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Life Insurance Chico CA

Life Insurance ChicoDetermining what type of Chico Life insurance plan and how much to buy can be a daunting task. Brines Insurance can easily help you understand Life Insurance terms, help you figure out how much you need and find the Life Insurance plan that is right for you and your situation.

Use the following information to get comfortable with Life Insurance terms and confident that you will choose the plan that will best protect your loved ones.

Types of Life Insurance in Chico CA

There are two basic types of life insurance:

  1. Term Life Policies: Offers death benefits. If you die during a certain time frame, the policy pays out a specified amount of money.
  2. Permanent or Whole Life Policies: Offers death benefits plus a“savings account” or “cash value” that, as you build it up, can be borrowed against.

Term Life Insurance

This is the more affordable and popular option of Life Insurance for people wanting to provide financial support for their loved ones in the event of their death. It is also, the easiest to understand. Term Life Insurance is purchased in certain, pre-determined lengths of time, known at terms. Typical terms are 5, 10, 15, 20 and 30 year terms. If the insured person dies during the pre-determined term then a specified dollar amount of money will be paid to the beneficiaries (loved ones). If the insured person does not die during the term, then the policy may be able to renew reflecting a new rate determined by factors such as age, lifestyle and current health.

Whole Life Insurance or Permanent Life Insurance

Whole life insurance policies or Permanent life insurance policies continue at a flat premium until the insured person dies, thus, whole life or permanent. These policies also offer more features and benefits than term life insurance. One of the appealing benefits of a whole life policy is that it can accumulate a cash value that is offered on a tax-deferred basis. This cash value can be used at times during the life of the insured when it may be needed. It can be borrowed against for loans for medical bills, student loans or whatever the insured may need the money for. Loans against the cash value will accrue interest and decrease the death benefit.

Why buy Life Insurance

Life Insurance in Chico CA is an important consideration regardless of age or health when others depend upon your financial support. As an important member of your family, you contribute to the livelihood of others and they depend upon this support. In the event of your death, your family can suffer not only the loss of you but, the loss of your income which can have devastating affects. Purchasing a life insurance policy will provide your family with the financial support and security it needs in the event of your absence.

Where to buy Life Insurance

We all see ads everyday for life insurance. We can buy online, over the phone, directly with insurance companies or by using a local agent. Using a local insurance agent, like Brines Insurance can provide significant benefits. Local agents usually have access to several life insurance companies so, you can get multiple prices at one place; they can help you better understand the terms and benefits of the different plans; they can help you calculate how much life insurance you need; they can provide personal and local service year after year and they can evaluate your needs each year to be sure you continually have the right amount of coverage as your situation changes throughout life.

What are Annuities

Now that we are living longer and longer, the worry of outliving our income and investments is more prevalent. An annuity is a long term investment issued by an insurance company designed to help protect you from the risk of outliving your income. Annuities can provide you with a steady income for a set term or for life.

There are many types of annuities to choose from including:

  • Variable – You choose the investments and risk of those investments. Your earnings and the payout is determined by those investments
  • Immediate – Usually purchased with a lump-sum investment or payment and then payout back to you starts almost immediately with a guaranteed income
  • Fixed – The principle investment and earnings are both guaranteed and fixed payments are made for the term of the contract
  • Fixed Indexed – Returns on investments and contributions are based on a specified equity based index like the S&P 500. If you think an Annuity might be good for you, contact our friendly and knowledgable staff to discuss your options and find a develop a plan that is right for you.

More Information on Life Insurance in Chico CA

If you are interested in learning more about the Life Insurance in Chico California, please feel free to read some of the informative guides from the California Department of Insurance or give us a call (530) 895-0110!