Life insurance is the cornerstone of a solid financial plan
Life insurance pays a death benefit to the people or causes you name if you die while the policy is in force. The main types fall into two families. Term life covers you for a set number of years at a level premium and has no cash value. Permanent life, which includes whole, universal, and indexed universal life, is built to last a lifetime and carries a cash value that is a feature of the contract, not an investment. The right type follows from what you are protecting and for how long. Every policy issued in California carries a set of protections written into the Insurance Code that do not depend on which type you choose.
Schneiderman Insurance Agency has written life insurance for families and business owners across the San Fernando Valley and greater Los Angeles since 2011. This page is the starting point: what the coverage does, who it is for, how much to consider, and what California law guarantees before you sign.
What can life insurance cover?
A death benefit does whatever the people receiving it need it to do. In practice that means replacing the income a household depended on, paying off a mortgage so the family can stay in the home, and funding children’s education. It also means covering funeral and final expenses, paying estate tax so heirs are not forced to sell a business or property, and buying out a deceased co-owner’s share of a company. Permanent policies also hold a cash value the owner can borrow against or withdraw, which reduces the death benefit until repaid.
What does California law guarantee on every life policy?
Four protections apply to every individual life policy issued or delivered in this state, whatever the carrier and whatever the type. The policy becomes incontestable after no more than two years in force during your lifetime, except for nonpayment of premium, under Insurance Code section 10113.5. It carries a grace period of at least 60 days from the premium due date, during which it stays in force, under section 10113.71. It cannot lapse for nonpayment unless the insurer has mailed notice at least 30 days beforehand to you and to a person you named to receive it, under section 10113.72. The insurer must give you the form to name that person before the policy is issued. And you have a free-look period of at least 10 days after delivery, 30 days if you are 60 or older. During that period you can return the policy for a full refund under sections 10127.9 and 10127.10. Under section 10110.1 you have an unlimited insurable interest in your own life and may name any beneficiary you choose.
These Insurance Code sections are as published by the California Legislative Counsel at the time of writing. The Legislature amends them from time to time, and that office publishes the current text.
Who is life insurance for?
Parents who want children protected through school and beyond. Couples with a mortgage or shared debt. Business owners who need key person coverage or a funded buy-sell agreement. Anyone who wants final expenses covered so the family is not left with the bill. Couples whose estate will exceed the federal exemption, for whom a second-to-die policy exists. Families considering children’s or juvenile coverage to lock in insurability early, once the earners are covered.
How Much Life Insurance Do I Need?
The number depends on who relies on your income and what would still have to be paid if you were gone. That means income to replace, the mortgage and other debts, children’s education, final expenses, and any business obligations. Add those, then subtract savings and the coverage that would actually survive. Group life through an employer usually does not; under Insurance Code section 10209 it converts to an individual policy only within 31 days of leaving, only into a permanent policy, and at your attained-age premium. Work the number on how much life insurance you need, then let the duration of the need decide the type on how the policy types compare.
Start Your Life Insurance Quote
We start with your goals and budget, walk you through how each policy type actually works, and help you decide what fits. Term life insurance is where most first policies start. Among permanent designs, whole life insurance holds a fixed premium and contractual guarantees. universal life insurance allows flexible premiums and needs regular review to stay funded. indexed universal life insurance credits interest by reference to a market index within a cap and a floor. Return of premium term refunds premiums at the end of the term for a higher cost. Each page states what California law guarantees and what the illustration cannot. We serve clients across California and stay available after the policy is in force, including the in-force illustration review that permanent policies need. Every household is different, and none of these pages replaces a review of your own situation. To start, use the quote button below or call 818-322-4744.
Areas we serve
We write life insurance across the San Fernando Valley, greater Los Angeles, the Conejo Valley and Ventura County, the Santa Clarita Valley, and the South Bay, from our office in Granada Hills. For local detail, see life insurance in Granada Hills, Thousand Oaks, and Irvine. Or browse all the areas we serve in California.
