones cover your final expenses and can help make up for the lack of your income.

California life insurance regulations usually come into play when a claim is filed and have to do with payment terms and other issues surrounding the disbursement of death benefits.

Why do I need life insurance?

With life insurance coverage, you can feel secure knowing that your beneficiaries will have some help covering your final expenses and other financial needs they’ll face without you.

California was ranked 3rd out of 50 states and the District of Columbia in life expectancy in 2014, with a life expectancy of 80.82 years. With this in mind, people living in California may want to consider their life insurance options.

California life insurance specifics

California regulates its life insurance industry through The State Insurance Code of California. Under the code, those purchasing a policy are afforded certain protections, such as:

  • Free Look
    If you buy life insurance in California, you have a period of time (at least 10 days or more) to review your policy. If you are unsatisfied with the life insurance policy you purchased, you can terminate the policy for a full refund of any premiums or other fees paid. The length of your free look period may vary based on your insurance provider in the state of California.
  • Grace Period
    People who purchase life insurance in California are given a grace period of no less than 30 days after the policy premium due date in which the insured can still make their premium payment without incurring a penalty. The life insurance policy remains in force through this grace period.

California life insurance state resources

California Department of Insurance
The purpose of the Department of Insurance is to faithfully execute the state insurance laws in a manner that protects insurance consumers and the California life insurance industry.
www.insurance.ca.gov

California Life and Health Insurance Guarantee Association
State guaranty associations are there to provide protection for policy coverage, even in the event that the insurance company becomes insolvent.
www.califega.org

Life Insurance Company Ratings From A.M. Best
A.M. Best provides ratings for life insurance companies based on financial strength and past performance.
www.ambest.com

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