Understanding Life Insurance Plans In California

There are a number of life insurance plans available and you need to get the best out of the policy you buy for the money you pay. Therefore, you need to exercise a bit more care in choosing a plan. Some of the crucial aspects you need to look for in a life insurance plan include the kind of insurance that will best address your specific needs, the total cost you will incur and whether you can afford it, and the question as to what health rating you can qualify for. These questions will enable you compare between the different life insurance plans using these parameters.
The two major kinds of life insurance plans available in California are whole life and term life insurance. On account of the high premiums of the most kinds of whole life plans, they have rather become less popular over the past two decades.  These two types of policies differ between them in more than one way. Whole life insurance policy is valid for the life time of the subscriber. The cash value of the policy builds up over this long period. Therefore, if you have to cancel the policy sometime in 10, 20 or 30 years, there are chances that you will get back a fair amount of money depending on for how many years you have paid the premiums. Finance experts like Dave Ramsey and Suze Orman strongly recommend term life insurance plans for a good number of reasons. They say that term life insurance policies offer a greater amount of coverage for the fraction of the cost of the whole life policies. 
Yet another difference that distinguishes term life policies from whole life policies is this. The term life periods have a specific period of coverage and they come with level premiums payable over this period of 10, 15 or 30 year time frame. Most people choose to lapse the policies once they pay off the level premiums over the initial period. One reason for this could be that the renewal premiums cost too much.  
The other kinds of life insurance plans marketed in California include Return of Premium, No Exam Life Insurance, and Guaranteed Issue. Return of premium life insurance plans will refund 100% of the premiums you paid if you continue to live after the end of the policy term. The traditional life insurance policies require a medical examination of the subscriber. However, there are also policies that do not require this procedure. While these kinds of plans were considerably expensive in the past, some insurance carriers like Fidelity Life Association have done a commendable job by streamlining the process and have made the policies quite affordable. 
For those individuals with considerable health issues, the State of California has introduced some guaranteed issue life insurance policies like the President’s Guaranteed Issue Option. Laws mandate that these kinds of policies must be sold face to face. Subscribers to life insurance plans must decide how much coverage they require. There are some websites offering free calculators to ascertain your coverage requirements based on your commitments. You can take the help of such tools to decide the kind of policy you will require.