Life Insurance provides peace of mind, and helps protect your family for the future. Although it can be a solemn subject, it is an important subject to be addressed when you have others that depend on you financially. The # 1 reason to get life insurance is to ensure that those who survive you will be financially safe and free of debt. Other reasons would be to ensure that your family can pay the bills for a long period of time. We also see a lot of new parents getting life insurance to make sure their child is taken care of and that their education will be paid for. There are various types of life insurance available to you: the most common is Term Life and Universal Life (Whole Life), with the former being the most popular.
With Term Life insurance, San Francisco residents can choose the amount of years (up to 30 years) they wish to have coverage, for up to 30 years. Life Insurance limits are usually determined by your annual income, and you would not exceed 10 times your annual income on your Life Insurance Benefit. There are different endorsements that you can add to enrich these policies, the most common being the Return of Premium Rider. Usually this will double your annual premium from a standard term policy, but it will give you all of your money back if you are still around at the end of the term; a plan policy ideal for someone that is under the age of 40.
There are also long term care riders that can be added in case you were in a state where you would need to be taken care of on a daily basis, and the money in your life insurance benefit can be used to cover such expenses.
Universal Life policies were very popular when interest rates were much higher than they are today. With premiums being substantially higher than term life, we currently cannot recommend this product. Universal Life products do however allow you to have life insurance coverage for your whole life. If you keep paying your life insurance benefit continues. It becomes increasingly hard to keep up with these payments if you are left with a fixed retirement that does not give you the luxury to pay for such a high expense.
Rates for Life Insurance in San Francisco are determined by overall health, age, type of life insurance, and limit of coverage. After we start the process of applying for Life Insurance, a blood and urine exam will be ordered for you. This will give the life insurance company an up to date look at your health. This will determine you’re rate level. If you are a smoker, you can expect your rate to be much higher.
- It’s best to have the blood and urine test in the early morning before you eat. This will help keep your cholesterol levels down.
- When you apply for Life Insurance you are locking in your rate for the whole term. That is why it is always best to not wait until you get older. Every year you become older the higher the life insurance rate.