The trick is to find a California life insurance with the right coverage for you and your family. It should be sufficient, without the perks that you will not likely use. Before you shop around for a life insurance policy, let’s take a look at the different factors that you should be looking into.
1. For whole-life insurance policies in California, get one that is worth 8 to 10 times of your annual income. This is a comfortable figure that most households can afford and live by. However, it can vary according to your purchasing power and health insurance needs. You should find out with your insurance agent how you can arrive at such a policy, then weigh your options to get the best deal.
2. Consider your mortgage, trust fund, and other expenses. Next to your goal, your financial circumstances should be considered when choosing a life insurance policy. Look ahead and imagine a monthly budget with your life insurance premiums already included. Make sure that what remains is still enough for the family’s everyday needs. Anticipate future expenses for your kids, as well, like marriage, college tuition, etc.
3. Calculate the tax savings you can get from each California life insurance plans. Once presented with a number of insurance options, find out how much tax savings you can get from each one. It is likely to differ from one policy to another. You can choose the life insurance policy that maximizes your tax savings, but it should be in no way a determining factor in your choice of plan.