Nicknamed the “Golden State” because of the famous Gold Rush in 1848 that sent thousands flocking to the West seeking a fortune, California is known today for its long, sandy beaches, year-round sunshine, Hollywood and its celebrities. It’s also the happening place for all things technology. Home to tech giants like Apple, Google, and Yahoo, California is the entertainment and tech capital of the world. Not surprisingly, this third largest state is the second most popular tourist spot in the United States.
However, it’s not always a picture-perfect life for the people who live and work here. If you’re a resident of California, you’ll have to face the cost of living here and even more importantly, the cost of dying here. While a little more than 12% of people die without a life insurance policy across the country, the percentage of people dying without life insurance in California is just slightly higher, at 13%.
The top 10 reasons for mortality in California
- Heart Disease
- Cancer
- Chronic Lower Respiratory disease
- Accidents
- Stroke
- Alzheimer’s
- Diabetes
- Influenza/Pneumonia
- Kidney Disease
- Suicide
Liver problems, coronary illnesses, and road accidents are among the top 5 reasons of mortality in the 25 to 35 age group. This only goes to show that there is just no predicting when or how you will die.
How can I protect myself?
The first thing to do is to make sure you’ve been adequately insured and ensure you’ve budgeted for the uncertainties of life. Having a life insurance policy in place will ensure that your dependents aren’t left in financial need should you die an untimely death.
Life insurance coverage options
There are different types of life insurance policies available in California:
1. Term Life Insurance
• Annual Renewable Term
• Level Premium Term
2. Permanent life insurance
• Whole Life Insurance
• Universal Life Insurance
What are the factors that affect your life insurance rates?
Age
The highest percentage of people in California are in the 20-29 age bracket. Being young doesn’t mean you don’t have to plan for your death. Young people often have more expesnses such as student loans to pay off and growing families to take care of. The best time to buy life insurance is when you’re young – this is when the premiums are the lowest. As you grow older, the rates shoot up with mortality risks rising.
Lifestyle
With its inviting beaches and sunny weather, Californians enjoy a number of outdoor sports and recreational activities.
– If you like the popular adventure sports in California like skydiving, snowboarding or skiing, you can expect these high-risk activities to attract higher life insurance rates.
– Although the number of smokers in California is on the decline, statistics show that 11.7% of residents in California still smoke. Life insurance rates for smokers can go up by 15% to 20% more than non-smokers.
– Another lifestyle factor that may affect your premium is your level of alcohol consumption. California ranks 21st in the number of binge drinkers (defined as 5 or more drinks for men, 4 or more for women). If you’re a regular binge drinker, you may see your premiums rise. If that’s coupled with a DUI, you can expect to find those rates going up even higher.
– About 25% of Californians are obese. This is much lower than the national average of 35%. However, 36% percent of California residents are overweight. Being obese or overweight may increase the risk of heart disease, diabetes and metabolic syndrome, all of which have an implication on life insurance rates. Those extra pounds can cost you in terms of higher life insurance rates.
It goes without saying that non-smokers who are in good health and lead active non-risky lifestyles will attract the best life insurance rates.
Marital Status
Good news for all the single men and women in California – you attract lower premiums! Since you probably do not have too many (or any) dependents, your life insurance needs may also be correspondingly lower.
While it’s cheaper for singles to buy insurance policies, it is more important for those who are married to ensure adequate safeguards have been taken to care for their dependents. It will be extremely difficult to maintain the same standard of living with the discontinuation of one income in a two-income household and even more in a one-income household.
Your Profession
What you do for a living will be considered when determining your premiums. With the California economy centered on technology, finance and real estate services, white-collar employees form the majority of the workforce. Someone with a white-collar job will attract lower premiums than a person with a blue-collar job. A fireman, for instance, would have to pay a higher premium than an accounting executive working for the Bank of America.
Tips for the residents of California
1. Honesty is the best policy
It goes without saying that being completely honest and transparent while procuring any life insurance policy will work out well for all parties involved. Failure to do so may result in your insurance claims being rejected.
2. Gauge how much you need
Given the horde of life insurance companies and the varied proposals available to the people of California to choose life insurance from, you must decide on the kind of protection you want to provide your dependents.
3. Go with the trusted ones
Choose from authorized companies that have a valid license to sell policies in the state of California. When shopping for policies, the best thing to do is compare the rates from several different life insurance providers. Many providers offer policies for California residents, but choosing the right provider for your individual situation can be difficult because each one offers different plans, with different standards, rates and financial history.
4. Do your research
Better check the claim-paying ability of the life insurance policy – cheaper doesn’t always mean better.
About California life insurance
California Government, through an Assembly Bill – 1747 (AB1747) – enacted on January 1, 2013, has allowed its citizens (policyholders) the following benefits:
1. A grace period (a period where even if you haven’t made a payment for an expiring policy, a minimum of 60 days is provided) from when a policyholder is notified of the lapse of the policy so they can renew it within that frame of time and not lose any benefits of the policy.
2. The right to designate additional persons to receive notices of such a lapse.
3. It is required that any notice of lapse and termination must be sent out 30 days in advance via first-class U.S. mail.
The AccuQuote advantage
If you are intimidated by the thought of buying a policy, don’t worry – you can still make an informed decision when choosing a provider, and you can do so from the comfort of your own home.
Searching online for your new policy gives you access to a large number of providers without hassle. It could take you far longer to find the best policy that suits your needs and situation if you rely on a local source. At AccuQuote.com, we will help you compare the rates, features, and financial strength of hundreds of policies. You can compare quotes from various carriers to determine which policy matches your needs and budget. Get all the information you need to make an informed buying decision about which policy is best for your family’s current and long-term financial needs.
1. Our experts know and understand the specifics of the insurance business
2. We have been delivering value to our customers for over two decades
3. We combine instant quotes with the personal service of our unbiased professionals
4. Whether in California or elsewhere, our service is FREE
5. Our strong customer support team can answer your questions, identify important issues, and make meaningful recommendations, to help you find the coverage you need, at a price you can afford.
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