Los Angeles Life Insurance FAQs
Buying the right type and the right amount of Los Angeles life insurance can be a confusing
process, especially if you are just beginning to research the best life insurance policy for you
and your family. There are many questions to consider and there isn’t a one-policy-fits-all
answer. Although you will definitely want to discuss all of your options with a reputable Los
Angeles life insurance agent who will provide recommendations based on your specific needs,
here are some life insurance FAQs to get you started:
How much life insurance do I need?
The amount of Los Angeles life insurance you need depends on your individual circumstances
and may need to be modified several times during your life as your family grows and your
assets increase. The general rule of thumb is that your life insurance equals six to eight times
your annual gross income. However, there are many important factors to take into account:
The number of individuals who are financially dependent on you
Income sources and amounts other than your salary earnings
Whether you are married and, if so, your spouse’s annual gross income
Whether you have any special Los Angeles life insurance needs, such as mortgages,
estate planning, college funding, etc.
The amount of death benefits payable from an employer-sponsored life insurance plan
and social security
What is term life insurance?
Term life insurance provides protection for a specific period of time, and it only pays a benefit if
you pass away during the term. Term life insurance is a popular option because it is generally
inexpensive when you purchase it at an earlier age and benefits can be used to pay off
What is whole life insurance?
As long as you pay the premiums, which will be higher than term life insurance, whole life
insurance remains in effect throughout your lifetime. Whole life insurance policies are
especially beneficial if you want to use your Los Angeles life insurance as collateral for loans or
receive cash payments while you are still living.
What is universal life insurance?
Universal life insurance gives you permanent insurance protection, but it is more flexible than
whole life insurance because it allows you to select the amount of protection that best fits you
and your family. You can increase or decrease your universal coverage as your Los Angeles life
insurance needs change, and have more control over the amount and frequency of payments.
Whom can I name as a beneficiary?
Your beneficiary is the person or persons for whom you will want to provide financial support
when you pass away, and is typically a spouse, children, or other relatives. However, remember
that you may need to update your Los Angeles life insurance policy as circumstances change.
For instance, if your spouse becomes unable to handle financial matters or you get divorced,
you may need to review and modify the beneficiary designation on your policy.
Can I name my estate as beneficiary?
The short answer is yes, but it may not be the best option for a variety of financial
considerations. For example, many state laws dictate that life insurance benefits paid to an
estate must go through a probate process before your beneficiaries can receive the proceeds of
your policy. You will want to speak with your legal advisor to discuss the financial implications
of naming your estate as your beneficiary.
Do I have to take a medical exam?
Medical exam requirements vary depending on the Los Angeles life insurance company, but
most will require some form of exam to obtain an objective evaluation of your health. As you
might imagine, the results of a medical exam will influence the type and amount of life
insurance for which you are eligible. One of the most important health factors is whether or not
you smoke cigarettes. Due to the increased mortality risk associated with smoking, smokers
almost always pay higher premiums and, in some cases, may be denied Los Angeles life
These are likely just a few of the questions you have about life insurance. Get all of the answers
you need to choose the best type and amount of insurance for you and your family when you
meet with a trustworthy Los Angeles life insurance agent. Learn more about life insurance by
visiting www.KellyWilliamsIns.com or calling 562.498.8661.
About Kelly Williams:
Kelly Williams is the president of Kelly Williams Insurance, a boutique, full-service Long Beach
insurance company specializing in all lines of insurance including auto, home, life, health, and
business. Kelly Williams Insurance was founded in 1895 and is based in Long Beach, California.
The insurance company also serves Orange County and Los Angeles County. Visit
www.KellyWilliamsIns.com or call 562.498.8661 to learn more about the company’s personal
and business insurance products.