How to Explain Life Insurance in California to a Loved One Who Thinks It’s Morbid
Life insurance is all about death, right? Who wants to think about that now? We’re in the prime of our lives.
Maybe you’ve heard arguments like that from your partner or loved ones who shudder at the mere mention of life insurance. They think it’s morbid, focusing more on death than life — despite the name of the coverage.
What they’re missing is all the life-affirming aspects of having this type of coverage. Here are just a few.
Life Insurance Provides Policyholders in California with a Lifetime Sense of Security
Perhaps you’re too young to spend sleepless nights thinking about what will become of your loved ones when you’re gone — but that time might come. Besides, unexpected things can happen even to the young and healthy.
With a life policy in effect, you won’t have to worry about a stay-at-home spouse who’s been out of the workforce or young children who need to somehow be fed, housed, and educated for years to come. You won’t fear the cost of college or a trade school to keep your children financially secure as adults. In addition, your policy might serve as a generous inheritance years down the road.
The point is, a life policy makes your life easier by removing financial stress points for you and your family. If you have less reason to fear the unexpected, you can better enjoy your day-to-day and trust that you’ve gifted your family with financial security in California even long after you’re gone.
Your CA Whole Life Insurance Policy Is Guaranteed to Pay Off
There are several types of life insurance, but two leading forms are term life and whole life. Term life covers the policyholder for a specified period of time. If you take out a 10-year policy, your beneficiaries will be paid the death benefit if you die within that timeline.
Term life is a great policy to consider if your goal is to protect young children until they get through college or perhaps during the first several years of starting your own company in California.
A whole life policy works differently. As long as you keep paying your premiums, your loved ones are guaranteed an eventual payoff.
Think about that. In most cases, when you buy coverage you don’t want to have to use it. You own home insurance, but certainly don’t want to see your house burn down, and you don’t want to get into a major road accident just because you have car insurance.
To put it another way, your best case scenario is that your policies sit there unused. However, with whole life insurance, a major payoff — perhaps $250,000, $500,000, or more — is guaranteed to one day be paid to those you love and wish to financially protect.
No one looks forward to lives ending, but it is inevitable. Only with a whole life policy do you know with absolute certainty that your loved ones will be financially protected for years — maybe for their entire lives — as a result of your generosity and foresight today.
In Some Situations, Life Insurance Can Benefit Californians Now
While the main reason to keep a life policy in force is to protect loved ones when you’re gone, there are situations in which your policy can offer more immediate benefits. For instance, many whole life policies let you borrow the cash value as your policy grows.
In this scenario, you might borrow a few thousand dollars during times of financial emergency. In that case, your withdrawal will be treated like any loan. Just keep in mind that if you die before you’ve paid back the loan and interest, the amount will be deducted from your death benefit. For instance, if the unpaid amount you borrow and the accumulated interest equals $10,000, that will be removed from a $200,000 policy upon death, so your loved ones will actually receive $190,000 in benefits.
Some policies also include living benefits, in which case you can receive benefits while still alive if you have a terminal illness or certain serious medical conditions. Ask your agent for details before obtaining coverage.
There’s Never a Better Time Than Now (Literally) to Purchase Life Insurance in California
You’re probably used to hearing advertising that urges potential buyers to act fast because “There’s never a better time than now.” It’s an advertising call to action, but it’s literally true when it comes to life insurance.
Think of life insurance as a bet accepted by the insurer that you’ll live long enough that the company will profit off the premiums you pay before they have to pay your beneficiaries a death benefit.
The younger and healthier you are, the cheaper those premiums will be. As our birthday totals go up, so too does the risk to the insurer. So if you’re healthy and in your 20s or 30s, your premiums will be much cheaper than if you’re in your 50s, 60s, or beyond. Make sense?
But even if you’re older, you’ll pay less now for coverage right now than you will in another year or two. So you can see the accuracy of the claim that the time is never better than it is today to buy life insurance to protect your loved ones.
Life Insurance in CA Isn’t Morbid After All
From what you’ve just read, you’ll hopefully see that life insurance is actually a life-affirming benefit. It’s really for the sake of the living, as well as the sense of well-being of the policyholder. What’s morbid about that?
If this has raised additional questions about life insurance and the type of protection that’s right for you and your loved ones, consider consulting an independent agent. Your agent’s job is to find the best coverage at an affordable price.
Get Affordable Life Insurance in California Today
If you’re thinking about life insurance, contact one of our independent life insurance agents at (800) 390-4071 or get a quick quote online. You can also find a Cost-U-Less location near you.