Best Life Insurance Companies in Chico

Frequently Asked Questions

• Is there a catch in the ads of life insurance companies in Chico claiming “you can not be turned down"?

  The ads in Chico claim that applicants cannot be turned down because this insurance does not require health exams, hence the name. Such insurance is offered by insurers who balance risks by charging higher premiums or lowering coverage amounts. In most cases, these ads are for guaranteed life insurance policies, which may be a good option for consumers who are unhealthy but may cost more through the years than what can be obtained in benefits.

• How can you cancel a term life insurance in Chico?

  You can cancel a term life insurance in Chico by not paying your premiums and letting your policy lapse, usually after the 30-day grace period. Other ways to cancel your insurance would be to write a letter or call your insurer. Terminating your term life insurance at any point does not entail penalties. Also, you may be able to get your money back if you cancel during the free-look period.

• What are the usual exclusions in a life insurance policy in Chico?

  Death by suicide is the most common exclusion in a life insurance policy. However, this exclusion applies only for a certain period, which is two years in Chico and throughout California. Death from criminal activities is typically excluded from life insurance. Some less common exclusions include death during wartime or those related to dangerous hobbies or aviation incidents.

• Should married couples in Chico each have their own life insurance?

  In certain situations, it makes sense for married couples to insure themselves. One is when both spouses are working to support the household, whereby the death of one can cause financial hardship to the family. Another situation would be if the couple has accumulated a lot of debts or has increasing expenses. In these cases, married couples in Chico can opt to buy separate or joint life insurance.

• What happens to the cash value component when the insured in Chico dies?

  In most cases, when the insured passes away, the beneficiaries will only receive the death benefits no matter how much amount was accumulated in the cash value component. If there are loans, these will be subtracted from the death benefits in Chico. There are some whole life insurance policies that pay out both the cash value component and death benefits.

• Which is better, term or whole life insurance?

  Life insurance is a personal financial tool, so the right type of insurance for you depends on your goals and current situation. One of the main differences between term life insurance and whole life insurance is that term life insurance only covers you for a set period of time. Once you meet the premium payment requirements on a whole life plan, it covers you for the rest of your life. Whole life insurance also builds cash value, making it a potential investment. But whole life insurance is typically much more expensive than term life insurance.

• How much life insurance do I need?

  A common recommendation is purchasing life insurance that is equal to five times your current salary, or more. But you can also estimate how much life insurance you need by adding up your debts, annual expenses for dependents multiplied by the years you want to ensure support, and any other items you wish to cover, such as a future wedding or college tuition.